Weekly Market Update - 3 April 2023

UBS Cuts

UBS will cut its workforce by between 20% and 30% after completing its takeover of Credit Suisse, Swiss newspaper SonntagsZeitung reported. As many as 11,000 employees will be laid off in Switzerland, and another 25,000 worldwide, the newspaper said. Meanwhile, the Swiss Attorney General’s Office has opened an investigation into the government-brokered takeover of Credit Suisse and is gathering evidence to identify possible crimes. The prosecutor didn’t specify whether it’s looking for breaches of law by government officials, bank executives or journalists who reported on the closed-door negotiations.

Source: Bloomberg

OPEC Production

OPEC+ announced a surprise oil production cut of more than 1 million barrels a day, abandoning previous assurances that it would hold supply steady and posing a new risk for the global economy. It’s a significant reduction for a market where — despite the recent price fluctuations — supply was looking tight for the latter part of the year. Oil futures soared as much as 8% at the open on Monday, adding to inflationary pressures across the world that may force central banks to keep interest rates higher for longer and crimp economic growth. The White House said the new cuts were ill-advised.

Source: Bloomberg

Tesla Q1 Deliveries

Tesla delivered 422,875 cars worldwide in the first quarter, setting a record after it cut prices to appeal to consumers buffeted by rising interest rates and faster inflation. Tesla doesn’t break out sales by region, but the US and China are its largest markets. The overwhelming majority of sales were of the Model 3 sedan and Y crossover. Tesla slashed prices early in the year to boost demand after fourth-quarter deliveries disappointed investors. That sparked a price war in China that threatens to drive some rivals out of business.

Source: Bloomberg