UBS CEO says better early warning will help make banking safer
ZURICH (Reuters) - UBS CEO Sergio Ermotti on Wednesday urged authorities to improve their ability to detect problems at banks as he sought to find common ground over efforts to overhaul the Swiss banking sector following the 2023 demise of Credit Suisse.
UBS is at the heart of the debate on new regulations because of the significance it assumed when it acquired the stricken Credit Suisse, and the question of how much extra capital it should hold to be sufficiently robust is highly contentious.
The bank says saddling UBS with excessive capital demands would put it and the Swiss financial centre at a disadvantage, and in a memo to staff he posted online, Ermotti urged authorities to act prudently when drawing up new rules.
He backed key planks of reform proposals set out by the government and said it was important that authorities are able to detect potential weaknesses earlier.
"Public stress tests like those used in the U.S. and other jurisdictions can better pinpoint the strengths and weaknesses of financial institutions," Ermotti said.
He also backed steps that would address canceling and clawing back compensation from people who had been negligent.
Speaking earlier on at the European Financials Conference organized by Morgan Stanley, Ermotti said he expected more clarity in May on the capital requirements question, but noted that UBS does not control the political process.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Forbes
3 hours ago
- Forbes
Speculation Swirls Around Mystery Tesla Model
MELBOURNE, VICTORIA, AUSTRALIA - 2025/04/04: Tesla Model Y set for reveal during media launch of ... More Melbourne Motor Show 2025. (Photo by Alexander Bogatyrev/SOPA Images/LightRocket via Getty Images) A new Tesla model – possibly a minimalist version of an existing model – is slated to begin production this month, fueling speculation about what exactly it is. Tesla executives have been pretty clear about timing. 'We're still focused on bringing cheaper models to market soon. The start of production is still planned for June,' said Tesla chief financial officer Vaibhav Taneja during the first quarter earnings conference call on April 22. A June 2 Reuters story claims to confirm that the so-called $25,000 'Model 2' was canceled by CEO Elon Musk. This comes more than a year after Musk denied the original April 2024 Reuters report about cancellation of the project, saying at that time that 'Reuters is lying." The Model 2 – nomenclature used by analysts to designate a low-cost Tesla – was supposed to be a revolutionary low-cost vehicle that used Tesla's latest and greatest manufacturing technology to reduce production costs. Signs now point to a less radical design based on existing platforms. Reuters now reports that something much less ambitious called E41 is planned but claims it is delayed until later this year or early next year. That timing would seem to contradict what Tesla's CFO said (above) in the Q1 earning conference call, though Lars Moravy, VP Vehicle Engineering at Tesla, did mention that the 'ramp maybe -- might be a little slower than we had hoped initially" when referring to the future affordable models. Last week, a Model Y in camo wrap at the Tesla Fremont, Calif. factory sparked speculation that Tesla was about to start production of a new stripped down Model Y. But pushback on social media claimed that it was simply the unannounced Performance version of the Juniper Model Y. And camo-wrapped Model Ys have appeared elsewhere that appear to be the Performance version. That didn't stop speculation that the Fremont images appear to show different proportions than the standard Tesla Model Y, possibly shorter or more compact, which would be in line with a stripped down model. Unsupervised robotaxis will hit roads in Austin in June, Elon Musk said in an interview with CNBC. Unsupervised means the car has no human driver – like Waymo's robotaxi service. 'We have thousands of cars that are being tested,' Musk said, adding that initial deployment will be very small but Musk expects that "we will probably be at 1,000 within a few months" then expand to other cities such as San Francisco and Los Angeles. That event could also host new vehicles. Tesla has already demonstrated the radical-looking Cybercab. And it's probably not a coincidence that Tesla is also scheduled to start production of the new unannounced affordable model in June. That upcoming model is expected to use a mixed-platform approach, combining components from Tesla's next-generation platform and existing Model 3/Y architecture. The new affordable Tesla is expected to be autonomous-capable and FSD compliant.
Yahoo
3 hours ago
- Yahoo
Forecast: in 1 year, the Vodafone share price could turn £1,000 into…
The Vodafone (LSE:VOD) share price is off to a decent start in 2025, climbing by almost 12%, putting it ahead of its parent index. That's certainly a welcome change of pace compared to the downward trajectory the business has been on since early 2022. And looking at its latest results, this performance is also backed up by improving financials. Operations in Africa continue to grow rapidly by double-digits as the adoption of its mobile payment solution, M-PESA, captures further market share. Growth in the UK is now set to reignite thanks to the recently completed merger with Three, and performance across Europe's also bouncing back (with the exception of Germany). At the same time, higher free cash flow generation, along with non-core disposals, has paved the way for further debt reduction, improving the health of the balance sheet. And when excluding non-cash impairment charges, operating profits during the 12 months leading to March 2025 jumped 12% from €3.67bn to €4.1bn. Needless to say, this is all pretty encouraging news. And it seems CEO Margherita Della Valle's efforts to right the ship are finally starting to bear fruit. So if this turnaround continues, how much money could investors make from the recovery by buying £1,000 worth of shares today? The progress made so far has helped boost institutional analyst sentiment towards this business. While most continue to be cautious with a Hold recommendation, like the team at Barclays, some are more bullish. For example, UBS sees the fair value of Vodafone shares at 120p by this time next year if the firm can achieve its expected post-merger with Three operational efficiencies. JP Morgan seems to have drawn a similar conclusion with a price target of 110p, citing the incoming cost savings from the ongoing restructuring and expected performance boost in the UK market. If these projections prove accurate, a £1,000 investment today could be worth up to £1,564 within the next 12 months. As previously mentioned, not every institutional analyst is as optimistic as UBS or JP Morgan. Going back to Barclays, the banking giant has highlighted its concerns about competitive pressures in Germany – a fear shared by Goldman Sachs. According to their analysis, the fair value of the Vodafone share price is between 75p and 85p, which is roughly in line with where the stock currently trades. So which analysts should investors listen to? The group's weak performance in Germany is problematic. Vodafone has been losing market share for a number of years. Competitors have been offering cheaper alternatives at a seemingly higher quality based on customer reviews. Under Della Valle, client attrition in Germany has slowed (excluding the recent regulatory changes surrounding bulk TV contracts). Management's now allocating capital to improve the quality of customer services as well as accelerate the rollout of 5G & Fibre in the pursuit of boosting its net promotor score. On paper, this strategy sounds sensible. But whether it can be successfully executed remains a big question mark. And with 40% of underlying earnings stemming from this market, a failure to get Germany back on track could significantly adversely impact the business even if other markets continue to perform well. With that in mind, I'm leaning more towards the side of caution and keeping this business on my watchlist. The post Forecast: in 1 year, the Vodafone share price could turn £1,000 into… appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays Plc and Vodafone Group Public. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15 hours ago
- Yahoo
Why Lululemon Athletica Inc. (LULU) Crashed On Friday
We recently published a list of . In this article, we are going to take a look at where Lululemon Athletica Inc. (NASDAQ:LULU) stands against other Friday's worst-performing stocks. Lululemon fell by 19.8 percent on Friday to finish at $265.27 apiece following a disappointing earnings performance and outlook guidance for the rest of the year. In its financial statement, Lululemon Athletica Inc. (NASDAQ:LULU) said net income in the first quarter of the year dipped by 2 percent to $314 million from $321 million in the same period last year. Net revenues, on the other hand, grew by 7 percent to $2.37 billion from $2.2 billion year-on-year. A store employee in an athletic apparel store restocking merchandise. For the second quarter of the year, Lululemon Athletica Inc. (NASDAQ:LULU) expects net revenue to be in the range of $2.535 billion to $2.56 billion, representing growth of 7 percent to 8 percent. For the full-year period, it said targets net revenue to be in the range of $11.15 billion to $11.3 billion, representing growth of 5 to 7 percent. Following the guidance, JPMorgan and UBS both reduced their price targets for the company to $303 and $290, respectively, from $389 and $330 previously. Overall, LULU ranks 1st on our list of Friday's worst-performing stocks. While we acknowledge the potential of LULU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
