CS AT1: It’s Not Over Till It’s Over
The Swiss Federal Administrative Court ruled that the decree to write down additional-tier 1 bonds during the government brokered deal between UBS and Credit Suisse was unlawful and should be revoked.
- The court has not yet decided on the reversal request with all other cases being now suspended until the decision regarding the revocation becomes final – The decision is subject to appeal to the Federal Supreme Court
- According to the ruling, bondholders’ property rights were interfered with as no clear and formal legal basis existed
- Prices of Credit Suisse AT1 bonds linked to these claims rose following the news
- On the other hand UBS shares fell after the announcement
Ongoing Negotiations in France
French Prime Minister Sebastien Lecornu proposed suspending the law that raises retirement age in attempt to increase political stability
- At the National Assembly Lecornu announced the suspension of the 2023 pension reform until after the 2028 presidential election
- The suspension of the pension law marks a symbolic defeat for President Macron and his view that the only way to repair public finances is via an increase in growth
- This decision by the Prime Minister was enough to win socialist support in Thursday morning’s no-confidence vote, in which both the far right and the far left have vowed to vote in favor
- A full suspension of the pension reform would cost 400 million Euro next year and 1.8 billion Euro in 2027 according to the finance minister
Some Signs of Easing for Silver
Spot silver prices retreated after hitting an all-time high, as a historic squeeze in London began to show some signs of easing, although supply remains remarkably tight
- Concerns about a lack of liquidity in London have sparked a worldwide hunt for silver, with benchmark prices soaring to near-unprecedented levels over New York
- The gap between silver prices in London and New York fell to about $1 an ounce on Tuesday, down from a spread of as much as $3 last week, as silver bars are set to arrive in London
OpenAI-Broadcom Agreement
Broadcom Inc. became the latest chipmaker to forge a blockbuster data center deal with OpenAI, triggering a rally that added more than $150 billion to its market value
- OpenAI agreed to buy custom chips and networking components from Broadcom to help power its artificial intelligence services, with plans to spend tens of billions of dollars more on Broadcom chips
- OpenAI had already struck deals for data centers and chips that easily top $1 trillion, and the company plans to spend tens of billions of dollars more on Broadcom chips
Disclaimer
The information, products, data, services and instruments contained or described in this publication are for information purposes only and constitute neither an advertisement or recommendation nor an offer or solicitation to buy or sell any product.
The financial products described in this publication are not suitable for all investors. The information contained in this publication does not represent any financial, legal, tax and/or other recommendations. Any investment or other decision should not be made solely on the basis of this document. Before making any investment decision, it is recommended that you seek a thorough examination of your situation and the advice of a qualified specialist.
Although the information contained in this document has been compiled by PKB on the basis of or with reference to sources, materials and systems believed to be reliable and accurate, PKB does not guarantee its currency, accuracy or completeness.
PKB accepts no liability, to the fullest extent permitted by applicable laws and/or regulations, for loss or damage of any kind arising directly or indirectly from the content, accuracy, completeness or otherwise of the content or any third party content referred to in this publication.
The analyses and forecasts contained in this publication are based on assumptions, estimates and hypothetical models which may prove to be incorrect and therefore lead to substantially different results.