US tax overhaul hits UBS earnings with a $3 billion writedown

US tax overhaul hits UBS earnings with a $3 billion writedown

Ermotti foresees a decide up in volatility, significantly within the second a part of the yr, however he stated the corporate must be cautious in regards to the sort of volatility that lies forward. “We now have to concentrate to what we’re wishing for right here, if volatility is triggered by sudden adjustments within the macroeconomic setting, which we do not count on, extra significantly geopolitical occasions, that would not be a welcomed volatility for positive,” he stated.

“Typically I’m not snug (with the political backdrop). If I have a look at the radar display of geopolitical occasions, I do not suppose anyone on the earth could possibly be snug with what we see, as a result of I see no situation disappearing from the radar display and I see an increasing number of stuff coming into the radar display,” Ermotti famous.

The Swiss financial institution can also be cautious in regards to the constructive impression that rising U.S. rates of interest would possibly even have on margins, on condition that charges are nonetheless very low within the euro zone and unfavorable in Switzerland.

“A bit of little bit of a headwind once you speak about unfavorable charges in Switzerland is an understatement,” Ermotti stated.

“I do suppose that the low charges setting continues to be going to stick with us for the foreseeable future. I’d suppose within the subsequent 12 months could be very troublesome to see how Europe and Switzerland will get out of that setting,” he stated.

Shares of UBS have been down 2.5 p.c within the early hours of European buying and selling on Monday.