UBS agreed to pay U.S. and U.K. regulators around $390 million in fines related to the investment firm Archegos Capital Management, whose collapse hammered Credit Suisse, a rival it acquired earlier this year. Credit Suisse engaged in “unsafe and unsound counterparty credit risk management practices” related to its dealings with Archegos, the Federal Reserve said. UBS completed its rescue of Credit Suisse in June, a merger forced on it by Swiss regulators after the smaller rival lost the confidence of clients and investors. The sudden unraveling of Archegos in March 2021 triggered more than $10 billion of losses across Wall Street trading desks. The family office, run by Bill Hwang, a longtime hedge-fund manager, took extremely concentrated and leveraged positions in a few stocks. When the value of the stocks plunged, Archegos was left owing billions of dollars to its lenders, who said they were unaware of the large positions Hwang had at rival banks. None was hit worse than Credit Suisse, which took more than $5 billion in damage. The failure to detect the risks associated with Archegos led to soul searching at the Swiss lender. Executives were fired, whole divisions were eliminated, and the bank set out to remake itself as a safer version of its previous self. But investors remained unpersuaded that Credit Suisse could reform itself sufficiently to exorcise the ghosts revealed by the Archegos debacle.

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After four trading days characterised by gains, the Swiss stock market closed with slight declines on Monday. The SMI dropped by 0.3 per cent to 11,178 points. Among the 20 SMI stocks, there were 13 price losers and 7 price winners. 14.03 (previously: 15.78) million shares were traded. Julius Baer's half-year figures were described as "very respectable". The shares climbed 8.4 percent. Although the profit figures were slightly below analysts' expectations, this was of secondary importance in view of the upheaval on the Swiss financial market, trading commented. Bär benefited from the fact that assets under management rose by 4 per cent to 441 billion Swiss francs - net new money inflows were over 7 billion Swiss francs since the beginning of the year. Daetwyler shares advanced 2.3 per cent. Jefferies attested a reasonable revenue growth with, however, high margin pressure and a weak outlook for the full year 2023. Meyer Burger shares shed 8.0 per cent as the company expects a marked loss for the first half of the year. While a new plant is to be built in the US, fierce competition from Chinese manufacturers will initially weigh on margins. Schindler shares were down 2.3 per cent despite two positive analyst comments. The analysts at UBS and Deutsche Bank raised their price targets and reiterated their buy recommendations.

Stocks in Europe struggled on Monday at the start of a busy week of central bank meetings and corporate earnings and after data showed business activity in the eurozone weakened in July. The Stoxx Europe 600 index closed up 0.1% on Monday, at 465.7 points. In Paris, the CAC 40 lost 0.1% and the SBF 120 was virtually unchanged. The DAX 40 in Frankfurt gained 0.1%, while the FTSE 100 in London added 0.2%. Madrid's IBEX 35 was down 0.3%. Automotive equipment manufacturer Plastic Omnium (+2.9%) confirmed its targets for 2023, as its first-half results exceeded analysts' forecasts amid an accelerated recovery in production. Property company Icade (-1.6%) unveiled new financial targets for 2023 to take account of the sale of its subsidiary Icade Santé, as well as a review of its activities and assets. Car manufacturer Stellantis (+1.5%) and Samsung SDI, a subsidiary of the South Korean group Samsung Electronics, signed a memorandum of understanding to build a second battery production plant in the United States as part of their existing joint venture StarPlus Energy. Irish airline Ryanair (down 6.1% in Dublin) reported higher-than-expected results for the first quarter, while indicating that traffic for the full 2023-2 financial year would be higher than expected.

U.S. Stocks climbed to start the week, extending the Dow’s winning streak to its longest in six years, while a blowout weekend at the box office lifted cinema stocks and pointed to strength in the consumer economy. The broad S&P 500 rose 0.4% Monday, and the Nasdaq added 0.2%. The Dow Jones Industrial Average gained 183.55, or 0.5%, its 11th consecutive day of gains. Most investors are counting on the Fed to raise interest rates by a quarter of a percentage point Wednesday, pushing the target rate above a floor of 5.25%, up from zero at the start of last year. Rising rates have been expected to cool the economy, but the still-hot jobs market, alongside falling inflation, is helping Wall Street discount the probability of a serious downturn. Mattel, the company behind “Barbie,” rose 1.8%. IMAX gained 2.9% and AMC Entertainment Holdings stock rose 33% after a judge on Friday rejected a settlement that would have let the company issue substantially more shares. Beyond Hollywood, energy stocks added to Monday’s gains, lifted by a better-than-expected profit Chevron posted on Sunday. Its stock added 2%, Halliburton’s rose 3.6% and Occidental Petroleum’s climbed 2.6%. Brent crude, the global benchmark for oil prices, advanced 2.1% to settle at $82.74 a barrel. Domino’s Pizza beat earnings forecasts but said that same-store sales stagnated as its customers responded to higher prices. The stock eked out a 0.1% gain.

Asian stocks were mixed. In Shanghai, the Composite Index gained 1.9 per cent. The Hang Seng Index in Hong Kong improves by 3.2 per cent. Among the industries that the Chinese government plans to support, besides consumer electronics and furniture manufacturers, will be real estate, which is struggling economically. Longfor's share price jumped 20 per cent. Country Garden Holdings rose by 14.3 per cent and China Resources Land by 8.8 per cent. On the Seoul stock exchange, the Kospi climbs 0.1 per cent after the South Korean economy grew slightly faster than expected in the second quarter. In Tokyo, the Nikkei 225 index loses 0.4 per cent. Among individual stocks, Nippon Telegraph & Telephone falls 2.4 per cent. According to reports, the government intends to sell its stake of the company.

Yields on U.S. government debt finished higher on Monday, reversing earlier declines seen after weak economic data from Europe. The 10-year Treasury note yield gained 2 basis points to 3.871%. The 2-year Treasury note yield rose by 5 basis points to 4.906%.

ABB target price: JPMorgan upgrades to CHF 32 (31) - Neutral

Rating Zurich Airport: Barclays lifts to Overweight (EW) - Target CHF 210 (174)

Target price Temenos: JPMorgan raises to CHF 78 (76) - Overweight

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