Good morning! Donald Trump has pleaded not guilty to 34 felony charges, including an accusation that he used illegal hush money to boost his electoral prospects in 2016. US Federal Reserve officer Loretta Mester has also warned higher borrowing costs will remain in effect for longer. Meanwhile, Chinese President Xi Jinping has welcomed French President Emmanuel Macron on a diplomatic visit, while Swiss banking giant UBS Group revealed a major bank merger deal crafted over many years.
The potential legal and financial repercussions of Trump’s indictment are immense – and people are watching. Trump has rejected claims of wrongdoing and accused New York prosecutors of carrying out a politically motivated attack. The result could be higher borrowing costs and a suite of policy changes, as the Fed attempts to curb levels of inflation.
UBS Group is also turning heads. After clients withdrew tens of billions of dollars from one of its nearest competitors earlier this year, Chairman Colm Kelleher teamed up with Morgan Stanley advisors to create a major merger deal. Their collaboration resulted in a major takeover of Credit Suisse Group, one of the biggest bank deals ever.
Xi Jinping is aiming to cultivate closer ties with France, as the Chinese leader welcomes Emmanuel Macron for a three-day visit. Macron will travel outside of Beijing, a rare honor for Xi, and the the two leaders are expected to have extensive face time. These diplomatic discussions have come on the heels of strained relations between China and the US, as the two superpowers spar over a variety of issues.
Finally, traders and investors may be in for a nerve-wracking week as US employment figures are set to be revealed over the extended weekend. Data such as change in nonfarm payrolls, average hourly earnings and the unemployment rate could mean a change in the stock markets when they reopen. Looking to external indicators to provide clues, investors should keep an eye on the U.S. dollar, treasury yields and Bitcoin to get an idea of the direction in which markets are headed.
UBS Group is a global financial services firm based in Zurich, Switzerland. Since its founding more than a century ago, UBS has grown to become one of the world’s largest wealth managers and a leading provider of retail and commercial banking services. With a presence in over 50 countries and over 30,000 employees, UBS services over 1 million private and institutional clients worldwide.
Colm Kelleher is the current Chairman of UBS Group. Born in Dublin and educated at the University College Dublin, Kelleher began his career at Morgan Stanley in 1988. Since then, he has held a number of senior management positions at various banks and corporations. As the current Chairman at UBS Group, Kelleher has been involved in the largest bank merger deal seen in years.