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An external auditor should examine the matter of shading at Credit Suisse.
(awp / sda / reu) Credit Suisse has been abandoned in court with an appeal related to the shadow of former top executives. The Federal Administrative Court ruled that the appointment of an auditor by the Swiss Financial Market Supervisory Authority (Finma) met the necessary requirements after the bank questioned the independence of the expert. “We take note of the court’s decision and will review it,” a Credit Suisse spokesperson said Wednesday.
Credit Suisse CEO Tidjane Thiam and COO Pierre-Olivier Bouée stumbled upon surveillance by former star manager Iqbal Khan, which was made public in the fall of last year, and a similar second case. As part of the matter, Finma had installed an independent auditor at the second largest Swiss bank.
- Former Novartis manager Thomas Werlen should do it: Finma orders an assistant sheriff in Credit Suisse’s shadow affair
(awp / sda) There have been two changes to the Swiss Board of Directors. The two board members, Harry Hohmeister and Ulrik Svensson, resigned from the supervisory board in early April. They were replaced by two long-standing Lufthansa managers.
Former Swiss CEO Hohmeister has resigned from his post to focus entirely on crisis management for the Lufthansa Group, Swiss said on Wednesday. In the course of the Corona crisis, Hohmeister had taken on additional duties in the Lufthansa Group that would require it. Due to the pandemic, the Lufthansa Group closed more than 90 percent of its fleet and put employees to work for a short time.
Hohmeister had been a Swiss CEO for six years until he moved to the Lufthansa Group headquarters in early 2016, where he assumed a new management position. Soon after, he also joined the Swiss Board of Directors. At the same time as Hohmeister, Lufthansa’s Chief Financial Officer Ulrik Svensson resigned from his position for health reasons and therefore also left the Swiss Board of Directors.
At the extraordinary general meeting on April 3, the two executive boards of the Lufthansa Group, Christina Foerster and Detlef Kayser, were recently elected to the board of directors of the Swiss airline, as announced by Swiss. Foerster is responsible for the “Customer and Corporate Responsibility” department at the flight company earlier this year. Previously, she was the director of the Swiss sister airline Brussels Airlines. She has been with the Lufthansa Group since 2002.
For her part, Kayser has been a member of the Executive Board of Deutsche Lufthansa AG since the beginning of 2019 and is responsible for the Department of Airline Resources and Operations Standards. Kayser Aerospace PhD joined the Lufthansa Group in January 2016.
The Swiss Board of Directors is now made up of Reto Francioni (President), Doris Russi Schurter, André Blattmann and the two new members Christina Foerster and Detlef Kayser.
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Cooperative life insurance Pax belongs to the handful of insurers that still offer full insurance in Switzerland for professional pensions (BVG). Last year, great caution was exercised when subscribing to new businesses, as explained by Peter Kappeler, Managing Director of Pax.
The reasons for this were very low interest rates and, above all, the BVG reform, which has not yet progressed well. Pax started the new year with a defensive investment portfolio, but the post-hedge capital ratio was only 3.3%. Looking at the outlook for the current year, Kappeler expects premium income to decline in the second half of the year due to the recession caused by the crown pandemic. Periodic premium income is likely to suffer due to pressure on BVG wage taxes.
In 2019, premiums on private provision fell 2% to CHF 353 million. In the BVG business, gross premiums even fell 10% to CHF 474 million. New contracts for a total of CHF 34 million were concluded. Resinous growth. A key reason for the high levels of retirement was that clients increasingly opted for semi-autonomous pension solutions; Unlike full insurance, clients bear the risk of the savings themselves.
Pax does not offer such solutions, which will probably help you in 2020, which is likely to be very volatile. Pax then increased its stake in online insurer Dextra to 44.4%; The company is in a development phase and is not yet making a profit.
Even with a defensive investment portfolio, i.e. a low share weight, life insurance reached a jump in earnings in 2019 to CHF 14.3 million. The surplus fund was able to benefit clients with CHF 17 million (previous year: CHF 13.5 million). Be supported. Strengthening the capital base, according to the Swiss Solvency Test at a rate of 180%, offers a protective shield in now inhospitable times.
dba. After the two big banks UBS and Credit Suisse and Bank Julius Baer, EFG will now pay the dividend in two tranches on the recommendation of financial market regulator Finma. The bank announced on Wednesday that the first 15 cents a share after the Annual General Meeting on April 29 and the remaining 15 cents a share will be distributed in the fourth quarter of 2020, as long as economic and market conditions allow.
- Our comment: Banks and Finma get tangled up in the dividend issue
(dpa) The crown pandemic paralyzes the United States economy, millions of Americans have to cut corners, but the richest person in the world is getting richer. Amazon CEO Jeff Bezos’ fortune has increased by $ 24 billion to $ 138.5 billion since the start of the year, according to the Bloomberg Billionaires Index. The reason is the steady increase in Amazon’s share. It rose by a good five percent on Tuesday and reached a new record, which the group’s founder benefits as the majority shareholder.
Amazon CEO Jeff Bezos laughs: Amazon’s stock hit a record on Tuesday (April 14). The richest man in the world grew by $ 24 billion.
Amazon delivery services are in high demand in the Corona crisis. However, the world’s largest online retailer is struggling with the rush, many customers currently have to wait a long time or cannot order. Amazon is also accused of not doing enough to protect employees. The group faces protests and is criticized for controversial layoffs. However, this does not bother investors, despite the general drop in prices on the stock exchanges, Amazon shares have increased almost a quarter since the beginning of the year.
(reu / dpa) US aircraft manufacturer Boeing has to accept additional cancellations for orders for its 737 MAX aircraft. The Brazilian low-cost airline GOL confirmed 34 canceled aircraft of this type. GOL also said Tuesday (local time) that it had reached an agreement with Boeing on “cash compensation and changes to future orders and related payment plans.” “GOL remains fully committed to the 737 MAX as the core of its fleet and this agreement strengthens our successful long-term partnership,” said GOL chief Paulo Kakinoff. The airline is holding 95 orders for the Jetliner.
Boeing registered a total of 150 MAX cancellations in March alone, including 75 from Irish leasing company Avolon. Delays in restarting the MAX model resulted in a production stop in January. In the first quarter, 314 orders for the problematic steering wheel were canceled, which was banned after two accidents, as the company also announced Tuesday in Chicago. Boeing shares fell 4.3 percent in current trade.
(dpa) The crown pandemic is hitting the US economy in full force: unemployment is already rising rapidly, experts anticipate a deep economic recession. However, aside from some reliable data, such as the first application for unemployment benefits, so far, these are just forecasts that differ greatly in light of the unprecedented and confusing situation. Reporting season for American companies should now provide more reliable information on how bad it could really be. As of March, the March set of figures only covers the first month that the crown crisis really paralyzed the United States. However, these initial effects are already having a great impact on the balance sheets of many companies. Great attention will also be paid to the statements for the rest of the financial year.
Traditionally, US banks USA They start, this time they are not the trigger for the crisis like 2008, but they are still the focus. Industry leader JPMorgan Chase showed on Tuesday how precarious big money houses are. The financial giant suffered a 70 percent drop in earnings: Provisions of $ 8.3 billion (€ 7.56 billion) for credit losses looming in the Corona crisis depressed the result.
Competitors Wells Fargo worsened: Profits even fell 89 percent. The crown pandemic has led to exit restrictions in much of the United States; many stores and factories have had to close. Even now, many Americans can no longer pay their bills. Given impending bankruptcies and mass unemployment, banks have to prepare for an avalanche of loan defaults.
On Wednesday and Thursday, Bank of America, Citigroup, Goldman Sachs, and Morgan Stanley are other heavyweights in the US financial sector, their numbers are also here, analysts also expect significant losses here. The results for the first quarter only provide a preview of the severity of the charges. The biggest difficulty is just around the corner from the money houses: the economic downturn and zero interest rate policy of the US Federal Reserve are unlikely. USA Have a real impact until the current quarter.
(remorse) Two thirds of UK small businesses are temporarily sending some of their staff on government-funded forced vacations as a result of the recession. This is the result of a survey by the British Chamber of Commerce, which was published on Wednesday.
The UK government had promised to pay companies 80 percent of their labor costs if they took licensed employees instead of firing them. This system is expected to cost £ 42 billion in the coming months, according to estimates by observers for the country’s budget. The Responsibility Budget (OBR) estimate estimates that 30 percent of all employees would be on leave and that the coronavirus restrictions would remain in effect for three months, and then be partially eliminated. Even with financial aid, according to the OBR, unemployment could rise by about 2 million in the coming months, raising the corresponding rate to 10 percent of the workforce. Finance Minister Rishi Sunak is “deeply concerned” about the prospects. He never promised to completely prevent job loss.
(dpa) The United States government will support national airlines with a multi-million dollar rescue package due to the crown crisis. Ten airlines, including Delta, United, JetBlue and American Airlines, wanted to accept government support, the United States Treasury Department said Tuesday night (April 14, local time). With the help, a mix of grants and loans, employees’ wages must be paid primarily to avoid layoffs. According to media reports, the total is around $ 25 billion.
American Airlines is one of ten airlines that will accept the billion dollar rescue package from the US government. USA
American Airlines, for example, announced that it would receive approximately $ 5.8 billion from the government program. Of this, $ 4.1 billion is direct support, the rest is a low-interest loan. The airline also plans to apply for another $ 4.75 billion government loan. According to the company, the company employs 130,000 people worldwide. Southwest Airlines said the airline would receive approximately $ 3.2 billion in aid to maintain the company’s 60,000 jobs by the end of September. About $ 2.3 billion of this is direct aid payments.
Treasury Secretary Steven Mnuchin said the government wanted to finalize the deals as soon as possible and “pay the funds as soon as possible.” The government is also in talks with other airlines about the possible use of the aid. The wage continuation program was part of the $ 2.2 trillion stimulus package agreed in March. It is also open to other companies and industries. Many airlines around the world have largely stagnated as a result of the coronavirus pandemic, which is why many airlines now have financial problems.
Baselworld is losing more and more watch brands.
(awp / sda) The five Rolex watch brands, Patek Philippe, Chanel, Chopard and Tudor are turning their backs on Baselworld. You want to organize your own event at the Palexpo in Geneva together with the Fondation de la Haute Horlogerie. The decision followed a series of unilateral decisions by Baselworld management, the companies announced Tuesday. Baselworld’s decision to postpone the fair until January 2021 was also not discussed with the watch companies. Baselworld organizers also failed to respond to the needs and expectations of watch brands, the message says.
The new event will take place in early April 2021 and will be linked to Watches & Wonders Geneva, the former SIHH. In addition to the five brands, other brands may also participate in the new “watch program,” although conditions have not yet been established. The target audience for the new event should be primarily watch retailers, the media, and VIP customers.
(dpa) According to a court order, Amazon will limit itself to orders for food, hygiene and medical products in France. The online retailer failed to sufficiently meet its obligations to protect the health and safety of employees at its logistics centers in the corona virus crisis, the court in the Parisian suburb of Nanterre said Tuesday. Amazon must now perform a risk assessment on all warehouses and take the necessary health and safety measures.
Amazon said the company disagreed with the decision and was trying to “quickly understand what that means for our operations in France.” In the past four weeks, 1.5 million protective masks and 27,000 liters of hand sanitizer have been brought to French locations.
For each day that Amazon does not meet required safety and health standards, the court ruled that a fine of one million euros could be imposed. Union group Union Syndicale Solidaires had requested the injunction against Amazon. The union accused Amazon of failing to provide the facility with the camps to allow workers to take steps to prevent the spread of the Sars-CoV-2 virus.
(awp / sda / dpa) American pharmaceutical company Johnson & Johnson is now anticipating a decline in sales and profits due to the crown crisis. Sales are expected to be $ 77.5 to $ 80.5 billion this year, the company said Tuesday.
Previously, management had earmarked revenue of $ 85.4 billion to $ 86.2 billion, compared to the good $ 82 billion a year ago. Johnson & Johnson is spending more and more money on developing its own candidate vaccine for Covid-19 lung disease.
“We are firmly committed to starting production and associated risks early and making a cheap vaccine available to society,” said CEO Alex Gorsky. With product development, the group has no intention of making a profit.
However, the share increased about three percent before trade began in the United States. Shareholders can expect a higher dividend despite the crisis. The quarterly payment will increase from $ 0.95 in the prior year to $ 1.01, he said. For the full year, the dividend is expected to rise from $ 3.80 to $ 4.04.
Johnson & Johnson’s first-quarter sales increased 3.3 percent to $ 20.7 billion. Net income increased, excluding specialty items, by approximately nine percent to $ 6.15 billion. The real surplus increased by more than half to $ 5.8 billion.
The big bank in the United States has to accept a drop in profits due to the crisis in the crown.
(dpa) The prospect of high credit defaults in the Corona crisis caused major US bank JP Morgan to experience a sharp drop in earnings in the first quarter. Due to high provisions for vulnerable loans, net income fell about 70 percent on-year to just under $ 2.9 billion, the New York money house said Tuesday. JP Morgan made about $ 8.3 billion in risky loans, about five and a half times more than the previous year.
The special boom in stock and bond trading caused by the week-long turmoil on the stock market failed to even offset the negative effects. Although earnings in both segments grew in double-digit percentages, the bank’s adjusted earnings declined overall three percent to $ 29.1 billion.
Bank chief Jamie Dimon had already prepared shareholders for a sharp drop in earnings this year due to the crown pandemic. He expects the economy to experience a severe recession that could have an impact similar to the 2008 global financial crisis. However, according to Dimon’s account, JP Morgan is also well prepared for a severe crisis.
Swiss Re headquarters at Mythenquai in Zurich.
(awp / sda)
The reinsurer Swiss Re donates 5 million Swiss francs to people affected by the crown pandemic and its effects through the company’s own foundation. The money will be distributed to organizations fighting the crisis, particularly in developing countries, the group said on Tuesday. Of the five million, one million each goes to the International Committee of the Red Cross (ICRC) and the organization Doctors Without Borders (MSF). The remaining three million will be distributed to other partners of the foundation.
(sda / dpa) The economy must recover after the Corona crisis, but please in a sustainable way: this is what politicians, business leaders, unions, associations and experts from all over Europe demand. They posted a call on Tuesday.
“After the crisis, the time for reconstruction will come,” he says. Massive investments and plans for a rally at all levels should make protecting the climate and preserving ecosystems a central part of economic policy. The initiative was launched by Pascal Canfin, President of the Environment Committee of the European Parliament.
Last week, 13 European environment ministers asked not to forget the dangers of climate change and biodiversity in the wake of the Corona crisis, and to use the European Green Agreement as a framework to boost the economy.
(awp / sda) The Swiss National Bank (SNB) probably intervened in the currency market last week against the appreciation of the Swiss franc. This is indicated by the renewed increase in demand deposits in the SNB. Federal and bank deposits increased by CHF 6.9 billion to CHF 634.1 billion in a week, as announced by the BNS on Tuesday. That was slightly more than in the previous week, when BNS demand deposits had increased by about 6.7 billion. In the last five weeks, demand deposits have increased by a total of more than CHF 35 billion. That is already significantly more than in all of last year (13.2 billion) combined.
In mid-March, the BNS announced in the monetary policy assessment that it wanted to intervene more in the currency market due to the recent appreciation of the Swiss franc in relation to the Corona crisis. The BNS intervenes in the currency market by buying foreign currencies and crediting them to banks as Swiss francs in their BNS accounts. Therefore, demand deposits are considered a good indicator of interventions.
The Swiss franc, like the Japanese yen, for example, is considered a “safe haven” and has gained in value as a result of disruptions in the financial markets and concerns about the recession. This was also reflected in the development of the exchange rate against the euro. At the beginning of the year, the common European currency was still around CHF 1.10, most recently the price was CHF 1.0540.
According to experts, the provision of Corona loans may also have contributed to the increase in demand deposits at the BNS. For almost three weeks, banks have been providing Covid 19 loans for which the federal government guarantees. Banks can refinance with the BNS to grant loans.
According to the Finance Department (FDF), as of last Thursday, a total of 94,269 loan agreements had been concluded with an estimated volume of around 15.7 billion Swiss francs, according to the weekend press.
