UBS plans to cut around 3,000 jobs in Switzerland over the next few years as a result of the purchase of its rival Credit Suisse, agreed last March and completed in June, as announced by the entity’s CEO, Sergio Ermotti.

“In Switzerland, from a proactive point of view, we expect that around 3,000 jobs will be eliminated in the coming years,” the banker said in an interview with Bloomberg TV, specifying that around a thousand of this adjustment will correspond directly to the decision to integrate the Swiss bank of Credit Suisse.

In this sense, the CEO of UBS has defended that in the case of having chosen to sell this Credit Suisse business, a cut of some 600 jobs would have been required, while the other 2,000 positions that will be eliminated respond to the needs of the restructuring.

Beyond the situation in Switzerland, the banker has recognized that in the banking sector it is very difficult to undertake a restructuring and extract synergies without affecting the workforce, although he has stressed that a large element of the cost adjustment is due to real estate planning, to the rationalization of legal entities and the closure of IT platforms, while factors such as wear and tear, retirement and internal mobility must also be taken into account.

“Having said this, of course, we are going to have to take some proactive measures in terms of layoffs in the coming years,” he admitted, after the purchase of Credit Suisse fattened the entity’s workforce by around 45,000 employees, to around 120,000 workers.

In this way, the CEO of UBS has highlighted that, since the beginning of the year, Credit Suisse has already carried out a workforce reduction of 8,000 people as a result of the cost measures that Credit Suisse had initiated and that have been accelerating in the second quarter.

Source: dpa

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The president of the International Monetary Fund, Kristalina Georgieva, warned this weekend about the implications of the recent banking crisis on global financial stability.

During her intervention at the China Development Forum, in Beijing, Georgieva referred to the possible risks for the world economy of the bankruptcy of banks in the United States and Europe.

The IMF chair noted: “At a time of rising debt levels, the rapid transition from a prolonged period of low interest rates to the much higher rates needed to combat inflation inevitably creates stresses and vulnerabilities, as evidenced by the recent developments in the banking sector in some advanced economies”.

She also highlighted the timely action of the governments of the United States and Switzerland in the face of the crisis presented by the Silicon Valley Bank and Credit Suisse.

However, she admitted that the bankruptcy of these financial institutions calls for vigilance to contain a domino effect, in addition to providing confidence to citizens.

M.Pino

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The president of the Swiss Confederation, Alain Berset, has informed this Sunday of the purchase of the Swiss bank Credit Suisse by the UBS bank and has given an account that the Government guaranteed 100,000 million Swiss francs on Thursday for the bank’s liquidity.

Given the situation of instability and the lack of confidence in the entity, the Swiss government has decided to “support the purchase of Credit Suisse by UBS”, Berset pointed out at a press conference from the Federal Palace in Bern.

“The situation is known, Credit Suisse is one of the 30 systemic banks worldwide. It is one of the two largest banks in the country. It is therefore not only decisive for Switzerland, for our companies, for private customers, for its own employees, but also for the stability of the entire financial system,” added Berset.

The Swiss leader has referred to the “significant turbulence” suffered in recent days by various financial markets. “This turbulence destabilized the most fragile banks, and this was the case with Credit Suisse. Despite good capitalization, Credit Suisse has lost the confidence of the banks,” he explained.

Consequently, “in the face of such a loss of confidence, ensuring the supply of liquidity to a bank is one of the measures to be taken as the highest priority.” For this reason, the Government approved on Thursday night 50,000 million in immediate liquidity for Credit Suisse, which was already known. Now Berset has announced that the total guarantees amount to 100 billion Swiss francs.

Already on Friday the government came to the conclusion that “the necessary confidence could no longer be restored and that a quick solution was essential to guarantee stability.”

Source: dpa

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The businessman Horacio Velutini recently reported that the real estate market had a rebound of 1,400 % thanks to rentals, being a great contrast between the figures presented in 2018. Although, he warns that the reactivation process is not enough.

«Rents in the commerce sector went, in the «high end» segment, to give an example, from an average of 1 dollar per square meter to 15 dollars per square meter at the end of 2022. That is, a growth of 1,400 %. To reach that average, contracts were signed at 20 and 25 dollars per square meter,” the businessman clarified.

According to Velutini, there is an interesting issue with the real estate market, which has shown signs of recovery in line with the weak economic recovery.

«For me, that market hit a floor in 2019, when it reached its lowest historical point, when it fell to amounts only comparable to 1994, when the banking crisis occurred and 1983 with the ‘Black Friday’ crisis and the end of the first boom. Venezuelan oil tanker,” he said.

In Velutini’s opinion, it will be the retail and housing segments that will lead a possibly more sustained recovery of the real estate business in 2023 and subsequent years.

#21DIC El mercado inmobiliario ha crecido 1.400 % desde 2018 y es un negocio en alza, dijo el empresario Horacio Velutini, quien insistió que ha sido contundente. #ElInformadorVenezuela

Más detalles AQUÍ👇https://t.co/RakhLxuc7S

— El Informador Venezuela 🌎 (@ElInformadorVE) December 21, 2022

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