2025-10-27 16:41

UBS hopes to get approval for US licence next year Swiss bank is facing tougher regulations at home UBS has examined relocating if Swiss regulation too extreme ZURICH, Oct 27 (Reuters) - UBS (UBSG.S) , opens new tab has applied for a banking licence in the United States, the Swiss bank said on Monday, underlining its desire to ramp up wealth management in the world's biggest economy even as regulators at home seek to limit its ambitions abroad. Since taking over Credit Suisse after its former rival's collapse in 2023, UBS has faced new regulations in Switzerland that it views as so extreme that it has examined the possibility of moving its headquarters abroad, insiders say. Sign up here. While senior UBS executives insist the Zurich-based bank has no intention of leaving Switzerland, establishing a more solid U.S. bridgehead could help it grow its business as it seeks to satisfy investor demands for greater returns. DRIVING GROWTH IN THE UNITED STATES In a memo to staff seen by Reuters, Rob Karofsky, the president of UBS Americas, and Michael Camacho, head of UBS Global Wealth Management US, said the bank had filed its application for a National Bank Charter for UBS Bank USA. "This step is part of our long-term goal to build on UBS's status as a premier global wealth manager in the U.S. and invest in areas that will drive growth," the memo said. Aiming to prevent a repeat of the Credit Suisse meltdown, the Swiss government has proposed stricter capital rules to back UBS's foreign units, a step Finance Minister Karin Keller-Sutter said will make growing abroad "more expensive" for the bank. UBS is concerned the rules will put it at a disadvantage to competitors and hopes it can thrash out a compromise. BANK LOOKING FOR APPROVAL IN 2026 If granted, the licence would allow UBS to match the full range of services offered by U.S. banks, including checking accounts, savings accounts and mortgages. UBS said it anticipated approval in 2026, subject to regulators. If granted, UBS would be the first Swiss bank to obtain such a licence in the United States. The memo said the application did not signal immediate product launches, but paved the way for future steps. New product and service development is a complex process lasting years that will roll out in phases, UBS said. The United States, where more than 1,000 people became millionaires every day in 2024, is the most important growth market in UBS's core wealth management business. One media report in September said UBS was mulling a move to the U.S. UBS is less profitable than leading U.S. banks such as Morgan Stanley (MS.N) , opens new tab, a gap which it aims to narrow. Sergio Ermotti, the UBS CEO, said in 2024 that the bank has the cost base of a much larger organisation but lacks the product offering to fully exploit its potential. Wealth management in the U.S. is a scale business, UBS Chairman Colm Kelleher said late last year, noting that Morgan Stanley managed to double its profitability after it bought U.S. financial services firm Smith Barney. https://www.reuters.com/business/finance/ubs-files-application-us-banking-licence-2025-10-27/

2025-10-27 14:38

BUENOS AIRES, Oct 27 (Reuters) - Argentine President Javier Milei on Monday urged moderate opposition lawmakers to back his reform agenda during the next two years of his term, after his party cruised to victory in midterm legislative elections, sending local markets soaring. Milei's La Libertad Avanza party won 40.68% of the votes, compared with 31.69% for the Peronist coalition, official results showed. The president said the important thing now was to get reforms approved. Sign up here. "The worst is behind us," Milei told local television channel A24. "I'm going to seek the votes I'm missing (in Congress) to implement these reforms," he added, referring to potential alliances with lawmakers and governors. Milei reaffirmed plans to push through labor, pension and tax reforms after strengthening his bloc's presence in a Congress previously dominated by the opposition. Argentina's peso strengthened 10% to 1,355 per U.S. dollar in early Monday trading after the midterm election, while the country's main stock index (.MERV) , opens new tab jumped nearly 20%. Milei confirmed he will make changes to his cabinet, many of which "forced" as some ministers will now be Congress members, but noted he has time until the new lawmakers take office on Dec. 10. Security Minister Patricia Bullrich won a Senate seat, Defense Minister Luis Petri was elected to the lower house, and presidential spokesman Manuel Adorni will serve as a legislator in the city of Buenos Aires. "I have to form the new cabinet in order to negotiate and pass the laws I committed to with the Argentine people," Milei said. https://www.reuters.com/world/americas/argentine-peso-jumps-after-milei-win-midterm-elections-2025-10-27/

2025-10-27 12:29

MILAN, Oct 27 (Reuters) - Japanese automaker Mazda (7261.T) , opens new tab has teamed up with its joint venture with China's Changan (000625.SZ) , opens new tab to pool carbon credits and help avoid carbon emissions fines, an EU document showed. Several legacy carmakers face potential European Union fines as their shift to electric vehicles has been slower than expected. But those with lower shares of EV sales can "pool" their emissions with segment leaders, purchasing credits from them and lowering their overall averages. Sign up here. EU's fines, which carmakers have said could total up to 15 billion euros ($17.5 billion) for the industry, were initially envisaged to apply to 2025 carbon emissions levels. However, in March, the European Commission bowed to pressure from car manufacturers and allowed compliance based on their average emissions over 2025-2027. The pool between Mazda and its 50/50 joint venture with Changan is valid for 2025 and is open to other manufacturers until the end of November. Mazda is already part of a different pool formed at the beginning of this year around Tesla (TSLA.O) , opens new tab which also includes Stellantis (STLAM.MI) , opens new tab and Ford (F.N) , opens new tab. Including the new Mazda one, a total of five pools have been set up so far this year. ($1 = 0.8575 euros) https://www.reuters.com/sustainability/climate-energy/mazda-forms-eu-carbon-emissions-pool-with-changan-joint-venture-2025-10-27/

2025-10-27 12:00

Oct 27 (Reuters) - The uncertaintyU.S. President Donald Trump's tariff strategy injected into global financial markets has been exacerbated by his push for bilateral trade agreements as well as legal challenges to the levies. Trump's order on "reciprocal" tariffs for exports from 69 trading partners listing higher import duty rates of 10% to 41% kicked in on August 7, raising the average U.S. import duty to its highest in a century. Sign up here. In the latest development, Trump said he expects to "come away with a deal" with China when he meets Chinese President Xi Jinping for talks in South Korea on Thursday. U.S. officials said negotiators from both countries finalised a framework on October 26 for a potential agreement aimed at halting steeper American tariffs and Chinese rare earths export controls. Here is a timeline of upcoming dates and events that could have a bearing on U.S. tariff policy. October 30 Trump and Xi are to meet in South Korea, with expectations building that the discussions could pave the way for a potential trade deal. November 1 A 25% tariff on all imported medium- and heavy-duty trucks will take effect. Additional 100% tariffs on China's U.S.-bound exports will go into force, with new export controls on critical software, if the two countries do not reach a deal. January 1, 2026 Previously levied 25% duties will rise further - to 30% for upholstered furniture and 50% for cabinets and vanities from countries without trade agreements. https://www.reuters.com/world/us/trumps-trade-war-tariff-deadlines-key-upcoming-events-2025-10-13/

2025-10-27 11:55

Oct 27 (Reuters) - What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Sign up here. Trade and inflation relief are driving world stock markets sharply higher on Monday, as we begin a packed week of big central bank meetings and heavyweight tech earnings. I'll get into all the market-moving news below. Please also check out my column today in which I take a look at how increasingly fragmented global trade and politics could make the repatriation of global capital a key theme in the coming years. TODAY'S MARKET MINUTE * Top Chinese and U.S. economic officials on Sunday hashed out the framework of a trade deal for U.S. President Donald Trump and Chinese President Xi Jinping to decide on later this week that would pause steeper American tariffs and Chinese rare earths export controls, U.S. officials said. * Argentine President Javier Milei's party cruised to victory in midterm legislative elections as voters handed him a mandate to keep pushing through his radical overhaul of the economy despite widespread discontent with his deep austerity measures. * China's state-owned defense giant Norinco in February unveiled a military vehicle capable of autonomously conducting combat-support operations at 30 mph (50 kph). It was powered by DeepSeek, the company whose artificial intelligence model is the pride of China's tech sector. * A common view in the crude oil market is that Western sanctions against Russia's exports are fairly pointless as the market quickly devises ways to keep cargoes flowing. But ROI Asia Commodities Columnist Clyde Russell argues that it all depends on what Western powers want to achieve. * Copper has a long history of mine supply disruption, but this year is proving to be a particularly troubled one for a sector that has been racing to keep up with smelter demand. Read the latest from ROI Metals Columnist Andy Home. STOCKS ZOOM ON TRADE AND INFLATION RELIEF The seemingly endless "on-off" U.S.-China trade negotiations are back on once more. Top Chinese and U.S. officials on Sunday hashed out a framework for a trade deal for President Donald Trump and Chinese President Xi Jinping to decide on later this week, one aimed at pausing steeper U.S. tariffs and Chinese rare earths export controls. Treasury Secretary Scott Bessent said talks at the ASEAN Summit in Kuala Lumpur had eliminated the threat of Trump's 100% tariffs on Chinese imports from November 1, and he noted that he expected China to delay rare earth export curbs too. U.S. stock indexes clocked record closing highs on Friday, with the biggest weekly gains since August after a slightly softer-than-feared September U.S. inflation readout baked in expectations for another Federal Reserve interest rate cut on Wednesday. Wall Street index futures surged another 1% ahead of Monday's bell, with Japan and South Korea's equity benchmarks up more than 2% each and Chinese stock indexes up more than 1% to more than 10-year highs. China's offshore yuan also jumped to a six-week high, guided by a People's Bank of China reference rate that was at its strongest since October last year. Gold prices fell back nearly 2% as hopes of easing U.S.-China trade tensions lifted risk appetite for equities. This week's earnings diary sees five of the so-called "Magnificent Seven" megacaps - Meta, Microsoft, Alphabet, Amazon and Apple - due to report. They collectively make up about a quarter of the entire S&P 500 value. Facing a heavy schedule of new debt sales this week, including $139 billion in 2- and 5-year notes later today, U.S. Treasury yields have nudged higher, helped along by the stock market surge and creeping inflation expectations in surveys. The Bank of Canada is expected to cut by a quarter point on Wednesday, too, with Trump's decision to add a 10% additional tariff on Canadian imports likely to reinforce the easing argument. Meanwhile, the Canadian dollar remains firm. The European Central Bank and Bank of Japan are expected to hold the line, with rising business expectations in Germany encouraging the ECB to stand pat and the BoJ assessing the new Japanese prime minister's fiscal policies. The yen and the euro were firmer. Chart of the day Five of the so-called "Magnificent Seven" megacaps report earnings this week, including Meta, Microsoft, Alphabet, Amazon and Apple. AI-related capex and cloud computing growth will be watched very closely. Today's events to watch * Dallas Federal Reserve's October manufacturing survey (8:30 AM EST) * U.S. corporate earnings: Universal Health, Cincinnati Financial, Cadence Design, NXP, Welltower, Principal Financial, Keurig Dr Pepper, Brown & Brown, Nucor, F5, Revvity, Hartford, Arch Capital, Waste Management, Alexandria Real Estate * U.S. Treasury sells $69 billion of 2-year notes and $70 billion of 5-year notes * U.S. President Donald Trump visits Japan as part of wider Asia tour Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/finance/global-markets-view-usa-2025-10-27/

2025-10-27 11:51

JOHANNESBURG, Oct 27 - Mozambique's sole euro bond rallied on Monday after TotalEnergies (TTEF.PA) , opens new tab announced the lifting of force majeure on its multibillion-dollar liquefied natural gas project, paving the way for construction to resume following prolonged delays. The dollar bonds maturing in 2031 climbed over 2 cents, with bids at 89.38 cents on the dollar by 1112 GMT, bringing the yield down to 12.53%, its lowest level in two weeks. Sign up here. The lifting of force majeure is a positive sign for the project, whose potential export revenue could transform Mozambique's economy, though the 13 million metric-ton-per-year plant is only expected to come online in 2029. The plant, located in the conflict-prone Cabo Delgado province, is reported to be 40% complete, but regional security concerns persist despite Rwanda-backed military support. Morgan Stanley strategists Neville Mandimika and Simon Waever said in a note that Mozambique's "near-term fragility and its long-term potential could not be more striking", citing financing constraints and political tensions following election unrest last year. "Yet, if the country can maintain stability and implement prudent reforms, the LNG boom expected in 2029/2030 could create fiscal space, improve the balance of payments, and support broad-based growth," they added. https://www.reuters.com/world/africa/mozambique-bonds-rise-after-totalenergies-lifts-force-majeure-lng-project-2025-10-27/