Europe Biz: UBS profits fall, ex-convicted banker heads Turkish stock market
Updated 01:22, 23-Oct-2019
By Nilay Syam and Juliet Mann
Swiss banking giant UBS reported a 16 percent slide in third-quarter profit. (Photo: AP)

Swiss banking giant UBS reported a 16 percent slide in third-quarter profit. (Photo: AP)

UBS profits slide on poor performance

UBS reported a 16 percent slide in third-quarter profit as revenue from its investment banking business more than halved.

The Swiss lender announced a group net profit of $1.049 billion following a period of poor performance which Chief Executive Sergio Ermotti described as unsatisfying.

Buffeted by the global trade war, new capital regulations and negative interest rates, the bank plans to cut some senior level jobs in its investment business unit.

Former jailed banker to head Turkish stock exchange

Hakan Atilla, a former executive of Turkey's state-owned Halkbank, who was imprisoned in the US for 28 months, has been named as the general manager of the Istanbul stock exchange.

Atilla was convicted of bank fraud in 2018 after he helped Iran evade American sanctions. Following his release earlier this year, Attila had returned to Turkey. The appointment was announced by the Finance Minister Berat Albayrak, in a tweet.

Saab's third-quarter profit exceeds expectations

Swedish defense major Saab announced an operating profit of $53.76 million in its third-quarter beating market expectations.

The Stockholm-based firm reiterated its view that operating cashflow in 2019 would be better compared to 2018.

The manufacturer of the Gripen fighter jet suffered a $61 million loss in the year-earlier quarter.

Saab President and CEO Hakan Bushke said: "During the first nine months of 2019, Saab reported a strong order intake and an organic growth of 11 percent. The development is in line with Saab's goals - continued sales growth and improved margins."

Saab, which manufactures the Gripen fighter jet, announced an operating profit of $53.76 million in its third-quarter. (Photo: AP)

Saab, which manufactures the Gripen fighter jet, announced an operating profit of $53.76 million in its third-quarter. (Photo: AP)

'Polish offshore wind sector set for exponential growth'

The Polish offshore wind industry is set for rapid expansion generating around 77,000 jobs and $15.7 billion for the country by 2030, according to speakers at the Maritime Economy Forum Gdynia.

Poland's biggest energy firm PGE presented its forecasts claiming that the Baltic Sea had the capacity to produce nine to 12 gigawatts of clean power, second only to the North Sea. The Baltic Sea is being considered for 13 windfarm projects that has the potential to supply 25 percent of Poland's energy needs by 2040.

Renault refuses to rule out future deal with Fiat

French car maker Renault confirmed that a deal to merge with Italian rival Fiat was off the agenda for now and could be reconsidered at a later stage.

Speaking on France Inter radio, Chiarman Jean-Dominique Senard: "Today, it's not on the table," adding that "one must never say never".

Merger talks between the car giants collapsed in June.


Brexit setback

Progress was yet again confounded when Speaker John Bercow refused to allow politicians to hold a second vote on Prime Minister Boris Johnson's Brexit deal, putting plans for the UK to leave the European Union on 31 October on a knife-edge. Undeterred, Johnson will try to push through the legislation needed for ratification.

"Imperfect though it is, an agreement passing into law is a positive for both Britain and Europe. A hard Brexit likelihood is receding by the day," said Jeffrey Halley, Senior Market Analyst at OANDA.

The market reaction to all this was somewhat muted.The pound has been up and down but found support around $1.2950 as the government decided to press on with passing the Withdrawal Bill.

Early Christmas present?

The latest steer from President Donald Trump suggests trade talks between the U.S. and China are inching towards a mini-deal. His comments sparked hopes which could perk up markets around the world.

US earnings season has so far produced some nice solid figures from most of the heavyweights... (Let's not talk about Boeing..... a drag on the Dow). McDonald's results today should be a happy meal.

Traders note that the out-performers lately are financials and healthcare, while the likes of IT and energy, which analysts have regarded poorly in terms of earnings outlook, underperformed.

"Unless we continue to see a series of these outperformers coming through, the index may find greater volatility ahead. One to watch," said Jingyi Pan, Market Analyst at IG.

In commodities, oil prices were near flat with Brent crude futures inching up 7 cents to $59.03.

Source(s): Reuters ,AP