Group 1 - UBS Group increased its stake in Miniso from 8.99% to 9.74% as of April 7 [1]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Insights - In Q1 2025, the total M&A transaction value involving mainland China reached $124.9 billion, marking a 111.6% increase year-over-year and a 15.9% increase quarter-over-quarter [1] - The number of announced transactions was 935, which represents a decline of 11.3% from the previous quarter and a 43.7% decrease from the same period last year [1][3] Summary by Category M&A Activity - Chinese companies' outbound acquisition value reached $4 billion, a 62% increase compared to the same period last year [3] - Foreign companies' acquisitions of mainland Chinese companies totaled $1.9 billion, down 32.8% year-over-year [3] - Domestic M&A activity in mainland China was robust, totaling $116.8 billion, up 131.3% year-over-year [3] Industry Performance - The financial sector dominated M&A activities involving mainland China, accounting for 57.97% of the market share with a total transaction value of $72.4 billion, a staggering 977.3% increase year-over-year [5] - The high-tech sector followed with an 11.83% market share, growing 43.2% year-over-year [5] - The energy and power sector ranked third, with a market share of 9.56% and a transaction value of $11.9 billion, reflecting a 319.3% increase year-over-year [5] Leading Financial Advisors - Goldman Sachs led the M&A transaction rankings for Q1 2025 with a market share of 14.78% and a total transaction value of $18.5 billion [8] - JPMorgan Chase ranked second with a market share of 14.22%, while Cailin Capital secured third place with a 13.33% market share [8] Legal Advisors - Sullivan & Cromwell, White & Case LLP, and JY Law Firm were the top three legal advisors in Q1 2025 for M&A transactions involving mainland China [10] - Sullivan & Cromwell had a transaction value of $95.5 million, representing a market share of 7.6% [11]

Core Points - The article discusses the significant impact of President Trump's new tariff policy, which imposes at least a 10% tariff on all imported goods starting April 5, and higher tariffs on countries deemed as serious trade violators [1] - The policy is viewed as a major shift in international trade order since World War II, raising concerns among family offices and investors about its implications for the market and economy [1][11] Impact on Family Offices - Family offices are increasingly reconsidering their investments in the U.S. due to concerns over economic growth and policy uncertainty stemming from the new tariffs [11][19] - There is a noticeable trend of high-net-worth family office clients diversifying their portfolios away from the U.S. to mitigate risks associated with the trade war [11][20] - Some family offices are exploring investments in hard assets like gold and real estate, while others are raising cash to wait for market stabilization [19][20] Market Reactions - The aggressive tariff strategy has led to a significant market downturn, with the U.S. stock market experiencing its worst week since March 2020 [1] - Notable private equity firms have halted IPOs and acquisitions due to the uncertainty created by the tariffs, indicating a paralysis in the private equity sector [3][4] - Hedge funds are facing increased pressure and are considering stepping back from trading due to the chaotic market conditions, with some funds suffering significant losses [6][8] Economic Forecasts - Goldman Sachs has downgraded its U.S. economic growth outlook and increased the probability of a recession to 45%, citing tightening financial conditions and rising policy uncertainty [8][10] - The potential for tariffs to raise effective rates by 20 percentage points could lead to further revisions in economic forecasts, including the likelihood of a recession [10] - UBS estimates that the new tariffs could slow global economic growth by 50 to 100 basis points, with the most significant impacts felt in Thailand and Singapore [10] Investment Trends - There is a shift among ultra-high-net-worth investors towards European and Asian markets, driven by concerns over U.S. economic policies and the search for better growth opportunities [11][19] - Family offices are increasingly looking for international investments not only for diversification but also as a hedge against currency fluctuations and to access unique investment opportunities [11][19] - The trend of reallocating investments away from the U.S. is becoming more pronounced, with family offices seeking to capitalize on emerging opportunities in other regions [19][20]

Core Viewpoint - UBS reports that de-globalization is a significant trend driving stagflation, with tariffs and de-globalization leading to inefficiencies and potential reductions in actual economic growth rates, alongside increased inflationary pressures [1] Group 1: Economic Impact of Tariffs - UBS estimates that imposing a 60% tariff on 75% of Chinese goods exported to the U.S. and a 10% tariff on goods from other countries could result in a global GDP decline of 0.5% [1] - Inflationary pressures are expected to be volatile, primarily affecting the U.S. economy [1] Group 2: Market Reactions - The bond and stock markets are adjusting to the anticipated tariff increases, with U.S. 10-year real yields dropping by 30-50 basis points and 2-year inflation expectations rising by 70 basis points since January [5] - Tariff-sensitive stocks in the U.S. have underperformed the broader market by 17%, while in Europe, the underperformance is 9% [5] Group 3: Sector Analysis - Analysts in the U.S. are broadly downgrading revenue and earnings growth expectations for tariff-sensitive sectors such as durable goods, automotive, and retail [5] - In Europe, analysts maintain resilient expectations for sectors like automotive, luxury goods, and pharmaceuticals, which are also sensitive to tariffs [5] Group 4: Investment Strategies - UBS suggests that hard assets (gold and energy) are likely to outperform other asset classes due to rising credit and yield risk premiums, with a projected 3% decline in the S&P 500 index [8] - Investors are advised to consider selling put options on gold ETFs (GDX.US) and buying put options on financial sector ETFs (XLF.US) to "harden" risk exposure [8] Group 5: Future Economic Outlook - UBS believes that while the European market shows resilience, cyclical investors face risks, particularly as tariff-sensitive stocks may decline further by 10% due to lowered earnings expectations [9] - The impact of de-globalization is expected to lead to lower actual economic growth rates, increased inflation expectations, and heightened risk premiums associated with corporate profit growth [12]

Summary of Key Points from the Conference Call Industry Overview - The focus is on the foreign exchange (FX) market, particularly regarding the impact of US trade policy and tariffs on G10 currencies [2][9]. Core Insights and Arguments 1. **US Tariff Policy Impact**: - Recent news suggests the US administration may exempt several countries from reciprocal tariffs, easing fears of a risk-unfriendly outcome from the upcoming trade policy review on April 2 [4][9]. - This potential exemption could lead to renewed pressure on tariff-sensitive currencies if the announcement is less favorable than expected [4][5]. 2. **Market Reactions**: - G10 currencies have shown a pro-risk rally, with SEK outperforming due to its direct exposure to US tariff risks [9][14]. - The EUR and JPY have not reacted positively to tariff news, indicating that many positives may already be priced in, making them vulnerable to negative news [13][15]. 3. **NOK, AUD, and CAD Insights**: - **NOK**: The Norges Bank's upcoming meeting is highly anticipated, with markets currently pricing in a low probability of a rate cut, contrary to previous expectations [16][18]. The NOK has performed well recently, benefiting from improved sentiment around European assets [19]. - **AUD**: The Australian government has announced a significant fiscal stimulus of A$35 billion, which is expected to support the AUD despite concerns about global headwinds [20][21]. The RBA's hawkish rhetoric supports a constructive outlook for the AUD [21]. - **CAD**: The Canadian federal election scheduled for April 28 is expected to be consequential for the CAD, with the Liberal party gaining ground in polls [22][23]. The election outcome could significantly influence market perceptions of economic stability and investment inflows [30]. 4. **Consumer Confidence and Market Sentiment**: - US consumer confidence has fallen to multi-year lows, which could negatively impact market reactions to prolonged tariff uncertainty [15][19]. - The overall market sentiment appears to be pricing in limited risk around the upcoming US trade policy review, despite the potential for new deadlines and ongoing uncertainty [15][18]. Additional Important Points - The upcoming Norges Bank meeting is seen as a pivotal moment for NOK, with potential scenarios ranging from unchanged rates to a surprise cut, which could influence market positioning significantly [16][17]. - The Canadian election is characterized by a close race, with the outcome likely to have substantial implications for CAD, especially in light of external economic pressures [22][30]. - The fiscal policy backdrop in Australia, including state-level spending, is expected to provide additional support for the AUD, reinforcing a constructive outlook despite potential rate cuts [21][24]. This summary encapsulates the key insights and potential market implications discussed in the conference call, focusing on the FX market dynamics influenced by US trade policies and upcoming economic events.

Group 1: Economic Outlook and Market Predictions - UBS Chief Strategist Bhanu Baweja warns that the "visibly tiring" US consumer may lead to an 8% drop in the S&P 500, with key economic indicators showing weakness [1] - Baweja projects the S&P 500 could fall to 5,300 points as profit estimates decline over the next three to four months, despite a recent two-week high [2] - Analysts forecast S&P 500 earnings growth to decrease from 12.5% to 9.5% in 2025, indicating a cautious outlook [4] Group 2: Performance of ETFs - The SPDR S&P 500 ETF Trust (SPY) has retreated 3.4% over the past month, while inverse S&P 500 ETFs like ProShares Short S&P500 ETF (SH) and ProShares UltraShort S&P500 (SDS) have gained 3.5% and 6.4%, respectively [3] - iShares Short Treasury Bond ETF (SHV) and SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) are recommended for investors, both yielding over 4% annually [6] Group 3: Bond Market Insights - Baweja has become more optimistic on bonds due to a slowing economy reducing inflationary concerns, favoring two-year US Treasuries over 10-year bonds [5] - The long end of the yield curve may lag due to declining foreign demand for US government debt, with iShares 20+ Year Treasury Bond ETF (TLT) losing 1.8% in the past month [6]

Core Points - The article discusses the expertise of Ernest Hoffman in the field of crypto and market reporting, highlighting his extensive experience and contributions to media and economic news [2] Group 1 - Ernest Hoffman has over 15 years of experience as a writer, editor, broadcaster, and producer [2] - He began working in market news in 2007 and established a fast web-based audio news service [2] - Hoffman produced economic news videos in partnership with MSN and the TMX [2]

Core Viewpoint - UBS Group AG is planning to divest part of its asset management division focused on real estate investments, which may be valued at less than $1 billion [1] Group 1: Divestment and Restructuring Plans - UBS Group is reviewing its asset management division, particularly Swiss real estate assets, for potential sale [1][2] - The decision to consider selling part of the asset management unit aligns with UBS's strategy to streamline operations and improve profitability following the acquisition of Credit Suisse [3][5] - UBS's asset management division contributed 6.5% to the bank's total revenues in 2024, significantly overshadowed by the wealth management division [4] Group 2: Integration and Cost Reduction Efforts - UBS is progressing with the integration of Credit Suisse, having migrated over 90% of client accounts outside Switzerland to UBS platforms [6][7] - The company aims to achieve gross cost reductions of $13 billion by the end of 2026, with $7.5 billion or approximately 58% of the targeted savings already realized since the end of 2022 [8] Group 3: Market Performance - UBS shares have increased by 11.2% over the past six months, slightly outperforming the industry growth of 11% [9]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________ FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 Date: March 17, 2025 UBS Group AG (Registrant's Name) Bahnhofstrasse 45, 8001 Zurich, Switzerland (Address of principal executive office) Commission File Number: 1-36764 UBS AG (Registrant's Name) Bahnhofstrasse 45, 8001 Zurich, Switzerland Aeschenvorstadt 1, 4051 Basel, Switzerland (Address of principa ...