Weekly Market Update – 30% for Me and 10% for You

KEY MARKET MOVES

Source: Bloomberg

MACRO OVERVIEW

US

Such was the outcome from the meeting between the US and China over the weekend in Switzerland, where the US and China will temporarily lower tariffs on each other’s products, with the US reducing its levies from 145% to 30% and China reducing its duties from 125% to 10%. 90-days to work out a broader agreement, with the possibility of extending the truce further if there is good faith effort and constructive dialogue. Whilst details are scarce, this is seen as a significant de-escalation of trade tensions between the 2 countries. The US is pressing for China to open to more US goods with the aim of pulling a bilateral trade deficit into balance. The dollar hit a one-month high versus the euro and yen, and havens like gold and US Treasuries are dropping. Tech stocks got a boost from news that the Trump administration planned to rescind Biden-era AI chip curbs as part of a broader effort to revise semiconductor trade restrictions. Not all sectors though, are celebrating as drug stocks are down, trading on news that Trump plans to mandate a cut in US prescription drug costs to bring them in line with other countries. The VIX however has fallen below 20 whilst 10-year UST yield spiked higher to 4.45%.

Markets were also buoyed by cooling geopolitical tensions as Russia’s Putin offered to hold direct talks with Ukraine, and India and Pakistan agreed to an immediate ceasefire, which was mediated by the US. Senior European officials are in talks with the Trump administration to finalize an agreement on a 30-day ceasefire in Ukraine that would impose new sanctions on Russia if President Vladimir Putin doesn’t budge, according to people familiar with the matter.

Earlier in the week the Fed kept rates unchanged as expected. Having held pat on rates (at 4.25%–4.50%) since December 2024 the central bank noted “the risks of higher unemployment and higher inflation have risen.” The FOMC statement indicated that economic activity is “solid” with inflation somewhat elevated. Moreover, the risks of “higher unemployment and higher inflation” (stagflation risks) were judged to have risen. The upshot is that there is insufficient reason for the Fed to move, and a period of pause (until data weakens) remains the best course of action.

During his presser, Fed Chair Powell reiterated that he would not be rushed into lowering rates until there is greater clarity regarding the direction of trade policy. “There’s so much that we don’t know. We’re in a good position to wait and see, we don’t have to be in a hurry,” Powell stated. The US and UK agreed on a trade deal Thursday which fuelled expectations that the deal may be a blueprint for other countries.

Data out during the week showed the ISM services sector expanded more quickly than expected in April. While the print came in above forecast and consensus expectations, the dominant theme is still uncertainty. Both the S&P Global US Services & Composite PMI underwhelmed, falling in April below consensus. April FRBNY 1-Year inflation forecast printed at 3.63% Vs 3.58% expected. Some economists believe that the New York Fed model might be more accurate than the University of Michigan (recent methodology changes impacting measure), regarding forward inflation calculation accuracy.

US CPI, PPI and retail sales for April will be the data highlights this week, and both take on added significance as they could show some early impacts from tariffs. Michigan consumer sentiment is also due. Chair Powell speaks on Thursday. Consensus is a 0.3% MoM Core CPI from 0.1% and headline YoY to come in at 2.4%, unchanged. We’ll also have the U of Mich. sentiment and inflation expectations on Friday, that the Fed looks at.

Separately, President Trump will begin his Middle East trip, visiting Saudi Arabia, Qatar and the UAE to discuss planned investment in the US.

Europe

The European stock market ended the week with the Eurostoxx 50 closed higher at 0.46% and at 8,465 YTD.

The European Commission has released a draft list of US goods—covering ~30% of EU imports—that may face retaliatory tariffs, signaling a more limited response than US measures (~70% of EU exports), likely to avoid broader economic disruption.

Manufacturing activity picked up in late Q1, especially in Germany, though overall euro area growth remains weak. March industrial production rose 3.1% m/m—the strongest since August 2024—while Spain posted solid gains, and France and Italy saw weaker results. April PMIs were revised slightly up, with modest improvements in Germany and France.

Meanwhile, retail sales fell 0.1% m/m in March, reflecting soft consumer demand.

ECB Vice-President de Guindos stated that factors like a stronger euro and falling energy prices could help bring inflation down, supporting potential rate cuts. He ruled out a recession, maintaining expectations for low but positive growth.

On 8 May, the EU launched a consultation on potential tariffs on $95 bn of U.S. exports, including cars and aircraft, with input open until 10 June. This follows a suspension of earlier EU measures targeting U.S. steel and aluminum, and a planned WTO complaint.

The EU Council will review the SAFE proposal on 13 May, which would allow up to €150 bn in EU bonds to finance defense spending.

In the UK, the Bank of England’s Monetary Policy Committee (MPC) reduced the Bank Rate by 25 basis points to 4.25% during its May meeting. The vote was notably divided: two members (Dhingra and Taylor) favoured a 50 bp cut, while two others (Mann and Chief Economist Pill) preferred to hold rates steady. The May Monetary Policy Report downgraded the UK’s growth outlook beyond Q1 2025, but the overall guidance continued to reflect a cautious and gradual approach to policy easing. Barclays projects another 25 bp rate cut in June, with two more to follow, potentially bringing the Bank Rate down to 3.5 % by September.

Also on 8 May, the U.S. announced a preliminary trade agreement with the UK and President Donald Trump pitched his trade framework with the UK as a historic achievement, and the first step in his revolutionary effort to overhaul the global economy. But as the president began revealing specifics of the deal, it became clear it fell short of the “full and comprehensive” agreement he had promised, or the US-UK free-trade pact he pursued during his first term. “From the point of view of markets generally, as well as those who are concerned about the US economy, this is a nothingburger,” said Tim Meyer, an international trade law professor at Duke University School of Law. “There’s nothing real to see here. Obviously, this is a framework, this is not actually an agreement.” “A full-blown trade agreement, which will likely take months, if not years, to be finalized, and it will still be some time before the finer details are ironed out.” The US and UK also gave conflicting information about key elements of the agreement, which went to final-hour negotiations. The British government released a statement saying US tariffs on steel and aluminum from the UK will go to zero, while the White House put out its own description less than an hour later saying they “will negotiate an alternative arrangement” to the metals duties. Trump kept the 10 % baseline tariff on the UK — the same rate he applied in his April 2 rollout, a warning shot to countries hoping to get below that figure. Investors hoping for a more substantial détente may also be disappointed.

This week’s attention will turn to the final inflation data (HICP) for April in Germany, Spain, France, and Italy, which are due Wednesday through Friday. Economic activity updates will include the euro area’s second estimate for Q1 GDP, employment growth figures, March industrial production, and trade balance data — all scheduled for Thursday and Friday. In the UK, GDP data for both March and Q1 will be released on Thursday.

Asia

Over the weekend, US President Donald Trump announced a de-escalation of the trade war with China, saying China agreed to remove non-tariff barriers to US imports. The agreement will temporarily lower duties to give both countries more time to negotiate, with the US reducing its levies on most Chinese imports from 145 % to 30 %, and China dropping its duties on US goods from 125 % to 10 %. Trump warned that tariffs could still increase if talks fail to secure an agreement within 90 days, but said the US would not raise tariffs back to 145 %. Data last week showed China’s overall exports surge 8.1 % in April even though China’s outbound shipments to the US plunged over 21 %.

US and China agree to roll back tariffs after months of tensions

US-China tariffs reduction agreement in detailed chart.

India has proposed zero tariffs on steel, auto parts, and pharmaceuticals as it works to strike an early tariff deal with the US. India offers to narrow tariff gap with US to under 4 %. India ready to give preferential access to 90 % of US goods and has asked exemption from all “current, potential” tariff hikes. Also, India wants US to align with allies on critical issues.

UK and India strike a trade deal. The deal will see India gradually lower import taxes, with most goods traded becoming “fully tariff-free within a decade.” The U.K. government said the agreement is expected to increase bilateral trade by £25.5 billion ($34 billion). Trade between the two nations stood at £42.6 billion in 2024, up 8.3 % from the previous year.

Trump administration offering to only cut 14 % tariff on Japan, has refused full exemption from reciprocal tariffs. Japan also said it has no plans to sell its $1 trillion-plus holdings of U.S. Treasuries according to its finance minister, clarifying earlier remarks that the bond holdings could be used as bargaining chip.

Taiwan’s government said on Monday (May 5) that tariff talks with the United States last week did not discuss the exchange rate and Taiwan’s central bank has not taken part in the discussions. While Trump is likely to press Taiwan for a further appreciation of its currency, there is no consensus in the foreign exchange market on how high it might rise against the U.S. dollar, given Trump’s unpredictability, the analyst said. Taiwan has a huge pile of overseas assets amounting to $1.7 trn, much of it in the form of U.S. bonds – including Treasuries and corporate debt – held by the central bank. The U.S. Treasury Department uses three criteria to assess potential currency manipulation: a bilateral trade surplus of at least $15 billion with the US; a material current account surplus of at least 3 percent of GDP; and evidence of persistent, one-sided foreign exchange intervention. Taiwan currently meets the first two criteria.

Taiwan dollar surges against US dollar chart.

Other Data from Asia:

Taiwan’s headline CPI inflation moderated to 2.0% oya in April. Taiwan’s April exports beat expectations again, rising 29.9% oya.

China CPI, released Saturday, was in line with consensus at –0.1% oya in April, extending the period of negative inflation to three consecutive months. Thailand’s headline inflation again undershot expectations, dropping from 0.8% oya in March to –0.2% oya in April.

GeoPolitics

Israel – Palestine: Israel may seize all of Gaza in new offensive, though they may not be launched until Trump wraps up his visit to the region. Israel’s security cabinet approved the expansion of military operations in Gaza including the “conquest” of the Palestinian territory. The plan includes the holding of territories in the besieged Gaza Strip and comes alongside Israel’s promotion of Gaza’s residents to leave. Alongside the plan to expand military operations, Prime Minister Netanyahu “continues to promote” a proposal by US President Donald Trump for the voluntary departure of Gazans to neighboring countries, the sources said. Israel’s military will mobilize tens of thousands of reservists in the coming days.

Israel – Yemen: Israeli warplanes on Monday struck targets in Yemen, a day after a ballistic missile fired by Houthi rebels exploded near Israel’s main international airport. The Yemeni rebels have fired at least 17 ballistic missiles at Israel since March, after Israeli Prime Minister Benjamin Netanyahu abandoned a ceasefire with Hamas and restarted Israel’s offensive in Gaza. The Houthis, who control much of northern Yemen, have said they are acting in solidarity with the Palestinians.

The Israel Defense Forces said the planes targeted the Hodeida port complex on the Red Sea, as well as a nearby concrete factory, which the IDF claimed were important sources of income for the Iran-backed Yemeni militant group and gateways for the transfer of Iranian weapons.

Israeli warplanes attacked Yemen’s Sana’a airport. The Israeli military said it had “fully disabled” the international airport, hitting the runway, aircraft and other infrastructure about two hours after issuing a warning to civilians to clear the area.

Middle East – US: Donald Trump will touch down in Saudi Arabia this week for the first official foreign tour since he returned to the White House, with high expectations of securing a raft of multibillion-dollar deals. Prince Mohammed, who was edging closer to a three-way deal with the US to normalize ties with Israel before the war erupted, has described his conduct in Gaza as “genocide” and insists Riyadh will not have diplomatic ties with Israel until a Palestinian state is established. Trump will also find Gulf leaders pushing the US to create a wall in Iran over the Islamic republic’s expansive nuclear programme.

India – Pakistan: India and Pakistan agreed to a ceasefire on Saturday, calling a halt to a four-day conflict that India painted as an essential showdown with a country it accuses of supporting cross-border terrorism. Both countries are portraying themselves as the winners of the military exchanges. Pakistan’s Prime Minister Shehbaz Sharif said in an address to the nation on Sunday that his country had won a “historic victory” against India. India’s Prime Minister Narendra Modi has said on a televised address on Monday that his country has proved its military “superiority” in clashes with Pakistan and that his government won’t hesitate to use force to neutralize terrorist camps in Pakistan, calling it a “new normal” in relations with its neighbour.

Credit/Treasuries

The US Treasury curve slightly bear-flattened last week with the 2 years yield higher by 10 bps, 5 years increased by 11 bps, 10 years yield gained 9 bps and the long bond yield gained 5 bps. US IG 5 years credit spreads tightened by 3.4 bps, US HY 5 years credit spreads tightened by 10 bps.

Investors are underestimating Donald Trump’s resolve to restore the steep tariffs that upended markets last month, bond giant PIMCO has warned, as its investment chief has cited recession risks were now the highest in years. Trump imposed “reciprocal” levies on many major trading partners at his “liberation day” event on April 2, a move that sent US equities and some corporate debt reeling. The president’s decision a week later to pause the levies on most trading partners for 90 days calmed markets, with the S&P 500 share index reversing the plunge triggered by the announcement. However, on the sidelines of the Milken Institute Global Conference in Beverly Hills, PIMCO said investors were mistaken to think Trump’s levies would be completely withdrawn or less forceful than previously announced. Dan Ivascyn, chief investment officer at Pimco warned that Trump’s policies had increased uncertainty over the outlook for the world’s biggest economy and could increase inflation and unemployment. He added that Pimco still favoured “high-quality sectors like mortgages” given the “household balance sheet is very strong”. At the same time, he said Pimco had made small increases to its US government debt exposure over the previous two months, focusing on shorter-dated maturities.

FX

DXY USD Index rebounded above 101.50 after the US and China announced a sharp drop in tariff rates for at least 90 days (reciprocal) tariffs for both countries now at 10%; for China goods into US: an additional 20% tariff remains related to fentanyl and other measures). DXY USD Index is trading at 101.64 at the point of writing. Last week, the DXY Index keeps rates unchanged at 4.50% as widely expected, highlighting that one of the “risks of higher unemployment and higher inflation have risen”, but reiterating that policy is “well-positioned” to wait for further clarity. On US macro, April ISM Services index (better-than-expected) rose to 51.6 (C: 50.2; P: 50.8) and remained in expansionary territory. That said, Prices Paid index increased and reached the highest level since January 2023. We have the key macro data – US CPI today and US Retail Sales tomorrow.

Safe-Haven Currencies underperformed with USDJPY and USDCHF gaining more than 2% since last week. USDJPY is trading close to 148, while USDCHF is trading close to 0.884 at the point of writing. In Switzerland, Headline CPI slowed to 0.0% (P: 0.2%; C: 0.3%) while Core CPI slowed to 0.6% (P: 0.8%; C: 0.9%) in April. CHF is little changed amid comments from SNB Chairman Schlegel that the Swiss franc has appreciated a lot and the SNB stands ready to intervene, if necessary. In Japan, wages missed “labor cash earnings up 2.1% y/y in March, consensus at 2.5% y/y. Second month in a row where base pay has been at the 2% y/y mark, a material shift down from the 2.7–3.0% range over the prior 6-months.

European currencies fell against USD with EURUSD trading close to 1.11 and GBPUSD close to 1.318 driven by broad USD strength. EURGBP fell to 0.842 as US and UK reached a trade deal. Even though the 10% reciprocal tariff rate remains in place, but the deal removed tariffs on UK steel and aluminium. In Eurozone, EU leaders reiterated their planned unity when negotiating any trade deals with the US.

USDTWD touched a near three year low of 29.458 last Monday. TWD appreciation was influenced, in part, by speculation surrounding a possible US trade deal that could necessitate Taiwan strengthening its currency. However, both Taiwans central bank and the Cabinet s Office of Trade Negotiations have denied that the US has requested currency appreciation or that the issue is even part of trade talks. USDTWD has since recovered more than 3% from its low, still short of 7% to pre liberation day level.

Oil & Commodity

WTI crude and Brent crude oil futures reversed its downward trend, gaining significantly since 5th May where both futures touched a year to date lows after OPEC+ announces that it will unwind its production cuts at an accelerated rate. Since then, WTI crude rose more than 13% from a low of 56 to a high of 63.61 yesterday, while Brent crude rose more than 11% from a low of 59 to a high of 66.40. Apart from positive tariff development, oil prices were supported by EIA data showing consecutive weekly declines in US crude inventories for the first time since January.

Gold pared its recent strength and fell close to the key support level of 3200 following the positive trade developments. It is trading at 3225 at the point of writing. In addition, the fall in gold price was further supported by de-escalations in geopolitical tensions over the weekend, where India and Pakistan have agreed to a full and immediate ceasefire, mediated by the US. A break below 3200 suggest a change in trend.

Economic News This Week

Tuesday – AU Cons. Confid./Biz Confid., UK Unemploy., EU Zew, US Small Biz Optim./CPI
Wednesday – JP PPI, SW CPI, US Mortg. App., CA Building Permit
Thursday – NZ Food Prices, AU Unemploy., UK GDP/Indust. Pdtn/Mfg Pdtn/Trade Balance, EU GDP/Indust. Pdtn, US Empire Mfg/Retail Sales/PPI/Initial Jobless Claims/Indust. Pdtn
Friday – NZ Biz Mfg, JP GDP/Indust. Pdtn, US Housing Starts/UMich

Sources – Various news outlets including Bloomberg, Reuters, Financial Times, FactSet, Associated Press

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Bordier Eservices Terms of Use

The Client has elected to access the Account with the Bank by means of the Bank’s Internet solution of secure electronic connection via the Bank’s Website and the Bordier App which allows the Authorised User to view the Account online on mobile applications, together hereinafter referred to as the “E-Services”.

1. Type of E-Services

1.1 The E-Services currently provided by the Bank to a Client comprise the following: (i) Secure access to any Account of the Client via a separate log-in section of the Bank’s Website (“the Web Access Service”); (ii) Secure access to any Account of the Client via an application installed on a mobile device (“the Mobile Access Service”).

1.2 With an E-Services, the Client can, amongst other things, see the current state of those of his Accounts which he has specified that he wishes to access through the E-Services, and obtain information as to his current Investments. He may also use at his own risk certain analytical tools provided by the Bank. While the Bank endeavours to ensure that comparable functionalities are offered through the Web Access Service and through the Mobile Access Service, the Client acknowledges that, due to technical constraints, there may be differences over what he is able to do through the Web Access Service and what he is able to do through the Mobile Access Service.

1.3 To use any E-Services, the Client must first register with the Bank by such means as the Bank might specify (which will include identifying the specific Accounts accessible through the E-Services) and abide by this Part Eight to these General Conditions as well as with any other terms specified by the Bank in respect of a particular E-Services. The Client will be deemed to have agreed (without reservation) to these terms herein as well as any other terms specified by the Bank to be applicable to an E-Services, from the time he clicks or taps on any confirmation button or from the time he first uses the E-Services (whichever is earlier).

1.4 Without limiting the generality of the foregoing, use of the Mobile Access Service is subject to the mobile device being compliant with specifications determined by the Bank and the Mobile Application End User Licence Agreement (“Mobile App EULA”). The Mobile App EULA will be accessible from within the application after the application is downloaded. Before the Client first uses the application, he must signify his acceptance to the Mobile App EULA. The Bank has the right to update or amend the Mobile App EULA at any time but will give notice of this to the Client. In such a case, the Client must signify his acceptance of such changes before he can proceed further with the Mobile Access Service. Failing this, the Bank will not be able to maintain the service offered.

2. Access to E-Services

2.1 Access to an E-Services is by way of: (a) a user identification code (“user ID”) to be assigned by the Bank; (b) a personal identification number (“PIN”), initially to be assigned by the Bank but to be mandatorily changed by the Client at the first available opportunity to one of the Client’s own choosing, provided that specifications set by the Bank are met); and (c) a authentication device (“OTP device”) that will generate a one-time password (“OTP”) to be used in conjunction with the user ID and PIN each time access is required. Once changed, the PIN Code will not be known to the Bank.

2.2 There shall be only one user ID and PIN in respect of each Client. However, for each Client, the Bank will issue to the Client up to two OTP devices.

2.3 It shall be the sole responsibility of the Client to ensure the safekeeping of the user ID, the PIN and all OTP devices issued by the Bank (even if such OTP device may not be physically in the Client’s possession). The Client must notify the Bank as soon as possible if he believes or suspects that his user ID, PIN or any OTP device might be stolen, lost or compromised. Unless notified, the Bank is entitled to assume that any person who uses an E-Services by using the combination of the user ID, the PIN and an OTP generated from an OTP device, is either the Client himself or a person duly authorised by the Client. For the avoidance of doubt, the Client undertakes to the Bank that he will, where necessary, ratify (or adopt as his own) all action taken by a person who accesses an E-Services in accordance with the process specified herein.

2.4 The Bank has the discretion to impose on the Client a fee to cover the costs of issuing to the Client additional OTP devices beyond the second.

3. Disclaimer in respect of Information available from the E-Services.

3.1 With the E-Services, the Client is able to gain access to information concerning those of his Accounts which he has chosen to be able to access through an E-Services and of transactions undertaken on such Accounts. The Bank may also make available to the Client various analytical tools, which may be used at the Client’s own risk. All information provided to the Client through the E-Services (including through analytical tools) remain information that is of a non-personal nature. The Client acknowledges that all such information does not take into account the specific investment objectives, financial situation, or particular needs of the Client.

3.2 All information provided to the Client through the E-Services (including through analytical tools) are either provided by the Bank and its Affiliates or obtained from third party sources selected by the Bank and its Affiliates. While all reasonable care is taken to ensure that all information provided are fair, accurate and complete, the Bank and its Affiliates makes no representation or warranty as to the accuracy or completeness of such information or the outcomes generated by the analytical tools. In particular, where stock prices or exchange rates are provided through an E-Services, these are merely indicative and are not binding on the Bank. For technical reasons, there may be a time lag between the time that information such as stock prices and other data are displayed or made known on a relevant market and the time that such information is provided to the Client through the E-Services. The Bank is not liable for any loss or damage suffered by the Client due to or in connection with any such time lag or in connection with the use of the analytical tools.

3.3 To the extent that any information provided through the E-Services includes expressions of opinion by the Bank, such opinions only reflect the Bank’s judgement as at the date on which the opinion was expressed, and may be subject to change without notice, particularly as market conditions evolve. Such opinions are not to be construed as a recommendation by the Bank for the Client to enter into any Investment or to dispose or liquidate any Investment. To the extent that any information provided through the E-Services includes expressions of opinion by third parties, the Client acknowledges that the Bank is not responsible or liable for such expressions of opinion and the Bank is not to be regarded as endorsing them.

3.4 Consistent with Part I, Section II, Clause 6 of the General Conditions, the Bank is not, by virtue of providing any of the E-Services, to be considered as providing investment advice as a service to the Client, nor acting as an adviser or fiduciary. The Client must not rely on any of the information provided through the E-Services as authoritative or as a substitute for using their own skills and judgment in making any decision. Such information may not have taken into account the specific investment objectives, financial situation and particular needs of the Client. Before making a decision in respect of any Investment, the Client agrees that he would familiarise himself with the nature of the transaction and read all relevant legal or disclosure documentation (including the prospectus or information memorandum). The Client acknowledges that the Bank has no obligation to give advice to the Client and that he is responsible for consulting his own advisers if he requires advice. Accordingly, the Client agrees that the Bank has no liability whatsoever for the consequences of any decision he makes arising from the use of any E-Services.

4. Access by the Bank’s employees

4.1 The Client acknowledges and agrees that the Bank may, by various means (including the use of software modules (commonly known as cookies) and other similar technology tools) access and collect information relating to the Client’s usage of the E-services (which, in the case of the Mobile Access, may extend to information relating to the Client’s general usage of his mobile device), and the Client agrees and authorises the Bank to have such access.

4.2 To the extent that any such access as aforesaid involves the collection of personal data governed by the Personal Data Protection Act, the manner in which such personal data is handled will be governed by the Bank’s Privacy Policy available on our website.

B. E-MAILBOX PROVIDED BY THE BANK

1. Description

1.1 Through the E-Services, the Client will have at his disposal a secure electronic mailbox into which he may use to receive routine and non-urgent communications from the Bank as well as to send routine and non-urgent communications to the Bank.

1.2 All documents transmitted electronically to this secure electronic mailbox (including but not limited to notices, current account statements, and valuations) shall be deemed to be original documents having the same legal effect as if sent by normal mail. They shall be deemed to have been delivered to the Client once they are received into the electronic mailbox, as determined by the Bank’s records, which the Client accepts to be final and conclusive in the absence of manifest error. Documents will generally be stored in the electronic mailbox for a period of two years from the date of receipt (or such other retention period as the Bank may decide upon). At the end of this retention period, documents that remain unread by the Client may be deleted by the Bank from the mailbox without the Bank coming under any responsibility to the Client.

1.3 However, unless and until the Client logs into the E-Services, the Client will receive no notification of any incoming communications arriving into this mailbox. The Bank is also under no duty whatsoever to remind or prompt the Client to periodically check this mailbox. Accordingly, the Client acknowledges that the electronic mailbox is not a suitable medium for him to receive urgent or time-sensitive communications from the Bank.

C. GENERAL PROVISIONS

1. Technical Support

To assist the Client with technical issues concerning the E-Services, the Bank will make available to the Client a technical support service between the hours of 9 am and 6 pm on weekdays (other than bank holidays and public holidays).

2. Risks associated with Access through the Internet Use

2.1 The E-services are provided by the Bank over the Internet, whether through the internet browser of a computer or mobile device, or through an application that is downloaded and installed onto a mobile device used by the Client.

2.2 The Internet is a public network over which the Bank has no control. The Client acknowledges that the use of the Internet carries various risks for which he agrees to bear full responsibility. These risks may include electronic theft of the Client’s username and password and also of hacking into any of the Client’s Account, which may lead to unauthorised access to funds and other assets, theft of other information and other losses. The Client also runs the risk of his computer or mobile device being infected by viruses, spyware and other forms of malicious software, and of third parties surreptitiously gaining unauthorised access to his computer or mobile device (and any information kept therein) through the use of software modules (commonly known as cookies) and other similar technology tools. The Client also acknowledges that messages which he sends to the Bank by means such as email or text messages are not necessarily safe from hacking or interception, even if these are sent by secure or encrypted means. While the Bank will take all reasonable security measures to guard against such risks, including use of encryption protocols to secure information in its possession and to secure messages sent to it, there can be no certainty that unauthorised hacking or interception can be prevented.

2.3 The Client also agrees to bear the risk of technical failures arising generally from the use of computers, mobile devices, software applications and other technology tools. Such failures can lead to loss or damage in various forms, both direct and consequential, in respect of which the Bank assumes no liability whatsoever.

2.4 The Client has the responsibility to take reasonable steps to prevent unauthorised access to his computer or mobile device. Usernames and PINs should not be divulged to unauthorised persons. These, together with the OTP devices issued by the Bank, must be kept safe and secure at all times and all reasonable measures must be taken to prevent unauthorised access. The Client must regularly change his PIN and must not choose PINs that are easily deduced by others. OTPs generated by an OTP device must not be divulged to anyone. These obligations herein are assumed by and are the responsibility of the Client despite the fact that the Client might choose to allow some other authorised individual to access the E-Services on his behalf. If the Client suspects that his username, password or security token might have been stolen, lost or in some way compromised, the Client has a duty to inform the Bank immediately.

2.5 To the fullest extent permitted by law, the Bank will not be liable or responsible for any loss or damage that may be suffered by the Client arising from his use of the E-Services, including any loss or damage from system malfunctions, network failures, transmission errors and delays, or the malicious acts of third parties.

3. Copyright

Unless otherwise mentioned, all information provided through any E-Services is protected by copyright and such copyright may be vested in the Bank, another member of the Bordier Group or other third parties. The Client is granted a limited, non-transferable and non-sublicensable licence to use the Services only for the purposes of accessing information relating to those of his Accounts which he has chosen to be able to access through the E-Services and of transactions undertaken on such Accounts. The Client does not acquire any intellectual property rights by merely using the Web Access Service or by merely downloading and storing software in connection with the Mobile Access Service. The E-Services are for private and personal use only and the provision of the E-Services shall not be construed as a grant to the Client of any wider license or right to use information or content (including text, charts, images, registered trademarks, service marks, and logos) for any other purposes (including any commercial or business purposes). The Client undertakes not to reproduce or distribute any information which he obtains through the E-Services to third parties.

4. Local Restrictions

Depending on the local regulations and the regulations in force at the domicile of the Client, the Bank reserves the right not to provide certain types of information or tools and may vary the availability of the E-Services or the terms under which an E-Services is provided, without prior notice, in particular if the Bank suspects the existence of malicious or fraudulent attempts (hackers), threatening the confidentiality of information transmitted by the Electronic Services, or for any other reason.

5. Termination of E-Services

5.1 The Client may at any time choose to terminate access to the E-Services by giving written notice to the Bank. Likewise, the Bank may at any time choose to terminate provision of the E-Services to the Client by giving written notice to the Client and to do so without having to give any reasons.

5.2 Termination by the Client of the Web Access Service necessarily involves termination of the Mobile Access Service, but the Client may choose to terminate only the Mobile Access Service while retaining the Web Access Service. However, upon termination of the Mobile Access Service, for security reasons, the Client must uninstall or delete the application from all mobile devices used for the Mobile Access Service.

5.3 Termination of any E-Services does not necessarily have the effect of terminating any broader contractual relationship between the Bank and the Client, unless the parties otherwise agree. Upon such termination of access or provision of the E-Services, the Bank is entitled to require the Client to return to the Bank all OTP devices, and such other installation kits as the Bank may have previously provided to the Client.

6. Applicable Law and Place of Jurisdiction

All relations between the parties under this Agreement shall be exclusively governed by and construed in accordance with the laws of Switzerland. The parties irrevocably agree that the courts of Switzerland are to have jurisdiction to settle any dispute which may arise out of or in connection with this Agreement and that accordingly any proceedings arising out of or in connection with this Agreement may be brought in such courts. Nothing contained in this clause shall limit the right of the Bank to take proceedings against the Client in any other court of competent jurisdiction nor shall the taking of any such proceedings in any one or more jurisdictions preclude the taking of proceedings in any other jurisdiction whether concurrently or not, unless precluded by applicable law. The Client irrevocably waives any objection which he may have now or in the future to the courts of Switzerland being nominated for the purpose of this Agreement on the grounds of venue or otherwise and agrees not to claim that any such court is not a convenient or appropriate forum.

13 May 2025

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