Weekly Market Update – Clarity delayed, uncertainty persists

KEY MARKET MOVES

Source: Bloomberg

MACRO OVERVIEW

US

On Friday, the S&P 500 closed out the month of May with a more than 6% gain, its best monthly performance since November 2023. The tech-heavy Nasdaq Composite surged more than 9% for the month and the Dow Jones Industrial Average rose about 4%.

A 50% tariff on the EU would lift the trade-weighted average tariff rate back up to 22% (from 15% currently). As a base case, economist expect the EU and the US to strike a deal that averts the 50% rate before the 9 July deadline but still think the 10% universal rate will remain in effect.

Last Friday’s Treasury statement offered the first glimpse of the scale of tariff revenues after the Liberation Day. As a reminder, the majority of large US importers opt to pay their monthly tariffs in a single lump sum under a so-called ‘Periodic Monthly Statements’ system. The due date for the payment is always the 15th business day of the following month, meaning that revenues reflected tariff payments for the calendar month of April. The revenues reached USD16.5bn, bringing the total tariff revenues paid in May up to USD22.3bn. For context, typical monthly tariff revenues during H2 2024 were around USD8-9bn. As tariff rates have fluctuated both up and down considerably since the Liberation Day, making precise forecasts of future tariff revenues is tricky. But if we assume revenues remain close to current levels, then the additional income earned over the coming year would be around USD190bn. This would mark a fiscal tightening of around 0.6% of GDP, which is not trivial, but also not substantial compared to the expected net easing from the Republicans’ ‘Big Beautiful Bill’. Danske Bank estimate that the bill, which passed through the House with a margin of one vote last Thursday, could lift 2026 deficit estimates by 1.5% of GDP and 2027 by 1.8% of GDP. The final passage through the Senate is still expected to take several weeks.

Conference Board consumer confidence rose 12.3 points to 98.0 in May, above consensus (87.1). Today’s data marked the largest monthly gain in four years, off April’s five-year low matching April 2020. The index still sits below its 2024 average (104.5) but has now roughly retraced declines in March and April. The expectations index drove the improvement in the headline, rising 17.4 points to 72.8. That also roughly retraced the declines in March and April. The present situation index rose to a lesser extent, also as we expected, up 4.8 points to 135.9.

The FOMC May 2025 meeting minutes continued to signal the Committee was in “wait and see” mode while leaving the policy rate steady at 4.50% for the third consecutive meeting. Waiting for more clarity on trade policy and its impact on inflation and growth is consistent with Chair Powell’s commentary during the press conference following the May 7 meeting, as well as with more recent Fedspeak. Some of the commentary (such as “participants observed that the tariff increases announced so far had been significantly larger and broader than they had anticipated”) may have been overtaken by events since the May 6/7 FOMC discussions.

According to the minutes, “downside risks to employment and economic activity and upside risks to inflation had risen, primarily reflecting the potential effects of tariff increases . As of May 7, however, the starting point for real activity, hence employment side of the mandate, appeared relatively closer to the FOMC’s target than inflation was to its target, as we describe in the most recent Weekly, A new tax bill . The minutes read, “economic activity had continued to expand at a solid pace and labor market conditions continued to be solid, but inflation remained somewhat elevated.” and, further on, participants judged that labor market conditions remained broadly in balance. By contrast, with respect to inflation, “participants observed that inflation had eased significantly since its peak in 2022 but remained somewhat elevated relative to the Committee’s 2 percent longer-run goal. Participants noted that progress on disinflation had been uneven recently, with elevated monthly readings in January and February having been followed by a relatively low reading in March. Markets continue to dial back their expectations for Fed rate cuts. Indeed, the amount priced in by December is now down to just 44bps, the fewest since February.

US core PCE deflator in line, up 0.1%mom in April, year-ended at 2.5%, also in line with consensus despite a small upward revision to March. Solid beat on personal income, up 0.8%mom (consensus 0.3%mom), spending in line with consensus at 0.2%mom. Little evidence of concern for the US consumer, so far, in these hard data points.

US trade deficit narrowed sharply in April to $87.6bn, much smaller than consensus ($143.0bn), and smallest deficit since 2023. In the details, imports plunged 19.8%mom as tariffs introduced, largest drop on record, and fully unwinding the surge in imports seen since January and ahead of tariff implementation.

Europe

European equity markets ended the week on a positive note, with the EuroStoxx 600 closing higher on Friday.

The European Commission’s Economic Sentiment Index improved slightly in May, rising by 1.0 point to 94.8. However, it still remained about 0.7 points below the average for the first quarter. First-quarter GDP figures were confirmed at +0.1% q/q in France and +0.3% in Italy. The euro area’s final Q1 GDP release, expected this coming Friday, will provide further detail on the sources of growth—particularly the extent to which early demand from the U.S. contributed to export performance. Consumer sentiment was unchanged from the preliminary estimate, holding at -15.2, up 1.4 points from April, but still below levels seen prior to ‘Liberation Day.’ Meanwhile, expectations around unemployment continued to climb, rising by 1.1 points to 28.5—the highest since December.In retail trends, German sales fell by 1.1% m/m in April. In contrast, French household spending on goods saw a modest recovery, rising 0.3% following three months of declines.

On the inflation front, headline HICP inflation moderated across several countries: it dropped by 0.3 percentage points in France and Spain (to 0.6% y/y and 1.9% y/y, respectively), and by 0.1 points in Germany and Italy (to 2.1% and 1.9% y/y). Core inflation in Italy also eased, declining by 0.3 points to 1.9% year-on-year.

Short-term inflation expectations continued to tick higher. According to the ECB, the median 12-month inflation forecast rose to 3.1% in April, up from 2.9% in March and significantly above the 2.4% low recorded in September 2023. Medium and long-term expectations remained steady at 2.5% (three years ahead) and 2.1% (five years ahead), respectively.

Markets widely expect the European Central Bank to reduce all three policy rates by 25 basis points at its meeting on 5 June, bringing the deposit rate down to 2.0%.

In terms of policy initiatives, the European Council approved the €150 billion SAFE (Security Action for Europe) fund, which will support national defence investments through 2030. Member states must submit their strategic defence plans within six months, with the first disbursements expected later this year.

Germany’s coalition government outlined its legislative agenda for the weeks leading up to the summer recess starting 14 July, aiming to deliver on key commitments in the coalition agreement. Meanwhile, France’s Prime Minister Bayrou announced plans to introduce a multi-year fiscal strategy in early July. The aim is to reduce the deficit-to-GDP ratio to 4.6% by 2026, down from a projected 5.4% in 2025.

This week will bring key data for assessing the start of Q2 economic activity. Euro area manufacturing figures for April, unemployment data (due Tuesday), and final PMIs (Monday and Wednesday) will be in focus. On Friday, the euro area will also release final Q1 GDP and employment figures. In the UK, markets are awaiting final PMI results and the Bank of England s Decision Maker Panel Survey.

Asia

Markets in Asia were mixed last week. South Korea (+4.07%) and Vietnam (+1.38%). Korea was buoyed by rate cuts, and Vietnam by Trade deals with France and news of Trump tower in Ho Chi Min City.

Most other countries in Asia pulled back on Friday after Trump accused China of violating its agreement with the U.S., adding pressure to already fragile trade sentiment. Largest detractor was Thailand, down 2.31% followed by Hang Seng, which ended the week lower by 1.32%.

MSCI Asia ex Japan ended the month of May higher still, up some 4.81%, taking Year to date gains to 6.94%.

Bank of Korea cut the policy rate, but with cautious medium-term guidance. The BOK nearly halved its economic growth projection for this year to 0.8% , reflecting deepening challenges both at home and abroad. Industrial production and the monthly GDP proxy indicator declined in April according to data, following a strong gain in March. The consumer sentiment index (CSI) in South Korea however, improved further by eight points to 101.9 in May, reaching the level seen last October before the political uncertainty spike. Backed by the rate cut and the US federal trade court ruling against several tariff actions of the Donald Trump administration, South Korea’s benchmark Kospi soared to a year high last week.

China industrial profits improved further in April. Profits rose 1.4% year-onyear in the January-April period. Profits in the mining sector fell 26.8% year on year in the January to April period, while the manufacturing and utilities sectors — electricity, heating, gas and water supply — saw them rise 8.6% and 4.4%, respectively.

Taiwan released Strong 1Q GDP growth on export boom. However, the trade-reliant economy is expected to grow at a slower pace in 2025 than previously forecast with growth forecast at 3.1%.

Thailand’s customs trade balance fell sharply from a surplus of US$1.0 billion in March to a deficit of US$3.3 billion in April. Factory output for April however spiked on restocking and front-loading drive. Thailand’s manufacturing production index (MPI) expanded 2.2%.

India April IP printed much higher than expectations, recording growth of 2.7% India , 1Q25 GDP growth gapped up sharply from an upwardlyrevised 6.4% in 4Q24 to print at 7.4%, significantly above consensus expectations.

GeoPolitics

France- Asia: French President Emmanuel Macron has begun a six-day visit to Vietnam, Indonesia, and Singapore in which he will tout France and Europe as trade and security partners of choice. In Vietnam, 14 contracts were signed for co-operation in defence, civilian aviation, transport, and energy, among others. Vietnam’s President Luong Cuong said the defence partnership involved “sharing of information on strategic matters”. After Vietnam, Macron headed down to resource-rich Indonesia, where President Prabowo Subianto is seeking foreign investments to spur a slowing economy. During his final stop of his south-east Asian trip in Singapore, the French president said the division between the US and China was the biggest threat in the world right now. Macron warned against a “division between the two superpowers and an instruction to all the others that you have to choose a side”. He said: “If we do this we kill the global order … all the institutions created after the second world war to preserve peace.”

US – Asia: Defense Secretary Pete Hegseth delivered a message of reassurance to US allies in Asia, committing to counter China’s coercive threats and remain present in the Indo-Pacific region. Despite Hegseth’s diplomatic efforts, concerns about President Donald Trump’s erratic policymaking and trade policies persisted. The absence of a Chinese defense minister at the security conference allowed US officials to set the tone and work with other countries, while also sparking pushback against efforts to establish “spheres of influence” and promoting greater cooperation among IndoPacific nations and Europe.

US – India: Legal immigrants in the US would pay taxes on their outgoing remittances, with some percentage of the money going to the US Treasury. US has lowered its proposed excise tax on external money transfers from 5% to 3.5%, after it raised concerns among Indians living and working in the nation. The 3.5% remittance excise tax has the potential to have a big effect on India if it is implemented. The country gets about $25 billion in remittances from the US annually.

US- EU – Russia: Trump said he’s considering new sanctions on Russia after Moscow launched widespread strikes across Ukraine. Germany has given Ukraine the green light to strike deep inside Russian territory, with Friedrich Merz saying there are “absolutely no range limits anymore.” The Kremlin called such a decision dangerous and counter to the goal of reaching a political settlement.

US- Canada: Canada’s steel industry warns of ‘catastrophic’ job losses, factory slowdowns and supply chain complications following Trump’s doubling of tariffs. President Trump announced a tariff hike on steel imports during his visit to the United States Steel Corp. plant, linking the decision to protecting American jobs and supporting the anticipated agreement with Japan’s Nippon Steel Corp.

Credit/Treasuries

Ultra-long tenor government bonds across the DM space got some relief amidst speculation that the BOJ is poised to tweak JGB issuances. 30Y JGB fell by 19bps yesterday, dropping below 3%. However, at current levels, 30Y yields are still some 57bps higher than where they were at the start of the year. Concomitantly, 30Y UST yields were dragged lower, closing below 5% overnight. The rapid rise in long-end yields is a concern for the market and policymakers and a shift in issuance profile, tilting away from the long end, is a reasonable policy choice. Note that the UK has already done this and it is very likely that the BOJ would follow suit. Without a meaningful reduction in budget deficits, investors are unlikely to be able to regain confidence sustainably. Term premium is likely to build, albeit at a slower pace as supply pressures shift to the belly. From a sentiment perspective, market participants are consistent across the asset classes. As long end yields fall, market angst get reduced, supporting risky assets in the process. We note that USTs are still trading like risky assets in this environment, performing with US stock indices and the USD.

The shape of the US Treasury Curve did not really change last week with all the points on the curve losing around 10bps of yield, except the long bond yield that dropped by 7bps. US IG 5years credit spread tightened by 1bps while US HY 5years credit spreads tightened by 9bps over the week.

FX

DXY USD Index rose 0.22% driven by month-end rebalancing. This was despite escalation on US-China economic tensions. President Trump said China has “totally violated its agreement with us”, and US announced new export restrictions to China, including on chip design software. Tariff headline volatility and related trade policy uncertainty not going away despite US Court of International Trade ruling that struck down tariffs imposed under International Emergency Economic Powers Act (IEEPA). Federal appeals court temporarily reinstated the tariffs while it hears appeal and White House widely expected to shift legal authorization for tariffs. FOMC minutes leaned hawkish as it affirmed the Fed’s view that policy is “well positioned to wait for more clarity” as uncertainty about the economic outlook had increased, while emphasizing that upside risks to inflation and downside risks to employment and economic activity had risen. US macro data was mixed. Consumer confidence jumped in May, increasing for first time in five months and highlighting potential for tariff offramps to drive a soft sentiment data catch-up rather than a hard data catch-down. Headline PCE inflation came in cooler than expected for April, leaving the y/y rate just slightly above the Fed’s 2% inflation target. Continuing claims highest since 2021, consumer spending revised down in second release of Q1 GDP and pending home sales down most since 2022 in April.

European currencies fell against USD with EUR ( 0.13%), GBP ( 0.58%) and CHF ( 0.16%). EUR outperform within the European currencies as the US and EU signal a willingness to work towards a trade deal with President Trump delaying the 50% EU tariff. ECBs latest survey of consumer expectations, which found that 1yr inflation expectations were up to +3.1% in April, the highest in 14 months. So that added to fears that inflation could remain sticky above the ECBs target. That said, a 25 bps cut from ECB is fully priced by the market on 5th June meeting.

Antipodean currencies fell against USD with AUD ( 0.88%) and NZD ( 0.42%). Australia headline CPI remained at 2.4% y/y in April (C: 2.3%; P: 2.4%). Core CPI ticked up slightly to 2.8% y/y (P: 2.7%). Despite a higher than consensus CPI, the release was not read as strong enough to change the RBAs outlook on inflation. NZD rose 0.42% against AUD as RBNZ lowered its policy rate by 25bp to 3.25% at its May meeting (C: 3.25%; P: 3.50%) , in a 5:1 vote split with one member favoring keeping rates unchanged. Chief Economist Conway said the benchmark rate is now close to its neutral level.

USDJPY rose 1.02% to close the month at 144.02 driven by broad based USD strength. Japan macro data was robust. Japan Tokyo Core CPI (excluding fresh food) accelerated to 3.6% y/y (C: 3.5%; P: 3.4%), and Core of Core CPI (excluding fresh food and energy) rose to 3.3% y/y (C: 3.2%; P: 3.1%) in May. Retail sales m/m came in in line at 0.5% (P: 1.2%).

USDCAD closed the week almost flat at 1.3739 with CAD outperforming after an upside surprise in growth with 1Q25 GDP rising 2.2% q/q (C: 1.7%), coming in above the BoCs forecast of 1.8%.

Oil & Commodity

WTI crude and Brent crude oil futures fell 1.20% and 1.36% to close the week at 60.79 and 63.9 respectively as investors worried about a supply glut after Iranian and U.S. delegations made progress in their talks and on expectations that OPEC+ will decide to increase output at a meeting on 31st May. Over the weekend, OPEC+ agreed to add 411k barrels a day of supply in July. The decision to match increases for May and June was in line with expectations, but defied reports that the group was considering an even bigger volume. Coupled with increased geopolitical and trade risks where Iran criticized a report showing its growing stockpiles of enriched uranium, and President Trump increasing tariffs on steel and aluminium to 50% over the weekend, Oil futures rose this morning with WTI and Brent trading at 62.49 and 64.32 at the point of writing.

Gold and Silver fell 2.03% and 1.48% to close the month at 3289.25 and 32.98 respectively driven by broad based USD strength. That said, both gold and silver prices are well supported with both RSI above 50. Support level on Gold at 3200 and 3050 (100 days MA). Resistance level on Gold at 3400 and 3500 (YTD high). Support level on Silver at 32 and 31.60 (200 days MA), while resistance level at 34 and 34.60 (YTD high).

Economic News This Week

Monday – JP/SW/SZ/NO/EU/UK/CA/US Mfg PMI May Final, AU Melbourne Inflation, UK Nationwide Hse Px, SZ Retail Sales/GDP, US ISM Mfg/ISM Prices Paid
Tuesday – CH Caixin Mfg PMI, SZ/EU CPI, US Factory Orders/Durable Goods Orders/JOLT
Wednesday – U/JP/SW/EU/UK/CA/US Svc/Comps PMI May Final, AU GDP, US MBA Mortg App./ADP/ISM Svc
Thursday – CH Caixin Svc/Comps PMI May, SZ Unemploy. Rate, SW CPI, EU ECB Rate Decision, US Initial Jobless Claims
Friday – EU Retail Sales/GDP, CA Unemploy. Rate, US Nfp/ Unemploy. Rate

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.

2 June 2025

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