Weekly Market Update – No Longer BFF’s

KEY MARKET MOVES

Source: Bloomberg

MACRO OVERVIEW

US

After a week of rather low volatility, US markets held their gains by the end of the week extending gains in May. The S&P 500 closed out May with a 6.29% gain, its best return since November of 2023.

Tech stocks were the clear outperformers during the week not so much as a consequence of earnings but rather on the more benign tariff situation and passing of peak tariff uncertainty. Thursday was eventful with a sharp selloff in markets in reaction to the spat between Elon Musk and President Trump over Trump’s multi-trillion $ tax bills aka the “Big Beautiful Bill” where Musk took to X to call the bill a “disgusting abomination” and posting: “Shame on those who voted for it: you know you did wrong.” He argued that the bill will irresponsibly add to the US national debt while Trump suggested that Musk was upset about the removal of subsidies and mandates for electric vehicles, which could affect his Tesla business. Trump told NBC News on Saturday that he has no plans to repair his relationship with Musk after it imploded last week.

Friday’s non-farm payrolls added fuel to the rally, coming in higher than expected at 139k with the unemployment rate steady, as expected at 4.2%. Labor force participation printed at 62.40% vs a consensus 62.6%. May Average Hourly Earnings MoM came out at +0.40% vs a consensus at +0.30%, and finally the average weekly hours came out at 34.3, in line with expectations. Additionally, both ISM Manufacturing and Services for May missed expectations and were contractionary level, at 48.5, below consensus (49.5), with prices paid components for both remaining stubbornly high. May US ISM Services Index printed at 49.9, below consensus (52.0). Price Paid surprised on the upside at 68.7 vs 65.1 expected and new orders came out at 46.4, consensus was at 51.6. The two latest ISM are now trading below the 50.0 mark.

The Federal Reserve in a survey of regional business contacts (Beige Book) said economic activity declined slightly in the US in recent weeks, indicating tariffs and elevated uncertainty are rippling across the economy. US JOLTS job openings report however, unexpectedly rose in April and hiring picked up, it was printed at 7.39mio vs 7.1mio expected and 7.19mio the previous month. The Quits rate came out at 2.00% vs 2.10% the previous month while Layoffs rate came out at 1.10% vs 1.00% expected. This indicated demand for workers remains healthy despite heightened economic uncertainty. May ADP Employment came out at 36k vs 114k expected.

Meanwhile, on tariffs, President Donald Trump said US and Chinese negotiators will resume trade talks on June 9 in London, looking to resolve a simmering dispute over tariffs and technology that has unnerved markets. Over the weekend, Beijing granted approval to some applications for the export of rare earths, a move that could ease tensions before trade negotiations between the US and China next week.

This week’s key data releases to note will be CPI on Tuesday with consensus looking for a MoM core reading of 0.3% from 0.2% and YoY headline of 2.5% from 2.3%, PPI on Wednesday and a still-elevated U. of Mich. inflation expectations on Friday.

Europe

European stock markets rose after digesting news of the ECB rate cut and the upward revision of first-quarter eurozone GDP last week. UBS shares surged up to 6% following Switzerland’s announcement of new capital rules requiring UBS to hold an additional $26 billion in Common Equity Tier 1 capital. The new rules aim to strengthen UBS’s resilience and lower bailout risks but may hurt its competitiveness and returns, putting it under more pressure than some global peers. UBS has until about 2033 to fully comply, a timeline analysts see as favorable, though challenges persist due to integration and external factors.

Euro area GDP growth for Q1 2025 was revised up to 0.6% from 0.3%, mainly due to a sharp 9.7% surge in Ireland’s output, driven by multinational activity. However, this boost may not indicate broader regional strength. Employment growth was slightly downgraded to 0.2%, showing only modest labor market gains.

Early Q2 data points to a potential slowdown in the eurozone’s momentum. While business activity slightly improved in May, with the PMI composite index rising to 50.2, growth remains modest. Italy continues to lead the recovery, whereas Spain is weakening. Retail sales saw only a small increase in April, and the labor market held steady, with unemployment falling to 6.2%, supported by improvements in France and Italy. Industrial production weakened in April, with Germany, France, and Spain all reporting declines.

Inflation across the euro area continued to cool. In May, headline inflation eased to 1.9% y/y, while core inflation dropped to 2.3%. A notable decline in services inflation, which fell to 3.2%, helped bring overall prices down to levels not seen since early 2022. Reflecting this softer inflation outlook, the European Central Bank lowered its key interest rate by 25 bps at its June meeting, bringing the deposit rate to 2.0%. We thought President Lagarde might send a soft signal of willingness to pause in July. The message that President Lagarde sent, that the ECB is “in a good position to navigate the uncertainties ahead”, feels more significant. It feels like the ECB is saying that it has reached the appropriate level of rates and can afford to remain at this level of rates for longer. The ECB acknowledges the arguments for macro resilience: rising real incomes, a robust labor market, easy financial conditions, and the anticipation of defence and infrastructure spending. Yet uncertainty remains high. The risks to growth are still described as being skewed to the downside. The outlook for inflation is “more uncertain than usual”.

Germany’s new government unveiled a tax relief plan to boost investment, featuring accelerated depreciation from 2025 to 2027 and a gradual cut in corporate tax rates from 15% to 10% by 2032. The reforms aim to reduce the overall corporate tax burden to about 25%, aligning it more closely with U.S. levels.

UK economic data showed signs of improvement in May, with the composite PMI revised up to 50.3, indicating growth in both manufacturing and services. Mortgage lending slowed to 2.7% y/y, likely due to a poststamp duty rush slowdown, while corporate lending continued to strengthen, rising to 4.2%.

Looking ahead, in Europe, focus will be on industrial production, trade data, final inflation figures, and an ECB wage update. In the UK, key reports include labor market data, April GDP, and an employment survey from REC/KPMG.

Asia

Asian markets were mostly up with the MSCI Asia ex Japan index closing the week higher 2.28%. Korea’s Kospi led gains, higher by 4.24%. South Korea’s opposition leader Lee wins election as voters punish conservatives after martial law chaos. Official results showed Lee winning by nearly three million votes ahead of his main rival, Kim Moon-soo of the incumbent conservative People Power Party.

A large relief last week came from US- China trade talk progress. Chinese Vice-Premier He Lifeng will meet a US delegation for talks next week in Britain, Beijing announced on June 7. US President Donald Trump had already announced on June 6 that a new round of trade talks with China would kick off in London beginning on June 9, after he spoke by phone with his Chinese counterpart Xi Jinping in a bid to end a bitter battle over tariffs. The discussions will mark the second round of such negotiations between the world’s two biggest economies. Later this month we will also be watching for developments and news from the G7 Summit (June 13-14) and NATO Summit (June 23-25).

India: In a surprise move, the Reserve Bank of India slashed policy rates beyond market expectations and shifted its policy stance from accommodative to neutral. RBI announced a jumbo 50 bps cut in the repo rate from 6% to 5.5% to spur growth in the economy, as inflation has come down below the lower RBI band of 4%. The RBI Governor said the repo rate has now been reduced 100 bps in quick succession since February this year and hence, the monetary policy stance has been changed from accommodative to neutral. This will enable the RBI to keep a close watch on the overall growth-inflation dynamics.

Slowing Asia: Asia’s factory activity shrank in May as soft demand in China and the impact of US tariffs took a heavy toll on companies, private surveys showed on Monday 2nd June. Trade-reliant Japan and South Korea continued to see manufacturing activity contract in May as US President Donald Trump’s automobile tariffs cloud the outlook for exports. China’s manufacturing activity shrank in May for a second month in a sign of weakness. Japan’s final au Jibun Bank Manufacturing Purchasing Managers’ Index (PMI) stood at 49.4 in May, up from April but staying below the 50.0 line that indicates contraction. The PMI for South Korea, Asia’s fourth-largest economy, stood at 47.7 in May, also staying below the 50 mark. Vietnam, Indonesia and Taiwan also saw factory activity contract in May, private surveys showed. Singapore’s overall factory activity improved in May but remained in contraction. This was as global powers’ trade tensions de-escalated, but the outlook remains uncertain. PMI posted a reading of 49.7, up 0.1 point from April. Indonesia’s May inflation undershot expectations driven by a 1.4%m/m sa drop in food prices. Headline inflation eased to 1.6%oya from 1.9% while core inflation ticked down to 2.4%.

GeoPolitics

Russia- Ukraine: The United States believes that Russian President Vladimir Putin’s threatened retaliation against Ukraine over its drone attack last weekend has not happened yet in earnest and is likely to be a significant, multi-pronged strike. Russia launched an intense missile and drone barrage at the Ukrainian capital Kyiv on Friday and Russia’s Defense Ministry said the strike on military and military-related targets was in response to what it called Ukrainian “terrorist acts” against Russia. But the U.S. officials believe the complete Russian response is yet to come. Russia claimed Sunday that its forces are for the first time pushing into the central Ukrainian region of Dnipropetrovsk, an area it has been trying to reach for months, in a move that could create new problems for Kyiv’s much-stretched forces.

China- US: Trade talks in London this week are expected to take up a series of fresh disputes that have buffeted relations, threatening a fragile truce over tariffs. Both sides agreed in Geneva last month to a 90-day suspension of most of the 100%-plus tariffs they had imposed on each other in an escalating trade war that had sparked fears of recession. Since then, the U.S. and China have exchanged angry words over advanced semiconductors that power artificial intelligence, “rare earths” that are vital to carmakers and other industries. Student visas don’t normally figure in trade talks, but a U.S. announcement that it would begin revoking the visas of some Chinese students has emerged as another thorn in the relationship. President Donald Trump spoke at length with Chinese leader Xi Jinping by phone last Thursday in an attempt to put relations back on track. One area where China holds the upper hand is in the mining and processing of rare earths. They are crucial for not only autos but also a range of other products from robots to military equipment. The Chinese government started requiring producers to obtain a license to export seven rare earth elements in April.

Israel – Palestine: A ship with aid supplies for Gaza carrying Greta Thunberg and other activists was stopped by Israel from reaching the Palestinian enclave. The ship was carrying desperately-needed humanitarian supplies for the Gaza Strip, where the UN has warned that the entire population is at risk of famine. The Freedom Flotilla Coalition, the organization that launched the Madleen, has accused Israeli authorities of “kidnapping” the people on board. In a series of posts on Telegram, the group also said the ship had come “under assault in international waters” and that Israeli forces had sprayed the vessel with a “white irritant substance” before “illegally” boarding the ship.

Iran – US: Iran on Saturday strongly condemned a new US travel ban targeting citizens from several countries, including Iran, calling the move a “clear sign of deep-seated hostility toward Iranians.” The statement called on the United Nations and international human rights bodies to publicly oppose Washington’s “unilateral and discriminatory measures.” It also affirmed that Iran would use all available means to protect the rights of its citizens and respond to the consequences of such actions by the US administration. The White House signed a proclamation last Wednesday that would fully ban the entry of nationals from 12 countries: Afghanistan, Chad, the Republic of the Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Myanmar, Somalia, Sudan, and Yemen.

On Sunday, 8th June, Iran’s parliament speaker said that the latest US proposal for a nuclear deal does not include the lifting of sanctions, it seems negotiations have hit a roadblock. The US and its Western allies have long accused the Islamic republic of seeking to acquire nuclear weapons, a charge Iran has consistently denied, insisting that its atomic programme was solely for peaceful purposes.

Credit/Treasuries

Most of the volatility on the US Treasury curve happened last Friday after the release of all the job data, which saw the USTs close at 4.036% and 4.505% for the 2’s and 10’s respectively. The 2years yield gained 13bps, 5years yield was up 15bps, 10years yield gained 9bps and the long bond yield was up by only 2bps. 5years US IG Credit Spread tightened by 2bps over the week while 5years US HY credit spreads tightened by 15bps.

FX

DXY USD Index fell 0.14% to close the week at 99.19, rebounding from a low of 98.35 intra-week, supported by stronger than consensus US labor data and trade optimism with US China trade negotiation. May nonfarm payrolls rise 139k (C: 126k), but the prior two month see 95k of cumulative downward revisions; the unemployment rate remains at 4.2% as labor force participation falls. After ISM Services unexpectedly falls into contraction, heightening growth fears. ISM Services data signals stagflation concerns, weakening to 49.9 (C: 52.0; P: 51.6); growth slows with new orders entering contraction territory for the first time since June 2024, while the Prices Index rises to its highest level since November 2022.

European currencies gained against USD with EUR (+0.44%) to 1.1397, GBP (+0.51%) to 1.3528. USDCHF closed the week flat at 0.8223. The ECB delivers a 25bps cut to 2% as expected, with the statement maintaining a data-dependent approach. That said, the tone changes during the press conference with ECB President Lagarde noting that the ECB is “getting to the end of the monetary policy cycle.” Data wise, Eurozone Headline CPI slowed to 1.9% y/y in May (C: 2.0%; P: 2.2%) as Core HICP fell to 2.3% y/y (C: 2.4%; P: 2.7%). Within core, the largest surprise came from services, which dropped to 3.2% y/y (P: 4.0%); this is the lowest figure since March 2022. The Euro Area Unemployment Rate remained at 6.2% in April (C: 6.2%). Eurozone 1Q25 Euro Area GDP was revised up to 0.6% q/q (C: 0.4%; Preliminary: 0.3%; 4Q24: 0.2%). Retail Sales rose 0.1% m/m in April (C: 0.2%; P: -0.1%). In Switzerland, Headline CPI slowed to -0.1% y/y in May (C: -0.1%; P: 0.0%), the first negative y/y release since March 2021. Imported goods & services rose to -2.4% y/y (P: -2.5%), domestic goods & services slowed to 0.6% y/y (P: 0.8%) and CPI ex Rent remained at -0.7% y/y. 1Q25 GDP rose 0.5% q/q (C: 0.4%; 4Q24: 0.3%).

AUDUSD rose 0.92% to close the week at 0.649. The RBA’s May minutes show that concerns about household consumption prompted discussion around a 50bps cut. Members noted “downside risks” to the domestic economy, “including that household consumption does not pick up as quickly as envisaged in the baseline forecast.”. Also during the debate around a 50bps cut, the minutes note it “should not be taken as implying a view that the cash rate path should be lower over the entire forecast period, merely that it reaches the same level sooner”.

USDJPY rose 0.58% to close the week at 144.85, seemingly had been supported by recovery in risk sentiment on the back of positive trade talks between US and China. BoJ Governor Ueda spoke and his tone was largely unchanged as he reiterated that domestic fundamentals including underlying inflation remain solid, while US tariffs and policy uncertainty could weigh on the economy. That said, he emphasized that policy uncertainty is high and could remain even after tariff levels are determined. BoJ officials are likely to consider slowing its pullback from buying government debt at a policy meeting later this month, according to people familiar with the matter. The officials will probably discuss making smaller reductions to the central banks bond buying from the current paring pace of ¥400.

USDCAD fell 0.31% to close the week at 1.3696. The BoC maintains its policy rate at 2.75%, as widely expected, but future BoC cuts are priced out as Governor Macklem emphasizes the firmer-than-expected core CPI. Data wise, Canada employment generated 8.8k jobs in May (C: -10.0k; P: 7.4k) but the Unemployment Rate edged up to 7.0% (C: 7.0%; P: 6.9%) reaching the highest level since September 2016 (outside of the COVID 19 pandemic).

Oil & Commodity

WTI crude and Brent crude oil futures rebounded 6.23% and 4.02% to close the week at 64.58 and 66.47 respectively after OPEC+ production increase was smaller than feared and amid heightening geopolitical tensions. Positive trade talks between US and China supported the rebound as well.

Gold and Silver gained 0.64% and 9.08% to close the week at 3310.42 and 35.98 respectively, amid escalation between Ukraine and Russia.

Economic News This Week

Monday – JP GDP/BoP, CH CPI/PPI/Trade Balance, US Wholesale Inv.
Tuesday – AU Westpac Cons. Confid./NAB Biz Confid., NO CPI, UK Unemploy. Rate, EU Sentix Inv. Confid., US Small Biz Optim.
Wednesday – JP PPI, US MBA Mortg. App./CPI Pfd
Thursday – UK GDP/Indust. Pdtn/Mfg Pdtn/Trade Balance, US PPI/Initial Jobless Claims
Friday – NZ Biz Mfg, JP Indust. Pdtn, SW CPI, US UMich

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

Disclaimer: The law allows us to give general advice or recommendations on the buying or selling of any investment product by various means (including the publication and dissemination to you, to other persons or to members of the public, of research papers and analytical reports). We do this strictly on the understanding that:

(i) All such advice or recommendations are for general information purposes only. Views and opinions contained herein are those of Bordier & Cie. Its contents may not be reproduced or redistributed. The user will be held fully liable for any unauthorised reproduction or circulation of any document herein, which may give rise to legal proceedings.

(ii) We have not taken into account your specific investment objectives, financial situation or particular needs when formulating such advice or recommendations; and

(iii) You would seek your own advice from a financial adviser regarding the specific suitability of such advice or recommendations, before you make a commitment to purchase or invest in any investment product. All information contained herein does not constitute any investment recommendation or legal or tax advice and is provided for information purposes only.

In line with the above, whenever we provide you with resources or materials or give you access to our resources or materials, then unless we say so explicitly, you must note that we are doing this for the sole purpose of enabling you to make your own investment decisions and for which you have the sole responsibility.

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.

9 June 2025

Weekly Market Update – No Longer BFF’s

KEY MARKET MOVES

MACRO OVERVIEW