Proactive Investors -
- FTSE 100 posts modest gains, up 8 points
- Rathbones to merge with Investec's UK wealth busness
- Sterling pushes ahead against the US dollar
Credit Suisse (SIX:CSGN) attacked by investors as Chair says sorry
Credit Suisse chair Axel Lehmann has apologised to investors for the collapse of the 167-year-old Swiss bank at its final shareholder meeting as an independent business on Tuesday.
“It is a sad day. For all of you, and for us,” Lehmann told shareholders at the bank’s AGM in Zurich.
“The bitterness, anger, and shock of all those who are disappointed, overwhelmed, and affected by the developments of the past few weeks is palpable.”
BREAKING: Credit Suisse Chairman Axel Lehmann apologizes to shareholders, saying he's "truly sorry" for failing to stem a loss of trust in the bank https://t.co/HWswlH10yl pic.twitter.com/2LyXRTUIym— Bloomberg (@business) April 4, 2023
Shareholders expressed their anger at the way Credit Suisse was forcibly taken over by UBS as Switzerland's government sought to avoid triggering a global banking crisis.
Shareholder advisory firm Ethos decried the "greed and incompetence of its managers" as well as pay that reached "unimaginable heights", as it prepared to challenge top executives at the shareholder meeting.
"Shareholders have lost considerable amounts of money and thousands of jobs are on the line," it said.
Dominik Gross of the Swiss Alliance of Development Organisations said: "The government's use of emergency powers to push this deal through goes beyond legal and democratic norms."
"Swiss taxpayers too are on the hook for billions of francs of junk investments and yet the government, (regulator) FINMA and the central bank have given little explanation about the state's 9 billion (franc) loss guarantee to UBS."
Attention switches to US labour data
With a shortened trading week ahead attention will soon focus on US non-farm payrolls figures due later this week.
Ahead of that the US labour market will be in focus with the publication of the latest ‘JOLTS’ Job Openings and Labor Turnover Survey.
Russ Mould at AJ Bell notes the headline figure will be the number of job vacancies, which is still very high by historic standards, to suggest employers cannot find the staff they need – usually a sign of a strong economy.
“In January, the number of vacancies dipped by 400,000 but still came in at 10.8mln,” he noted.
“Bears will say that is below the March 2022 peak of 12mln million. Bulls will say is it higher than normal for the 20-year history of this dataset and also miles above the 7.1 million vacancies on offer in 2020 just before Covid struck.”
Consensus expectations according to FXStreet for February is 10.4mln.
Rio supports Energy Resources fund raising
The Footsie has settled around 16 points to the good for now with its European counterparts ijn Frankfurt and Paris also in the green, up 0.4% and 0.3% respectively.
In company news, Rio Tinto PLC (LON:RIO) will support Energy Resources of Australia Ltd's recently disclosed plans for an interim entitlement offer, which seeks to raise up to AU$369mln.
In a statement the Anglo-Australian mining and metals company said this is to address funding requirements for the Ranger rehabilitation project in Northern Territory, Australia to the end of the second quarter of 2024.
Rio Tinto said it will subscribe for its full entitlement under the IEO for AU$319mln.
Funds raised will be used partly to repay a AU$100mln credit facility provided by Rio Tinto to assist ERA with its management of immediate liquidity issues.
Rio Tinto added funds from the IEO are not expected to generate any financial return and will be dedicated strictly to the Ranger project and repayment of the credit facility.