Business
UBS reported a staggering second-quarter net profit of $29bn, with the majority of it attributed to its acquisition of Credit Suisse at a discounted price through an emergency rescue supported by the Swiss government. UBS also announced its intention to fully integrate Credit Suisse’s domestic operations, a controversial decision that will result in significant job cuts.
Sweden’s economy contracted by 0.8% in the second quarter compared to the previous three months, although the decline was not as severe as anticipated. The country experienced a decrease in exports and a further reduction in household consumption due to the central bank’s substantial interest rate hikes.
Turkey’s central bank raised its key interest rate from 17.5% to 25%, surpassing market expectations. This significant increase is part of the bank’s shift towards a more conventional monetary policy under the leadership of new governor Hafize Gaye Erkan, aimed at combating the resurging inflation (which reached an annual rate of 47.8% in July). The bank stated its commitment to further tightening monetary policy “as necessary” until the inflation outlook improves. The Turkish lira initially strengthened against the dollar but later relinquished some of its gains.
2023-08-31 08:03:12
Original from www.economist.com