Weekly Market Update – Cracks in the US economy?

KEY MARKET MOVES

Source: Bloomberg

MACRO OVERVIEW

US

Friday night’s performance pushed all 3 major US indices lower for the shortened week. US stocks saw their biggest daily drop in more than two months and posted their third weekly loss in the past four, as traders took profits in the high-flying technology shares. Stocks slumped after a batch of weaker than expected economic reports on the US economy were released. PMI Data showed that business activity expanded at the slowest pace since September 2023. Manufacturing PMI was better than expected at 51.6 but both services and composite underwhelmed at 49.7 and 50.4 from 52.9 and 52.7 previously, respectively. The Uni. Of Mich. final survey of inflation expectations jumped to the highest reading since November 2023 at 4.3% and 3.5% for the 1 Yr and 5-10 Yrs respectively. Uncertainty pertaining to tariffs implications could add to the list of reasons for the Fed to keep rates elevated. Adding to the risk off sentiment, St. Louis Fed President Alberto Musalem said policy should remain “modestly restrictive” until it’s clear inflation is on course for the central bank’s 2% target, and that he sees increased risks that progress may stall or even reverse. Atlanta Fed President Bostic also said officials should be patient when evaluating how Trump’s policies may affect the economy, noting some approaches could add to inflation while others could spark investment. Positive sentiment across the pond with a potential end to the Russia-Ukraine conflict reportedly saw flows returning to Europe at the US’ expense. After hitting a fresh all-time high on Wednesday, the S&P 500 retreated as Walmart’s warning of slower sales growth sparked worries that consumer spending was stalling. The last Fed minutes showed that officials expressed their confidence in maintaining steady interest rates amidst persistent inflation and economic policy uncertainty. “Many participants noted that the committee could maintain the policy rate at a restrictive level if the economy remained robust and inflation remained elevated.” The recent US government buyout programme from DOGE, offering some federal employees around eight months’ salary to resign voluntarily, introduces an additional layer of complexity to labour market data. It should be noted that the BLS counts jobs rather than individuals in its Establishment Survey, which produces the widely followed “nonfarm payrolls” number. If a person holds two jobs, they are counted twice. Federal employees accepting buyouts will continue receiving pay and benefits for a deferred period while remaining free to seek other employment. If many of these individuals take new jobs while still technically on the government payroll, payroll figures could be artificially inflated. The UST10 year yield fell to 4.43% whilst the VIX spiked to 18.21.

This week will see the release of GDP data, Personal Consumption, Spending and Income as well as the Fed’s preferred inflation measure, the PCE on Friday. MoM core PCE is expected to increase to 0.3% in January whilst the YoY core is expected to fall to 2.6% from 2.8% previously.

Europe

European equity markets ended on Friday mixed. Chemicals, Food & Beverage, and Construction & Materials led, Energy and Media lagged.

The euro area composite PMI was stable at 50.2, below consensus expectation of 50.5, only narrowly above the 50 noexpansion thresholds. Sequentially, the improvement in manufacturing output (+1.6pt to 48.7) was offset by a softening in services activity (-0.6pt to 50.7). Geographically, activity showed signs of improvement in Germany but remained the weakest in France. The flash consumer confidence increased by 0.6%pt to -13.6%pt. This marks consecutive monthly increases following signs of weakness at the end of 2024. January HICP inflation was unrevised from the flash in the final data releases for France and Italy, together with the final prints for Germany and Spain.

Over in the UK, the payroll measure of jobs rose 21k in January following a couple of declines, with December revised to show a smaller drop of 14k. Headline CPI to 3.0% y/y, from 2.5%, with steps up also in core and services. The uptick was driven by an unwind of airfare weakness, VAT on private sector school fees, core goods and food (notably meat prices). The February flash composite PMI was broadly unchanged at 50.6, with the level, in our view, remaining consistent with muted private sector demand in Q1. January retail sales volumes grew at a robust 1.7% m/m, although this was driven by a very large increase in the oftenvolatile food component.

Germany’s centre-right Christian Democratic Union (CDU) led by Friedrich Merz won the election, with early results putting his bloc in the lead. This election was held seven months ahead of schedule after the collapse of Chancellor Olaf Scholz’s unpopular and long-troubled three-party coalition. The CDU-CSU won 28.5% of votes, with the far-right AfD in second place with 20% and Scholz’s Social Democratic Party coming in third with 16.5%, according to ZDF exit polls data. But the 2025 vote to elect 639 members to the Bundestag, the lower house of parliament, did yield a first in Germany’s postwar history. There were other historic firsts on Sunday night. With a turnout of more than 83 percent, the 2025 elections had the highest turnout in a country known for its high voter turnout rates where Chancellor Olaf Scholz’s centre-left Social Democratic Party (SPD), for the first time in history, is no longer one of the two major political forces.

Graph of German election results from 1949 to 2020.

This week will be crucial for data releases. On the activity front, we will be watching the January money and credit data (Thu), and the Q4 final GDP releases for Germany and France (Tue and Fri). On the inflation front, we will be following the EA January final HICP release (Mon) and the February flash prints for Spain (Thu), Germany, Italy and France (Fri). On 25 February, the ECB will also release its EA indicator of negotiated wages for Q4 and on 28 February we will see the EU ECB 3Yr CPI expectations.

Asia

Asian markets closed higher in general last week with the Hang Seng Index leading gains in Asia, up 3.79%, taking YTD gains to 17.24%. The highest amongst Asian equity markets. Strong results from Alibaba following through from recent positive headlines on the company helped boost sentiment around Chinese Tech names. Alibaba’s shares rose 14.6% Friday to hit highest level since Nov-2021!

In contrast, the Indian stock market ended lower last week, marking the second consecutive weekly fall. A combination of negative factors such as relentless FII selling, falling rupee, expensive valuations and the US threat of reciprocating tariff levies continue to drive investors away from Indian equities.

China’s President Xi Jinping met with top business tycoons at a forum last week, signalling a potential shift towards a more supportive stance on the private sector after years of crackdowns. In his speech, Xi emphasized promoting healthy development in the private sector, while reinforcing the importance of both the public and non-public sectors in China’s economy. He assured that businesses of all ownership types would have equal opportunities and legal protections. Notable attendees included leaders from Alibaba, Huawei, BYD, Xiaomi, and others, though CEOs from Baidu and ByteDance were absent. Reports of upcoming legal changes to further support the private sector were released following the meeting, aiming to boost confidence among entrepreneurs and investors. China faces a confidence problem, not a money supply one, so measures that build confidence among entrepreneurs, businesspeople, and investors such as government support for tech and private sector are seen as drivers for growth. Goldman Sachs is the latest broker that raised MSCI China index target on optimism over its technological advancements.

PBOC Governor Pan Gongsheng said in a speech in Saudi Arabia on Sunday that a steady yuan has contributed to stability of global financial markets and economy, adding yuan has largely stabled while many currencies have depreciated recently against dollar. Reiterated PBOC will adopt macro-prudential policies in times of exchange rate overshooting to keep yuan basically stable at adaptive and equilibrium level. Pan also said authorities are focusing more on consumption as economy was previously mainly driven by investment.

Seoul has announced it’s suspending new downloads of the China-based AI chatbot DeepSeek until South Korean authorities can guarantee it’s complying with local data protection laws.

Other data from Asia:

Japan Q4 GDP notably beats expectations as companies boosted investment and net exports improved. Japan has asked Washington for exemption from Trump’s reciprocal trade tariffs. Singapore’s key exports in January fell more than estimates, led by drop in non-electronic exports. Thailand Q4 GDP grew less than expected in Q4 and brought whole-year growth to 2.5% y/y, slower than estimates. Indonesia’s trade surplus in January bigger than forecast amid surprisingly weak imports.
The Reserve Bank of Australia has cut its key rate by 25bps to 4.1% for the first time since 2020, noting inflation has eased but still expressing caution about the outlook. Thailand PM Paetongtarn says her government will push for 3.5% growth in 2025 and will seek to work closer with central bank to support small businesses. Singapore unveiled expansionary budget ramping up spending to address cost-of-living issues amid looming election.

GeoPolitics

Europe: European countries clashed over sending troops to Ukraine and failed to come up with a united strategy forward.

Germany, Italy, Poland and Spain expressed a reluctance to dispatch peacekeeping forces to the war-torn country, hours after Britain offered to put “boots on the ground”. France proposed a “reassurance force” that would be stationed behind, not on, a future ceasefire line in Ukraine. But in blunt remarks following the summit, German Chancellor Olaf Scholz called a discussion about troop deployments “highly inappropriate” given the war was still being waged. UK Prime Minister Sir Keir Starmer said he was “prepared to consider committing British forces on the ground alongside others if there is a lasting peace agreement”.

US- India: US gas exports are the most likely beneficiaries of a pledge by Donald Trump and Narendra Modi to make India a leading buyer of American energy. The US is the world’s largest LNG exporter, and already accounted for about a fifth of India’s supplies in 2024. But the leaders’ commitment, which came after Trump called India a “tariff king” and “big abuser” and threatened reciprocal tariffs, has the potential to expand the market for US suppliers, experts say. International Energy Agency said India’s natural gas consumption would increase by nearly 60 per cent by 2030, with LNG imports set to more than double in the same period

US – Ukraine: The White House and Ukraine have made significant progress toward reaching an agreement that would provide the U.S. with access to Ukraine’s rare earth minerals and tighten the long-term relationship between Kyiv and Washington. Rare earth elements are a set of 17 elements that are essential to many kinds of consumer technology, including cellphones, hard drives and electric and hybrid vehicles. Trump’s national security adviser also expressed confidence Friday that Zelenskyy would eventually accept a deal letting the U.S. access his country’s rare earth minerals.

US- Russia -Saudi Arabia: Russia wants Ukraine to hold immediate elections as part of deal. Putin questioned Zelenskyy’s legitimacy after his term expired in May 2024, but Kyiv has said it can only hold an election after the fighting stops and martial law is lifted. Donald Trump appeared to blame Ukraine for the war with Russia and signalled Kyiv should hold elections, in his first public remarks. US has also signalled openness to relieve some sanctions on Russia as part of possible Ukraine deal.

A side note – Even though the discussion in Ryad was probably focussing on the future of Ukraine and improving relationship with Russia, the three parties (US, Saudi Arabia & Russia) present at this conference account for roughly 42% of world oil production.

President Zelensky has reiterated he won t accept a deal Ukraine didn t negotiate.

US – Japan: Japan’s Trade Minister Yoji Muto plans to visit the US in March and will seek exemptions from Trump administration. Muto is arranging meetings with newly confirmed US Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright and other top officials also to discuss plans to buy more American natural gas and Nippon Steel’s stranded bid to acquire US Steel, according to the report.

Vietnam – China: Vietnam’s parliament on Wednesday (Feb 19) approved plans for an US$8 billion rail link from its largest northern port city to the border with China, boosting links between the two communist-ruled countries and making trade easier.

The new rail line will run through some of Vietnam’s key manufacturing hubs, home to Samsung, Foxconn, Pegatron and other global giants, many of whom rely on a regular flow of components from China. Vietnam said a feasibility study for the Haiphong-Lao Cai railway will begin this year and it wants the line finished by 2030.

Credit/Treasuries

USTs rallied after an unexpected fall in the Services PMI alongside downward revisions to the University of Michigan Consumer Sentiment survey. Flight-to-quality bids accelerate the rally. The US treasury curve bull flattened with the 2y: -6bps, 10y: -4.5bps and 10 yr: -2bps. In addition, FOMC minutes highlighted some Fed interest in pausing or slowing balance sheet runoff until debt ceiling is lifted, while Treasury Secretary Bessent said US a long way off from boosting longerterm debt sales, citing hurdles such as still elevated inflation and Fed’s QT program, all providing support for Treasuries. Credit spreads in US IG and HY rose 5 and 11 bps respectively.

FX

DXY USD Index fell 0.09% to close the week at 106.61. Growth worries back in play last Friday following softer February flash PMIs.

S&P Global Manufacturing PMI edged up to 51.6 (C: 51.4; P: 51.2), moving further into expansion. However, the Services PMI unexpectedly fell to 49.7 (C: 53.0; P: 52.9) in February. Michigan consumer sentiment fell 3.1pts from the preliminary read to 64.7, with both current and expected conditions weaker. Sentiment now at lowest level since late 2023.

European Currencies performed mixed against USD, with EURUSD -0.32% to 1.0458, GBPUSD +0.37% at 1.2632, USDCHF -0.17% to 0.8983. EUR fell due to disappointing France composite PMI which falls to the lowest level since September 2023. Eurozone preliminary Composite PMI remained at 50.2 in February (C: 50.5; P: 50.2) as the Manufacturing PMI rose to 47.3 (C: 47.0; P: 46.6), and the Services PMI edged down to 50.7 (C: 51.5; P: 51.3). On the positive note, EU trade commissioner cites positive momentum in US trade talks, notes potential deal to cut car tariffs. GBP outperformed following robust macro data. UK employment, average weekly earnings and retail sales all beat consensus. Preliminary composite PMI fell driven by below consensus manufacturing PMI, even as services PMI edged slightly above consensus.

Antipodean Currencies rose against USD, with AUDUSD +0.08% to 0.6352 and NZDUSD +0.3% to 0.5742, despite RBA and RBNZ both lowering cash rate, in line with consensus. RBA cuts rates by 25 bps but warned that further monetary easing still hinged on more downside in inflation. RBA flagged that it would retain a restrictive policy due to the strength of the jobs market and an uncertain global economic outlook. AU wages missed consensus, but employment beats expectations, confirming continued tightness in the labor market as participation and employment to population ratios reach record highs. RBNZ cuts rates by 50 bps but Governor Orr signals that future rate cuts will be in smaller, 25bp increments, in April and May.

USDJPY fell 2% to close the week at 149.27, below the key support level of 150, driven by tighter US-JP interest rate differential, with yield on 10yr JGBs touching a fresh 15 year high of 1.46 following robust Japan Macro data. Japan GDP beat consensus, +2.8% qoq saar in Q4 (C: 1.1%), while Q3 was also revised up to 1.7% from 1.2%. Japan’s inflation accelerated to hit a 2yr high, rising +4.0% yoy in January from +3.6% in the prior month. Core CPI also rose more than expected, reaching 3.2% yoy, a one-and-a-half-year high and a tenth above consensus but with core-core in-line. BOJ Governor Kazuo Ueda signalled that the central bank stands ready to increase government bond buying if long-term interest rates rise sharply, reiterating the BOJ’s long-standing commitment to supporting stable markets.

USDCAD rose 0.3% to 1.4224 despite a beat on Canada core CPI. Headline in line with consensus, +0.1%mom in January, but underlying measures stronger. Trimmed mean +2.7% yoy (C: 2.6%). Median +2.7% yoy (C: 2.5%) and 0.1ppt upward revision to month prior. A 25bp cut at the BoC s upcoming March meeting is ~50% priced. BoC Governor Macklem says trade escalations with the US would result in severe economic impact and could wipe out growth over two years. Absent of tariffs, Macklem noted that Canada’s economy is “on a better footing”, inflation is back at target, and rates have come down “substantially”. However, he acknowledged that trade uncertainty is “already causing harm”.

Oil & Commodity

WTI crude and Brent crude oil futures rose to an intra-week high of 73.25 and 77.15 respectively following conflicting reports as to whether OPEC+ is considering a delay to monthly oil supply increases scheduled to begin in April. However, all the gains were pared back last Friday amid concerns around US consumer demand, inflationary pressures, and a potential new virus. WTI crude and Brent crude oil futures eventually closed the week, -0.48% and -0.41% to 70.4 and 74.43 respectively.

Gold rose 1.86% to close the week at 2936.05 as US Treasury yields fell across the curve. In addition, growing concerns and uncertainty surrounding tariffs and federal government policies continue to support gold price. Support level at 2880/2830, while resistance level at 2970/3000.

Economic News This Week

Monday – NZ Retail Sales, EU CPI, US Dallas Mfg Act
Tuesday – JP Machine Tool Orders, US Cons. Confid./ Richmond Fed Mfg
Wednesday – AU CPI, US MBA Mortg. App./New Home Sales
Thursday – SZ GDP, EU Cons/Econ./Indust./Svc Confid., US GDP/ Personal Cons./ Durable Goods/ Initial Jobess Claims/ Pending Home Sales
Friday – JP Tokyo CPI/ Retail Sales/ Indust. Pdtn, SW GDP/ Retail Sales, EU ECB 3Yr CPI Exp., CA GDP, US Personal Income/ Personal Spending/ PCE Index

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.

24 February 2025

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