Weekly Market Update – Ahoy! Rough Seas Ahead

KEY MARKET MOVES

Source: Bloomberg

MACRO OVERVIEW

US

After rallying for the better half of the week, US stocks ended the week down about half a percent after President Trump on Friday, promised to unveil reciprocal tariffs next week in a major escalation of his trade war. The slide on Friday extended the S&P 500’s losses into a 2nd week. Outlooks from tech giant, Amazon missing estimates and disappointing earnings results from Alphabet Inc earlier, also contributed to the selloff. What spooked the markets on Friday was President Trump saying that his plans would affect “everyone,” without specifying exactly what measures he would take. The president said he was considering tariffs targeting automobiles, among other measures, to “equalize” trade.

Chart of announced tariffs by country percentage.

Assuming all the announced tariffs eventually advance, the estimated negative growth hit to both Mexico and Canada could range from 7% to 10% of GDP—large enough to potentially throw both into a deep recession. China could see a direct GDP drag near 0.4%—while smaller, it likely exacerbates the ongoing property market-induced downturn. Notably, U.S. growth is also likely to be impacted, by an estimated 1.2%. Such a growth shock will likely put pressure on policy measures such as tax cuts and deregulation to help cushion downside risks. Meanwhile, tariffs could result in a near-term increase in inflation, potentially pushing headline inflation back toward 4%. (Principal Asset Management Feb. 2024).

Over the weekend, President Trump said he will announce on Monday, 25% tariffs on all imports of steel & aluminium. He did not specify when the duties would take effect. He also said he would announce reciprocal tariffs later in the week on countries that tax US imports. When asked about Trump’s desire to lower interest rates, Treasury Secretary Scott Bessent said the Administration’s focus is on bringing down borrowing costs via 10-year Treasury yields, rather than the Federal Reserve’s benchmark short-term interest rate.

The U. of Mich consumer sentiment fell to a 7-month low on a spike in ST inflation expectations saw swap traders push the next back rate to September. Inflation expectation for 1-year rose to 4.3% vs expectations of 3.3%. Inflation expectations are prone to downward revisions in the final read, but the spikes here are notable: negative impact of tariff policy cited in the press release. The 5-10years inflation forecast printed at 3.30% Vs 3.20% expected, the highest in more than a decade.

We also had the US unemployment report on Friday which came in lower than expected at 143k with the unemployment rate falling to 4% from 4.1%. These numbers might look weaker, but when we include the upwards revisions of the previous Month, NFP was revised up by 51K jobs & private payrolls was revised up by 50K jobs, over two Months, these jobs indicators look reassuring. Some of the weakness in employment this month may be due to unseasonably cold weather, as well as the LA wildfires, which led to evacuation orders beginning the week before the survey reference period. There is a continued improvement in underlying trends with the 3mth average gains for headline (237k) and private payrolls (209k) solidly above their six-month averages of 178k and 145k. The January Average Hourly Earnings have surprised on the upside, MoM printed at +0.50% (Consensus +0.30%), which push the YoY at 4.10% Vs 3.80% expected. The previous month YoY was also revised up by twotenth of one percent. The labor force participation came out at 62.60% vs 62.50% expected. Overall, the job data for January are still showing a pretty resilient job market in the US.

The JOLTS job openings fell to 7.6 mln, down from November’s revised 8.156 mln. Quits rate came out at 2%, in line with previous Month, which was revised higher. Layoffs rate remains unchanged at 1.10%. January ADP Employment change printed at 183K Vs 150K expected while the previous month was revised up by 54K jobs to reach 176K. The December US Trade Balance printed at -98.4Bn, a bigger deficit than expected. This number can probably be explained by quite a significant amount of front loading before any trade tariffs could be put in place by the new US administration.

January final US Services PMI printed at 52.9, exactly in line with consensus. The ISM services index however printed lower than expected at 52.8 Vs a consensus of 54.0. It is, in a way, reassuring that these two survey indices have now converged to the same level as these two surveys are supposed to express, more or less, the same information, the main difference being the pool of people within corporate that are questioned.

Fed speak post data saw Minneapolis’ Kashkari saying the US labor market had cooled but remained solid, and interest rates are likely to decline “modestly” in 2025. Fed Governor Adriana Kugler said it’s appropriate to keep the Fed’s benchmark interest rate where it is for some time. We also had Chicago’s Goolsbee mentioning that fiscal policy uncertainty may lead to fewer rate cuts, although he still sees some reductions over the next 18 months.

This week will see CPI, PPI and retail sales among the key releases. Fed Chair Jerome Powell, will offer his semi-annual testimony to lawmakers on Tuesday and Wednesday, and is likely to highlight the resilient economy as a key reason central bankers are in no rush to further cut borrowing costs. Bloomberg expects core CPI MoM to come in at 0.3% from 0.2% and the YoY headline CPI to remain unchanged at 2.9%.

Europe

European markets finished softer, reversing some earlier strength. The Eurostoxx 600 was higher by 0.60% over the week, which was contributed by a rise in volatility in part due to the U.S – China trade spat.

In terms of the ECB, there was significant focus last week on updated estimates of the neutral policy rate from the ECB staff. This largely reaffirmed its view from last year with a range of 1.75% to 2.25%. The ECB is set to enter a new phrase of unpredictability as the terms of seven of its 26 interest ratesetters end by December, marking its biggest personnel shakeup since 2019. These are namely, Finland, Netherland, Austria, Portugal, Malta, Slovakia, and Slovenia. Balance between hawkish and dovish policymakers might shift just as the ECB has to decide how low to cut rates.

In data, the Euro area composite PMI has picked up almost 2pts, with Germany improving and its labor market data looking less acute. Euro area consumer spending also continues to grow, with weakness more concentrated in capex. Euro area headline inflation was up 0.08%-pt to 2.52%oya in January. The increase was mostly driven by energy price inflation increasing 1.71%-pts to 1.84%oya. Food price inflation declined 0.29%-pt to 2.32%oya and core inflation declined 0.02%-pt to 2.69%oya, with core goods inflation moving sideways (0.52%oya) and services inflation down 0.06%-pt to 3.91%oya.

The final Euro area PMI saw only small revisions and therefore confirmed a 1.9pt increase over the past two months, leaving the composite output index at 50.2. An upward revision in Germany (flash 50.1), which was offset by a downward revision in France (flash: 48.3). Despite the mixed country details, the Euro area PMI has gained 1.9pts since November. Euro area retail sales contracted slightly by 0.2%m/m in December, following a small downward revision for November. Production in the German manufacturing sector declined by 4.9% in 2024. This was the fifth annual decrease in the last six years. Industrial production is now 13% below the peak reached in 2018. Nevertheless, these are still only a few green shoots in a challenging economic environment for the German industry. Despite further interest rate cuts on the horizon, we rather expect a kind for “wait-and-see” attitude in the German industrial sector with regard to US trade policy and the course of the new German government. Deutsche Bank expect industrial production in Germany to decline by 1.5% in 2025 on average.

French Prime Minister Francois Bayrou forced his 2025 budget bill through the lower house of parliament, using a constitutional provision, which did trigger a vote of no-confidence in the parliament, but this time the new French Government survived it.

The BoE cut rates by 25bps to 4.5% at its February meeting. The decision was as expected, but the general messaging from the MPC about the rate path ahead was very mixed. Three groups with different opinions have formed on the committee, with views becoming more polarized. But the overall tone was more hawkish than expected, and more than is implied by the two votes for 50bp cuts. What wasn t expected was the scale of the growth downgrade in the bank s accompanying economic forecasts. The bank now predicts that the British economy will only grow by 0.75% this year, down from its previous forecast of 1.5% just three months ago. But at the same time, it now expects CPI inflation to hit a much higher peak of 3.7% in 3Q (previously 2.8%). This is a touch higher than the forecast (3.5%). The most interesting part of the BoE’s forecast was the medium term, where inflation was shown still above target two years hence (at 2.3%) based on a path of rates that only gets to 4.16% by year end. This is related to higher imported inflation, but also the lagged impact of firmer than expected wage growth this year (3.75%) as well as weaker productivity.

This week, we will see industrial production figures and the unemployment figures in the Euro Area and GDP data in the UK.

Asia

All Greater China’s main boards closed higher last week. The strongest gains were seen in Hong Kong-listed technology stocks, pushing its tech index 7% higher YTD. Hang Seng tech, still basking in Deep Seeks advancements , is up 15.27% YTD. Trade tariff rhetoric cooled between US /Canada and US/Mexico with tariffs on hold while Beijing’s response to Trump’s tariffs seen as moderate. No Trump-Xi call last week. With regards to China, Trump also said today he would maintain duty-free exemption for low-value packages from China and Hong Kong, saying the exception would remain in place until systems to process and collect tariffs are implemented.

Travel and spending during China’s Lunar New Year holiday hit new records this year. A total of 501 million trips were made, and Tourism spending surged by 7%, reaching 677 billion yuan ($93 billion). A record-breaking 187 million people went to the cinema over the holiday, lifting the box office to a record high of 9.5 billion yuan ($1.32 billion). Separately, the China Index Academy reported sales of new housing and prices for existing home units both continued to fall in January. It said the average price per square meter for existing properties fell more than 7.0% y/y in 100 of China’s top cities, and the value of property sales fell by almost 17% y/y.

Trump said last week Modi would be coming to White House, noting that during their call he pressed Modi to address trade imbalance and boost purchases of US-made military equipment (Bloomberg). India is more vulnerable to a trade fight with Trump, running $35.3B surplus with US. Trump has also accused India of being a trade abuser and last week signaled potential action against India for causing economic “harm” to US (Indian Express). However, recent actions by India being seen as attempt to placate Trump in a bid to avoid tariffs (Bloomberg). Indian budget on Saturday included cuts to import duties covering several products, including motorcycles, which follows previous Trump complaints about tariffs being levied on Harley-Davidson bikes.

The Reserve Bank of India, said that the rate-setting panel has pegged the nation’s GDP growth for FY26 at around 6.7%. This projection is marginally higher than the earlier forecast of 6.6 % announced in December 2024. The RBI expects economic growth for the quarters of the next fiscal year starting April 1 as follows: Q1 at 6.7%, Q2 at 7%, Q3 at 6.5%, and Q4 at 6.5%.

Other data points in Asia – Japan PMI shrank at quickest pace in 10 months with autos and manufacturing notably weak. South Korean manufacturing returned to modest expansion amid improvement in external demand.

GeoPolitics

US – Tariffs:

The United States will move to impose 25 per cent tariffs on steel and aluminium imports on Monday (Feb 10), President Donald Trump said over the weekend.

President Trump agreed to delay 25% tariffs against Mexico for 1 month after a conversation with Claudia Sheinbaum. Mexico will send 10,000 troops to the border to stem the flow of fentanyl and migration.

Duties on China however went into effect Tuesday, and China retaliated. China’s Finance Ministry retaliated by imposing levies of 15% for U.S. coal and LNG and 10% for crude oil, farm equipment and some autos. The new tariffs on U.S. exports will start on Feb. 10, the ministry said. China also said it was starting an anti-monopoly investigation in Alphabet Inc, while including both PVH Corp , the holding company for brands including Calvin Klein, and U.S. biotechnology company Illumina on its “unreliable entities list”.

US- Palestine – Israel: President Donald Trump pledged on Tuesday that the U.S. would take over the war-ravaged Gaza Strip after Palestinians are resettled elsewhere and develop it economically, a move that would shatter decades of U.S. policy toward the Israeli-Palestinian conflict. Five Arab foreign ministers and a senior Palestinian official sent a joint letter to US Secretary of State Marco Rubio on Monday opposing the idea of displacing Palestinians from Gaza. It was signed by Egypt, Jordan, Qatar, Saudi Arabia and the United Arab Emirates, as well as the Palestinian Authority. Saudi Arabia said it would not establish ties with Israel without the creation of a Palestinian state, contradicting President Donald Trump’s claim that Riyadh was not demanding a Palestinian homeland when he said the United States wants to take over the Gaza Strip.

US- Israel – ICC: US president placed financial sanctions and blocked visas for the ICC employees and their families, in a move that coincided with Israeli Prime Minister Benjamin Netanyahu’s visit to Washington. The order also applies to officials who investigate US citizens. The order says the court is a threat to the “sovereignty” of the US that “undermines the critical national security and foreign policy work” of the country and allies such as Israel. In November, the ICC issued arrest warrants for Netanyahu and his then-defence minister Yoav Gallant “for crimes against humanity and war crimes”. Trump also took measures against ICC officials in 2020, authorising an asset freeze and blocking their family members from coming into the US after the court began investigating alleged US actions in Afghanistan.

US – Russia- Ukraine: President Donald Trump on Monday said he wanted a deal granting the US access to Ukraine’s rare earths resources in exchange for continued military and economic aid to Kyiv as it struggles to halt Russia’s invasion. Kyiv holds vast reserves of titanium, iron ore and coal, as well as about 500,000 tonnes of untapped lithium, collectively estimated to be worth tens of trillions of dollars. Some of these resources are at risk of being lost to Russia’s advancing forces in Ukraine’s east, or have already fallen under Russian occupation.

While supportive of Trump’s enthusiasm to bring the three-year war to an end, the American leader’s suggestion that he had formulated part of a plan with Russia without Ukraine has irked leaders in Kyiv. An alleged Ukraine War truce will include ceasefire by Easter and some land transferred to Russia.

US – India: A US military plane began deporting Indian migrants, as per news agency Reuters, implementing US President Donald Trump’s hardline stance against an estimated 11 million undocumented migrants in the United States. India is the farthest destination of US military flights deporting migrants, with the Pentagon stating flights to deport over 5,000 migrants from El Paso, Texas, and San Diego, California. So far, military aircraft have flown migrants to Guatemala, Peru and Honduras. The US President had said after a call with Prime Minister Narendra Modi that the latter “will do what’s right” when it comes to taking back illegal Indian immigrants from America. India accounts for a relatively small share of illegal migration to the US, making up only 3% of unlawful crossings according to the US border protection data.

AI Race: A growing list of countries, including South Korea, Italy and France, have voiced concerns about DeepSeek’s security and data practices. Australia upped the ante mid week by banning DeepSeek from all government devices, one of the toughest moves against the Chinese chatbot yet.

US – Panama: Panama rejects Trump administration claim it agreed to allow American warships to transit canal for free.

Credit / Treasuries

The overall strong macroeconomic data in the US last week, and especially the job data last Friday, supported a rebound in short term US Treasury yield. Over the week, the 2years yield gained 2bps, 5years yield lost 3bps, 10years yield lost 6bps and the long bond lost 10bps of yield. The move on the medium to long part of the curve can probably be explained by the Treasury quarterly refunding announcement mid of last week when the US Treasury said that they plan on keeping coupon bond supply stable this year, announcement which should alleviate a major concern for prospective buyers. They said that Treasury will maintain current bond auction sizes for “at least several quarters,” a more conservative stance than what was anticipated and at odds with the TBAC’s uniform view to ease this guidance. Coupled with Bessent’s statement that this Administration will focus on 10-year Treasury yields, this suggests that future supply increases will be carefully managed and likely smaller than previously anticipated. US IG 5years credit spreads tightened over the week by 1.5bps while US HY 5years credit spreads tightened by 7.5bps. US IG gained about 30bps last week while US HY gained only about 11bps.

FX

DXY USD Index fell 0.30% to 108.04 as markets perceive the tariff situation between US and China as encouraging.

Following US tariffs of 10% on top of previous tariffs on all goods on China, China’s response was restrained in an attempt to avoid a full trade war as China did not include tariffs on American farm products, which would have suggested a significant escalation. However, over the weekend, it was reported that reciprocal tariffs would be unveiled this week in a major escalation of his trade war with US economic partners, affecting everyone. US macro data was mixed. Nonfarm payroll missed consensus (A: 143k, C: 175k), but underlying details were strong with unemployment rate below (A: 4.0%, C: 4.1%) and average hourly earnings above (A: 0.5%, C: 0.3%). UMich below consensus (A: 67.8, C: 71.8) and 1y Inflation Expectations surged higher to 4.3% (P: 3.3%), the highest reading since Nov 2023. Both US Mfg ISM and PMI above consensus, but ISM services unexpectedly fell to 52.8 (C: 54.1; P: 54.1). Trading range on DXY between 107 and 110, and a break on these levels suggest a change in trend.

European Currencies performed mixed against USD. EURUSD fell 0.33% amid a renewed focus on the potential of trade escalations with the US. On EU Macro, CPI a bit stronger with headline -0.3% (C: -0.4%) and Core +2.7% (C: 2.6%). Retail sales below consensus (A: -0.2%, C: -0.1%, P: 0.0%). GBPUSD came in flat at 1.2402. BoE cut rates by 25 bps as expected, with a vote spilt of 7-2, with 7 in favor of a 25bp cut and 2 in favor of 50bp cut (dovish messaging). However, the forecasts revision seemed hawkish, with a forecast of 1.9% terminal inflation.

USDJPY fell 2.44% to 151.41 as the market revised up Japan terminal rate pricing on the back of hawkish communication by BoJ officials and the recent strong labor/inflation data. December nominal wage growth came in higher than consensus (A: 4.8%, C: 3.7%). Hawkish comments from BOJ’s board member Tamura Naoki stating that the central bank must raise rates at least to around 1% in the latter half of fiscal 2025. Immediate support level at 151/150, while resistance level at 153/155.

AUDUSD rose 0.90% to 0.6274 driven by encouraging US-China tariffs situation. On AU Macro, Australia retail sales beat consensus (A: -0.1%, C: -0.7%).

USDCAD fell 1.71% to 1.4293 after touching a high of 1.4793 earlier in the year. On CA Macro, employment grows 76k (C: 25k) while the Unemployment Rate unexpectedly falls.

Oil & Commodity

Oil Futures fell last week, with WTI and Brent falling 2.11% and 2.74% to 71 and 74.66 respectively. OPEC+ leaves production levels unchanged despite calls from President Trump for cheaper oil prices. Immediate support on WTI and Brent at 70 and 74 respectively.

Gold rose 2.24% to close the week at 2861 (record high). USD weakness and increased uncertainty in global financial markets aids the rise in gold prices. China’s central bank expanded its gold reserves for a third month in January, signalling ongoing commitment to diversify reserves despite high prices.

Economic News This Week

Monday – Norway CPI, EU Sentix Inv. Confid., US NY Fed 1Yr Inflation Exp.
Tuesday – US JOLTS/ Factory Orders/ Durable Goods Orders
Wednesday – US MBA Mortg. App./CPI/Federal Budget Balance
Thursday – JP PPI, NY 2Yr Inflation Exp., UK Indust./Mfg Pdtn/GDP, SZ CPI, US PPI/Initial Jobless Claims
Friday – NZ Biz Mfg PMI/Food Prices, EU GDP, CA Mfg Sales, US Retail Sales/Indust. Pdtn

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.

10 February 2025

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