Weekly Market Update – Is a Bounce Enough?Is a Bounce Enough?

KEY MARKET MOVES

Source: Bloomberg

MACRO OVERVIEW

US

US markets closed the week down 2% plus, with the S&P 500 flirting with a “correction” before bouncing on Friday night. Contributing to the strong recovery on Friday was the risk of a US government shutdown fading following Senate Democratic leader Chuck Schumer choosing not to block a Republican spending bill. The market powered higher even as a report showed US consumer sentiment fell to a more than two-year low at 57.9 from 64.7 while long-term inflation expectations jumped to 3.9% from 3.5%, illustrating c oncerns about the economic impact from tariffs. Still, this was the 4th straight weekly decline for the S&P 500. Volatility reflected the slew of announcements from President Trump on trade, that raised concerns about the impact on the US economy. The VIX traded above the 29 level at one point which was the highest in months, before settling at 21 by the end of the week.

S&P 500 experiences four consecutive weekly losses.

Technical analysts said market moves on Friday showed “evidence of short covering” but not necessarily aggressive equity buyers given a lack of a clear capitulatory moment. Utilities and energy emerged as havens amid economic woes:

S&P 500 sector performance chart with percentages.

CPI came in better than expected with an improvement on all metrics. Headline YoY CPI came in at 2.8% from 3% last month and the core MoM rate fell to 0.2% from 0.4% previously. It was also the second inflation report in as many weeks that showed progress on dis-inflation. The headline Producer Price Index (PPI for final demand) was unchanged in February (+0.0%) following an upwardly revised 0.6% in January, and below our and consensus expectation of 0.3%. The PPI excluding food, energy and trade services (core PPI) rose 0.2% and decelerated from 0.3% in January. This was also below both our and consensus expectations (0.3%). Prior months’ headline prices were revised up 17 bps combined, while core prices were revised up by just 1bp. On a 12-month basis, headline PPI inflation was 3.2%, a step down from 3.7% in January or 3.4% in December. Core PPI inflation ticked down again and was at 3.3% in February, following 3.4% in January and 3.6% in December. PPI components for airfares were below expectations but that was largely offset by stronger medical services prices. Based on today’s translation 12- month core PCE inflation should rise from 2.65% (rounding to 2.6%) in the most recent release to 2.75% (rounding to 2.7%) through February. Meanwhile 12-month headline PCE inflation is projected to remain at 2.5% (edging down from 2.51% to 2.50%).

US job openings beat, up ~240k to 7740k in January, hiring rates were steady at 3.4%, quits rate lifted to 2.1%, from 1.9% in December. Layoffs fell from 1.1% to 1.0%. The vacancy to unemployment ratio rose from 1.09 to 1.13. Positive tone overall but dated amid more recent worries about recession risks.

Last Wednesday, Bank of Canada delivered a 25bp rate cut in their latest policy decision, taking their overnight rate down to 2.75%, in line with expectations. Their statement acknowledged the ongoing trade war, saying that “heightened trade tensions and tariffs imposed by the United States will likely slow the pace of economic activity and increase inflationary pressures in Canada.” The statement acknowledged that they would need to assess “the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs.”

Canada retaliates against the latest US steel and aluminium tariffs, announcing tariffs on around C$30bn of US products, targeting steel and aluminium as well. And that followed on from the EU’s own announcement yesterday morning, who proposed countermeasures covering €26bn of American goods, which would come into force over April. So collectively, the fear is that this ratchet could be increasingly hard to climb down from over the months ahead. Amidst a visit to Ireland, Trump himself continued to make comments implying that tariffs would go up, saying that the US would respond to the EU countermeasures, that he wasn’t happy with the EU and that April 2 would be a very big day, when he’s planning to impose reciprocal tariffs.

Finally last Friday, the March preliminary University of Michigan sentiment index came out at 57.9 Vs 63.0 expected and 64.7 the previous Month. This is the 3rd Month in a row that the index prints lower and the last time that we tested this type of level was back at the end of 2022. Current conditions sub-categories was a touch lower (63.5 Vs 64.4 consensus) but Expectations subcategories printed at 54.2 Vs 63.0 expected. The 1years inflation forecast jumped to 4.9% Vs 4.3% expected (this number was at 2.8% 3Months ago ..) and the 5-10years inflation forecast came out at 3.90% Vs 3.40% expected.

However, given the Fed’s double mandate of full employment and price stability, the previous week’s labour data do point to some cracks and may even point to more workers struggling to secure stable and well-paying jobs. Many full-time workers have been forced into part-time positions. The payroll survey, which counts jobs rather than individuals, can inflate job numbers when workers take on multiple jobs. If a full-time worker loses their job and replaces it with two part-time positions, the payroll survey registers a net gain in jobs, despite their financial position worsening (Epic, 14/3/2025) which could also lead to weaker consumption. If the labour market is weaker than it appears, the Fed may turn more dovish, easing policy sooner than expected.

The U.S. economy faces headwinds from erratic tariff policies, weaker growth forecasts, and stretched market valuations, conditions that have significantly unnerved both markets and investors. However, while tariffs will undoubtably impact U.S. GDP, recession isn’t inevitable. Resilient consumer and corporate balance sheets, along with potential Fed support could stabilize conditions. While the odds of recession have risen, investors should not treat it as the base case, but neither should they dismiss the possibility outright.

Meanwhile, the US government shutdown has been avoided after the Senate passed a Republican-led measure last Friday to keep the government funded for the next six Months (until 30th of September). Nine Democrats and one independent allied with the party joined nearly all Republicans in the key procedural vote, overcoming a 60-vote threshold and paving the way for passage. The stopgap funding bill passed in the Senate 54-46.

We will have retail sales out this week, a measure of the US’ consumer resiliency. The main highlight will be the FOMC meeting concluding on Thursday, with no change in rates expected. We will also see an updated version of the FED Summary of Economic Projections as well as the Fed Dot Plots.

Watch this sector, which has lagged its European counterpart – US defence stocks. Lithuania’s defence minister Dovile Sakaliene said she recently met with executives from major US defence firms and sees a “need” for “at least $8 billion” more worth of business with American defence companies in “coming years,” according to a Breaking Defence report.

Europe

European markets ended the week on a downturn, with the Stoxx 600 declining by 1.22%. The index is on track for its second consecutive weekly loss as regional investors closely watch the turbulent developments in transatlantic trade policies.

Following the first parliamentary debate on 13 March, the Bundestag is expected to vote on 18 March on the set of reforms as part of their grand coalition negotiations. The Parliamentary approval requires a two-thirds majority and the support of the Greens. This week the German parliament will vote on the fiscal stimulus that was proposed two weeks ago. The vote in the Bundestag will take place on Tuesday and in the Bundesrat on Friday after the CDU/CSY, SPD and Greens reached a compromise on debt brake reform late last week. The three elements of the original proposal were slightly amended:

Exempt defence spending over and above 1% of GDP from the debt brake, though with a broader definition of defence spending. This effectively allows for even more defence spending outside the debt brake than on the original proposal.
Establish a EUR 500 bn off-budget fund for infrastructure investment to be spent over 12 years
Of which EUR 100bn are earmarked for the Climate and Transformation Fund
Of which EUR 100bn go to the federal states
Which must be in addition to a minimum 10% investment spend in the core budget
Raise the net borrowing cap for the German states from 0% to 0.35%.

The increase in defence spending would allow for a gradual build-up in European defence spending investment in the near term, especially given existing production capacity constraints and the relatively small industrial defence base in Europe.

Early last week, the EU announced it would retaliate to Trump’s 25% tariffs on steel and aluminum with countermeasures on 26 billion euros worth of goods. The EU’s tariffs could take aim at clothing, alcohol and industrial goods imported from the US. Trump then responded to the announcement with a threat to impose further levies on EU goods, threatening on Thursday to slap 200% duties on champagne and spirits originating from the bloc, unless the European Union removes 50% tariffs on American Whiskey, effective 1 April 2025. The move sent the major European beverage companies tumbling, while US spirits makers saw a boost. The US is a key market for European alcohol producers, accounting for about 1 fifth of beverages, spirits, and vinegar products exported by the EU in 2024.

“The initiator, the retaliator, the re-retaliator, and so on and so forth—all of that is going to hurt growth at large,” ECB president Lagarde said. “Everyone will suffer; this is a constant in history of trade.” Such measures are already dampening business activity through heightened uncertainty for companies, consumers, and investors.

In terms of data, the EA industrial production rose 0.8% m/m in January, with notable rebounds in Germany and Italy. French and Spanish February headline HICP inflation were unrevised from the flash prints but German HICP was revised 20bps lower to 2.6% y/y.

Fitch ratings affirm France at AA- and maintained its negative outlook for the country, citing the government’s challenge of bringing down the swollen public deficit. Fitch forecast that French government debt will increase to more than 120% of GDP by the end of 2028, higher than the agency’s previous forecast last October.

This week will bring the EA February Final HICP on Monday, the preliminary March consumer confidence on Friday.

In the UK, the economy’s unexpectedly shrank by 0.1% m/m in January. The imposition of tariffs on steel and aluminum exports to the US are small in terms of their direct impact on the UK, with around £500mn exported in 2024, less than 0.02% of GDP. Unlike European peers, the UK does not have a defence-motivated fiscal boost to act as an offset, as the announced increase in defence spending is being done in a way so as to be fiscally neutral.

This week, we are expecting a majority of the MPC to vote the Bank Rate to hold steady at 4.5% on Thursday. We will also see the labour market data for January on Thursday and the GfK consumer confidence on Friday.

Asia

With governments around the world trying to figure out how to respond to the US president’s tariffs agenda and threats of further measures, equity markets around the world have been plunged into turmoil amid uncertainty about what is to come. MSCI Asia ex Japan was lower by 1.2% last week. Nikkei 225 edged slightly higher 0.45% while the rest of Asia was mostly down. Hang Seng still holding the lead with YTD gains of 21.06%

We have heard more good news about China in the past three weeks than probably in the previous three to four years, Citi analysts have now downgraded US stocks to neutral from overweight while upgrading China to overweight, adding to growing doubts over US exceptionalism. Amundi saying global investors are finding better value in Greater China stocks than in US. Added interest in China is slowly coming back considering Beijing’s policy clarity, in contrast with rising uncertainty in US. Goldman Sachs earlier this week slashed its year-end S&P 500 target from 6500 to 6200 while downgrading its US GDP forecast to 1.7% from 2.4% — its first below-consensus projection in two and a half years.

Over the weekend, China has introduced a plan to boost domestic consumption and drive economic growth by increasing earnings, reducing financial burdens, and improving the consumption environment. The plan focuses on wage growth, stabilizing the property and stock markets, and expanding income opportunities. It also promotes both traditional sectors like housing and automobiles, and emerging industries such as AI, smart wearables, and 3D printing. The plan includes region-specific policies for rural areas, ice and snow resource-rich regions, and urban centers. It also aims to enhance winter tourism and expand visa-free entry to boost inbound consumption. Overall, the plan links consumption growth with broader social goals, such as improving elderly care and work-life balance, to enhance quality of life in China.

GeoPolitics

US – China: South China Morning Post citing sources reported US and China are making plans for an in-person meeting between President Trump and Xi as early as April. Both hope the other side to visit to present it as a diplomatic triumph while early talks have been around Trump visiting Beijing, which he previously said he wanted to travel to China during first 100 days in office. Meanwhile Trump expressed hope for Xi to visit Mar-aLago in Florida but China wanted a more formal setting in Washington or have Trump in China.

China – Iran – Russia: Beijing played host to Russia and Iran – both key diplomatic partners – on Friday for trilateral talks on Tehran’s nuclear program. China and Russia welcomed Iran’s reiteration that its nuclear program is exclusively for peaceful purposes and not for the development of nuclear weapons, and that Iran’s right to peaceful use of nuclear energy needs to be respected. The pledge was made by ViceForeign Minister Ma Zhaoxu, Russian Deputy Foreign Minister Ryabkov Sergey Alexeevich and Iranian Deputy Foreign Minister Kazem Gharibabadi in Beijing.

US- Ukraine- Russia: On March 11, the United States agreed to resume weapons supplies and intelligence sharing with Ukraine following Kyiv’s indication that it was open to supporting a ceasefire proposal. U.S. and Ukrainian delegations held a meeting in Saudi Arabia, where they discussed a proposal for a 30-day ceasefire covering land, sea, and air. The two sides also agreed to begin negotiations aimed at establishing a lasting peace that ensures Ukraine’s long-term security.

European Union foreign policy chief Kaja Kallas expressed her belief on March 13 that Russia is likely to agree to a ceasefire, but with conditions. Additionally, Saudi Crown Prince Mohammed bin Salman spoke with Russian President Vladimir Putin by phone, reaffirming Saudi Arabia’s commitment to supporting a political resolution to the conflict in Ukraine.

Ukrainian President Volodymyr Zelensky said Mr Putin was preparing to reject the ceasefire proposal but was afraid to tell Mr Trump.

US – Iran: U.S. President Donald Trump sent a letter to Iran’s Supreme Leader in an effort to initiate talks regarding Tehran’s advancing nuclear program. Although the letter’s contents have not been disclosed, its delivery coincides with the imposition of new sanctions on Iran as part of Trump’s “maximum pressure” campaign. Trump also hinted at the possibility of military action against Iran.

Iran has long maintained that its nuclear program is for peaceful purposes but has increasingly threatened to pursue nuclear weapons. The country now enriches uranium to 60% purity, a level near weapons-grade. This is a significant deviation from the 2015 nuclear deal, which permitted Iran to enrich uranium only up to 3.67% purity and restricts its stockpile to 300 kilograms. As of the latest International Atomic Energy Agency report, Iran’s stockpile has grown to over 8,200 kilograms, with a portion enriched to 60%. U.S. intelligence agencies have assessed that while Iran has not yet begun a weapons program, its actions place it in a position to develop one if it chooses.

The Supreme Leader of Iran emphasized that the country does not seek war, but warned that any wrong action by the U.S. or its allies would lead to decisive retaliation, with the U.S. bearing the brunt of the damage. He also reiterated that Iran is not interested in nuclear weapons.

Credit/Treasuries

The shape of the US Treasury curve last week almost did not change at all, with all the points (2years à 30years yield) up by around 6bps. US IG 5years credits spreads widened by 2.5bps while US HY 5years credit spreads widened by 14ps.

FX

DXY USD Index fell 0.12% to close the week at 103.72 (9 consecutive weekly loss) driven by growing recession fears in the US.

Trade tensions remain high as US tariffs on steel and aluminium were quickly met with retaliatory measures from Canada and EU. On US macro data, US CPI and PPI both comes in softer than expected. However, components that feed into PCE remain firm. The preliminary March University of Michigan Consumer Sentiment survey deteriorated further, with both current conditions and expectations falling amid the ongoing policy uncertainty. 1y inflation expectations rose further, the highest level since November 2022. US government averted a shutdown, as the spending deadline is extended until 30-Sep. Support level at 103, while resistance level at 104.50.

European Currencies performed mixed against USD; EURUSD rose 0.42% to 1.0879; GBPUSD rose 0.12% to 1.2935; SEK and CHF both fell against USD, with USDSEK +0.43% and USDCHF +0.59%. EUR was supported, as Germany reached a compromise on debt brake reform with only slight amendments to the original proposal, one of which allows for even more defence spending outside the debt brake. In UK, GDP contracted 0.1% m/m in January (C: 0.1%; P: 0.4%) as a correction after the strong December release. The Index of Services rose 0.1% m/m (C: 0.1%; P: 0.4%), while Industrial Production fell 0.9% (C: -0.1%; P: 0.5%). In Sweden, GDP fell 0.5% m/m in January (P: 0.5%), pointing toward a weak start to 1Q25.

Antipodean Currencies rose against USD; AUDUSD rose 0.30% to 0.6324, while NZDUSD rose 0.67% to 0.5748. Both AUD and NZD were supported by media reports that China state Council scheduled press conference on potentially stimulating consumption. In Australia, Consumer Confidence rose to 95.9 in March (P: 92.2), reaching a new three-year high. Meanwhile, Business Confidence weakened to -1 in March (P: 5.0) , but conditions indices improved across most measures. Australia Melbourne institute inflation expectations dropped 1ppt to 3.6% in March, lowest since 2021. Leans dovish for the RBA, with headline inflation on the monthly measure back in the 2-3% target band for the past 6 months, suggests consumers haven’t attached a permanent covid ‘premium’ to price expectations.

USDJPY rose 0.41% to 148.64 following reports around the US avoiding a government shutdown likely increased confidence. In addition, after Japan’s GPIF reportedly decides it would keep its current portfolio allocation weights unchanged against some expectations for a higher weight for Japanese assets, supporting USDJPY. In Japan, 4Q24 Real GDP was revised down to 2.2% SAAR (Preliminary: 2.8%; C: 2.8%; 3Q24: 1.4%). The largest labor union association Rengo released the first tabulation of 2025 wage hike negotiations. The Average Overall Wage Hike came in at +5.46% (2024: 5.28%). The wages report was in line with BoJ expectation, and BoJ is expected to keep its rate unchanged on Wednesday.

USDCAD was relatively unchanged (-0.04%) last week. BoC lowered its policy rate by 25bp to 2.75% at its March meeting, in line with consensus expectations. The statement highlighted that continued trade uncertainty was one of the drivers behind the decision, and monetary policy may not be able to offset the macroeconomic impact of trade tensions

Oil & Commodity

WTI crude and Brent crude oil futures rose last week, with WTI (+0.21%) to 67.18 and Brent (+0.31%) to 70.58. The Energy Information Administration slashed its prediction for a surplus for this year and halved its outlook for a glut in 2026, citing the prospect of diminished flows from Iran and Venezuela. Despite the price rise, overall sentiment remains fragile due to tariff developments and concerns over US growth, with geopolitical concerns also remaining a key factor. Effectiveness of sanctions against Russia have been receiving some scrutiny after crude flows from all Russian ports in the four weeks to Mar-9 saw biggest jump since the beginning of 2023, a sign of sanctions evasion. The rise comes despite soft energy CPI and a 1.4mn barrel increase in crude oil inventories.

Gold rose to a record high of 3004.94 last Friday, before closing the week (+2.58%) at 2984.16. Gold prices were supported by haven demand amidst the ongoing trade tensions.

Economic News This Week

Monday – CH Indust. Pdtn/ Retail Sales, US Empire Mfg/ Retail Sales
Tuesday – JP Tertiary Industry Index, EU Zew, CA CPI, US Housing Starts/ Building Permits/ Indust. Pdtn
Wednesday – JP Core Machine Orders/ Indust. Pdtn/ BoJ Rate Decision, EU CPI, US MBA Mortg. App./ FOMC Rate Decision
Thursday – NZ GDP, AU Employ., CH LPR, UK Employ., SZ SNB Rate Decision, SW Riksbank Rate Decision, UK BoE Rate Decision, US Initial Jobless Claims/ Leading Index/ Existing Home Sales
Friday – JP Natl CPI, UK GfK Cons. Confid., EU Cons. Confid.

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.

17 March 2025

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