Weekly Market Update – No Progress on the Tariffs Front

KEY MARKET MOVES

Source: Bloomberg

MACRO OVERVIEW

US

The shortened week brought no joy to markets as purported tariff negotiations produced nothing of substance, as yet. President Trump touted progress in trade talks and investors parsed corporate earnings to assess the impact of tariffs on firms. The S&P 500 logged its seventh down week in nine as Wall Street remains on edge about the impact of tariffs on the global economy. The Cboe VIX Index hovered around the key level of 30, signalling expectations for price swings to continue. Treasury Secretary Bessent posted on X that discussions with Japan are “progressing in a highly satisfactory direction,” and Trump said after his meeting with Italian PM Meloni he expects a to reach a trade deal with the EU, but indicated he is in no hurry to finalize an agreement to reduce tariffs. Such was the news headlines that nothing of substance was in the pipeline to sway sentiment positively. President Trump also took to social media to criticise Fed Chief Powell arguing that they should have already lowered interest rates this year and that a termination from his position “can’t come soon enough”.

The Dow fell 2.66% for the week after its blue chip component, United Health fell some 22% after reporting a first-quarter profit that fell short of analysts’ expectations. Earlier in the week, markets sold off after Fed Chair Powell warned that trade tensions could spur inflation and emphasised that Fed is in no rush to reduce interest rates – effectively pushing back on any immediate trigger of the so-called Fed put. The one bright spark atleast for now comes from corporate insiders who are buying up their own shares in this rout, at the fastest pace in 16 months. Some 180 corporate insiders purchased their own stock in the first two weeks of the month, data compiled by the Washington Service show. This has tipped the buy/sell ratio to 0.40, keeping it near the highest level since late 2023.

Data wise, applications for US unemployment benefits fell to the lowest level in two months, reflecting a stable labour market. US retail sales rose substantially in March on a jump in car purchases and other goods such as electronics, suggesting consumers were scrambling to get ahead of tariffs.

On the war in Ukraine, The US is open to recognizing Crimea as part of Russia under a peace agreement with Ukraine, and has presented a framework that includes easing sanctions on Moscow in the event of a lasting ceasefire. The US warned that it may soon abandon efforts led by President Donald Trump to end the war in Ukraine if there isn’t meaningful progress toward a ceasefire. Russian President Vladimir Putin had earlier ordered a 30-hour pause in hostilities in Ukraine that will cover Easter Sunday.

The week ahead will see PMI data on manufacturing, services and composite, durable goods orders as well as the Fed’s Beige Book report. On Friday we’ll have the U. of Mich. sentiment and inflation expectations.

Europe

European equity markets ended the week higher with the Eurostoxx 50 up 3.09%. Energy, Real Estate, and Retail sectors outperformed, while Technology, Construction/Materials, and Banking lagged behind.

The European Central Bank (ECB) lowered interest rates by 25 basis points to 2.25%, emphasizing a meeting-by-meeting approach to future policy decisions, with no firm guidance on the path ahead.

Eurozone inflation figures were left unchanged, with headline inflation at 2.2% year-on-year (down 0.1 percentage point from February) and core inflation at 2.4% (down 0.2 percentage point). The decline in inflation was driven by a slowdown in service prices (down 0.3 points to 3.4%) and energy costs returning to negative territory (a 1.2-point drop to -1.0%). Industrial production in the Euro area grew by 1.1% month-on-month in February, following a downward revision of January’s growth to 0.6%. This increase was largely influenced by significant rebounds in Belgium (+7.4% m/m) and Ireland (+10.8% m/m). Sector analysis showed varied performance, with gains primarily stemming from higher output in the chemicals and pharmaceuticals sector (+6.2% m/m).

Despite a temporary 90-day halt on new tariffs, equity markets remain volatile as earnings season gets underway. UBS noted in a recent update that the European economic backdrop remains generally positive, though recent trade tensions have highlighted the region’s susceptibility to global shocks. While the consensus forecasts a 6% earnings per share (EPS) increase for 2025, Barclays is more cautious, projecting flat earnings and suggesting that markets may already be pricing in an economic slowdown. Following recent declines, valuations have adjusted, with the Stoxx 600 now trading around 12.5 times forward earnings.

On the trade front, EU US talks have yielded little progress. Although diplomatic efforts continue during the current negotiation window, EU Trade Commissioner Šefčovič returned from Washington without firm commitments from US officials, who pushed back on proposals like the “zero-for-zero” tariff deal on industrial goods. Meanwhile, China is attempting to strengthen ties with Europe amid ongoing US China trade tensions. EU leaders are scheduled to visit Beijing in July, which coincides with the end of the 90-day grace period before US tariffs on European goods are set to double from 10% to 20%.

In the UK, March’s headline inflation eased to 2.6% year-on-year from 2.8% in February. Core inflation also dipped slightly to 3.4% from 3.5%. Inflation is now running below the Bank of England’s expectations across all major categories. Services inflation declined to 4.7% from 5.0%, despite businesses preparing for the April National Insurance tax increase. Next month’s inflation data will be critical in determining how much of that cost is being passed on to consumers.

Looking ahead, key indicators such as the Eurozone’s flash consumer confidence and PMI data are due next week, alongside the UK’s retail sales figures and GfK consumer sentiment results.

Asia

Stocks in Asia rose after US President Donald Trump floated a potential pause in auto tariffs, providing further relief to the market after the 90 day pause and also rollback on semiconductors and electronics was announced. India’s Nifty stands out, closing above its multi-month highs and was testing the high of January. Nifty ended the week up 4.48%. MSCI Asia closed the week higher 3.35%, and Singapore closed strong, up 5.92% for the week.

JD Vance is visiting India starting Monday. Vance’s visit includes a bilateral meeting with Prime Minister Narendra Modi, with sector-specific trade discussions taking place this week, aiming to wrap up by the end of May, and hopes are high for a quick deal to secure a reprieve from higher tariffs. The US has long sought to cultivate a deeper partnership with India, in large part as a bulwark against China.

GDP in China was expected to show the economy slowing ahead of the tariffs. In reality, it didn’t.

China’s gross domestic product (GDP) grew 5.4% in the January – March quarter from a year earlier, unchanged from the fourth quarter, but beat analysts’ expectations in a Reuters poll for a rise of 5.1%.

China's retail sales and GDP growth chart 2022-2025.

The Trump administration has launched investigations into semiconductor and pharmaceutical imports under Section 232 of the Trade Expansion Act of 1962, citing national security concerns over America’s reliance on foreign production. The probe paves the way for sector-specific tariffs and marks a further escalation of the administration’s broad trade confrontation.

Drug manufacturers may be forced to absorb new tariffs or pass costs on to consumers in an already high-priced healthcare market. Nearly half of key antibiotic ingredients used in the US originate from China. In a further move, Washington will begin levying fees on Chinese-built ships docking in US ports, a step intended to bolster domestic shipbuilding but one that risks intensifying trade tensions with Beijing.

In response to recent US tariffs of up to 145% on Chinese goods, Beijing extended export controls on seven rare earth elements crucial to industries such as electric vehicles, renewable energy, and defense. Supply chain disruptions are anticipated, with US stockpiles estimated by analysts to last only three to six months. The F-35 fighter jet, a cornerstone of US military capability, depends on Chinese rare-earth materials.

Vietnam, China’s largest ASEAN trading partner with bilateral trade exceeding $205 billion in 2023, is also preparing to expand aircraft imports —potentially opening doors for Chinese manufacturer Comac. Beijing and Hanoi signed 45 agreements spanning connectivity, AI, customs, agriculture, culture, and infrastructure. Among them is a $8.4 billion crossborder railway project linking northern Vietnam with key cities and ports, aimed at deepening logistical integration. Chinese President Xi Jinping urged Vietnam to jointly oppose “unilateral bullying,” calling for closer cooperation to safeguard global trade and supply chain stability.

Meanwhile, Thailand, facing a 36% US tariff, is set to meet American officials this week. Bangkok is leveraging Washington’s 90-day tariff reprieve to negotiate terms, with the US remaining its largest export market at $55 billion in 2023.

South Korea “will not fight back” against US tariffs, its acting president has said, citing the country’s historical debt to Washington ahead of trade talks with Donald Trump’s administration set to begin this week. Trump said that negotiations with Seoul would explicitly link trade and security issues, including “payment for the big time military protection we provide to South Korea” — a potential major concern for Seoul which depends on US protection from the North Korean nuclear threat.

Seoul has also announced it’ll expand its chipmaker support by 25% to $23B Trump’s tariffs and increased competition from China. The Bank of Korea’s seven-member board held its benchmark interest rate at 2.75% last week.

Singapore can no longer rely on a “working” global trading system to fit into, unlike in previous crises, and a recession, though unlikely, remains a possibility, Senior Minister Lee Hsien Loong said. On Monday, 14th April, Singapore downgraded its growth forecast for 2025 from 1 per cent to 3 per cent, to 0 per cent to 2 per cent, citing the impact of the tariffs.

GeoPolitics

US- Iran – China: The Trump administration has imposed sanctions on a Chinese refinery for buying Iranian crude oil, as Washington increasingly pushes Beijing to rein in oil purchases from the country to increase the pressure on Tehran. The Treasury department targeted Shandong Shengxing Chemical for allegedly buying more than $1bn in Iranian crude oil from sources that included a front company for Iran’s Islamic Revolutionary Guard Corps in violation of US sanctions.

Israel – Palestine:

An Israeli airstrike has hit the last fully functioning hospital in Gaza City, reportedly 20 minutes after the military issued a warning to evacuate. Hamas, which published another US-Israeli hostage proof-of-life video over the weekend, has denied Israeli allegations it was using the hospital as a command-and-control centre

Hamas said early last week that Israel has offered a 45-day ceasefire if it releases half of the remaining hostages held in Gaza, which the United Nations said is now in the grip of its worst humanitarian crisis since the start of the war. Israel has cut off all aid to the Gaza Strip since Mar 2 to pressure Hamas.

Israel – Palestine – France:

Palestinian president Mahmud Abbas and French President Emmanuel Macron called for an “urgent” ceasefire in Gaza. Macron angered Israel last week when he suggested Paris could recognise a Palestinian state during a United Nations conference in New York in June.

US- China:

Beijing warned nations against making trade agreements with Washington that hurt China, highlighting how economies around the world risk getting caught up in tensions between the two powerhouses.

The US commerce department confirmed on Tuesday it was issuing new export licensing requirements for the H20, as well as AMD’s MI308 and equivalent chips. Washington’s crackdown on H20 chips is the latest example of how the US is using tariffs and other trade barriers to increase pressure on Beijing. Nvidia said it would take a $5.5bn charge in the quarter to April 27 related to H20 chips. Its shares fell 6 per cent in after-hours trading post announcement. Huawei launched new Ascend 920 AI chip which is 30-40% faster than the previous-generation AI processors, and can perform better than the Nvidia H20 semiconductor.

Chinese airlines have been ordered not to accept any more deliveries from Boeing. The Chinese government also asked its airlines to halt purchases of aircraft-related equipment and parts manufactured by U.S. companies.

Credit/Treasuries

Global yields fell last week following better risk sentiment as US announced a temporary tariff exemption for electronics, Trump highlighted “big progress” in trade talks with Japan, said he was confident about a deal with EU and mentioned possibility of some exemptions for auto industry, while report noted China open to trade talks with US under certain conditions. UST yields fell with 2yr (-16 bps), 10yr (-16 bps) and 30 yr (-7 bps). The outperformance of Treasuries was supported by comments from Deputy Treasury Secretary Michael Faulkender that officials were investigating potential changes to the Supplementary Leverage Ratio regulation, which could allow banks to buy more Treasuries. In the meantime, US credit spreads also tightened, with HY spreads down -6bps to 424bps, whilst IG spreads came down -3bp to 70bps. Despite denials from Bessent, since the 1960’s, similar “bear steepening” patterns in the yield curve, following an inversion, typically occurred when the U.S. economy was in a recession or headed for one soon. The 2-10’s were inverted for 2 years previously.

In Europe, the sovereign bond rally also gathered pace, with 10yr bund yields coming down -9.8bps to 2.47%. So remarkably, the tariff developments have seen yields unwind nearly all of their rise after the German fiscal shift, as it was only just over a month ago (March 5) that 10yr bund yields saw their biggest daily jump (+29.8bps) since German reunification in 1990. Italian government bonds outperform (10y -16.6bp) following S&P Global s upgrade of Italy s rating to BBB+.

FX

DXY USD Index closed below its key support level (100) to 99.23 (-0.87% for the week), a level last seen in July 2023. The fourth weekly DXY decline was driven by stagflation fears amid tariff uncertainty. On monetary policy, Fed Chair Powell continues to emphasize that rates are well positioned to wait for greater clarity while flagging the Fed may face a challenging scenario where the dualmandate goals are in tension , indicating Fed put is being pushed back. On macro data, NY Fed s 1-yr ahead inflation expectations index rose in March, above consensus and now at its highest level since September 2023, but also a much more moderate increase in expectations than in the Michigan survey. March retail sales data were strong, with upward revisions in previous two months. However, Strong auto sales likely due to pulled forward demand ahead of tariffs supported headline retail sales. Fed independence back in the headlines after President Trump posted today “Powell s termination cannot come fast enough!” (Powell s term as Fed chair ends in May 2026). On tariffs, renewed optimism around the potential for trade negotiations following successful trade talks with various US key partners such as Mexico and Japan.

European Currencies performed mixed against USD with EUR (+0.33% to 1.1393), GBP (+1.60% to 1.3296) and CHF (-0.25% to 0.8168). Even though anecdotal evidence of some market participants looking to diversify away from the US continued to build, CHF strength was muted against the USD as some market participants seemingly continued to debate the potential for SNB intervention or emergency cuts in light of recent CHF strength. In addition, renewed optimism around potential trade deals supports risk sentiment and as a result, safe-haven currency (CHF) underperform. In the eurozone, the ECB cuts rates by 25bp to 2.25%, as expected. The statement removes the explicit reference to rates being “restrictive,” and emphasizes a deterioration in the growth outlook due to “rising trade tensions” which pose the risk of having “a tightening impact on financing conditions.” On UK macro data, UK headline headline CPI slowed to 2.6% y/y in March (C: 2.7%; P: 2.8%) due to lower-than-expected food inflation. Core CPI slowed to 3.4% y/y (C: 3.4%; P: 3.5%) as Services CPI slowed to 4.7% y/y (C: 4.8%; P: 5.0%). RPI came in at 3.2% y/y (C: 3.2%; P: 3.4%). UK employment beat: +206k in three months to February (C: 170k). Unemployment rate steady at 4.4%, earnings missed: +5.9% y/y (C: 6.0%)

Antipodean Currencies rose against USD with AUD (+1.40% to 0.6377) and NZD (+1.92% to 0.5937), supported by positive risk sentiment at the end of the week. In Australia, employment added 32k jobs in March (C: 40k; P: -58k). The Labor Force Participation increased to 66.8% (C: 66.9%; P: 66.7%), and the Unemployment Rate rose to 4.1% (C: 4.2%) from a downwardly revised 4.0% in February. RBA minutes signal an openness to future easing highlighting May as an “opportune time” to revisit policy, while emphasizing that the outcome of the decision “was not predetermined.” In New Zealand, Headline CPI rose 0.9% q/q in 1Q24 (C: 0.8%; P: 0.5%).

USDCNH rose 0.26% to 7.3061 driven by high US-China trade war tension, as the US restricts sales of semiconductor chips to China. CNH fell despite reports that China is open to trade negotiation talks with the US if certain conditions are met and above consensus China macro data. Trade Surplus widened to $102.6bn in March (C: $75.2bn; P: $31.7bn), as Exports rose by 12.4% y/y (C: 4.6%; P: -3.0%) reflecting normalization from residual  LNY seasonality, while Imports contracted by 4.3% y/y (C: -21.%; P: 1.5%) amid steel production cuts. 1Q25 GDP growth beat consensus expectations, coming in at 5.4% y/y (C: 5.2%; P: 5.4%), led by policy frontloading on infrastructure, tech and consumption. Sequentially, GDP was up 1.2% q/q in 1Q25 (C: 1.4%; P: 1.6%). Retail Sales rose by 5.9% y/y in March (C: 4.3%; P: 4.0%). Industrial Production rose by 7.7% y/y in March (C: 5.9%; P: 5.9%). Meanwhile, Fixed Assets Investment YTD edged up to 4.2% y/y in March (C: 4.1%: P: 4.1%).

USDCAD fell 0.21% to 1.3847. On macro, big miss on Canada headline CPI, +0.3%m/m in March (C: +0.7%). Trimmed mean measure of core also missed, up 2.8% y/y (C: 3.0%). The BoC maintained its policy rate at 2.75% at its April meeting. The decision to hold comes as the Bank decided to “gain more information about both the path forward for US tariffs and their impacts.” Regarding future decisions, the Bank reiterated that it will “proceed carefully” as it pays attention to “the risks and uncertainties” facing Canada. The Bank is also prepared to act “decisively” if incoming information points in one direction. The neutral rate remains unchanged at 2.25-3.25%. Forecasts included two scenarios as opposed to one outlook: “Scenario 1” lays out a more optimistic path in a situation where tariffs are negotiated away, while “Scenario 2” lays out a more dire situation where uncertainty and limited tariffs persists, and other US tariffs are added.

Oil & Commodity

WTI crude and Brent crude oil futures closed the week at 64.68 (+5.17%) and 67.96 (+4.94%) respectively. The rise was initially supported by news of China’s openness to talks and then was further boosted by news of additional US sanctions on Iranian oil, with Treasury Secretary Bessent posting that “we will apply maximum pressure on Iran and disrupt the regimes oil supply chain and exports”.

Gold continued its upward trend, breaking its previous record high (+2.76%) to 3326.85 last Thursday. Gold continued to trade at new high (currently trading at 3384 at the point of writing) after National Economic Council Director Kevin Hassett said last Friday that President Trump is still exploring ways to remove Fed Chairman Jerome Powell.

Economic News This Week

Monday – CH LPR, US Leading Index
Tuesday – NZ Trade Balance, SW Unemploy., EU Cons. Confid., US Richmond Fed Mfg Index
Wednesday – AU/JP/EU/UK/US Mfg/Svc/Comps PMI April Prelim., US MBA Mortg. App./ New Home Sales
Thursday – NZ Cons. Confid.,US Durable Goods Orders/ Initial Jobless Claims/ Existing Home Sales
Friday – JP Tokyo CPI, UK Retail Sales, CA Retail Sales, US UMich

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.

21 April 2025

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