Weekly Market Update – Slash in a Flash

KEY MARKET MOVES

Source: Bloomberg

MACRO OVERVIEW

US

The long-awaited slash in rates finally happened, and in a flash a half percent was cut in the Fed Funds rate. A vote of confidence that inflation is now under control but the central bank cited risks to the labour market in its rate cut announcement, saying it was committed to the goal of full employment culled the market’s celebration Thursday. Another 50 basis points of cuts by the end of the year are expected, followed by 100 basis points in cuts next year, was enough to send all 3 major indices to close up circa 1.5%. US stocks notched its 2nd straight weekly gain despite a slight Friday night retreat. Profit taking was blamed for it, when a triple-witching options expiry and warnings of an overextended equity rally weighed on investor sentiment. Still, the S&P hit a new record on Thursday at 5713.64 and the VIX fell to 16.15. The UST2 and 10’s closed at 3.591% and 3.741% respectively, the steepest since June of 2022.

Clearly, the Fed front-loaded the rate cut cycle to address the labour market outlook as it tries to achieve the often-touted soft landing. Chair Powell further said that the market should not consider 50 bps as the new pace of reductions. Worries of a recession remain, but strategists at Barclays said current data on jobless claims, which came in lower than expected, which they see as a “reliable and timely indicator of a recession” were still holding up. Fed-speak from Fed presidents Bostic, Goolsbee and Kashkari on Monday could give us further guidance as to whether more jumbo cuts, which some on Wall Street see trouble in the labour market motivating additional outsized Fed cuts this year, could be warranted. Some are even calling the equity market rally, following the Fed’s cut, stoking the risk of a bubble, making bonds and gold an attractive hedge against any recession or renewed inflation.

Earlier in the week, we saw retail sales advance month on month beat expectations at 0.1% for August against expectations of -0.2%, industrial production & capacity utilisation both came in better than expected and housing starts & MBA mortgage applications also beating the street’s estimates. However, existing home sales were below expectations. This week will see S&P Global US manufacturing and services PMI’s, another GDP Annualised QoQ reading, expected at 3%. The Fed’s preferred inflation gauge, Personal Income and Spending PCE Price Index will come on Friday – headline PCE is expected at 2.3% from 2.5% previously, with the core month on month expected at an unchanged 0.2%.

With the Fed’s latest action turning from a headwind to tailwind for markets, we expect risk assets to continue its upside trajectory, with the November elections now taking centre stage as a main headwind. We prefer to remain in small to mid-caps and value sectors articulated via the Heptagon Driehaus US Small Cap Fund and the Smead US Value Fund.% for Q2.

Europe

European markets closed 1.45% lower on Friday, reversing the upbeat performance as most sectors were in red. Tech stocks in Europe lost 2.96% on Friday, while mining stocks were down 2.6%. Auto stocks shed 3.6%, led by Mercedes, which slumped over 8% after cutting its 2024 guidance considering weaker demand from China.

The Eurostat August HICP data were overall unchanged in the final release. Headline inflation declined 0.4%-pt to 2.2%oya with core broadly stable. Within the core goods basket, price pressure remains weak. Averaging the July-August price gains, it showed core prices rising at 1.2% yoy which is a little higher than historical norms and it could be due to the modest impact of freight prices. Within the services basket, the data show some limited and temporary upward impact linked to the Paris Olympics. French services inflation increased 0.5%-pt to 3.6%oya. This gives August Euro area services price gain around 3.5% annualized rate and this is smaller than the price gain see over January-May. The softer services price gain of late is a positive development. But the broader picture remains one of sticky services prices since underlying services prices at 3.5% ar are running in line with the average pace seen last year. Euro area consumer confidence increased 0.6%pt to -12.9% in September. This increase offsets the August decline and consolidates gains seen since last autumn.

Quite a few ECB Governing Council members spoke last week, following up on the rate cut on 12 September, mostly to suggest that there is still a wish to proceed gradually with rate cuts and await more data ahead of the December meeting. Natixis suggested that Fed stance is unlikely to deter ECB plans unless the European data justifies the shift.

The BoE held rates as expected at its September meeting at 5.00%, with the vote coming in at 8-1 and Dhingra dissenting. The MPC voted unanimously to continue the QT pace at £100bn, that implies a significant slowing in active sales over the forthcoming year, which probably isn’t necessary, but the BoE has placed a high weight on continuity in the overall pace. There was little new information in the statement, with the MPC noting there had been few material UK data developments since August. The BoE acknowledged that growth would likely weaken in 3Q, with a slight downgrade in its forecast from 0.4% to 0.3%q/q.

The BoE continued to set out three scenarios for inflation: one where inflation moderates steadily with time as past shocks fade, one which requires some help in the form of economic slack, and one where there are lasting structural changes keeping inflation high. Each has different implications for rates. The BoE’s baseline forecast is close to a combination of the first two, but the Bank remains open minded about the third. As such, the BoE maintained the same cautious approach in its guidance over easing at this meeting, noting that “in the absence of material developments, a gradual approach to removing policy restraint remains appropriate” and is more likely to cut rates more quickly in the coming months, with the next cut coming in November.

In data, headline CPI inflation for August remained at 2.2% over year ago, where BoE’s expectations were at 2.4%. Core inflation rose from 3.3% to 3.6%, services inflation moved back up from 5.2% to 5.6%

This week, we will see the PMIs in both the Euro Area and in the UK and the consumer sentiment in the euro area on Friday.

Asia

The People’s Bank of China today lowered the 14-day reverse repurchase rate to 1.85% from 1.95% previously. The central bank also injected 74.5 billion yuan ($10.6 billion) of liquidity into the banking system via the tool, it said in a statement. The move came ahead of the National Day Holiday that will last seven days from Oct 1. Bloomberg reported President Xi called on government officials at all levels to achieve this year’s annual growth target, as analysts have cast doubt over momentum in Chinese economy with many global banks cutting their forecasts. ING Bank economist said Xi’s comments will bring about more urgency in policy support with a larger boost likely to come soon.

Chinese yuan rises to the highest level in about 16 months as the central bank set a stronger currency fixing after the dollar weakened following the Federal Reserve’s interest-rate cut.

Singapore’s electronics shipments gained the most since 2010, exports rose 35.1% in August from a year earlier, following a revised increase of 16.8% the previous month. Singapore and the broader Southeast Asia region are benefiting as companies diversify their tech supply chains beyond China and Taiwan to reduce risks related to tensions between Beijing and Washington.

The Taiwanese central bank decided to keep its key policy rate on hold at the 3Q monetary policy meeting. The BoJ kept the policy rate unchanged at 0.25%, as widely expected. The policy statement was broadly unchanged, with most sentences remaining the same as those in the July outlook report. However, the BoJ modestly upgraded its assessment of domestic consumption from “resilient” to “on a moderate increasing trend.” Bank Indonesia front runed the Fed cutting its interest rate by 25 basis points to 6%.

Vietnam’s regulatory body has announced the removal of the requirement for overseas investors to fully pre-fund equity trades, a significant step in the country’s bid to secure reclassification as an emerging market. Analysts anticipate that FTSE could announce Vietnam’s upgrade to Emerging Market status during its semi-annual market review in Sep 2025, leading to more than US$500mn of passive inflows, and a likely revision from MSCI, according to JPMorgan analyst estimates.

India – Consumer Price Index (CPI) inflation unexpectedly rose, primarily due to a smaller-than-anticipated decline in food prices. August trade deficit widened to the second highest level on record, though it appears to be driven by several one-offs. The surge in gold imports was due to reduced gold import duties and upcoming festival season demand. Imports ex oil and gold also appear to be driven by stocking in anticipation of strong festive season demand. The core deficit (excluding oil and gold) gives a cleaner reading on underlying trends. This rose to $13.2bn in August from $11.6bn in July.

GeoPolitics

US is increasingly concerned about risk of an all-out war between Israel and Lebanon.

Hezbollah’s deputy secretary-general Naim Qassem has said that the Lebanese militant group had entered a new phase of its conflict with Israel which he described as an “open-ended battle of reckoning”. Hezbollah says Israel crossed a “red line” with explosive attacks on its communications devices and vowed to keep up the missile strikes.

Lebanon’s Hezbollah launched over 100 rockets early on Sunday across a wide and deep area of northern Israel, with some landing near the city of Haifa. The barrage came after an Israeli airstrike in Beirut on Friday killed at least 45 people, including one of Hezbollah’s top leaders, as well as women and children.

Israeli defence minister, Yoav Gallant, said Israeli strikes on Lebanon would continue until it was safe for evacuated people in the north of Israel to return. Israeli prime minister Benjamin Netanyahu said Israel has in recent days dealt Hezbollah “a series of blows it could not have imagined”.

Taiwan’s crucial tech industry has been unwittingly drawn into Middle East politics after revelations that thousands of exploding pagers used to kill members of Lebanon’s Hezbollah group were manufactured using the branding of a Taiwanese firm. Taiwanese tech company Gold Apollo on Wednesday denied that it had manufactured the AR-924 model pagers that exploded en masse in Lebanon, saying they had been made by a European company named BAC through a licensing deal. Taiwan’s Ministry of Economic Affairs said it had no record of direct exports of the devices to Lebanon and that the pagers may have been modified after manufacturing.

credit treasuries

US Treasury curve bear steepened last week with the 2years yield up 4bps, 5years yield up 8bps, 10 & 30years yield up 10bps. 5years US IG credit spread widened by 2bps but HY credit spread tightened by around 15bps. VIX went down 1 point to finish the week at 16. In term of performance, US IG lost 75bps and US HY gained 55bps.

S&P 500 performance around Fed rate cut cycles since 1957 – the subsequent performance varies considerably depending on whether the cuts happen into a soft landing or a recession

Equities typically rally following the first Fed cut if no recession as of September 12, 2024; price return

10Y yields & USD 1yly rates moved higher after 50 cut in 2007.

The pace of easing monetary policy would be, firstly quick, with 100bps of cut over the next 3Months or by the end of 2024, and then would slow with another 100bps of easing over the next 8 FOMC meetings that will happen in 2025. On top of the normalization of monetary policy, Powell indicated that quantitative tightening could continue alongside rate cuts. The Fed continues to see no fundamental tension between normalizing their two tools. Fyi, financial markets still expect about 70bps of cut for the remaining of 2024 & 125bps of cut in 2025. This seems excessive outside of a recession scenario. It is important to highlight that the Fed has increased the Long Run neutral rate to 2.90% compared to 2.50% 12Months ago. That could possibly implied that the Fed will tolerate higher inflation moving forward, some might argue that higher inflation might be one of the tools needed to fight ever increasing sovereign debt level.

Initial intraday reaction of risky assets to the FOMC decisions were bullish (S&P500 up 1%, US HY credit spread tighter by 10bps). S&P500 finished marginally lower when US HY Credit spread still managed to end the day 3bps tighter than previous day.

Moving forward, further deterioration of the job market will mean more easing than previously forecasted (lower 2Years yield and mild steepening of the curve). Deteriorating Consumer figures (retail sales, consumer confidence, ISM Services, etc..) will mean lower growth which mean more easing than previously forecasted (lower yields across the curve). Unexpected rebound of inflation will mean return of inversion of the curve. FED easing monetary policy coupled with an easing of financial conditions in a growing economy means that risky assets should continue to perform well. We might observe more volatility on equity rather than on interest rate moving forward (at least couple for a couple of Months/quarters) if no big changes in economic data happen. Big question mark remain the US Election, the composition of the house of representative, the smooth and peaceful transition of power, and geopolitical risks in the background (escalation in the Middle-East to a global confrontation is not unthinkable, and if the UK government manage to convince other NATO allied to provide long range missiles to Ukraine and allow them to strike into the Russian territory, a big red line for Putin government, retaliation, direct or through proxies, against NATO assets is also not unthinkable). USD behavior in Months to come is not to clear Vs DM ccy. If markets remain risk on (i.e. lower rates with growth in line with Fed forecast), interest rate differential & growth differential, both in favor of the US (at least against Europe), might not be enough for the dollar not to depreciate. Of course, ECB forecast growth for next year is quite ambitious and if deterioration of economic environment in Europe continues, that would be supportive of the USD. Elsewhere, lower US interest rates coupled with lower USD, but with the US economy still growing around target (2%), that could be supportive for EM markets and currencies.

FX

DXY USD Index fell 0.39% to 100.72, as the Fed delivered a 50 bps cut last week, lowering the fed funds target to the 4.75-5.00% range. The larger cut came amid a dovish shift to the Fed’s inflation and unemployment projections compared to June, with 2025 PCE inflation lowered to 2.1% and unemployment raised two tenths to 4.4%. However, the larger cut was followed by more hawkish guidance in the SEP and Powell’s measured press conference which cautioned against expecting the 50bp pace to continue. Data wise, Jobless claims were down to 219k (C: 230k), Atlanta Fed’s GDPNow forecast is currently at an annualised +2.9% for Q3, almost in line with the +3.0% number in Q2. US retail sales beat, headline up 0.1%mom in August, consensus looked for a 0.2%mom decline.

GBPUSD rose 1.5% to a year to date high of 1.3321, while EURGBP fell 0.71% to 0.8379. BoE kept rate unchanged as expected with an 8-1 vote split, but the statement leans hawkish with an emphasis on a gradual approach to policy easing. Governor Bailey warned that “we need to be careful not to cut too fast or by too much”. Data wise, UK CPI for August was inline with consensus, while retail sale came in above consensus. Based on OIS, market is now pricing a full 25 bps cut in Nov and 40 bps of cut in 2024. Next resistance level at 1.34, while support level at 1.327/1.32.

USDNOK fell 1.64% last week after the Norges Bank maintains its policy rate as expected. Forward guidance remains hawkish with the policy rate path still indicating the first cut in 1Q25.

AUD rose 1.54% against USD and 0.24% against NZD after Australia employment growth beats expectations for the fifth consecutive month. Australia’s unemployment rate remained steady in August at 4.2% while the number of employed people grew by 47,500 (vs 26,000 expected). Meanwhile, the participation rate remained at its record level of 67.1%.

USDJPY rose 2.13% to 143.85 as BoJ left their policy rate unchanged as expected, but their statement leaned on the dovish side, as it warned of “high uncertainties surrounding Japan’s economic activity and prices” and said that “it is necessary to pay due attention to developments in financial and foreign exchange markets”. Gov. Ueda’s communications at the press conference were more cautious than in the previous one, with his somewhat less hawkish tone. Data wise, Japanese inflation picked up as expected, with headline inflation up to a 10-month high of +3.0% in August (P: 2.8%).

Commodity

Oil future rose last week, with WTI rising 4.76% to 71.92 and Brent rising 4.02% to 74.49. The rebound on oil prices was driven by positive risk sentiment following the 50 bps cuts on Fed Fund rate. In addition, worsening Middle East conflict supported oil prices, as Hezbollah launched rockets, missiles and drones toward Israel over the weekend. The escalation and fears it would drag in OPEC producer Iran, has led to the return of a risk premium in oil. OPEC+ will publish its annual World Oil Outlook on Tuesday.

Gold rose 1.71% to 2621.88, breaking the key resistance level of 2600, as the Fed cuts 50 bps. This was despite the 2 years US treasury yield moving in the opposite direction, where it rose 1 bps. However, OIS is pricing 71.3 bps of cuts in 2024, at odds with the median dots showing only 50 bps of cuts for the rest of the year. The appreciation in Gold price has now brought it to overbought territory based on RSI indicator.

Economic News This Week

Monday – NZ Trade Balance, AU/EU/U=/US Mfg/Svc/Comps PMI Sep Prelim., SG CPI, US Chicago Fed Nat Act. Index
Tuesday – JP Mfg/Svc/Comps PMI Sep Prelim., AU RBA Rate Decision, US Cons. Confid. / Richmond Fed Mfg Index
Wednesday – CH LFR, AU CPI, SW Riksbank Rate Decision, US MBA Mortg. App. / New Home Sales
Thursday – JP Machine Tool Orders, US GDP / Core PCE / Durable Goods Orders / Initial Jobless Claims / Pending Home Sales
Friday – NZ Cons. Confid., JP Tokyo CPI, EU Cons./Svc/ Indust./Econ Confid., CA GDP, US Personal Income / Personal Spending / Core PCE Price Index / Michigan Sentiment

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.

23 September 2024

Weekly Market Update – Slash in a Flash

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MACRO OVERVIEW