Weekly Market Update – US Presidential Inauguration day

KEY MARKET MOVES

Source: Bloomberg

MACRO OVERVIEW

US

US markets closed the week with a banger as the S&P 500 clocked in a gain of 2.93%. The Russell 2000 Index, comprising the smallest 2000 companies in the Russell 3000 Index closed up 3.97% suggesting further broadening of gains in equities. Inflation data headed in the right direction and earnings from banks overwhelmed. Wednesday’s cooler-than-expected consumer price print and Fed Governor Christopher Waller’s comments on Thursday about a possible rate reduction in the first half of the year helped buoy sentiment. Core consumer price index — which excludes food and energy costs — increased 0.2% after rising 0.3% four straight months, core YoY fell to 3.2% from 3.3% whilst the headline CPI YoY came in as expected at 2.9%. PPI the day before rose 0.2% from a month earlier, below forecast of a 0.4% gain.

December retail sales missed estimates month-over-month while weekly jobless claims rose more than expected — two signs of economic cooling that may ease concern about the Federal Reserve’s interest-rate path. The softer inflation numbers are likely insufficient to place a January cut on the table but it does strengthen the case that the Fed’s cutting cycle has not yet run its course. The UST10Y yield retreated to 4.627% and the 2’s closed at 4.282% after hitting a high of 4.81% and 4.42% respectively. The VIX also retreated to close at 15.97. In other releases, the Fed’s Beige Book report noted that economic activity increased ‘slightly to moderately in late Nov/December’ whilst the Empire State Manufacturing Index fell to -12.6 (exp. 3.0). Meanwhile, a report late on Friday said that Trump and Chinese President Xi Jinping spoke by telephone, may have soothed some anxiety about trade tensions.

All eyes will be on President Donald Trump as he re-takes his oath as the next US president today, and stock investors will have one big reason to breathe a sigh of relief. History shows the performance of the equities benchmark over a three-month period usually improves after inauguration day!

For this shortened week, we will have a much lighter data set with only S&P Global US manufacturing, services and composites and U. of Mich. inflation/consumer expectations of significance. Markets will be closed today in observance of Martin Luther King day.

Europe

European markets ended in positive territory on Friday, with London’s FTSE 100 closing at a record high. The UK’s miningheavy FTSE 100 gained 3.11%, and the Eurostoxx 600 finished the week up 2.37%, buoyed by mining stocks, which rose 2% following a Bloomberg report that Glencore was in discussions with Rio Tinto about a potential merger—the largest in the mining industry’s history. Rio Tinto, the world’s secondlargest miner, had a market value of approximately $104 billion as London trading began on Friday, while Glencore was valued at around $56 billion. A merger between the two would create the largest-ever mining deal, though it would face numerous challenges. Glencore’s large copper assets are highly sought after in the energy transition, but its substantial coal business could be a sticking point for Rio Tinto.

Novo Nordisk dropped 4.3% on Friday after the US Centers for Medicare and Medicaid Services included the company’s weight loss drugs, Wegovy and Ozempic, in a list of 15 medications subject to price negotiations under government healthcare programs. LVMH reclaimed its position as Europe s largest company after Novo Nordisk s shares fell.

Meanwhile, European car manufacturers, including MercedesBenz and BMW, have urged the European Commission to strike a grand bargain with US President-elect Donald Trump. The carmakers are seeking protection for the European auto industry, which faces challenges from Trump s proposed tariffs of up to 20% on US imports, at a time when the industry is dealing with the expensive shift to electric vehicles and growing competition from China. Over 20% of EU car exports go to the US.

The UK reported disappointing data. First, the ONS revealed a 0.3% decline in sales volumes, falling well below economists expectations of a 0.4% increase. Analysts attribute the downturn to ongoing consumer caution amid living cost concerns, despite easing inflation. Additionally, UK economic growth for November came in weaker than anticipated, while inflation dropped more than expected to 2.5%. These figures prompted traders to increase their bets on the extent of Bank of England interest rate cuts this year, with more than 70 basis points of cuts priced in by late morning on Friday, up from around 65 basis points the previous day.

In the Eurozone, annual inflation was confirmed at 2.4% for December 2024, up from 2.2% in November, while core inflation remained steady at 2.7%, indicating persistent underlying price pressures. Services were the main driver of inflation, contributing about 1.8% to the headline figure. Energy costs rose by 0.1% in December, reversing the -2% decline in November, marking the first positive change since July. Services inflation in the euro area increased to 4% year-on-year in December, up from 3.9% in November, remaining stuck around this level since May. However, the three-month-on-three-month seasonally adjusted annualized change in services prices fell to 1.9% from 2%.

Month-on-Month Increases Decline

With economic growth stagnating, investors are betting on further interest rate cuts by the European Central Bank. A 25- basis-point rate cut is fully priced in for the ECB’s 30 January meeting, with additional cuts expected later in the year.

French Minister François Bayrou survived a no-confidence vote last Thursday, called by the hard left, after the centre-left Socialist Party declined to support the motion. In the vote, 131 lawmakers were in favor of the motion, far short of the 288 votes required.

This week, we will see the Eurozone flash consumer confidence and the Eurozone PMI.

Asia

The world’s biggest bond market and global bellwether is leading a reset higher in borrowing costs, with the prospect of a prolonged period of elevated rates carrying consequences for economies and assets everywhere. Just days into 2025, yields on US government debt were surging as the risks to supposedly super-safe assets mount. The CPI numbers mid-week came as a huge relief to the market.

By mid-week, most markets in Asia were down for the year, with one exception, the Kospi in South Korea closing higher so far for the year in 2025. South Korea’s central bank unexpectedly left its policy interest rate unchanged on Thursday, weighing the impact of its back-to-back cuts last year while supporting the won which has weakened to a 15-year low versus the U.S. dollar in recent weeks. MSCI Asia ex Japan closed the week +1.02%.

Investors in Asia remain cautious as they prepare for a potential rate hike by the BOJ in the coming months. Governor Kazuo Ueda said that he’s going to raise the benchmark rate if the economy continues to improve this year in a speech last week, avoiding giving any specific hints on the timing of the next hike. Japan’s wholesale inflation remained at 3.8% in December 2024. The steady inflation rate, which matched market expectations, was also influenced by rising fuel costs due to the removal of government subsidies. Additionally, the yen’s weakness led to higher import prices, contributing to overall cost pressures for companies. The Bank of Japan is considering raising interest rates at their January 23-24 meeting.

China trade data came in stronger than expected. China’s imports and exports grew by 5% year-on-year in 2024 to reach 43.85 trillion yuan ($5.98 trillion), with the total foreign trade volume setting a new record high, according to data released by the General Administration of Customs (GAC) on Monday.

Bank Indonesia to cut BI Rate by 25bps to 5.75%. Large-cap bank stocks and other rate-sensitive stocks, especially property, are expected to continue strengthening on the back of this. BI’s surprise decision means it has shifted its focus to economic growth, in tandem with the government’s 8% GDP growth target. The move came after a prolonged selloff in the country’s government bonds, with the 10-year yield rising by more than 50 basis points since the US election on Nov. 6 — the largest such jump in emerging Asia. Indonesia’s 10-year bond yield rose to 7.32% before the decision, hitting its highest level since Nov. 2022. It moved lower after the cut, closing at around 7.27%. Global funds pulled out $152 million from Indonesia’s bond market on Monday, the largest single-day outflow in two months, according to data from the Ministry of Finance. The outflow followed a strong US employment report on Friday, which fueled bets that the Federal Reserve may slow the pace of its own rate cuts.

Reserve Bank of India (RBI) has announced that it will conduct daily variable rate repo (VRR) auctions on all working days in Mumbai, until further notice. The daily auctions, aimed at easing the current liquidity tightness in the banking system, will begin on Friday, with a notified amount of Rs 50,000 crore. The liquidity deficit in the banking system has exceeded Rs 2 trillion in the past few days.

GeoPolitics

US- China: China’s President Xi Jinping will send a high-level envoy to Donald Trump’s inauguration, in an unprecedented move designed to reduce friction between the countries at the start of the new US administration. By sending a special envoy of significant stature to get meetings with Trump and his cabinet, Xi can demonstrate that he wishes to get off on the right foot with the Trump administration without risking that he could return home empty-handed or publicly embarrassed.

US- Greenland: Greenland Is Ready to Cooperate With Trump, Prime Minister Says. Both Greenland’s PM Egede and Denmark’s Prime Minister Mette Frederiksen have on several occasions stressed that Greenland is not for sale, and that it’s up to the Greenlandic people to decide the future of the island. The renewed focus on Greenland has given the territory more leverage in its relationship with Denmark, putting the world’s largest island in an unexpected position of power.

Israel – Palestine: Israel and Hamas agreed to a ceasefire deal Qatari and US officials said, bringing at least a temporary halt to the war in the Gaza Strip that has raged for more than 15 months. The multiphase agreement, due to take effect on Sunday, a day before Donald Trump returns to office as US president. However, the parties still had to give final approvalÃ

Phase 1: The first phase will involve a 42-day truce, during which 33 Israeli hostages — including children, all female prisoners, the sick and elderly — will be freed in exchange for Palestinian prisoners held in Israeli jails and a dramatic increase in humanitarian aid deliveries into Gaza.
Phase 2: The two parties would begin negotiating the second phase no later than day 16 of the truce. During this period the remaining hostages, including male soldiers, are meant to be released in exchange for more Palestinian prisoners. If fully implemented, the second phase would also lead to a permanent ceasefire and the full withdrawal of Israeli troops from Gaza.
Final Phase: The final phase would involve the return of all remaining bodies of hostages who died, and the reconstruction of Gaza, under the supervision of Egypt, Qatar and the UN.

Credit Treasuries

December PPI in the US came out below expectations. PPI-ex MoM came out flat Vs +0.30% expected which translate into a YoY of +3.50% Vs +3.80% expected.

The US CPI release, as that really was the main swing factor notwithstanding the earlier global boost from lower UK CPI numbers. For markets, the main headline was that core US CPI fell to a monthly +0.2% pace in December (vs. +0.3% expected), so the year-on-year rate ticked down a tenth to +3.2%. Although in a trillion dollar plus sliding doors moment, it was interesting the YoY core inflation was 0.002 percentage points away from staying at 3.3% as it came in at 3.248%.

However, for all the market excitement, it wasn’t actually a great inflation report by several measures. In fact, the headline CPI print was at a 10-month high of +0.39%, and it didn’t see a downside surprise like the core print. Moreover, there are growing signs that this stickiness isn’t just a blip, as the 3m annualized rate of CPI reached an 8-month high of +3.9%, so that’s not where the Fed would normally be comfortable cutting rates. Plus, it’s worth bearing in mind that this report is covering December, and we’re soon about to face the potential impact from tariffs, whilst Bloomberg’s Commodity Spot Index (+1.40%) just hit its highest level since January 2023.

December US Retail Sales control group increased by 0.70% Vs +0.40% expected & December Industrial Production increased by 0.90% Vs +0.30% expected. Previous Month data were revised up 0.20% compared to -0.10% that was announced previously.

The main driver last week was definitely the CPI, which had a huge impact on financial markets and interest rates. The US Treasury curve bull flattened with the 2years yield down by 12bps, 5years yield was down by 17bps, 10years yield gave up 15bps and 30years yield was down by 11bps. US IG 5years credit spreads tightened by around 3.5bps while US HY 5years credit spreads tightened by 21bps. US IG managed to gain 1.60% last week and US HY gained around 1.20%. Leverage loans gained about 5bps. Market forecast that the FED will now cut its main interest rate by 37bps by the end of this year compared to 28bps at the start of last week.

The US markets will be close today (Martin Luther King’s day). Today celebrate the first day in the office for Trump second time in the White House. The main economic data this week in the US will be the January preliminary Manufacturing & Services PMI’s, the January University of Michigan sentiment index, and quite a lot of date about the health of the real estate market.

FX

DXY USD Index fell 0.28% to close the week at 109.35, driven by downside surprises in US CPI, with core rising by 0.225% m/m (C: 0.3%).

In addition, reports of the incoming administration looking into gradual tariff hikes supported USD weakness. In other US Macro data, Headline PPI rose 0.2% m/m in December (C: 0.4%; P: 0.4%), while PPI ex Food, Energy, Trade rose 0.1% m/m (C: 0.3%; P: 0.1%). Retail sales missed expectations on headline (A: 0.4%; C: 0.6%) but beat on the more relevant core-control (A: 0.7%; C: 0.4%). NFIB Small Business Optimism rose to 105.1 in December (P: 101.7) after a large rise in November, returning to prepandemic levels. Apart from the data, we also have Fed Governor Waller voicing optimism about inflation, where cooperative data could be sufficient to justify 3-4 25bp cuts this year. Based on OIS, market is currently pricing for 36 bps of cuts in 2025, up from 28 bps of cuts a week ago.

European Currencies was mixed against USD; EURUSD rose 0.28% to 1.0244, GBPUSD fell 0.31% to 1.2169, USDCHF fell 0.15% to 0.915. GBP underperformed amidst negative surprises in UK Macro data. UK CPI surprised on the downside, with services inflation slowing to 4.4% y/y (C: 4.8%; P: 5.0%), 37bp lower than the BoE forecast. Headline CPI slowed to 2.5% y/y (C: 2.6%; P: 2.6%) while Core CPI slowed to 3.2% y/y (C: 3.4%; P: 3.5%) in December. UK Retail Sales unexpectedly contracts in December, dragged down by food store volumes and online retailing.

Antipodean Currencies rose against USD, driven by USD weakness; AUDUSD rose 0.75% to 0.6193, NZDUSD rose 0.50% to 0.5585. In Australia, Employment rose 56k in December (C: 15k; P: 36k). The Participation Rate rose to 67.1% (C: 67.0%; P: 67.0%), with the Unemployment Rate ticking back up to 4.0% (C: 4.0%; P: 3.9%).

USDJPY fell 0.91% to 156.30. In addition to USD weakness, we have media report that BoJ see a good chance of Jan rate hike. BoJ Governor Ueda says the branch managers’ meeting offered encouraging views on wage increases and that the BoJ will discuss a rate hike at the upcoming meeting. On Japan Macro, Headline PPI rose 0.3% m/m (C: 0.4%; P: 0.3%), largely due to higher prices in electric power, gas, and agriculture products, particularly rice. Resistance level at 158/160. Support level at 155/152/147.

USDCNH fell 0.30% to 7.3415, driven mostly by USD weakness. On China Macro data, upside surprise in China 4Q24 GDP (A: 5.4%, C: 5.0%) driven by industrial production (A: 6.2%, C: 5.4%) and retail sales (A: 3.7%, C: 3.6%). In addition, PBoC vows to strengthen management of the FX market and adjusts its rules for cross-border flows to support the currency. However, these announcements did not have any material upside impact on CNH.

Oil & Commodities

Oil Futures rose last week, with WTI and Brent futures rising 1.71% and 1.29% to 77.88 and 80.79 respectively, amid concerns of less supply due to heightened US sanctions. IEA said the 160 tankers sanctioned by the US last week had shipped more than 1.6 million barrels a day of Russian oil in 2024, about 22% of the country’s seaborne exports. It also noted that previous rounds of curbs had been “highly effective, reducing the activity of designated tankers by 90%.” In the US, inventories fell for an eighth week to hit the lowest since April 2022, according to official data on Wednesday. The rise in oil prices came even amid news that after 15 months of war Israel and Hamas had agreed a ceasefire deal, which came into effect on Sunday.

Gold rose 0.50% to 2703.25 driven by lower USD as US yields fell. In addition, gold price was supported as many traders are cautious that the US president could herald an era of sweeping tariffs, trade wars, and widespread market upheaval on inauguration day today.

Economic News This Week

Monday – JP Core Machine Orders/ Indust. Pdtn, UK Rightmove Hse Prices, CH LPR
Tuesday – UK Employ., EU Zew Exp., CA CPI
Wednesday – NZ CPI, US Mortg. App./ Leading Index
Thursday – Norway Rate Decision, CA Retail Sales, US Initial Jobless Claims, EU Cons. Confid.
Friday – JP Natl CPI/ BoJ Rate Decision, AU/JP/EU/UK/US Mfg/Svc/Comps PMI Jan Prelim, US UMich/ Existing Home Sales

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.

20 January 2025

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