(VOR News) – The Financial Markets Authority (FINMA) published a statement on Tuesday declaring that UBS needs to improve its crisis preparation in order to guarantee that its activities might be terminated without causing wider financial market volatility.

This statement was provided in response to a request made by UBS. UBS has said that it has put its resilience plan on hold, according to a statement released by the Swiss regulator.

This data was supplied in accordance with the declaration. This strategy is a plan that is submitted to the appropriate authorities for approval once a year.

In light of the fact that UBS is aiming to purchase its competitor Credit Suisse in the year 2023, it has come to light that the emergency protocol of the company needs to be modified.

This is due to UBS’s planned acquisition of Credit Suisse.

The Financial Markets Association stated, “In light of the Credit Suisse crisis, further measures are necessary to enhance crisis preparedness and resolution strategies for systemically important banks.” This is the declaration.

According to the official statement released by the firm, “UBS’s resolution planning needs to be further developed in order to increase the options for action that are available in the event that there is a risk of insolvency.”

“It must be possible to exit the market by selling or winding down individual business segments as well as selling the bank without jeopardising the stability of the financial system and without using taxpayers’ money.”

More specifically, the Financial Markets Authority (FINMA) has underlined that there ought to be a greater emphasis placed on measures that promote liquidity. This suggestion is intended to be more precise. The significance of this cannot be overstated because it ensures that financial institutions have adequate cash reserves in the event that there is a surge in the demand for money withdrawals.

In addition, in order to ensure that UBS is fully integrated with Credit Suisse, it was necessary for the company to combine its organizational structures, operational procedures, and information technology platforms. To achieve the aforementioned objective, this action was taken with the intention of achieving it.

FINMA has issued a statement stating that its requirements are in conformity with the recommendations that were included in the TBTF (too large to fail) research that was published earlier this year by the Swiss Federal Council. The study was titled “too large to fail.”

The UBS study was, all things considered, “too big to fail.”

Following the occurrence of the financial crisis that took place in 2008, the installation of TBTF limitations was carried out with the objective of strengthening the stability of banks and minimizing the damage that was caused by failures.

This was done in order to achieve the aforementioned goals simultaneously. Throughout the course of this procedure, this compilation of rules is being examined on a regular basis.

The decision to acquire its competitor, Credit Suisse, was made by UBS as a result of the fact that it had lost the faith of both its customers and its investors, which in turn prompted the markets to get unhappy and led to widespread withdrawals.

As a result of the fact that UBS has emerged as the country’s last large global bank, the authorities are ready to make use of the mistakes that have been made in the past in order to gather information.

It is essential to bring attention to the fact that the Financial Industry Regulatory Authority (FINMA) has been advocating for expanded jurisdiction to oversee lenders.

UBS has announced that it has already begun the process of establishing its emergency measures “in a targeted manner” in reaction to the news that was released on Tuesday. This information was disclosed in response to the news on Tuesday.

SOURCE: EN

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Walgreens Intends To Shutter 1,200 Stores In An Effort To Reverse The Situation.

(VOR News) – According to a statement that was issued by the pharmacy chain on Tuesday, Walgreens has the intention of closing 1,200 stores over the course of the next three years.

This is a component of the company’s plan to turn things around, which is being implemented in light of the fact that it is facing competition from retail establishments and decreased payouts for prescription payments.

Tim Wentworth, the Chief Executive Officer of the company, has stated that approximately one fourth of the company’s retail stores do not generate a profit.

Walgreens cut one billion dollars in expenditures.

A number of its retail locations have already been shut down, the leadership has been restructured, and the company has been in the process of renegotiating its contracts with insurance companies.

Walgreens, which also owns the Boots pharmacy chain in the United Kingdom, reported a net loss of $3 billion for the most recent quarter when it was reported. This loss was reported for the most recent quarter. This turned out to be significantly better than what was anticipated, with sales increasing by 6% of what was expected.

Walgreens is not the only major pharmacy company that is seeking to make a comeback; other chains are also doing it currently. In order to unwind its mergers with the insurance business Aetna and with Caremark, a pharmacy benefits manager, CVS has also removed stores and is reportedly exploring a separation.

This is being done in order to decommission its operations. One month ago, Rite Aid emerged from the bankruptcy process. CVS is just another firm that has shut down its existing sites.

There have been a variety of merchants, such as Amazon, Walmart, Costco, grocery stores, and dollar stores, that have been luring customers away from the convenience store section of pharmacy networks. Furthermore, a significant number of these competitors also provide prescription filling services, which means that they compete with pharmacies for customers.

Over the course of their history, drugstore chains have overexpanded to thousands of locations, signed long-term leases for pricey corner positions, and increased the number of locations where they operate.

However, several customers have questioned Walgreens’ quality.

These customers have expressed their discontent with the absence of staff and the inaccessibility of items that are locked up to prevent theft. On the other hand, pharmacies have voiced their discontent with the declining earnings that have been brought about by the fulfillment of prescriptions, alleging that there has been a major fall in the rates of reimbursement.

CVS and Walgreens have been looking for possibilities to create profits in other areas as a response to the difficulties they have been experiencing. It is a project that demands a large amount of time and money, and they have endeavored to create primary care centers.

This project is a huge undertaking. Furthermore, the chains have proposed several pricing arrangements for prescriptions, which are worth considering. On Tuesday, Walgreens issued a warning, claiming that it would be “willing to walk away from a line of business if it doesn’t make sense.” Walgreens did not further elaborate on its statement.

Wentworth, the Chief Executive Officer of Walgreens, made the following statement to investors on Tuesday: “I am very confident that within a period of two to three years, we will have reset the framework for reimbursement discussions.”

In addition to that, he added that Walgreens is working on increasing the number of store-brand products that it offers across its whole chain.

The implementation of this strategy has been successful for Boots in the United Kingdom; however, it has not yet been as successful in the United States as it has been in the United Kingdom.

In addition, Wentworth mentioned that the company would make an effort to re-hire staff from stores that will be closing, and he also mentioned that in general, “Many of our actions across this turnaround will take time.”

SOURCE: NPR

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Following An Early Results Leak, ASML’s Share Plummets To 15.7%, The Worst Since The IPO.

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(VOR News) – The shares of ASML experienced a 15.7% decline on Tuesday, the largest since the chipmaker went public in 2002, as a consequence of the publication of an early results report that disclosed a reduced sales estimate for 2025.

A Dutch manufacturer of semiconductor equipment, ASML, experienced a decline in its share price on Tuesday due to an error that caused the company’s earnings for the third quarter to be announced earlier than anticipated.

As of the close of trading in Amsterdam, ASML Holding shares had experienced a 15.7% decline, the most significant one-day decline since the company’s IPO in January 2002.

This decline coincided with the start of ASML’s trading.

In an early publication of the results report for the third quarter of ASML’s fiscal year, the company disclosed a decrease in its 2025 revenue estimate. Consequently, investors became apprehensive, which led to a more extensive sell-off in the semiconductor sector.

The recovery is anticipated to be delayed, and consumers are anticipated to exercise caution as part of the revised prediction for the year 2025.

The foremost European chipmaker organization has decreased its forecast for 2025 net sales to a range of thirty to thirty-five billion euros. The previous recommendation that was provided during the company’s 2022 Investor Day was between thirty and forty billion euros. This indicates a decrease from the original quantity due to its lower value.

Investors were alarmed by this more cautious approach, which was primarily precipitated by delays in the demand for extreme ultraviolet lithography (EUV). This led to market shockwaves.

The situation is the consequence of a combination of industry variables that have contributed to ASML’s reduced estimate of predicted net sales in 2025.

Despite the fact that artificial intelligence (AI) is still undergoing substantial advancements and has the potential for further development, other industry sectors are rebounding at a sluggish pace, according to Christophe Fouquet, President and Chief Executive Officer of ASML.

The individual who was speaking emphasized that the recovery of logic chips has been delayed, and the demand for EUV equipment has been delayed as a result of restricted capacity expansions in the manufacturing of memory chips.

The development of EUV equipment is a substantial area of expansion for the company.

Electrification, artificial intelligence, and energy transition are among the long-term development drivers that ASML is enthusiastic about. Fouquet underscored the ongoing strength of these trends. ASML is optimistic about the influence of these growth drivers.

The most optimistic projections for the year 2024’s sales and profits were found in the third quarter’s finest earnings.

Net sales of €7.5 billion and profits of €2.1 billion support ASML’s third quarter 2024 performance.

The gross margin for this period is 50.8%. In general, the results were consistent with projections, which indicated that analysts had expected the third quarter to generate 7.12 billion euros in revenue.

ASML anticipates that its gross margin will decrease by 49% to 50% in the fourth quarter of 2024, and its net sales will decrease by 8.8 billion to 9.2 billion euros. The company reiterated its intention to generate revenues of approximately 28 billion euros for the entire year of 2024 when questioned about its objectives.

The company also implemented modifications to the dividend and share buyback program that ASML has been implementing. It is anticipated that an interim dividend of €1.52 per common share will be distributed on November 7, 2024, in accordance with the firm’s announcement.

However, no shares were repurchased as part of the ongoing share buyback program that spans from 2022 to 2025 during the third quarter.

The value of semiconductor securities plummeted rapidly.

The stock prices of numerous chipmaker businesses experienced substantial declines on Tuesday. NVIDIA Corporation’s shares experienced a more than five percent decline during trading in New York, while Arm Holdings plc’s shares experienced a more than seven percent decline. The precipitous decline at ASML had an impact on a number of other semiconductor companies.

The tech-heavy Nasdaq 100 index experienced a decline of over one percent as a consequence of the sell-off, while the broader semiconductor sector, which is monitored by the iShares Semiconductor ETF, experienced a decline of over four percent.

SOURCE: EN

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