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UBS Group AG expects a financial hit of about $17 billion from the takeover of Credit Suisse Group AG, the bank said in a regulatory presentation as it prepares to complete the rescue of its struggling Swiss rival.

UBS estimates a negative impact of $13 billion from fair value adjustments of the combined group’s assets and liabilities.

It also sees $4 billion in potential litigation and regulatory costs stemming from outflows.

UBS, however, also estimated it would book a one-off gain stemming from the so-called “negative goodwill” of $34.8 billion by buying Credit Suisse for a fraction of its book value.

The financial cushion will help absorb potential losses and could result in a boost to the lender’s second-quarter profit if UBS closes the transaction next month as planned.

UBS said the estimates were preliminary and the numbers could change materially later on.

It also said it might book restructuring provisions after that, but offered no numbers. Union Bank of Switzerland said it estimates a negative impact of $13 billion from fair value adjustments of the combined group’s assets and liabilities. AFP via Getty Images

“The financial information lacks an estimate of restructuring provisions as these will be booked after the transaction closes,” Vontobel analyst Andreas Venditti said in a note.

Analysts at Jefferies have estimated restructuring costs, litigation provisions and the planned winding down of the non-core unit could total $28 billion.

Meanwhile, UBS has implemented a number of restrictions on Credit Suisse while the takeover is underway.

In certain cases, Credit Suisse cannot grant a new credit facility or credit line exceeding $113 million to investment-grade borrowers or more than 50 million francs to non-investment-grade borrowers, a UBS filing showed. Union Bank of Switzerland implemented a number of restrictions on Credit Suisse while the takeover is underway.Getty Images

“Credit Suisse obviously found itself in a problem because of lapses in its risk controls and I think just setting these parameters on the ability or standards to lend out is not very unreasonable,” said Benjamin Quinlan, Hong Kong-based chief executive of financial consultancy firm Quinlan & Associates

“Ultimately, from UBS’ perspective, they will have to wear these risks on their books.”

Credit Suisse also cannot undertake capital expenses of more than 10 million francs as part of the restrictions or enter into certain contracts worth more than 3 million francs per year.

The filing shows Credit Suisse cannot order any “material amendments” to its employee terms and conditions, including remuneration and pension entitlements, till deal closure.

The restrictions “will cause certain clients to leave Credit Suisse” but may not accelerate the pace of outflows already seen, said Quinlan, following UBS’ statement last week that Credit Suisse had already stemmed asset outflows. RUSHED INTO DEAL

UBS said it was rushed into the deal and had less than four days to complete due diligence given the ’emergency circumstances’ as Credit Suisse’s financial health worsened. The filing shows Credit Suisse cannot order any “material amendments” to its employee terms and conditions. AFP via Getty Images

UBS agreed in March to buy Credit Suisse for $3.4 billion in stock and to assume up to 5 billion francs in losses that would stem from winding down part of the business, in a shotgun merger engineered by Swiss authorities over a weekend amid a global banking turmoil. Start your day with all you need to know

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The deal, the first rescue of a global bank since the 2008 financial crisis, will create a wealth manager with more than $5 trillion in invested assets and over 120,000 employees globally.

The Swiss state is backing the deal with up to 250 billion Swiss francs in public funds.

Switzerland’s government is providing a guarantee of up to 9 billion francs for further potential losses on a clearly defined part of Credit Suisse portfolio.

UBS signaled no quick turnaround for the 167-year-old Credit Suisse, which came to the brink of collapse during the recent banking sector turmoil after years of scandals and losses.

It said it expected both the Credit Suisse group and its investment bank to report substantial pre-tax losses in the second quarter and the whole of this year.

Following the legal closing of the transaction, UBS Group AG plans to manage two separate parent companies UBS AG and Credit Suisse AG, UBS said last week.

It has said the integration process could take three to four years.

During that time, each institution will continue to have its own subsidiaries and branches, serve its clients and deal with counter-parties.

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Jury shown CCTV and bodycam footage of brothers allegedly assaulting police at Manchester Airport

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Jury shown CCTV and bodycam footage of brothers allegedly assaulting police at Manchester Airport

CCTV and police bodycam footage allegedly showing three police officers being assaulted at Manchester Airport has been played to jurors.

Mohammed Fahir Amaaz, 20, and his brother, Muhammad Amaad, 26, are said to have struck out after police were called to the airport on 23 July last year, following Amaaz allegedly headbutting a customer at a Starbucks in Terminal 2.

Minutes later, three police officers approached the defendants at the paystation in the terminal’s car park.

A jury at Liverpool Crown Court today watched CCTV footage from opposite angles, which captured what the prosecution says was a “high level of violence” being used by the siblings.

The prosecution says Amaaz resisted as officers tried to move him to arrest him, and Amaad then intervened.

Junior counsel Adam Birkby suggested Amaaz threw 10 punches, including one to the face of PC Lydia Ward, which knocked her to the floor.

His brother Amaad is then said to have aimed six punches at firearms officer PC Zachary Marsden.

Amaaz also allegedly kicked PC Marsden and struck firearms officer PC Ellie Cook twice with his elbow.

He is said to have punched PC Marsden from behind and had a hold of him, before PC Cook discharged her Taser.

Human Rights lawyer Aamer Anwar (centre) arrives with Mohammed Fahir Amaaz (left) and Muhammed Amaad (right) at Liverpool Crown Court, where
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Mohammed Fahir Amaaz (left) and Muhammed Amaad (right) arrive at the court with their lawyer. Pic: PA

The bodycam and CCTV footage, submitted as evidence by the prosecution, allegedly shows the officers’ arrival in the Terminal 2 car park and their attempts to arrest the siblings, as well as their exchanges with them.

PC Ward can be heard saying “Oi, you b*****d” in footage from her bodycam, the prosecution evidence appears to show.

She then appears to fall to the floor and screams.

PC Cook, who is pointing her Taser at one of the defendants, then allegedly says: “Stay on the floor, stay on the floor whatever you do.”

“Get back, get back,” PC Ward appears to say.

The bodycam footage, shown to the jury by the prosecution, shows PC Marsden, who is also pointing his Taser, appear to approach the defendant who is lying on the ground and kick out at him.

Mr Birkby said: “Mr Amaaz, while prone, lifts his head towards the officers. PC Marsden kicks Mr Amaaz around the head area.

“PC Marsden stamps his foot towards the crown of Mr Amaaz’s head area but doesn’t appear to connect with Mr Amaaz.”

Amaaz denies three counts of assault occasioning actual bodily harm to the three police officers and one count of assault to Abdulkareem Ismaeil, the customer at Starbucks.

Amaad denies one count of assault occasioning actual bodily harm to PC Marsden.

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Stephen Doohan: Paramedic who secretly gave pregnant woman abortion drug jailed for more than 10 years

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Stephen Doohan: Paramedic who secretly gave pregnant woman abortion drug jailed for more than 10 years

A paramedic who secretly gave a pregnant woman an abortion drug during sex has been jailed for more than 10 years. 

Stephen Doohan, 33, was married when he met the woman on holiday in Spain in 2021 and began a long-distance relationship.

The High Court in Glasgow heard how the victim travelled to Edinburgh in March 2023 to visit Doohan after learning she was pregnant.

During consensual sex, Doohan twice secretly administered the tablets which led to the woman suffering a miscarriage.

In May, Doohan pleaded guilty to sexual assault and causing the woman to have an abortion. He returned to the dock on Monday where he was jailed for 10 years and six months.

Lord Colbeck said Doohan caused “long-term psychological injury” to his victim.

The judge said: “You put her through considerable pain over a number of days and left her facing a lifetime of pain and loss.”

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The court heard how the woman found tablets hidden under the mattress after she became suspicious over Doohan’s behaviour in bed.

Lord Colbeck said: “The complainer then carried out an internet search for abortion tablets and confronted you over your actions.”

After the woman fell ill, Doohan convinced her to lie to medics at the Royal Infirmary of Edinburgh amid fears he would be arrested if she told the truth.

The victim later attended another hospital with her sister and was told she was having a miscarriage.

The Crown Office and Procurator Fiscal Service (COPFS) said Doohan sent the woman gifts including perfume, socks, facial cleansing oil, money to get her hair done and bought tickets for them to attend a football match.

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The woman complained to the Scottish Ambulance Service in May 2023, sparking an investigation.

The court heard that on 14 March 2023, the day the woman told Doohan she was pregnant, the paramedic used a work intranet to search for abortion drugs.

Lord Colbeck said: “You planned out what you did to your victim using resources available to you as a paramedic.”

In addition to his prison sentence, Doohan was also added to the sex offenders’ register and banned from contacting his victim.

Fiona Kirkby, procurator fiscal for high court sexual offences, said: “Stephen Doohan’s calculated and heinous actions caused the loss of the victim’s pregnancy, robbing her of plans she had for the future.

“He has now been held accountable for this fundamental breach of trust.

“While offences like this are thankfully rare, I hope this prosecution sends a clear message to all those who seek to inflict sexual harm towards women.

“Our thoughts remain with the victim, who must be commended for reporting her experience and seeking justice.

“We recognise that reporting sexual offending can be difficult but would urge anyone affected to come forward and seek support when they feel ready to do so.”

The Scottish Ambulance Service branded it an “appalling case”.

A spokesperson added: “We recognise the courage it must have taken for the victim to come forward and speak out.

“As soon as we learned of these very serious allegations and charges, we immediately took action, providing ongoing support to her whilst liaising with Police Scotland throughout the investigation.

“We know nothing will change what has happened to the victim and all we can hope is this sentence provides some comfort to them.”

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UK farmers have ‘nothing more to give’ as they fear govt will compromise welfare in US-UK trade deal

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UK farmers have 'nothing more to give' as they fear govt will compromise welfare in US-UK trade deal

UK farmers have “nothing more to give” as they fear the government will use agriculture to further reduce US tariffs in a trade deal with the White House.

The UK is trying to reduce steel tariffs to zero, from a current reduced rate of 25%, but Downing Street refused to confirm if it was confident ahead of Donald Trump’s deadline of 9 July.

Tom Bradshaw, president of the National Farmers’ Union (NFU), said UK agriculture had already been used to reduce Trump-imposed tariffs on cars but any other concessions would have serious repercussions for farmers, food security and the UK’s high animal welfare standards.

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He told Sky News: “It just feels like we, as the agricultural sector, had to shoulder the responsibility to reduce the tariffs on cars from 25%.

“We can’t do it anymore, we have nothing more to give.

“It’s clear the steel quotas and tariffs aren’t sorted yet, so we just want to be very clear with the government: if they’re sitting around the negotiating table – which we understand they are – they can’t expect agriculture to give any more.”

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Tom Bradshaw, the head of the NFU, speaking to Sky News
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Tom Bradshaw, the head of the NFU, said farmers cannot give any more

‘Massively undermine our standards’

Since 30 June, the US has been able to import 13,000 tonnes of hormone-free British beef without tariffs under a deal made earlier this year, which farmers feel was to reduce the car import levy Mr Trump imposed.

The UK was also given tariff-free access to 1.4bn litres of US ethanol, which farmers say will put the UK’s bioethanol and associated sectors under pressure.

Allowing lower US food standards would “massively undermine our standards” and would mean fewer sales to the European Union where food standards are also high, Mr Bradshaw said.

It would leave British farmers competing on a playing field that is “anything but fair”, he said, because US food can be produced – and sold – much cheaper due to low welfare which could see a big reduction in investment in UK farms, food security and the environment.

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‘The US will push hard for more access’

He said the US narrative has always suggested they want access to British agriculture products “as a start and they’ll negotiate for more”.

“The narrative from the White House on 8 May, when a US-UK trade deal was announced, was all about further access to our agriculture products – it was very different to what our government was saying,” he added.

“So far, the UK has stood firm and upheld our higher welfare standards, but the US will push very hard to have further access.

“No country in the world has proved they can reduce the 10% tariffs further.”

US poultry welfare is lower than the UK, with much more intensive farming that means the meat has to be washed with antimicrobials. Pic: AP
Image:
US poultry welfare is lower than the UK, with much more intensive farming that means the meat has to be washed with antimicrobials. Pic: AP

US ‘will target poultry and pork’

The Essex farmer said he expects the US to push “very hard” to get the UK to lower its standards on poultry and pork, specifically.

US poultry is often washed with antimicrobials, including chlorine, in an attempt to wash off high levels of bacteria caused by poor hygiene, antibiotic use and low animal welfare conditions not allowed in UK farming.

US pig rearing methods are also quite different, with intensive farming and the use of feed additive ractopamine legal, with both banned in the UK.

A government spokesperson told Sky News: “We regularly speak to businesses across the UK to understand the impact of tariffs and will only ever act in the national interest.

“Our Plan for Change has delivered a deal which will open up exclusive access for UK beef farmers to the US market for the first time ever and all agricultural imports coming to the UK will have to meet our high SPS (sanitary and phytosanitary) standards.”

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