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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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World

Israel-Hamas war: ‘Vast amounts of aid needed to stave off catastrophic health crisis in Gaza,’ UN warns

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Israel-Hamas war: 'Vast amounts of aid needed to stave off catastrophic health crisis in Gaza,' UN warns

Israel has agreed to support a “one-week scale-up of aid” in Gaza – but the United Nations has warned more action is needed to “stave off famine and a catastrophic health crisis”.

UN aid chief Tom Fletcher made the remarks as Israel began limited pauses in fighting across three areas of Gaza for 10 hours a day to address the worsening humanitarian situation.

Israel cut off all supplies to Gaza’s population from the start of March. It then reopened aid centres with new restrictions in May, but said the supply had to be controlled to prevent it from being stolen by Hamas militants.

A Palestinian man in Beit Lahia carries aid that entered Gaza through Israel. Pic: Reuters
Image:
A Palestinian man in Beit Lahia carries aid that entered Gaza through Israel. Pic: Reuters

On Saturday, reports referencing US government data said there was no evidence Hamas had stolen aid from UN agencies.

Images of emaciated Palestinian children have led to widespread criticism of Israel’s actions in Gaza, including by allies who are calling for an end to the war.

Mr Fletcher said one in three people in Gaza “hasn’t eaten for days” and “children are wasting away”.

He added: “We welcome Israel’s decision to support a one-week scale-up of aid, including lifting customs barriers on food, medicine and fuel from Egypt and the reported designation of secure routes for UN humanitarian convoys.

More on Israel-hamas War

“Some movement restrictions appear to have been eased today, with initial reports indicating that over 100 truckloads were collected.

“This is progress, but vast amounts of aid are needed to stave off famine and a catastrophic health crisis. Across the UN agencies and humanitarian community, we are mobilised to save as many lives as we can.”

An aircraft drops humanitarian aid over Gaza on Sunday. Pic: Reuters
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An aircraft drops humanitarian aid over Gaza on Sunday. Pic: Reuters

The Israel Defence Forces said yesterday that it is halting military operations in Muwasi, Deir al Balah and Gaza City daily from 10am to 8pm local time (8am to 6pm UK time) until further notice.

Combat operations have continued outside of this 10-hour window. Health officials in Gaza said Israeli strikes killed at least 41 Palestinians overnight into Sunday morning, including 26 seeking aid.

In a statement, the IDF said it would also establish secure routes to help the UN and aid agencies deliver food and other supplies.

A map showing the three areas of Gaza where military action has been paused
Image:
A map showing the three areas of Gaza where military action has been paused

Israel’s announcement of what it calls a “tactical pause” in fighting comes after it resumed airdrops of aid into Gaza.

While the IDF reiterated claims there is “no starvation” in the territory, it said the airdrops would include “seven pallets of aid containing flour, sugar and canned food to be provided by international organisations”.

Palestinian sources confirmed that aid had begun dropping in northern parts of the territory.

Palestinians carry aid supplies that entered Gaza through Israel, in Beit Lahia in the northern Gaza Strip, July 27, 2025. REUTERS/Dawoud Ab
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Palestinians in Beit Lahia carry aid supplies that entered Gaza through Israel. Pic: Reuters

Sabreen Hasson, a Palestinian mother who travelled to an aid point near the Zikim crossing to collect supplies, said: “I came to get flour for my children because they have not tasted flour for more than a week, and thank God, God provided me with a kilo of rice with difficulty.”

But Samira Yahda, who was in Zawaida in central Gaza, said: “We saw the planes, but we didn’t see what they dropped… they said trucks would pass, but we didn’t see the trucks.”

Another Palestinian told the AP news agency that some people feared going out and having a box of aid fall on their children.

Read more:
What does recognising a Palestinian state mean?
Parents of IDF soldier taken hostage fear he’ll be one of last freed
25% of young children ‘now malnourished in Gaza’

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Baby Zainab starved to death in Gaza

Gaza is expected to be a focus during talks Sir Keir Starmer and Donald Trump in Scotland today.

Downing Street said Sir Keir will raise “what more can be done to secure the ceasefire [in the Middle East] urgently”, during the meeting at the US president’s Turnberry golf course in Ayrshire.

Reports also suggest the prime minister is planning to interrupt the summer recess and recall his cabinet to discuss the crisis on Tuesday.

Talks in Qatar over a ceasefire ended on Thursday after the US and Israel withdrew their negotiating teams.

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Bob Geldof: ‘Israeli authorities are lying’

Mr Trump blamed Hamas for the collapse of negotiations as he left the US for Scotland, saying the militant group “didn’t want to make a deal… they want to die”.

Meanwhile the exiled head of Hamas in Gaza, Khalil al Hayya, has warned ceasefire negotiations with Israel were “meaningless under continued blockade and starvation”.

In a recorded speech, he added: “The immediate and dignified delivery of food and medicine to our people is the only serious and genuine indication of whether continuing the negotiations is worthwhile.”

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Israel intercepts Gaza aid boat

During a meeting with the European Commission President Ursula von der Leyen yesterday, Mr Trump emphasised the importance of securing the release of hostages held by Palestinian militants in Gaza.

He said: “They don’t want to give them back, and so Israel is going to have to make a decision.

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Starmer says UK will help drop aid to Gaza

“I know what I’d do, but I don’t think it’s appropriate that I say it. But Israel is going to have to make a decision,” he said.

Mr Trump also repeated claims, without evidence, that Hamas was stealing food coming into Gaza and selling it.

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Technology

Samsung Electronics signs $16.5 billion chip-supply contract in boost to foundry business; shares rise

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Samsung Electronics signs .5 billion chip-supply contract in boost to foundry business; shares rise

A Samsung flag flies outside the company office in Seoul, South Korea on February 05, 2024.

Chung Sung-jun | Getty Images News | Getty Images

Samsung Electronics has entered into a $16.5 billion contract for supplying semiconductors to a major company, a regulatory filing by the South Korean company showed Monday.  

The memory chipmaker, which did not name the counterparty, mentioned in its filing that the effective start date of the contract was July 26, 2024 — receipt of orders — and its end date was Dec. 31, 2033.

Samsung declined to comment on details regarding the counterparty.

The company said that details of the deal, including the name of the counterparty, will not be disclosed until the end of 2033, citing a request from the second party “to protect trade secrets,” according to a Google translation of the filing in Korean.

“Since the main contents of the contract have been not been disclosed due to the need to maintain business confidentiality, investors are advised to invest carefully considering the possibility of changes or termination of the contract,” the company said. Its shares were up nearly 3% in early trading.

Local South Korean media outlets have said that American chip firm Qualcomm could potentially place an order for Samsung’s 2 nanometer chips.

While Qualcomm is a possibility, given its potential 2 nanometer project with Samsung, Tesla seems the more probable customer, Ray Wang, research director of semiconductors, supply chain and emerging technology at The Futurum Group, told CNBC

Samsung’s foundry service manufactures chips based on designs provided by other companies. It is the second largest provider of foundry services globally, behind Taiwan Semiconductor Manufacturing Company.

The company said in April that it was aiming for its foundry business to start mass production of its next-generation 2 nanometer and secure major orders for the advanced product. In semiconductor technology, smaller nanometer sizes signify more compact transistor designs, which lead to greater processing power and efficiency.

Samsung, which is set to deliver earnings on Thursday, expects its second-quarter profit to more than halve. An analyst previously told CNBC that the disappointing forecast was due to weak orders for its foundry business and as the company has struggled to capture AI demand for its memory business.

The company has fallen behind competitors SK Hynix and Micron in high-bandwidth memory chips — an advanced type of memory used in AI chipsets.

SK Hynix, the leader in HBM, has become the main supplier of these chips to American AI behemoth Nvidia. While Samsung has reportedly been working to get the latest version of its HBM chips certified by Nvidia, a report from a local outlet suggests these plans have been pushed back to at least September.

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Sports

Ichiro shows funny side, joins CC, Wagner in HOF

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Ichiro shows funny side, joins CC, Wagner in HOF

COOPERSTOWN, N.Y. — Ichiro Suzuki became the first Japanese-born player to be enshrined into the National Baseball Hall of Fame on Sunday, one of five new members of baseball’s hallowed institution.

After enduring the baseball tradition known as a rain delay, the five speeches went off without a hitch as the deluge subsided and the weather became hot and humid. Joining Suzuki were pitchers CC Sabathia and Billy Wagner, and sluggers Dick Allen and Dave Parker, both of whom were enshrined posthumously.

“For the third time, I am a rookie,” Suzuki said, delivering his comments in English despite his long preference for conducting his public appearances in Japanese with the aid of an interpreter.

For the American audience, this provided a rare glimpse into Suzuki’s playful side. Teammates long spoke of his sense of humor behind the closed doors of the clubhouse — something the public rarely saw — but it was on full display Sunday.

When Hall voting was announced, Suzuki fell one vote shy of becoming the second unanimous selection for the Hall. He thanked the writers for their support — with an exception.

“Three-thousand [career] hits or 262 hits in one season are achievements recognized by the writers,” Suzuki said. “Except, oh, one of you.”

After the laughter subsided, Suzuki mentioned the gracious comments he made when balloting results were announced, when he offered to invite the writer who didn’t vote for him home for dinner to learn his reasoning. Turns out, it’s too late.

“The offer to the one writer to have dinner at my home has now … expired!” Suzuki said.

Suzuki’s attention to detail and unmatched work ethic have continued into the present day, more than five years since he played his last big league game. That was central to his message Sunday, at least when he wasn’t landing a joke.

“If you consistently do the little things, there’s no limit to what you can achieve,” Suzuki said. “Look at me. I’m 5-11 and 170 pounds. When I came to America, many people said I was too skinny to compete with bigger major leaguers.”

After becoming one of the biggest stars in Japanese baseball, hitting .353 over nine seasons for the Orix BlueWave, Suzuki exploded on the scene as a 27-year-old rookie for the Seattle Mariners, batting .350 and winning the AL Rookie of the Year and MVP honors.

Chants of “Ichiro!” that once were omnipresent at Mariners games erupted from the crowd sprawled across the grounds of the complex while the all-time single-season hits leader (262 in 2004) posed with his plaque alongside commissioner Rob Manfred and Hall of Fame chairman Jane Forbes Clark.

Despite his late start in MLB, Suzuki finished with 3,089 hits in the majors and 4,367 including his time in Japan. Suzuki listed some of his feats, such as the hit total, and his 10 Gold Gloves.

“Not bad,” he said.

Sabathia’s weekend got off to a mildly rough start when his wife’s car broke down shortly after the family caravan departed for Cooperstown. They arrived in plenty of time though, and Sabathia was greeted warmly by numerous Yankees fans who made the trip.

After breaking in with Cleveland at age 20, Sabathia rocketed to stardom with a 17-5 rookie season. Alas, that came in 2001, the same year that Suzuki landed in the American League.

“Thank you most of all to the great players sitting behind me,” Sabathia said. “I am so proud and humbled to join you as a Hall of Famer, even Ichiro, who stole my Rookie of the Year Award in 2001.”

Sabathia focused the bulk of his comments on the support he has received over the years from his friends and family, especially his wife, Amber.

“The first time we met was at a house party when I was a junior in high school,” Sabathia said. “We spent the whole night talking, and that conversation has been going on for 29 years.”

Parker, 74, died from complications of Parkinson’s disease on June 28, less than a month before the induction ceremony. Representing him at the dais was his son, Dave Parker II, and though the moment was bittersweet, it was hardly somber.

Parker II finished the speech with a moving poem written by his father that, for a few minutes, made it feel as if the player nicknamed “The Cobra” were present.

“Thanks for staying by my side,” Parker’s poem concluded. “I told y’all Cooperstown would be my last rap, so the star of Dave will be in the sky tonight. Watch it glow. But I didn’t lie in my documentary — I told you I wouldn’t show.”

Parker finished with 2,712 hits and 339 homers, won two Gold Gloves on the strength of his legendary right-field arm and was named NL MVP in 1978. He spent his first 11 seasons with the Pittsburgh Pirates and entered the Hall representing the Bucs.

Wagner, whose 422 career saves ranks eighth on the all-time list, delivered an emotional but humorous speech about a small-town guy with a small-for-a-pitcher 5-foot-10 stature who made it big.

“I feel like my baseball life has come full circle,” Wagner said. “I was a fan before I could play. Back when baseball wasn’t so available on TV, every Saturday morning I watched Johnny Bench and so many of the other greats on a show ‘The Baseball Bunch.'”

In one of the moments of baseball serendipity that only Cooperstown can provide, the telecast flashed to Bench, sitting a few feet away from where Wagner was speaking.

Allen’s widow, Willa, delivered a touching tribute to her late husband, who died in 2020 after years of feeling overlooked for his outstanding career. The 1964 NL Rookie of the Year for the Phillies, Allen won the 1972 AL MVP for the Chicago White Sox.

“Baseball was his first love,” Willa said. “He used to say, ‘I’d have played for nothing,’ and I believe he meant it. But of course, if you compare today’s salary, he played almost for nothing.”

Willa focused on the softer side of a player who in his time was perhaps unfairly characterized for a contentious relationship with the media.

“He was devoted to people, not just fans, but especially his teammates,” Willa said. “If he heard someone was sick or going through a tough time, he’ll turn to me and say, ‘Willa, they have to hear from us.'”

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