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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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Trump ‘very disappointed’ in Russian strikes on Ukraine and calls for Putin to ‘sit down and sign a deal’

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Trump 'very disappointed' in Russian strikes on Ukraine and calls for Putin to 'sit down and sign a deal'

Donald Trump has said he’s “very disappointed” with Russia as he continues to push for a peace deal to end the war in Ukraine.

On Saturday, the US president met with Volodymyr Zelenskyy at the Vatican for their first face-to-face meeting since their explosive White House summit.

The Ukrainian president said the meeting ahead of Pope Francis’s funeral could end up being “historic.” Hours later, Mr Trump questioned Vladimir Putin’s appetite for peace in a Truth Social post.

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From Saturday: Trump meets Zelenskyy at funeral

Speaking before boarding Air Force One on Sunday, Mr Trump again said the meeting went well, and that the Ukrainian leader was “calmer”.

“I think he understands the picture, I think he wants to make a deal,” he said, before turning to Mr Putin and Russia.

“I want him to stop shooting, sit down and sign a deal,” the US president said, adding he was “very disappointed that they did the bombing of those places (including Kyiv, where nine people were killed in a Russian airstrike on Friday) after discussions”.

However, Mr Trump said he thinks Mr Zelenskyy is ready to give up Crimea, which the Ukrainian leader has repeatedly said he would refuse to do.

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He added that “we’ll see what happens in the next few days” and said “don’t talk to me about Crimea, talk to Obama and Biden about Crimea”.

Russia annexed Crimea in 2014, while Barack Obama was president.

Meanwhile, US secretary of state Marco Rubio told Sky’s US partner network NBC News that a peace deal to end the war was “closer in general than they’ve been any time in the last three years, but it’s still not there”.

“If this was an easy war to end, it would have been ended by someone else a long time ago,” he added on the Meet the Press show.

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It comes after North Korea confirmed it had deployed troops to fight for Russia, months after Ukraine and Western officials said its forces were in Europe.

State media outlet KCNA reported North Korean soldiers made an “important contribution” to expelling Ukrainian forces from Russian territory, likely to be the Kursk region.

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KCNA said leader Kim Jong Un made the decision to deploy troops to Russia and notified Moscow, and quoted him as saying: “They who fought for justice are all heroes and representatives of the honour of the motherland.”

It also quoted the country’s ruling Workers’ Party as saying the end of the battle to liberate Kursk showed the “highest strategic level of the firm militant friendship” between North Korea and Russia.

Last June, Mr Kim and Mr Putin signed a comprehensive strategic partnership treaty after a state visit – his first to the country in 24 years.

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From June 2024: Putin drives Kim around in luxury limo during state visit

The North Korean leader promised at the time “full support and solidarity to the Russian government, army and people in carrying out the special military operation in Ukraine”.

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40 killed in blast at Iran’s biggest port as Tehran denies explosion ‘linked to fuel for missiles’

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40 killed in blast at Iran's biggest port as Tehran denies explosion 'linked to fuel for missiles'

At least 40 people have been killed and several hundred more injured after an explosion and fire at Iran’s largest port, according to state media.

The blast, at the Shahid Rajaei container hub near the southern city of Bandar Abbas, happened on Saturday as Iran held a third round of talks with the US in Oman about Tehran’s nuclear programme.

Shipping containers burned, goods inside were badly damaged and the explosion was so powerful that windows several miles away were shattered, reports said.

Iranian Red Crescent rescuers work at the site of the blast. Pic: Reuters
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Iranian Red Crescent rescuers work at the site of the blast. Pic: Reuters

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The blast at the Shahid Rajaei port happened as Iran and the US met for the third round of negotiations over Tehran’s nuclear program.

Helicopters and aircraft dumped water from the air on the blaze and by Sunday afternoon it was 90% extinguished, the head of Iran’s Red Crescent Society told state media.

Officials said port activities had resumed in unaffected parts of Shahid Rajaei.

Out of the 752 people who had received treatment for their injuries, 190 were still being treated in medical centres on Sunday, according to Iran’s crisis management organisation.

Chemicals at the port were suspected to have worsened the blast, but the exact cause of the explosion was not clear.

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Iran’s defence ministry denied international media reports that the explosion may be connected to the mishandling of solid fuel used for missiles.

The reports were “aligned with enemy psyops [psychological operations]”, according to a ministry spokesperson, who told state TV the blast-hit area did not contain any military cargo.

Firefighters work to extinguish the fire. Pic: AP
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Firefighters work to extinguish the blaze. Pic: AP

Pic: AP
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Pic: AP

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According to the Associated Press, British security company Ambrey said that the port in March received sodium perchlorate, which is used to propel ballistic missiles and the mishandling of which could have led to the explosion.

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The Financial Times previously reported two Iranian vessels had shipped from China enough of the ingredient to propel up to 260 mid-range missiles.

It was reportedly to help Tehran replenish stocks after its missile attacks on Israel in 2024.

Iran’s military has sought to deny the delivery of sodium perchlorate from China.

Iran’s state-run Irna news agency reported on Sunday that Russian President Vladimir Putin deployed several emergency aircraft to Bandar Abbas to provide help.

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Pilgrims travel to Pope Francis’s tomb to remember the late pontiff

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Pilgrims travel to Pope Francis's tomb to remember the late pontiff

Anna and Irene have already been queuing for an hour or so, and they know they have a long wait still to come.

“Two hours, three hours, ten hours – what does it matter?” says Irena. “This is about eternity.”

They have come to Rome from Slovenia, Catholics who felt “Papa Francis would have wanted us to be here”.

People take photos of the grave of late Pope Francis inside St. Mary Major Basilica.
Pic: AP/Andrew Medichini
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People take photos of the grave of late Pope Francis inside St. Mary Major Basilica. Pic: AP/Andrew Medichini

A single white rose left on the tomb. Pic: Vatican
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A single white rose left on the tomb. Pic: Vatican

And under the sun outside Santa Maria Maggiore, they are awaiting the opportunity to visit his tomb.

Francis, says Irena, “was like a rainbow” who lit up the world. Anna nods along: “We are so happy to be here.”

The Pope’s tomb has become a new source of pilgrimage.

More than 30,000 people came to view it during the first morning after the Pope’s funeral, the queue snaking from the front of the mighty basilica and then up and down across the square at the back.

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Some were curious visitors, others were devout followers – priests and nuns mixing in the queue with tourists and devoted locals.

All of these admired Francis; a very few actually knew him.

Father Alessandro Masseroni is a deacon who came to Rome to train to become a priest. On his phone, he shows me a photo of him and Francis, with the Pope offering words of encouragement.

Father Alessandro Masseroni meeting the Pope
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Father Alessandro Masseroni meeting the Pope

He says: “I had the honour to serve Pope Francis and to talk to him many times and it was a special experience. I understand why he was so loved by all the people – he was simple and direct.

“He was sunny. St Francis was his role model and when I saw the first picture of the Pope’s tomb, the first thing I thought was of the tomb of St Francis of Assisi.

“Pope Francis will leave a legacy – it doesn’t end with his death but will continue.”

People attend the funeral Mass of Pope Francis at the Vatican, April 26, 2025. REUTERS/Yara Nardi
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People attend the funeral of Pope Francis. Pic: Reuters/Yara Nardi

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Video shows Pope’s tomb

What are your emotions now, as you wait to visit his tomb, I ask. Father Alessandro pauses and smiles.

“Many emotions of course, but mainly, I think… thankfulness.”

That has been a recurring aspect among so many of the people we have met in Rome over the past week – the sense that sadness for Francis’s death is outweighed by the sense that his was a life that should be celebrated.

Volodymyr Borysyak flew in from London on the morning of the Pope’s funeral to make his third pilgrimage to Rome.

Barely had he arrived than his phone was stolen, a crime he responded to by praying for the thief.

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Volodymyr is a refugee from western Ukraine who worries that his home country’s plight is being forgotten by some of the world.

Now, the Pope who inspired him has died.

You might imagine that he would be resentful and angry. Instead, he is full of smiles.

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The farewell to Pope Francis

“We are happy to be the pilgrims of the world and this is a special day,” he tells me. “I know the pope used to pray in this basilica so that is why we will stay so long here to visit Santa Maria Maggiore.

“I think Pope Francis was, is and will be the pope for the world, because of the mercy of his heart and his love for everybody.”

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