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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Overarching all of this

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Speaker 1: is the trade narrative that we're watching so carefully. It

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Speaker 1: is reaching into every single one of these stories and

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Speaker 1: having an impact upon it. UBS is absolutely no exception

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Speaker 1: this morning, the numbers dropping a little bit earlier on

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Speaker 1: second quarter pre tax profit that has exceeded expectations. Net

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Speaker 1: income also beating up two point four at two point

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Speaker 1: four billion dollars versus two point two billion the estimate there.

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Speaker 1: There's a bunch of technical factors in there relating to

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Speaker 1: the wind down of Credit SUITEE, also some provisioning there.

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Speaker 1: What is interesting though, is looking forward, what we're hearing

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Speaker 1: is that actually, with some certainty, clients are starting to transact.

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Speaker 2: A little bit more.

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Speaker 1: And it was those earnings that Francine Laquar kicked off

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Speaker 1: in her conversation with Sergio and Mozzi a few minutes ago.

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Speaker 3: If I look at the overall profitability, particularly when looking

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Speaker 3: at the core underlying profits being up twenty five percent

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Speaker 3: or a year with wealth management businesses in in every

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Speaker 3: region growing on a PbD basis double digit, very strong,

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Speaker 3: and uh I see good inflows in a in our

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Speaker 3: alternative business in as management reaching three hundred billions.

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Speaker 2: Of of assets in markets.

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Speaker 3: We delivered the second best quarter h on in in

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Speaker 3: in the on the records.

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Speaker 2: So I think that UH.

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Speaker 3: Across the board in Switzerland we continue to be a

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Speaker 3: strong partner to our clients, you know, with forty billions

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Speaker 3: of UH credits or new credits.

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Speaker 2: So across the board, making good progress on the integration.

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Speaker 2: Big milestones was achieved.

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Speaker 3: Four hundred thousand clients were migrated in Switzerland in a

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Speaker 3: smooth way, and we are now working on UH delivering

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Speaker 3: the second wave in the in the in the in

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Speaker 3: the third quarter UH and in non core and legacy

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Speaker 3: assets we are making good program and taking down cost

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Speaker 3: and so I can very please so Eve.

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Speaker 4: Even your head of expectations in terms of integration.

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Speaker 2: No, we are online. We are on track.

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Speaker 3: I mean the integration. I think the next We already

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Speaker 3: achieved nine billions of cost savings out of the thirteen UH,

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Speaker 3: so we we believe back between now and your end,

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Speaker 3: we're gonna achieve another billion or so, and then three

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Speaker 3: billions are gonna come in two thousand and twenty six

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Speaker 3: as we basically shut down all the legacy systems and

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Speaker 3: and we.

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Speaker 2: Also complete all the logistical migrations.

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Speaker 4: The relationship between UBS and Switzerland l looks from the

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Speaker 4: outside to be a rock botty do you need Switzerland?

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Speaker 3: I think that we have a very strong and solid

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Speaker 3: relationship with our clients and you know, the broader, the broaders.

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Speaker 1: With.

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Speaker 3: Business community and and and and and client space. We

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Speaker 3: we serve more than two and a half billion clients,

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Speaker 3: probably even higher two hundred thousand SMEs, So we we

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Speaker 3: have a very solid and imbedded a relationship with the

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Speaker 3: communities where we live and work in Switzerland.

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Speaker 2: So I think that's you.

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Speaker 3: Know, I will not really extrapolate some kind of issues

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Speaker 3: to the broader Swiss Switzerland. The vast majority of people

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Speaker 3: recognize our value and we recognize the value Switzerland brings to.

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Speaker 4: Us when you look at the market views. Of course,

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Speaker 4: it's a big week for trade. I think we also

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Speaker 4: have GDP a little bit later in the U wants.

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Speaker 4: But how do you see that going forward?

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Speaker 3: Well, I mean the good use is then now we

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Speaker 3: have probably a higher degree of predictability on what.

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Speaker 2: The outcome of the start discussion will be.

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Speaker 3: If we land at around fifteen percent on average is

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Speaker 3: a base case scenario which in any case is something

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Speaker 3: that needs to be digested.

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Speaker 2: This is six times higher than what we had at

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Speaker 2: the beginning of the year. This brings some kind of inflation.

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Speaker 3: If you think from an exporter standpoint of view, if

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Speaker 3: you're a Swiss or you'll be an exporter, you are

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Speaker 3: basically as seeing your clients in the US have to

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Speaker 3: pay fifteen percent more because of tarists, plus another ten

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Speaker 3: to fifteen percent more because of effanks, and this is

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Speaker 3: a quite big change. So there remains to be seen

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Speaker 3: what's happening in Europe in terms of economic effect, but

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Speaker 3: also what is the consequences for inflation in the US.

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Speaker 2: And this will then.

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Speaker 3: Translate into potentially consequences for the monetary policies of central banks.

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Speaker 4: Our clients saying, look, they're also worried that this is

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Speaker 4: not it for terror, so that they can always move back,

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Speaker 4: So actually the uncertainty is remain.

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Speaker 2: That's a fair point.

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Speaker 3: I think that's what investors and clients, corporate and institutional

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Speaker 3: investor private investors.

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Speaker 2: Want to see is stability.

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Speaker 3: I mean, first of all, we need to reach agreements,

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Speaker 3: and then they need to see that there is a

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Speaker 3: degree of predictability and stability in disagreements. Uh, there is

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Speaker 3: a degree of news fatigue, fatigue in the in the

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Speaker 3: in the market, so people are wanting to be able

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Speaker 3: to act with

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Speaker 1: Certainly a little bit of fatigue, certainly feeling that U

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Speaker 1: B S is CEO, of course, Sergio Motti in conversation

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Speaker 1: with Boomberg's Francis Laquas over in Zurich,