Chancellor Angela Merkel’s government signed an agreement with Switzerland that seeks to end a dispute over tax evasion, setting up a clash with German opposition lawmakers who threatened to block the measure.
German Finance Minister Wolfgang Schaeuble and his Swiss counterpart, Eveline Widmer-Schlumpf, yesterday signed the accord in Berlin after ministers gave their approval at Merkel’s weekly Cabinet meeting. The accord introduces a levy on German bank customers while preserving Swiss banking secrecy.
EQUITIES: *UBS AG trader Kweku Adoboli may request bail in a hearing in London today *Swiss banks including Credit Suisse Group AG (CSGN), Julius Baer Group Ltd. (BAER) and Wegelin & Co. must hand over new account data of U.S. clients to the U.S. Justice Department tomorrow, Handelszeitung reported, citing bank documents *Nestle is seeking a 4 billion-euro loan to refinance maturing debt, according to a person with knowledge of the deal *Logitech cut its full-year operating income forecast for 2012 to about $90 million *EGL AG (EGL) said Chief Financial Officer Andreas Rudolf will step down by the end of the year *Gategroup Holding AG appointed Kristin Brown as general counsel *LLB carried out a value adjustment
WHAT TO WATCH: *UBS board meeting in Singapore *Partners Group will have a presentation at Bank am Bellevue Banking Day in Zurich
ECONOMY/GOVERNMENT: *An agreement between the Swiss and U.S. governments on untaxed accounts may see Switzerland’s banks hand the U.S. more data than UBS AG (UBSN) did in 2010, Tages-Anzeiger reported *Swiss parliament debates too-big-to-fail proposals from 8 a.m. *Credit Suisse publishes Swiss investor confidence at 11 a.m.
MARKETS: *The SMI rose 0.1 percent to 5,475.34 *The SPI less than 0.1 percent to 4,985.95 *The Stoxx Europe 600 Index dropped 1.7 percent to 225.33 *The MSCI Asia-Pacific Index dropped 3.5 percent at 7:51 a.m. Zurich time *Euro-franc traded at 1.2256 at 7:52 a.m. Zurich time
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