GIVN.SW News | FINWIRES

UBS, Givaudan Drive Swiss Shares Higher as Middle East Tensions Ease

Swiss shares rose 0.27% at the trading close on Tuesday, reversing the previous day's losses, amid hopes of progress in peace talks in the Middle East and several favorable corporate developments.US President Donald Trump said his country and Iran are "in the final throes of what will be a very, very good deal," hours after brokering a halt to retaliatory strikes between Tehran and Israel.On the corporate front back home, Givaudan (GIVN.SW) jumped 7.48% following a slew of analyst rating upgrades. JPMorgan placed the flavor and fragrance company on Positive Catalyst Watch and Deutsche Bank upgraded to buy from hold, a day after Goldman Sachs raised its own rating to buy from sell."Demand remains solid, with Q2 conditions holding up after the March step-up. Combined with increasing innovation activity, this should lead to a sequential organic sales growth (OSG) acceleration for most," Deutsche Bank said as it also raised its price target on Givaudan to 3,300 francs from 3,000 francs. "At this stage, cost inflation appears to be manageable and should be passed through fairly quickly, ensuring profitability remains relatively well-underpinned, especially as self-help focus remains strong for most names. All in all, we expect Q2 results to be above the consensus."Meanwhile, UBS Group (UBSG.SW) gained 0.21% after sources told Reuters that the Swiss parliament is considering new proposals to ease the capital requirements for the country's biggest bank. The new proposals would reportedly reduce the government's requirement for the bank to fully back its foreign subsidiaries with common equity tier 1 capital to 70% or 80%.In other corporate news, SoftwareOne (SWON.SW) dropped 2.97% as it set out its financial targets for 2030 at its capital markets day. The Swiss software and cloud technology group is targeting a high-single-digit revenue compound annual growth rate and a dividend payout ratio of between 30% and 50% of its net profit.

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Asia Markets10d ago

Swiss Shares End Week Upbeat; Federal Council Rejects US Forced Labor Claims

The Swiss Market Index closed Friday's session 0.35% higher as investors reacted to the latest US labor market data ahead of monetary policy decisions from several major central banks.US nonfarm payrolls rose by 172,000 jobs in May after an upwardly revised increase of 179,000 in April, the country's Bureau of Labor Statistics said, exceeding the consensus of 85,000. Meanwhile, the unemployment rate remained at 4.3% for a third consecutive ⁠month, in line with estimates."The recent upward inflection in employment was not big enough to lower the unemployment rate... However, if employment growth sustains its recent pace, the limited supply of workers following President Trump's crackdown on immigration will likely cause it to tighten quickly," Berenberg noted.Back home, Switzerland's foreign currency reserves fell to 710.82 billion francs in May from the revised 715.81 billion francs in April, data from the Swiss National Bank (SNBN.SW) showed.In other news, the Swiss Federal Council "strongly rejects" the allegations made in the US government's Section 301 investigation into imports of goods made with forced labor, adding that it will restate its arguments in writing. The US Trade Representative proposed a 12.5% flat-rate additional tariff on countries such as Switzerland, although the recommendation will not take effect immediately.The Federal Council added that it will continue trade talks with the US. "In the negotiations, the Federal Council is taking current developments into account and is seeking an outcome that will provide a satisfactory long-term framework for economic relations between the two countries, irrespective of legal and political developments in the US."On the corporate front, Givaudan (GIVN.SW) agreed to buy a majority stake in Spanish pure-play fragrance house Eurofragance for an undisclosed sum. Closing is subject to regulatory processes. The Swiss flavors and fragrances group gained 1.06% at close.In geopolitical news, tensions between Iran and the US escalated after Tehran said it fired warning missiles and drones toward US naval vessels in the Gulf of Oman, alleging interference with shipping routes and the seizure of oil tankers. In Oman, officials said the Mina al Fahal oil export terminal was operating normally, downplaying reports of any disruption to flows.

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