Daily Brief - 8 Jan 2024

Boeing's 737 max 9 jets grounded amid safety concerns

Just five days into 2024, Boeing faces a new challenge with its 737 Max 9 jets. A serious incident on an Alaska Airlines flight, where part of the plane's fuselage came off, has led to urgent safety checks on this model.

Boeing's CEO, David Calhoun, has cancelled a major meeting and called for an all-staff discussion to focus on safety and quality. This setback comes as Boeing is still trying to rebuild trust after previous crashes and manufacturing issues.

The investigation is ongoing, and Boeing is working closely with authorities to understand what went wrong. This incident is a major concern for the company, which is under pressure to maintain high safety standards.

Bond traders betting on rate cuts amid rising yields

Bond traders are feeling hopeful in 2024, especially after a recent surge in 10-year Treasury yields to around 4%. This optimism comes despite a strong jobs report that initially caused a drop in bond prices. Many believe the Federal Reserve will start cutting interest rates soon, possibly as early as March. This belief has led to a buying spree in bonds, with traders taking advantage of the higher yields. The market's next big test will be the upcoming inflation data and a major 10-year Treasury auction. All eyes are on the Fed, as any changes in their policy could influence bond yields and market confidence.

UBS looking to expand its asset management business in China

UBS Group AG is setting its sights on expanding its wealth and asset management business in China, a key strategic market for them. Despite economic challenges and recent difficulties faced by other banks, UBS is keen to grow its onshore presence. They have already teamed up with the Industrial & Commercial Bank of China to boost their global and local services. This move is part of UBS's long-term strategy in China, a journey that's taken over 30 years. While integrating operations from their recent merger with Credit Suisse, UBS is also working with Chinese regulators to manage licensing issues for their securities venture.