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Breakingviews: Facebook costs UBS some of its new friends

Tuesday, July 31, 2012 - 03:35

July 31 - UBS blames Facebook's underperformance as its own results disappoint, adding another unfortunate blip to the Swiss bank's recent record, say Reuters Breakingviews

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-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Than expected earnings and BP's pain. Extends well beyond the Gulf of Mexico joining me. Is that Pete it's our last and that's psyche you know from UBS Britain Britain the -- on both FaceBook and yeah well and actually when they weren't even really involved with -- right they want. They once. Lead manager on the IPO what they did was they basically the -- of an appliance but now that asset management that have been picked. Is usual hospital -- wealth management clients who want to buy Facebook's open civic and and that place Phillies order than Natalie system set up. Two to make sure that they -- the best price and then something went wrong between. It's been UBS announced that they orders to repeat viewers repeated them redevelopment and in the end. They cool new voters go failed so they suddenly -- -- with a -- of prosperous bookstore but they won't answer a political. -- yet whether it is yeah its -- through headphones. The point is that it they could really have done without this is the second quarter was already quite tough for the investment banking business across the board. And if you strip out the FaceBook thing. It kind of did okay. Relative to the competition and relative to what they're doing which is trying to shrink their balance sheet are typically him. But it's enough you know kind of comes -- -- -- that the the rogue trading losses analysis of in. Unfortunate. One off blip in the investment bank and people will continue to -- how many more of these negative -- wealth management seems to be. Doing okay this yeah -- well it's an interesting paradox which is that devious seems to be sort of acting as and despite ten on the investment bank. Seems to acting as a bit of us have a safe haven so it's across taking the money to UBS promote adherence you'll. Kind of out of other out of other banks. And but the irony is courses that they picked and taken them on TV it's and then doing nothing with it -- So this sort of that much different side of that kind of safe haven traders of people just wanna -- in -- which means actually UBS and hence the low margin. On on the money that that that it that it has -- than that of the pool. I'm BP. It's you know obviously we think. No I think that's I think that's what's interesting really about these -- -- results is that. You know a commitment slightly from the slightly bigger provision for that for the Gulf of Mexico program but the problems or elsewhere that program we -- the problems of Russia. Another most of -- let's take a write down on the US shale gas assets because the gas prices so much. Think of this project in in Alaska which they've abandoned. And so. Actually. You know it's not just the kind of core problem it's -- system peripheral. Problems that are that are that are causing them difficulties not. If BP was to resolve its and so -- overhanging and education and and and and and compensation claims. On the macondo spill -- that would lift Chicago to start but I think appointment trying to make is that. There are other things going on within PP there will continue to make life difficult for okay. -- -- thinks they can read both those sorts of course found breaking views web sites. -- -- in science. What's our US preview show that comes on every day twelfth that these incidents in that he PST. I'm -- problem sources.

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Breakingviews: Facebook costs UBS some of its new friends

Tuesday, July 31, 2012 - 03:35