Risk Channel delivers the latest, most relevant and useful business intelligence to key decision makers and influencers, each weekday morning.

UBS has rejected a Swiss government proposal to strengthen its rules following the collapse of Credit Suisse. "The proposal would lead to huge added costs and endanger the continuation of the successful business model," UBS said. UBS - Switzerland's sole global bank after the acquisition of its troubled rival - argued proposed measures for foreign units were disproportionate and out of step with international competitors. The Financial Times reports this morning that UBS chief executive Sergio Ermotti plans to step down in April 2027, "firing the starting gun on the race for one of the biggest jobs in global banking."

 

Financial Times

Reuters

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National Economic Council Director Kevin Hassett says the Trump administration has a backup plan to reimpose tariffs if the US Supreme Court strikes down its global levies. “We’ve got a very, very detailed backup plan. We’re confident that if we were to lose this case, that we can get all of the president’s policies in place almost immediately with alternative authorities,” Hassett told Fox News. The administration will weigh using Section 301 powers or Section 122 of the Trade Act as alternative authorities to impose tariffs if the current ones are struck down.

 

Bloomberg

Trade between EU member states as a share of EU GDP dropped from 23.5% in 2023 to 22% in 2024, according to a draft report of the bloc’s annual single market report.

 

Financial Times

Heineken chief executive Dolf van den Brink is to step down after nearly six years in charge of the Dutch brewing group. “The past years have been marked by significant change as Heineken progressed through its transformation and has now reached a stage where a transition in leadership will best serve the Company in further executing its long-term ambitions. Over the coming months, I remain fully focused on disciplined execution of our strategy and to ensure a smooth transition”, Mr Van den Brink said.

 

NL Times

Bloomberg

Financial Times

WH Smith is searching for a new chair to replace Annette Court, who has chaired the company for three years. The travel retailer is facing challenges following accounting errors that have significantly impacted its share price. A source indicated that Russell Reynolds Associates is advising on the search for two new non-executive directors, with a focus on candidates experienced in the North American travel retail market. WH Smith is currently under investigation by the UK's Financial Conduct Authority, and its shares have fallen by approximately 45% over the past year.

 

Sky News

The Dutch tax court has ruled that the Healthcare of Ontario Pension Plan (HOOPP) must repay €213.5m in tax refunds and interest. The court found that HOOPP was not the true beneficial owner of shares that generated dividends between 2013 and 2018. Scott White, a spokesperson for HOOPP, expressed disappointment and said: "This initial ruling . . . will have no impact on HOOPP's ability to pay pensions to our members today or in the future." The ruling follows allegations that HOOPP exploited its tax status through complex financial strategies.

 

The Globe and Mail

The UK government has identified a legal basis which it believes can be used to allow UK military to board and detain vessels in so-called shadow fleets, BBC News reports. Russia, Iran and Venezuela have all been accused of operating ships without a valid national flag to avoid sanctions on oil. Government ministers believe the Sanctions and Money Laundering Act from 2018 can be used to approve the use of military force.

 

BBC News

Lidl will stop advertising on traditional broadcast television in France after a court ruled that over 370 of its ads were deceptive, and ordered the retailer pay rival Intermarché €43m for unfair competition. The decision affects 22% of Lidl’s previous ad spend and follows criticism of outdated French consumer laws by Jassine Ouali, the firm's chief customer officer in France, who added that the retailer will shift focus to digital platforms in 2026.

 

France24

Optimism among UK businesses dropped to the lowest level in nearly five years at the end of 2025, according to a survey by BDO. The firm’s monthly measure of sentiment fell from 93.45 to 90.01 in December - the weakest level since January 2021. Scott Knight, the head of growth at BDO, said: "Business costs are rising and turnover expectations are falling; it's no wonder that optimism is on the floor. Decisive action like further interest rate deductions and a clear roadmap of what's ahead is critical."

 

The Guardian

The Times

European car parts suppliers have announced more than 100,000 job losses in the past two years as they suffer from low demand for vehicles and fierce competition from Chinese rivals.

 

Financial Times

Polish train manufacturer Pesa will purchase 100% of German competitor Heiterblick for an undisclosed sum to strengthen its foothold in western Europe. Bloomberg notes “a growing appetite among [Polish] firms to pursue investments in Germany, where succession issues and a sluggish economy are presenting acquisition possibilities.”  Piotr Matczuk, head of state development fund PFR, which owns Pesa, said: “The current economic slowdown in Germany, along with growing succession challenges, may create attractive opportunities, especially since a number of Polish firms have already built up sufficient capital.” 

 

Bloomberg

Online retailer Zalando has announced plans to shut its Erfurt fulfilment centre, which employs 2,700 people, by the end of September as part of a broader restructuring of its European logistics network. The company will also close three partner-run warehouses abroad, following its €1.1bn acquisition of About You, and said it aims to build a more integrated and scalable platform to improve operational efficiency.

 

Bloomberg

The Local Germany

Wall Street Journal

A wave of commercial carbon storage projects will begin operating in Europe this year amid growing controversy around the practice, which environmental groups say risks delaying the shift from fossil fuels.

 

Financial Times