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Ermotti takes the reins at scandal-hit UBS

Swiss banking giant UBS looked to draw a line under a troubled period on Tuesday with the appointment of a new chief executive and plans for a new path to be announced on Thursday.

Ermotti takes the reins at scandal-hit UBS
UBS

The bank named interim head Sergio Ermotti as new its chief executive and announced former Bundesbank president Axel Weber will succeed Kaspar Villiger as board chairman from May 2012, a year earlier than planned.

Ermotti, 51, has been acting head of UBS since the departure of Oswald Grübel in September in the wake of a rogue trading scandal.

It was another blow to the bank, which has been struggling to rebuild its reputation after the financial and economic crises when it lost colossal sums and was forced to turn to the state for a rescue package.

In 2008 and 2009, the bank was also embroiled in a serious tax evasion spat with the United States.

Villiger welcomed the new appointments which he said would bring “essential stability and clarity” to UBS.

“It will enable the bank to master the many current economic challenges and regulatory changes facing it, and will ensure its success over the long term for clients, shareholders and employees,” the chairman said in a statement.

At a press conference Villiger, who has headed the board since 2009, said the bank had rid itself of the toxic assets which led to its near collapse, had resolved the US tax dispute and was now making “a generation change.”

Ermotti, formerly of Merrill Lynch and Unicredit, said the institution had made “an important step” in ensuring the bank’s success.

UBS will unveil its new strategy at its investors day in New York on Thursday which Ermotti said would involve a “focused, less complex and less capital-intensive investment bank,” without giving further detail.

Thursday may also see a job cuts announcement. UBS already revealed in August it was to axe 3,500 posts, of which 45 percent were in investment banking, due to market volatility and the strong Swiss franc.

“The era of the Grübel/Villiger ‘clean-up team’ will come to an end at the next annual general meeting,” analysts at Wegelin said.

At the end of October UBS posted a third-quarter net profit of 1.018 billion francs ($1.16 billion) despite taking a massive hit after London trader Kweku Adoboli was arrested over a trading scandal.

EARNINGS

It’s official! Switzerland is the most expensive country in the world

While anyone living in Switzerland might not have needed the reminder, a new study shows the cost of living in Switzerland is the highest of anywhere in the world.

It's official! Switzerland is the most expensive country in the world
Photo: FABRICE COFFRINI / AFP

Switzerland topped the list well ahead of Norway in second place, with Iceland, Japan and Denmark rounding out the top five. 

The rankings, put together by CEO World magazine, took into account rent, groceries, purchasing power, restaurants and the cost of living in 132 countries across the globe. 

European countries featured prominently in the top 20, while countries in Asia and the Caribbean were also prominent. 

Switzerland top of the list

Not only did Switzerland top the overall list, but it also ranked highly in several individual metrics, making the cost of living there officially the highest in the world. 

READ: Everything you need to know about the cost of living in Switzerland

Groceries in Switzerland are also more expensive than anywhere in the world, ranking a full 30 points higher than second-placed South Korea. 

But if you’re looking to avoid the grocery shop, eating out in Switzerland is also more expensive than anywhere else in the world. 

The only bright light in the rankings is Switzerland’s national purchasing power – which is also top of the list – perhaps explaining why the Swiss love to travel or even just shop abroad. 

This is of course more beneficial elsewhere, with the benefits of the country’s excellent purchasing power somewhat eroded by high prices at home. 

Photo: CEO World

In fact, the only metric Switzerland doesn’t top is rental costs. That’s not to say renting in Switzerland is cheap, but it trails Hong Kong, Singapore and Luxembourg on the international rent index. 

READ MORE: Eight things you need to know before renting in Switzerland 

Least expensive countries

Among the least expensive countries, central Asian nations rank highly. Pakistan is officially the least expensive, followed by Afghanistan, India and Syria. 

The least expensive European country on the list is Kosovo (124th) followed closely by Georgia (123rd). Romania is the least expensive European country on the list, in 99th place. 

Top ten most expensive countries as per CEO World magazine

1. Switzerland

2. Norway

3. Iceland

4. Japan

5. Denmark

6. Bahamas

7. Luxembourg

8. Israel

9. Singapore

10. South Korea

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