Sergio Ermotti will return to his former role as UBS chief executive in April - FABRICE COFFRINI/AFP via Getty Images

UBS has rehired its former chief executive as it works out how to navigate its mammoth rescue of rival Credit Suisse.

Sergio Ermotti was a key figure in rebuilding the banking sector after the financial crisis during his time as UBS boss from 2011 to 2020.

His immediate challenges in his second stint as chief executive will be laying off thousands of staff, cutting back Credit Suisse’s investment bank and reassuring wealthy customers that their cash is safe.

Mr Ermotti, the current chairman of Swiss Re, will take the helm from April 5.

UBS took over its troubled rival Credit Suisse for 3 billion Swiss francs (£2.7bn) earlier this month in a government-brokered deal after a crisis of confidence in the banking sector.

Read the latest updates below.

09:06 AM

Bupa to cut 85 dental practices, hitting 1,200 jobs

Bupa Dental Care is set to cut 85 dental practices in a move that will affect 1,200 staff across the UK, amid a national shortage of dentists and "systemic" challenges across the industry.

The healthcare group said patients at the affected practices have not been able to access the NHS dental service they need.

Bupa, which provides NHS and private dental care, said the 85 practices will be closed, sold or merged later this year, bringing the total number of practices in the UK down to 365.

All the practices will remain open as usual in the meantime.

The move will affect 1,200 employed and self-employed staff, representing more than a tenth of its 9,000-strong workforce. Bupa - Rui Vieira/PA Wire

08:51 AM

Gas prices rise as French strikes continue

European natural gas prices surged to their highest level in more than a week amid impending cold weather and disruption from French strikes.

Dutch front-month futures, the continent's benchmark, rose as much as 6.3pc to trade near €45 per megawatt hour as supplies are expected to be squeezed by wintery conditions.

It comes as strikes at three liquified natural gas terminals run by Elengy rumble on until Thursday.

The continent can no longer turn to Russian gas to ease supplies amid sanctions following its invasion of Ukraine.



However, storage remains above usual levels for this time of the year at 56pc, according to Gas Infrastructure Europe. A TotalEnergie worker on strike at the Donges refinery last week - LOIC VENANCE/AFP via Getty Images

08:34 AM

Markets rise but Next falls to bottom of FTSE 100

Stock markets have risen as fears of a banking crisis ebbed after weeks of turmoil.

The start of the day tracked gains in Asian markets, which were boosted by massive gains for Chinese tech behemoth Alibaba after it announced it would split into six groups.

The FTSE 100 climbed 0.4pc to 7,513.31 while the midcap FTSE 250 also rose 0.4pc to 18,470.00.

A 0.9pc gain for HSBC has helped lift London's blue-chip. Banking stocks have risen 1.1pc.

Next fell 5.7pc to the bottom of the FTSE 100 as it warned of smaller profits in a "challenging" year ahead.

In Europe, UBS climbed 2.2pc after the Swiss bank announced Sergio Ermotti will take the helm to steer its massive takeover of smaller peer Credit Suisse.

Credit Suisse climbed 2.1pc, while the European financial services and banking indexes were up about 1pc each.

08:22 AM

Chapel Down sales fizz as it raises prices

Winemaker Chapel Down has reported a jump in sales and profits after selling a record number of sparkling wines and bumping up its prices.

The Kent-based company said sales of traditional-method sparkling wine - which includes its Brut and sparkling Bacchus - surged by more than 50pc over 2022, as the business took steps to become a more premium brand.

It sold a record 790,000 bottles following an "outstanding" harvest during the year, which meant it produced more than two million bottles of wine in total.

Brand associations with sporting events like English Cricket at the Ashes over the summer also helped lift sales as people enjoyed a tipple during the hot weather.

The retailer said the average price of items it sold increased by nearly a fifth, partly because it focused on marketing higher-priced drinks. A Chapel Down vineyard in Kent - Jhy Turley

08:13 AM

Markets rise as bank worries ease

Markets have opened higher as anxiety about the global financial system began to fade following three high-profile bank failures.

The FTSE 100 has risen by 0.2pc to 7,501.86 while the domestically-focused FTSE 250 has climbed 0.3pc to 18,445.52.

07:56 AM

UBS shares move higher as Sergio Ermotti to return as chief executive

UBS shares moved 2.3pc higher in premarket trading on the Zurich stock exchange after the announcement that Sergio Ermotti will return as chief executive.

He takes charge weeks after UBS bought rival Swiss bank Credit Suisse in a shotgun merger engineered by Swiss authorities to stem turmoil after Credit Suisse ran aground.

That deal made UBS Switzerland’s one and only global bank, underpinned by roughly 260 billion francs ($170bn) in state loans and guarantees to underpin the new group, a risky bet that makes the Swiss economy more dependent on a single lender.

Current chief executive Ralph Hamers was a notable absentee from the announcement of UBS's takeover of Credit Suisse on March 19 - a deal backed by more than 200 billion francs ($217 billion) of state cash and guarantees engineered by the government, central bank and regulators. Sergio Ermotti will return as chief executive of banking giant UBS - FABRICE COFFRINI/AFP via Getty Images

07:43 AM

Inflation will be 'more benign' than feared, says Next boss

Next has said it expects to raise its prices more slowly over the year ahead as it revealed better-than-expected annual profits.

The retail giant reported a 5.7pc rise in pre-tax profits to £870.4m for the year to January, which was higher than the £860m it had previously pencilled in.

Next said full-price sales rose 6.9pc year-on-year.

The group, which has been hiking prices to offset surging cost pressures, said price inflation is set to be "more benign" than previously thought, forecasting increases across its ranges of 7pc this spring/summer, easing back to 3pc in the autumn/winter.

It had previously expected to ramp up its prices by 8pc for spring/summer and 6pc for autumn/winter, but said it was seeing supply chain woes ease off, with sharply lower shipping costs, and as it costs less to buy stock from overseas.

The outlook for prices gives further hope to cash-strapped households that sky high inflation will start to ease back during 2023.

07:32 AM

Next 'well-prepared' as retail business smaller now, says Lord Wolfson

Lord Wolfson said Next is "well-prepared" for the next year, despite forecasting profits to fall to £795m. He said:

Looking through next year to the longer term our prospects feel more posive than they have done for some me.

The burdens of the structural change to our industry appear to have eased, our retail business is a much smaller percentage of the group than it was eight years ago, and its rent and rates bill is slowly adjusting to reflect current levels of retail demand.

This year, the group will focus on improving its product ranges, online service levels and cost controls.

As importantly, the group is also laying the foundations for new avenues of growth to complement and leverage our heartland business. Next chief executive Lord Wolfson - Next/PA Wire

07:24 AM

Next warns of 'challenging' year ahead

Next has sent a warning to the retail sector as the bellwether company said it expects sales and profits to fall this year.

The firm revealed sales increased 8.4pc to £5.1bn in the year to the end of January, while pre-tax profits increased 5.7pc tp £870.4m.

Its profits were £10m higher than its previous guidance and up 16.3pc on year before the start of the pandemic.

However, it said it is budgeting for sales to be down 1.5pc next year and pre-tax profits to be below £800m.

In his review of the results, chief executive Lord Wolfson said: "The year ahead looks like it will be challenging: the combination of inflation in our cost base and top line sales which are likely to edge backwards is uncomfortable." Next has warned of a 'challenging' year ahead - Chris Ratcliffe/Bloomberg

07:09 AM

Shapps plots 'carbon tax' on foreign imports to protect British factories

Cheap imported products made in polluting factories overseas will be hit with green taxes to protect British manufacturers with higher standards under new plans expected to be announced this week.

Middle-income families will also be given grants to improve the energy efficiency of their homes under proposals reportedly due to be unveiled by energy secretary Grant Shapps.

The "carbon border taxes" will aim to protect UK factories from being undercut by countries with less strict environmental rules, according to TheTimes.

The scheme, which is expected to be unveiled on Thursday, will mirror a similar programme in the European Union and be focused initially on  energy-intensive products such as iron and steel, cement, aluminium and fertilisers.

These are mainly produced in non-EU countries.

Mr Shapps' plans for "carbon border taxes" would create a "level playing field" for UK manufacturers but also encourage other countries to reduce their reliance on polluting energy sources.

It is aimed to encourage them to switch from coal power to renewables in order to avoid the tariffs.

However, the consultation on the plans is expected to say the Government wants to help establish an international approach to carbon pricing to prevent the UK being at a competitive disadvantage. Imports from countries with less stringent environmental rules face imports under new plans expected to be announced by Grant Shapps - Matthew Horwood/Getty Images

06:59 AM

Good morning

Countries with less strict environmental laws are expected to face taxes on their products sent to the UK under plans designed to protect British manufacturers.

Grant Shapps, the energy secretary, will on Thursday announce the "carbon border taxes" that will mirror a scheme in the European Union, according to The Times.

5 things to start your day

1) Net zero ban on petrol cars in chaos after Brussels climbdown| Proposals to ditch internal combustion engines face crisis following 'e-fuels' exemption in EU

2) Royal Mail strikers given 48 hours to accept pay deal amid administration fears| Company races to seal pay offer following claims UK arm could go bust

3) Michael Gove approves solar farm the size of 75 football pitches despite local objections| Divisive Shropshire project will provide enough electricity to power over 8,500 homes

4) ECB staff complain of burnout after being forced back to the office| Survey shows the proportion of staff feeling the effects of burnout doubled in 6 months

5) Black Lives Matter logo ‘violates Adidas trademark’| Sportwear retailer argues the design creates confusion with its own three-stripe mark

What happened overnight

Asian shares jumped on Wednesday while the dollar was on the defensive as easing concerns over the banking sector revived risk appetite.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.82pc, while Japan's Nikkei rose 0.49pc.

Hong Kong's Hang Seng index climbed over 2pc, buoyed by Alibaba after the Chinese e-commerce conglomerate announced its break-up plans. Alibaba's Hong Kong shares shot up 15pc, while the company's US-listed shares closed 14.3pc higher. Meanwhile, China's CSI 300 benchmark edged up 0.4pc.

Wall Street stocks ended lower on Tuesday as investors weighed comments from Federal Reserve vice chair Michael Barr, who described the downfall of Silicon Valley Bank as a "textbook case of mismangement".

The Dow Jones Industrial Average dipped 0.1pc to 32,394.25. The broad-based S&P 500 slipped 0.2pc to 3,971.27, while the tech-rich Nasdaq Composite Index lost 0.5pc at 11,716.08.

The KBW regional banking index declined 0.2pc as the Federal Reserve official proposed tougher liquidity and capital rules to avoid further collapses.

The yield on benchmark 10-year Treasuries rose 2.8 basis points to 3.56pc, up from 3.53pc on Monday. The interest rate sensitive two-year yield was up 9.5 basis points at 4.06pc.