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UBS reported a record profit as it outlined plans for the future of the enlarged bank, following the takeover of rival Credit Suisse earlier this year in a $3.25bn rescue deal.

Presenting the bank’s first set of results since the takeover, new chief executive Sergio Ermotti said Credit Suisse’s domestic operations would be fully integrated into UBS by 2025 and its wider operations the following year.

Ermotti said the bank planned to cut 3,000 staff as part of a programme to save $10bn. The job losses would mostly come through staff retiring or leaving and not being replaced, he said.

The plans for integrating the two banks were presented alongside record results. UBS reported a $29bn pre-tax profit for the second quarter which ended on June 30 — the biggest ever quarterly profit for a bank.

The takeover has proved unpopular in Switzerland and is likely to figure prominently in October’s general election. A poll taken shortly after the takeover was agreed in March showed three-quarters of Swiss citizens opposed the merger. Read the full story.

• More Swiss financial news: Switzerland yesterday proposed sweeping new rules to clamp down on money laundering and increase transparency in the country which has a reputation for being a haven for ill-gotten gains.

Here’s what else I’m keeping tabs on today:

• Central banks: The European Central Bank publishes accounts of its last monetary policy discussions in July, while the Bank of England’s chief economist Huw Pill speaks at the South African Reserve Bank Biennial Conference.

• Economic data: Economists expect the Federal Reserve’s preferred inflation gauge — the core personal consumption expenditures (PCE) price index — to tick up to 4.2 per cent on an annual basis in July.

• Results: Discount retailer Dollar General, Spam maker Hormel Foods and engagement ring designer Signet Jewelers report before the bell. PC maker Dell, athleisure maker Lululemon and chipmaker Broadcom will report after markets close.

Five more top stories

1. Exclusive: Goldman Sachs has stopped taking riskier fintech clients after a warning from US regulators, according to people familiar with the matter. The Federal Reserve raised issues including insufficient due diligence and monitoring processes when accepting high-risk non-bank clients, targeting a unit in Goldman’s transaction banking business. Here’s more on the latest setback to the bank’s expansion efforts.

2. The White House has warned of “actively advancing” arms talks between Russia and North Korea. Vladimir Putin’s defence chief travelled to Pyongyang on a mission to secure ammunition for the invasion of Ukraine last month. After the visit, Putin and Kim Jong Un exchanged letters “pledging to increase bilateral co-operation”, the National Security Council said yesterday. Read the full US intelligence assessment.

3. Mexico’s opposition coalition is set to choose Xóchitl Gálvez to be its presidential candidate in next year’s polls. But Gálvez, a politician with indigenous roots who escaped rural poverty and founded her own business, faces an uphill battle against the candidate of the ruling Morena party. Here’s the latest on the Mexican election campaign.

4. Borrowers in the US junk bond market are increasingly securing their debt against company assets, in a bid to get deals done against a backdrop of much higher borrowing costs. Almost two-thirds of junk bonds issued so far in 2023, worth $70bn, have been secured, the largest proportion on record. The figures come from data provider PitchBook LCD.

5. The Chinese technology groups Baidu and ByteDance rolled out their artificial intelligence chatbots to the public today as they race to deliver China’s answer to Microsoft’s OpenAI. Beijing, which previously required technology companies to seek approval for launching generative AI services, gave its blessing to the new chatbots. Here’s more on the AI race between China and the US.

Today’s Big Read

A Financial Times investigation has revealed the intricate paper trail used by two men to shield their identity as they amassed large trading positions in Adani Group, one of the biggest and most politically connected private conglomerates in India. Adani was rocked by accusations of running the “largest con in corporate history” by American short-selling firm Hindenburg Research at the beginning of this year. Read the full investigation.

We’re also reading . . . 

Chart of the day

More mothers are now working in America than at any time since the labour department began tracking these statistics in 1948. Economists had feared the Covid crisis would lead to a “she-cession” after women quit their jobs and were laid off at higher rates than men in 2020. Find out how employers lured women back into work.

Take a break from the news

Some scientists predict we now have the potential to live to 140 years of age. From NAD+ to ozone therapy and stem-cell harvesting, here is a round-up of the treatments aiming to lengthen lifespans.

Additional contributions from Tee Zhuo and Benjamin Wilhelm