Partners Group increased its income slightly last year and achieved a higher profit. The asset manager's bottom-line result exceeded market expectations. Income climbed by 9.8 per cent year-on-year to CHF 2.14 billion in 2024. Operating profit EBIT rose to CHF 1.31 billion (+9.7%), and the bottom line was a net profit of CHF 1.13 billion (+12.5%). Shareholders can now look forward to a higher dividend of CHF 42 per share. The figure for 2023 was CHF 39. Sales made significant progress in the second half of 2024, CEO David Layton was quoted as stating in the press release. Performance-related income has thus returned to a normalised level and accounted for 24 percent of total income in 2024 - compared to 19 percent in 2023. In 2022, the share had fallen to 14 percent, after an above-average 46 percent in 2021. The usual figure is 20 to 30 per cent. The Zug-based asset manager also confirmed its mid-January forecast for the current 2024 financial year and continues to expect capital commitments of USD 26 to 31 billion. Partners Group acquired capital pledges totalling USD 22 billion in 2024, as has also been known since January. Assets under management thus reached 152 billion at the end of the year - after 149 billion at the end of June 2024 and 147 billion at the end of 2023.

The stock market in Zurich started the new week on a lighter note. The SMI lost 0.5 per cent to 13,013 points. Among the 20 SMI stocks, there were 10 losers and 10 gainers. A total of 28.41 million shares were traded (Friday: 28.77 million). Among the heavyweights, Nestlé closed 0.9 per cent higher, Novartis 0.5 per cent and Roche 0.1 per cent. Swisscom, which is also regarded as defensive, added 2.0 per cent. However, Kühne + Nagel was the day's winner with a 4.7 per cent increase after the Huthi militia organisation based in Yemen threatened new attacks on maritime targets at the weekend. Attacks on container ships have led to an increase in freight costs in the past. At the bottom of the SMI were Richemont (-3.9%) and more cyclical stocks such as Lonza (-3.7%) and UBS (-3.6%). Among smaller caps, Galderma lost almost 3 per cent after the skincare specialist issued a disappointing outlook.

Europe
Europe's stock markets fell back on Monday, as investors shied away from risky assets in the face of uncertainty over Donald Trump's trade policy. The Stoxx Europe 600 index fell by 1.3% to 546.2 points. In Paris, the CAC 40 and the SBF 120 each shed 0.9%. The DAX 40 gave up 1.7% in Frankfurt, while the FTSE 100 dropped 0.9% in London. VERALLIA (+3.7%): the Brazilian investment company Gestao de Investimentos (BWGI) confirmed on Monday its planned takeover bid for the Verallia shares it does not hold, with no intention of delisting the glass packaging manufacturer. ALSTOM (-4.5% to 23.2 euros): On Monday, Citi lowered its recommendation on the rail equipment manufacturer's shares from ‘buy’ to ‘neutral’, while maintaining its target price of €26. SAFRAN (-4.9%): The aerospace equipment supplier announced on Monday that it had won an exclusive contract to use its Arriel engine to power the new R88 helicopter built by the US manufacturer Robinson Helicopter Company. The value of this contract was not indicated by the companies.

United States
Growing concerns about the U.S. economy tipping into a recession sent shockwaves through markets on Monday. The S&P 500 fell about 2.7%. The Dow Jones Industrial Average fell more than 2%, or about 890 points. The Nasdaq Composite slid 4%, its worst day since 2022. The index was dragged lower by a selloff in big tech shares. Tesla’s stock tumbled more than 15%, its biggest decline since 2020. Shares of the other Magnificent Seven stocks— Apple, Microsoft, Alphabet, Amazon.com, Nvidia and Meta Platforms —fell between 2.4% and 5.1%. The Cboe Volatility Index, or VIX, which measures expectations for where the market is headed, jumped to its highest level since the global markets rout in early August. President Trump over the weekend refused to rule out the U.S. entering a recession this year, telling Fox News there will be a “period of transition, because what we’re doing is very big.” Commerce Secretary Howard Lutnick took a more optimistic tone, telling NBC News: “There’s going to be no recession in America.” But investors focused more squarely on the president’s remarks. Some investors say that the Trump administration’s seemingly blasé attitude toward potentially setting off a downturn is rattling market watchers, who had believed that Trump’s pro-growth stance would boost the economy and markets. Global banks issued more somber outlooks. Economists at JPMorgan Chase raised their risk of a recession this year, while a team at Goldman Sachs upped its 12-month recession probability. Friday’s jobs report, which signalled that the labor market remains steady for now but could weaken, is also giving investors some pause. Some analysts worry job losses could grow, with the Trump administration looking to continue deportations and government layoffs. Monday’s drop follows a turbulent week in markets, with concerns growing about how the administration’s unpredictable tariff policies could affect U.S. growth. The S&P 500 finished Friday with a 3.1% weekly drop, its biggest such decline in six months.

Asia
Stocks in Asia mostly fell on Tuesday. Technology stocks are also under pressure in Asia. However, with a fall of 0.8 per cent, the losses suffered by Taiwan Semiconductor in Taipei were limited. Samsung Electronics dropped by 1.1 per cent in Seoul. In Korea, share prices declined by a total of 1.1 per cent and in Taiwan by 0.5 per cent. The most significant decline was recorded in Tokyo. The Nikkei slipped by 1.2 per cent. The Japanese economy grew by 2.2 per cent in the fourth quarter, slower than the 2.8 per cent initially forecast.

Bonds
U.S. government debt yields slipped on Monday after President Donald Trump over the weekend shrugged off the possibility that his policies would cause a U.S. recession, setting the stage for another brutal day for the stock market. The 10-year Treasury note yield fell by 7 basis points (0.07 percentage points) to 4.23%. The 2-year Treasury note yield declined by 9 basis points to 3.91%.

Analysis
Citigroup downgrades Holcim to Neutral (Buy) - Target CHF 109 (108)
RBC lowers Galderma to Sectorperform (Outperform) - Target 106 (101) CHF
Target price Galderma: Jefferies raises to CHF 115 (105) - Buy

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