Swiss Market Index Ends Week Downbeat; UBS Group Soars

12:00 PM EST, 12/12/2025 (MT Newswires) -- The Swiss Market Index further extended its losses on Friday to four days, ending the week 0.14% lower, amid a busy day of economic and corporate updates. A cross-party group of Swiss lawmakers put forward a proposal that would ease the burden of Switzerland's planned capital rule changes on UBS Group (UBSG.SW), including allowing the bank to use additional tier 1 debt to cover as much as 50% of the requirement for the group's overseas subsidiaries, Reuters reported. In an emailed statement to MT Newswires, a spokesperson for the Swiss banking group said the proposal by the parliamentarians takes a "more constructive direction than the extreme approach" planned by the Federal Council. UBS also emphasized that Switzerland already imposes "the most stringent capital requirement regime in the world," noting that the government's plan to further implement stricter rules will adversely affect the Swiss financial center's competitiveness. UBS shares reached their highest since 2008 and ultimately gained 2.51% at closing. Meanwhile, Novartis (NOVN.SW) broke ground on its new flagship manufacturing hub in the US state of North Carolina that is expected to open in the 2027 to 2028 period. The project, which includes the construction of two new facilities and an expansion of an existing one, is part of the Swiss drugmaker's $23 billion investment commitment in the country over the next five years. The stock closed the session 0.45% lower. On the defense front, Switzerland's Federal Council launched a consultation on the country's security policy strategy as part of efforts to bolster its defense capabilities. The consultation is set to run until March 31, 2026. Elsewhere and in economic news, the UK's monthly gross domestic product ticked down 0.1% in October, following a 0.1% decline in September, missing the consensus of a 0.1% rise. On a yearly basis, the British economy expanded 1.1%, the same as the previous month but lower than the expected 1.4% growth.