Swiss bank warns that stock market rally does not mean the worst is over for global economy!

LONDON, England - May 5, 2009 - "The strong influence that government policy has on the market environment was clearly demonstrated in the first quarter as investors became less risk averse," UBS said today, as it reported a first-quarter loss of Sfr1.98bn (£1.17bn).

UBS added that "the real economy has continued to deteriorate, and this is expected to have negative implications for credit-related provisioning in coming quarters."

The Swiss bank's loss for the first three months of the year came as it wrote down the value of mortgage-related assets held by parts of the business which UBS has closed down or is in the process of exiting. The bank, whose reputation for prudence has been severely hit by the credit crisis, has already reshaped the company's board and announced 8,700 job cuts last month.