Global Markets React to UBS's Takeover of Credit Suisse

Markets are betting that interest rate rise campaigns are over amid fears that an unfolding credit crunch resulting from increasingly stressed banks just hastens recession and disinflation on its own. Futures markets now only see a one-in-three chance that the Fed will go ahead with a final rate hike this Wednesday and they see up to a percentage point of rate cuts by yearend. Swiss authorities orchestrated a deal for UBS to buy ailing rival bank Credit Suisse for $3.2 billion - at a fraction of Friday's battered CS share price - to prevent a failure of the systemically important Credit Suisse sending shockwaves through world banking.