UBS 'cautious' after $1.7 billion loss

Swiss bank says outlook for the firm is cloudy as global economy continues to worsen.

UBS remained wary on its immediate outlook as it braced for the full impact of the recession after confirming it had posted a first quarter loss on yet more writedowns and client withdrawals.

Despite a strong rebound in stock markets in recent weeks, UBS (UBS) said the global economy has continued to deteriorate and its home market Switzerland will not be spared. The Swiss economy is set to contract by up to 3% this year...

The loss contrasts with competitor Credit Suisse's (CS) first-quarter profit of 2 billion Swiss francs and gains by European rivals such as Deutsche Bank (DB) and Barclays (BCS).

Risky investments by UBS's investment bank in complex U.S. financial products have forced it to make more than $50 billion in writedowns and turned to the Swiss government for help...

CNN Money: UBS 'cautious' after $1.7 billion loss