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Global banking giant Credit Suisse has revealed that a project it's leading to set live a blockchain proof of concept (POC) for syndicated loans is likely to go into production as soon as next year.

A syndicated loan is offered by multiple banks — a syndicate — to a single large party, like a corporation or government. The project, which has been co-developed by Credit Suisse, twelve other banks, and fintech Symbiont, was launched in fall 2016, and has already yielded a functional POC.

The group completed the second testing phase for the solution in April 2017. The participants say blockchain technology, and particularly smart contracts, are well suited to reduce turnaround times for syndicated loan transactions by making interaction and communication between the various parties involved in the process more seamless. Emmanuel Aidoo, head of Credit Suisse's blockchain and cryptocurrency strategy, said cutting down the time it takes to process a syndicated loan could make this loan type more attractive for investors like mutual funds and asset managers.

Credit Suisse's solution is progressing quickly, but its success won't depend on the participants alone. This project has several factors in its favor, which could see this solution go live soon. First, syndicated loans are still a comparatively niche area for blockchain applications, meaning that Credit Suisse has little competition to fight off on this front. Moreover, if Credit Suisse succeeds in launching this POC by next year, it could gain a head start over any competitors in amassing bank users to create a network effect.

However, this effect will also depend on the willingness of end customers — including borrowers and the institutions contributing to the pooled loan — to use the solution. Given how poorly blockchain technology is still understood, and the lack of evidence as to its benefits, it could prove surprisingly difficult to achieve widespread usage among these groups.

Sarah Kocianski, senior research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on blockchain in banking that:

• Outlines banks' experiments with blockchain technology. 
• Details blockchain projects at three major banks — UBS, Credit Suisse, and Banco Santander — based on in-depth interviews. 
• Discusses the likely trends that will emerge in the technology over the next several years.
• Highlights the factors that will be critical to the success of banks implementing blockchain-based solutions.

To get the full report, subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and more than 250 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >>Learn More Now

You can also purchase and download the full report from our research store.

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Shares of Bed Bath & Beyond are plunging more than 15% on Wednesday after the retailer announced disappointing quarterly results.

The home furnishings chain reported earnings of $0.67 a share, well shy of the $0.95 that Wall Street had expected.

Bed Bath & Beyond is certainly not alone in its struggles as companies across the country are having difficulty keeping up with Amazon.

In a note to clients on Wednesday, Credit Suisse warned that "it's difficult to see light at the end of the tunnel."

"Price and service gaps remain, the assortment advantage is less clear today, investments likely need to continue, and sector has yet to reach an equilibrium from a supply/demand perspective," analysts Seth Sigman, Kieran McGrath, and Lavesh Hemnani wrote.

The Swiss bank cut its price target for Bed Bath & Beyond from $33 to $25, just below Wall Street consensus of $26.28, according to Bloomberg.

In its earnings call, Bed Bath & Beyond said that restructuring changes, Hurricane Harvey, and a new accounting standard contributed to the losses.

Credit Suisse thinks the magnitude of the miss could actually create new opportunities for the company to make positive strategic changes. The bank complimented Bed Bath & Beyond's ramping up of its online business, which still only accounts for 15% of total sales.

"In theory, the investments needed in technology, price, and marketing are best done outside of the public eye. But, leverage is not as low as its been," the bank said.  "More importantly, for retailers that don't own their own brands, the scenarios have become more limited."

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LONDON — The collapse Monarch Airlines on Monday could be great news for Britain's other major airlines, analysts say, with budget carrier easyJet likely to be the big winner.

Monarch, Britain's fifth largest airline, collapsed after a long period of financial difficulty and leaves behind a hole in the UK's aviation market. Analysts believe the collapse, which has led to the cancellation of 300,000 bookings, could boost rivals.

"We note that easyJet and Ryanair have the highest capacity overlap with Monarch and in the event of an exit could be the biggest potential beneficiaries," a Goldman Sachs note circulated on Monday said.

Shares in easyJet rose close to 5% on Monday, while Ryanair's share price rose over 3%.

Monarch had just 3% of the total short-haul market in the UK but that small overall percentage could allow significant expansion for other airlines, particularly easyJet given the state of rival Ryanair.

Irish carrier Ryanair was forced to cancel thousands of booking this winter after a rostering error caused a backlog of staff holiday days due at the end of the year. The cancellations are set to impact as many as 700,000 passengers and have caused a major PR crisis for the company.

Meanwhile, easyJet is controversy-free. The airline "should benefit this winter from the struggles of four key competitors, which may be helpful for pricing in the U.K., Germany and Italy," Credit Suisse's airline team wrote in a note circulated on Monday.

"Monarch has now stopped flying, Air Berlin is being broken up, Alitalia is also in administration and awaiting a buyer, and Ryanair pilot issues have prompted flight cancellations and a large media focus."

"Absorbing all of Monarch and a targeted 30 aircraft from Air Berlin could add up to 10% to earnings in each case, with limited capital investment," the bank's aviation analysts wrote.

"It remains to be seen how Monarch’s administrator runs the process, and we see complementary with easyJet’s network as positioning easyJet strongly should the administrator look to achieve a sale of the business as a whole - however we also expect easyJet to look to absorb slots vacated by Monarch directly from airports, perhaps as lessors reclaim aircraft."

Monarch had a 5-6% share of flight slots at London Gatwick, London Luton, and Manchester slots.

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Credit Suisse has a new version of its CS Markets Index, which tracks trading revenues across Wall Street, and it is not a pretty sight for America's top investment banks.

In a note out October 3, research analyst Susan Roth Katzke and her team set out their expectations for third quarter trading revenues, with Katzke and company forecasting a 15% to 20% decline year-over-year. That echoes commentary from bank executives, with Citigroup CFO John Gerspach saying the bank was on pace for a 15% year-over-year decline in trading revenues. JPMorgan chief Jamie Dimon said the bank was on track for a 20% decline.

The scale of the decline in fixed income, currencies, and commodities revenues is pretty brutal. The biggest business in FICC, G10 rates, is forecast down down by as much as 50% versus the same period a year earlier. Ouch.

The Credit Suisse team also set out their expectations for individual banks, forecasting a 23% decline in sales and trading revenues across FICC and equities at Goldman Sachs. It's now forecasting a $2 billion drop in trading revenues at Goldman Sachs from 2016 to 2017. 

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BlackRock, the world's largest money manager with $5.69 trillion in assets under management, reported better-than-expected earnings on Wednesday, which sent its stock to a record high. 

And shares could go even higher, according to Credit Suisse. "Following 3Q17 results, BLK remains our top traditional asset manager Outperform as we forecast strong net flows in 2018/19 and EPS growth of 15-20%," analyst Craig Siegenthaler said in a note Thursday.

The Swiss bank has raised its price target for shares of BlackRock to $612 from $597, 28% above the current stock price of $477. 

Most of the company's growth has come from its wildly successful exchange-traded fund business, known as iShares, which Credit Suisse estimates now accounts for half of all US investments in the products.

"We continue to see strong demand for iShares's ETFs driven by the evolution of the US retail channel (from commission-based to fee-based), increased adoption by institutional clients and pricing reductions in its core series. Year to date, iShares accounted for ~50% of total ETF flows in the US," the bank said.

"In only twelve months, BLK has been able to recapture more than 100% of the lost revenue resulting from the October 2016 price cuts (reduced fees on 15 ETFs with ~$85M of annual revs) via increased net flows and market share gains."

Passive investments, like ETFs and other products that track a weighted index rather than a single equity, have steadily eaten away at active managers' portfolios in recent years.

In an interview with Business Insider last week, BlackRock COO Rob Goldstein said ETF's rise in popularity doesn't change how the company views growth, and that even a so-called passive investment, is still an active decision.

"That's interesting is that, in many regards, if you look at something like an ETF, it is a technology to just give you very efficient, cost-effective exposures," he said. "But even the way that people use ETFs are in the context of making active decisions."

Shares of BlackRock are well ahead of the S&P 500 benchmark this year, up 21.5% compared to the index's 14%. 

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The Trump administration's tax plan is once again at the forefront of the news cycle.

Framework for a tax plan released by the "Big Six" offers insight into the types of cuts the White House wants, including a lowering of the 35% corporate rate.

But some companies already pay significantly less than that, as seen by a list compiled by Credit Suisse analysts of the companies that pay the lowest tax rates in the US.

Here are the 13 companies with the lowest effective US tax rate, according to Credit Suisse.

SEE ALSO: 

11. XL Group

Ticker: XL

Effective Tax Rate: 4.8%

Sector: Financials

Year-to-Date Performance: +7.66%

Source: Standard & Poor's, FactSet, Credit Suisse

10. IHS Markit

Ticker: INFO

Effective Tax Rate: 4.4%

Sector: Industrials

Year-to-Date Performance: +23.06%

Source: Standard & Poor's, FactSet, Credit Suisse

9. Micron Technology

Ticker: MU

Effective Tax Rate: 3.7%

Sector: Technology

Year-to-Date Performance: +79.68%

Source: Standard & Poor's, FactSet, Credit Suisse

Swiss hedge fund RBR Capital Advisors will announce this week a plan to split apart Credit Suisse, the Financial Times reported Monday.

The firm is proposing to split Credit Suisse into three parts: an investment bank modeled after First Boston, which Credit Suisse acquired in 1989, a wealth management group, and an asset manager.

It’s being spearheaded by Gaël de Boissard, who joined Credit Suisse in 2001, and eventually served as co-head of investment banking before leaving in December 2015, according to his LinkedIn profile.

His plan is largely a rebuttal to disappointing performance under CEO Tidjane Thiam, who took over in 2015. In the almost two years since, the bank’s stock price has declined by 20%.

Swiss paper Finanz und Wirtschaft first reported the purchase of a stake by RBR Capital.

Activist investors have targeted high-profile companies like GE and ADP recently, but have largely avoided financial institutions, the FT reports.

You can read the full story on the Financial Times here.

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• Allergan struck an unusual deal with the Saint Regis Mohawk Tribe to transfer patents of the eye drug Restasis, a move that gives the drug sovereign immunity from certain patent challenges. 
• But on Monday, a district court judge invalidated some of Restasis 's patents through another channel. 
• The loss in district court means that Allergan won't get much of the upside from the St. Regis deal, and analysts highlight the "public relations backlash the company has suffered from going through with the agreement in the first place."

Allergan, the drugmaker behind Botox, on Monday, had patents on one of its key drugs invalidated by a district court judge.

The case was regarding Restasis, a blockbuster eye drug whose patents Allergan had in September given to the Saint Regis Mohawk Tribe. The unusual move gave Restasis sovereign immunity from certain patent challenges, and led to a lot of backlash from lawmakers and the public.

"The Court has serious concerns about the legitimacy of the tactic that Allergan and the Tribe have employed," Judge William Bryson said in a memorandum opinion accompanying his decision. Allergan's stock dropped as much as 6% Monday on the news. 

Because of the outcome of the case, however, the benefits of having sovereign immunity from certain patent challenges might be moot. Allergan was trying to avoid a procedure that lets parties challenge the validity of patents called inter partes review, a process that could have also invalidated the Restasis patents in addition to the route the district court case took.

Analysts at Credit Suisse adjusted their model following the news, citing in part, the response to the St. Regis deal. 

"Even before today, AGN’s stock had lost 12% of its value since the company announced the controversial Restasis patent agreement with the Saint Regis Mohawk Tribe. The loss in the District Court takes away the potential upside AGN could have obtained by removing the Inter Partes Review (IPR) challenge through the patent agreement," Credit Suisse wrote in a note. "However, it does not erase the public relations backlash the company has suffered from going through with the agreement in the first place."

Credit Suisse had concerns about whether the St. Regis deal had any impact on the judge's decision to invalidate the patents and the lasting implications of the deal on the company's reputation. 

"We have generally been fans of the AGN management team, but find it challenging to defend the steps that were taken with the patent agreement, especially given that the patents have now been invalidated by the Court," the analysts wrote. "We believe it will take some time for the management team to regain the credibility it has lost through this process."

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• Darlene Pasquill, the head of Americas equities at Credit Suisse, has left the bank. 
• Her departure follows a series of changes in the Swiss bank's equities business. 

There has been a shake-up at the top of Credit Suisse's US equities business. 

Darlene Pasquill, a Credit Suisse veteran and the head of Americas equities business, will be leaving the bank to pursue external opportunities, according to an internal memo seen by Business Insider. She had been in that role since 2015. 

Mike Stewart, who was hired from UBS to be global head of equities at the end of last year, will take on her role on an interim basis. 

Her departure follows a series of changes at Credit Suisse's equities unit. The bank hired Douglas Crofton from Bank of America Merrill Lynch to run US cash trading, hired trading technology veteran Anthony Abenante, and appointed former UBS exec David Bleustein to be head of Americas equity research.

The Swiss bank ranked between 7th and 9th for US equities revenues in the first half of the year, according to data from Coalition. The bank will report third-quarter results on November 2. 

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• Credit Suisse predicts a one-third chance of recession in the next six months.
• That has actually fallen from 38% in July, but remains close to its highest level since 2009.
• Sliding PMIs in the services sector are leading recession indicator, bank argues.

LONDON — There is a one in three chance of a UK recession within six months, according to Swiss banking giant Credit Suisse.

The bank argues in a paper released on Monday 23 October, two days before the UK's better than expected GDP data, that the weak trend in services PMIs in the year and a half since the referendum point to further sluggish overall growth for the UK economy.

"Service sector PMIs lead UK GDP growth, and are now consistent with growth slowing toward 1%," UBS' UK economics team, led by Andrew Garthwaite write.

Growth slowing towards 1% is the bank's central case, but a recession is also a potential.

"Our economists, using a probit regression model, estimate that there is a 33% probability of a UK recession on a six-month view – close to the highest reading since 2009," the bank writes. "Their model uses the real policy rate, real oil prices, the OECD leading indicator, inflation, the unemployment rate, real equity prices, real house price inflation and real credit growth as inputs."

Here is the chart from Credit Suisse's team:A technical recession occurs when an economy contracts for two consecutive quarters. If the UK's GDP were to shrink 0.1% in both the third and fourth quarters of 2017 that would be considered a technical recession.

However, in the hypothetical (and highly unlikely) scenario that the economy shrunk by 1.1% in Q4, grew 0.1% in Q1 of 2018, and then contracted a further 1% in Q2 of 2018, that would not strictly count as a technical recession.

Credit Suisse's recession probability is now a little lower than it was in July when the bank's models assigned a 38% chance of the UK economy contracting for two straight quarters.

In its note this week, Credit Suisse said Brexit has had a negative impact on growth and the UK's position in global growth standings.

The pound has slumped, inflation has shot upwards (hitting its highest level in over five years last month), real wage growth has stagnated, and GDP growth has slowed significantly.

All of these negatives, if not solely caused by the vote to leave the EU, have certainly been exacerbated by Britain's impending exit from the bloc, the bank argues.

As Garthwaite and team write, over the coming years the UK will experience "a growth rate which is clearly underwhelming relative to that elsewhere, and relative to the growth of the last five years (which has averaged 2.1%)."

Essentially, the economy will be much worse off in several years time than it would have been had Britain voted to remain in the UK, and will increasingly fall behind the competition — namely major eurozone economies like Germany, France, and Italy.

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• A new Credit Suisse report finds there are 2.3 million new millionaires in the world, putting the total at 36 million.
• Collectively, they make up less than 1% of the population but hold as much wealth as 46% of the world.
• Forecasts indicate the world could soon see many more millionaires, and perhaps even the first trillionaire.

Since 2016, the world has seen a new crop of 2.3 million people reach a net worth with six zeroes.

According to Credit Suisse's new Global Wealth Report 2017, there are now 36 million millionaires in the world — a 170% jump in total numbers from the year 2000. Together, these millionaires hold as much wealth as 46% of the population.

Wealth inequality has been growing for decades. The world's eight richest people have as much wealth as half of the world's population, and in the US, the proportion of people identifying as "have-nots" versus "haves" has more than doubled since 1988.

Credit Suisse's report did show that people are generally getting wealthier overall. In 2017, global average wealth hit a new high of $56,540, compared to $52,074 in 2007.

The world's ultra-wealthy are getting richer too, and to far greater degrees. In 2000, the top 1% held 45.5% of the world's wealth. Today, they hold 50.1% — more than half of the rest of the world.

According to Credit Suisse's past reports, becoming a millionaire might be more common over the coming decades.

In 2013, the bank published a report speculating that 20% of the world's population could be millionaires within two generations. In other words, sometime before 2073 (as of the report's writing) there could be a billion millionaires walking the Earth.

The rapid influx of new wealth could even create the first trillionaire within a couple decades, according to a recent Oxfam report. There were 793 billionaires worldwide in 2009. Added up, their net worths totaled $2.4 trillion. By 2016, the richest 793 people maintained net worths of $5 trillion — an annual growth of 11%.

"If these returns continue," the report stated, "it is quite possible that we could see the world's first trillionaire within 25 years."

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• New startup London Block Exchange is launching a prepaid card linked to anapp that will let people spend and hold cryptocurrencies.
• The startup has raised £2 million from private investors and is headed by an 18-year Credit Suisse veteran.

A London-startup headed by a Credit Suisse veteran is launching a new debit card that it claims will allow people to spend cryptocurrencies across the UK.

The London Block Exchange (LBX) launched on Tuesday. It plans to launch a sterling-to-cryptocurrency exchange and a Visa debit card, dubbed "Dragoncard," that will allow people to spend bitcoin, ethereum, ripple, litecoin and monero across the UK. The startup plans to add more cryptocurrencies in future.

The Visa card, which will be issued by Gibraltar-based pre-paid card provider Wavecrest, will be linked to an app that allows users to buy and hold cryptocurrencies through the LBX exchange. Customers will also be able to withdraw money using the card. Cryptocurrencies will be converted to sterling at the time of withdrawal.

LBX CEO and founder Ben Dives said in a statement: "Despite being the financial capital of the world, London is a difficult place for investors to enter and trade in the cryptocurrency market.

"We’ll bring it into the mainstream by removing the barriers to access, and by helping people understand and have confidence in what we believe is the future of money."

LBX has so far raised £2 million from a consortium of private investors who the company declined to name. Prior to setting up LBX earlier this year, Dives founded brainstorming tool Ideaflip.

Ex-Credit Suisse and UBS banker Adam Bryant serves as LBX's executive chairman. Bryant spent 18 years at Credit Suisse and almost two years at UBS before joining LBX, running the macro hedge fund teams at both banks.

Bryant said in a statement: "We’re offering a grown up and robust experience for those who wish to safely and easily understand and invest in digital currencies. We’re confident we’ll transform this market in the UK and will become the leading cryptocurrency and blockchain consultancy for institutional investors and consumers alike."

Customers will be charged a 0.5% for buying and selling cryptocurrencies on its platform and the Dragoncard has an up-front fee of £20. LBX says card provider Wavecrest will also charge a small fee for ATM withdrawals.

LBX's launch coincides with an explosion of interest in cryptocurrency in 2017. Bitcoin has rocketed over 500% so far this year and the total cryptocurrency market has ballooned to close to $200 billion thanks to the popularity of "initial coin offerings," where startups issue digital coins as a way of raising money.

While LBX is one of the first companies to offer a cryptocurrency card in the UK, it is likely to soon face competition. Revolut, the well-funded foreign exchange startup, is developing cryptocurrency trading capacities within its app and may well let consumers spend the currencies on its prepaid card.

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• One out of every 20 Americans is a millionaire.
• The US has 43% of the world's millionaires, and leads all countries in churning out the greatest number of new millionaires.
• The number of millionaires and ultra-high-net-worth individuals has surged over the last several years.

About one out of every 20 Americans is a millionaire.

No, that's not a typo.

Credit Suisse released its annual Global Wealth Report, which found that the United States had about 15,356,000 millionaires in 2017 — which adds up to nearly 5% of the total US population. The number of millionaires climbed by about 1.1 million from the previous year. (We first spotted this at Money.)

The US also has the greatest number of millionaires in the world — accounting for about 43% of the world's total — and currently leads all countries in churning out the greatest number of new millionaires.

On top of that, the US houses the greatest number of ultra-high-net-worth individuals (UHNWI), those who have a net worth of $50 million or more.

Having a seven-figure net worth — or more — means different things in different parts of the United States. In less expensive states like Mississippi or Alabama, $1 million goes a lot farther than in more expensive states like New York or California.

The report attributes the ninth consecutive year of rising wealth to stocks, saying that business and market conditions strengthened because of the prospect of lower taxes, deregulation, and fiscal stimulus, all of which were proposed by President Donald Trump.

The average wealth in the United States has "fully recovered," after collapsing during the financial crisis, and is now about 30% higher than its 2006 level, Credit Suisse said. We should note, however, that the bounce back in average wealth does not necessarily mean that every American has seen their finances recover to pre-financial crisis levels.

Millionaires around the world

Looking at the global picture, the number of millionaires in the world has jumped by 170% and the number of UHNWIs has risen five-fold since 2000.

In its analysis of the global picture, the Credit Suisse team also touched on an interesting idea, arguing that "increasing inequality can also boost the speed at which new millionaires are created."

That brings us back to the US, which not only has a large and increasing number of millionaires, but also a huge inequality problem. In fact, the top 0.1% of households in the US now hold about the same amount of wealth as the bottom 90%.

"To understand what's going on in 'the economy,' it is a serious mistake to look at average statistics," Ray Dalio, the founder of Bridgewater Associates, said in a LinkedIn post last month. "This is because the wealth and income skews are so great that average statistics no longer reflect the conditions of the average man."

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• Credit Suisse hired two top research analysts away from UBS.
• Doug Mitchelson joins the bank as managing director in equity research covering the media, cable/satellite, and telecommunications sectors. Brian Russo joins as a vice president working in the same sector. 
• The bank has now hired at least six managing directors in research from UBS recent months. They're part of a wave of hires the bank has recently made to beef up its research division. 

Credit Suisse has hired two high-level equity research analysts away from Swiss rival UBS, part of a wave of hires the bank has made in recent months to load up on research firepower. 

Doug Mitchelson joins the bank as managing director in equity research covering the media, cable/satellite, and telecommunications sectors, according to a memo seen by Business Insider.

Previously he worked for three years at UBS as a senior media analyst and before that spent 17 years as an analyst with Deutsche Bank.

"Given the increasing convergence and consolidation of these sectors, we believe having a single, combined team allows for synergies and deeper insights," David Bleustein, head of research in the Americas for Credit Suisse, wrote in the memo. "Doug brings significant experience to this role having spent over 20 years as a sell-side analyst covering the Media and Cable/Satellite sectors."

Mitchelson joins Brian Russo, who was recently hired as a vice president covering the same sector. He worked with Mitchelson in media equity research at UBS before joining Credit Suisse, and Deutsche Bank before that. 

A Credit Suisse spokesman confirmed the hires.

Bleustein himself was hired this summer from UBS, where he started as an industrials analyst in 1999 and ran the equity research divsion in the US since 2008. 

The bank has only ramped up its investment in research since.

Other managing directors in research that have joined Credit Suisse since the summer include:

• Jonathan Golub, chief US equity strategist
• Marty Auster, mid- and small-cap biotechnology analyst
• AJ Rice, managed care and healthcare facilities
• Michael Binetti, softlines and department stores
• Bill Featherston, energy exploration and production and integrated oil
• Kristina Kazarian, master limited partnerships and refiners
• Andrew Kligerman, life insurance

Of that group, all but one worked at UBS in the past four years, and four joined directly from UBS. Given the hire of Bleustein from UBS, and the hire of Mitchelson, that means Credit Suisse has now hired at least six managing directors in research from UBS in recent months.

 The rash of research hires comes ahead of new European regulations set to go live in January — known as MiFID II — that are expected to result in slashed research budgets across Wall Street. 

Mary Erdoes, the head of JPMorgan's $1.9 trillion asset and wealth management business, recently explained the impacts and looming industry cuts to a room full of analysts at a conference.

"On the buy side, the larger firms will absorb the costs and figure out how that cascades its way through," Erdoes said. "It probably means they'll tighten up a lot on what they spend on sell-side research, which is why the two go hand in hand."

Erdoes plainly laid out what happens next: "I was dealing with 10 of you; I don't want 10 of you anymore, I only want the five best of you." 

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• About half of all of the world's ultra rich — those with a net worth over $50 million — live in the US.
• China, Germany, and the United Kingdom follow the US.
• The number of ultra-high-net-worth individuals increased by 13% in 2017.

Forget millionaires. Make way for the ultra-rich.

Credit Suisse released its annual Global Wealth Report, which calculated that about 148,200 adults around the world could be classified as ultra-high-net-worth (UHNW) individuals in 2017. That means they have a net worth above $50 million.

There were about 19,600 more UHNW individuals in 2017 than in 2016, a 13% increase. All regions saw an uptick.

Looking under the hood of the data, about 54,800 of these individuals are worth at least $100 million, and about 5,700 are worth over $500 million.

Credit Suisse also figured out where the UHNW adults live around the world. The United States has, by far, the greatest number of UNHW individuals, accounting for about 49% of the world's total. It is followed by China, Germany, and the United Kingdom.

You can see the full list below:

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A group of leading financial institutions including JPMorgan Chase, Credit Suisse, BNP Paribas, and Citigroup teamed up with distributed ledger technology (DLT) startup Axoni in 2016 to build a DLT-based platform to streamline equity swaps.

Now, the collaborators have successfully completed a half-year trial of the solution. Currently, FIs typically build their own systems on which to conduct equity swap transactions, which require bespoke connectivity to one another.

FIs then have to continually monitor external factors that might affect an equity swap, some of which require manual updates to the contracts. Because of this complexity, there is no centralized repository for the clearing or reporting of equity swaps. By contrast, the new solution, which is based on Axoni's smart contract technology, gives all participants in an equity swap access to the same data, making clearing times almost instantaneous, and reducing the possibility of disputes about transactions.

FIs' perseverance in the DLT space is promising. None of the swaps conducted during the trial involved actual money changing hands, but Axoni says that now that the solution has been proven effective, the parties can begin working towards roll out. Although almost no FIs have yet made their DLT solutions for capital markets live, the fact that many have continued to actively work on such projects for a number of years suggests that they see great potential in the technology, and are determined to start using these solutions in a live environment.

Nearly every global bank is experimenting with blockchain technology as they try to unleash the cost savings and operational efficiencies it promises to deliver. 

Banks are exploring the technology in a number of ways, including through partnerships with fintechs, membership in global consortia, and via the building of their own in-house solutions. 

Sarah Kocianski, senior research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on blockchain in banking that:

• Outlines banks' experiments with blockchain technology. 
• Details blockchain projects at three major banks — UBS, Credit Suisse, and Banco Santander — based on in-depth interviews. 
• Discusses the likely trends that will emerge in the technology over the next several years.
• Highlights the factors that will be critical to the success of banks implementing blockchain-based solutions.

To get the full report, subscribe to BI Intelligence and gain immediate access to this report and more than 250 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >>Learn More Now

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• A no deal Brexit is widely accepted to be bad for the UK economy.
• Parts of the economy will suffer more than others.
• Financial services, agriculture, and aviation are among the most at risk industries, according to a note from Credit Suisse analyst Sonali Punhani.

LONDON — "A no deal [Brexit] scenario would entail the disruption of UK trade within European export supply chains," according to a recent note by Credit Suisse research analyst Sonali Punhani.

Brexit talks have hit a stalling point after British Prime Minister Theresa May and EU Commission President Jean-Claude Juncker confirmed on Monday that negotiators failed to reach a deal on the first phase of discussions after a disagreement on the Irish border question.

While both sides said that "significant progress" has been made, there is a real possibility that no deal is reached by the time the UK leaves the European Union in March 2019. Economically speaking, no deal is widely acknowledged to be a negative for the UK.

"There is a clear negative impact from no deal... for both sides but especially for the UK economy," Stefaan De Rynck, an advisor to the EU's chief Brexit negotiator Michel Barnier, told a conference in October.

Parts of the UK economy would suffer more than others in a "no deal" scenario, but which would be the worst off? Credit Suisse took a look at what no deal could mean for six key industries within the UK economy.

Financial services: 'Impact can be 65-75,000 jobs; £8-10bn tax revenues; and £18-22bn GVA'

The UK's financial services sector is one of the jewels in the crown of the UK and is a huge contributor to tax revenues, so the failure to secure a Brexit deal would be a major negative to both the sector and the economy as a whole.

Punhani writes: "Studies have shown that in a no deal scenario, the impact can be 65-75,000 [lost] jobs (5-6% of finance jobs); £8-10bn tax revenues (11-14% of FS taxes) and £18-22bn GVA (15-18% of FS GVA). For the economy, these translate to UK GDP reducing by 1.3% relative to baseline, employment by 0.2% and tax revenues by 1.6%."

Agriculture: No deal 'could raise food prices by 8%'

The farming sector is already facing a farm labour "crisis,"according to the deputy president of the National Farmers' Union, which has been exacerbated by the Brexit vote. A no deal Brexit could make things even worse.

"Under WTO rules, the UK will have to pay EU tariffs on agricultural food exports, for example, 36% on dairy products," Credit Suisse writes. "British farmers are likely to lose the subsidy provided by the Common Agriculture Policy, which accounts for 50-60% of their income."

All this could mean higher prices in the shops. Punhani writes: "The UK will also need to impose import tariffs for agricultural goods coming into the UK. Studies show that could raise food prices by 8%, which should add 70bps to UK inflation."

Automotive: 'The UK’s car industry faces a £4.5bn rise in costs'

The automotive sector was one of the first to see major coverage after the Brexit vote when the government gave guarantees to Japanese firm Nissan to ensure it kept a major operation in the North East city of Sunderland.

Britain's auto sector has deep links with the EU and, as a result, would suffer hugely if trade barriers were imposed in a no deal Brexit.

"Studies suggest that the UK’s car industry faces a £4.5bn rise in costs in a no deal scenario, 15% rise in car prices, adding 70bps to overall inflation and 20% fall in car sales," Credit Suisse said.

• Tech stocks have slid after the US Senate passed its version of tax reform.
• One analyst at Credit Suisse thinks lower prices means that now is the time to buy. 
• Strong business fundamentals that have propelled tech will likely continue, leading to strong stock performances for many tech companies.

As tax reform made its way through the US Senate, investors started the bill's impacts if it passed. On Saturday, the Tax Cuts and Jobs Act did pass, bringing many of the details of the bill to light. That set off a wave of trading for investors hoping to better align their portfolios to take advantage of the Senate's bill, which still needs to be reconciled with the House's and signed by the President before becoming law.

Monday and Tuesday saw a general rise in financial stocks and a decline in tech companies. According to analysts at Credit Suisse, though, the rotation will be short-lived. 

"TECH+ is our favorite sector given its strong fundamentals," Jonathon Golub, an analyst at Credit Suisse said. "We believe an investor’s time horizon should determine their focus on tax policy."

For those investing for the long term, Golub said the tax bill is secondary to business fundamentals. Basically, investors will be focused on playing tax reform in the short term, but it won't change the big picture.

Because the companies that are most affected by tax reform are ones that have a majority of revenue in the US, Transportation, Retail, and Financial companies have gotten a boost immediately following the passing of the Senate bill, according to Golub.

But, tech has largely outperformed the general market in 2017, and Golub said that it will likely continue to do so after the rotation. Golub points out that the tech sector is in the top four sectors for revenue growth, earnings growth, and return on equity.

On Tuesday, Golub pointed out that the tech sector is only slightly more expensive than the rest of the market on a price-to-earnings ratio basis. Tech has a P/E ratio of 19.8, while the S&P 500 currently has an 18.2 P/E ratio. At the end of 1999, before the tech bubble burst, the ratio for the tech sector was nearly double that of the general market.

"The fundamental backdrop is much stronger for this group than other sectors. Further ... any pressure on valuations represents a buying opportunity for longer-term investors," Golub said.

Read more about the GOP's tax plan here.

SEE ALSO: Republicans just received 2 alarming reviews of their tax plan

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This is a preview of a research report from BI Intelligence, Business Insider's premium research service. To learn more about BI Intelligence, click here.

Nearly every global bank is experimenting with blockchain technology as they try to unleash the cost savings and operational efficiencies it promises to deliver. 

Banks are exploring the technology in a number of ways, including through partnerships with fintechs, membership in global consortia, and via the building of their own in-house solutions. 

In this report, BI Intelligence outlines why and in what ways banks are exploring blockchain technology, provides details on three major banks' blockchain efforts based on in-depth interviews, and highlights other notable blockchain-based experiments underway by global banks. It also discusses the likely trends that will emerge in the technology over the next several years, and the factors that will be critical to the success of banks implementing blockchain-based solutions.

Here are some of the key takeaways from the report:

• Most banks are exploring the use of blockchain technology in order to streamline processes and cut costs. However, they are also looking to leverage additional advantages, including increased competitiveness with fintechs, and the ability to use the technology to create new business models. 
• Banks are starting to narrow their focus, and are increasingly honing in on tangible use cases for blockchain technology that solve real problems faced by their businesses. 
• Regulators are taking an increased interest in blockchain technology, and they're working alongside major banks to develop regulatory frameworks. 
• Blockchain-based solutions will start to emerge in different areas of financial services. The most successful solutions will solve specific problems for banks and attract a large enough network to create widespread benefits. 

 In full, the report:

• Outlines banks' experiments with blockchain technology. 
• Details blockchain projects at three major banks — UBS, Credit Suisse, and Banco Santander — based on in-depth interviews. 
• Discusses the likely trends that will emerge in the technology over the next several years.
• Highlights the factors that will be critical to the success of banks implementing blockchain-based solutions.

Interested in getting the full report? Here are two ways to access it:

1. Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >>Learn More Now
2. Purchase & download the full report from our research store. >> Purchase & Download Now

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• Stock market volatility was locked near record lows for much of 2017, and Credit Suisse says it has nowhere to go but up.
• The firm highlights three things that could drive a surge in price swings this year.

Even as the S&P 500 turned in a monster 2017, it was a trade betting on a market standstill that offered the best opportunity for profit.

Exchange-traded products linked to the so-called short-volatility strategy surged almost 200% in the last year, smashing returns for even the hottest tech stocks. In turn, price swings in US stocks were virtually non-existent — a dynamic reflected by the CBOE Volatility Index, or VIX, which spent most of 2017 locked near record lows.

Fear not, says Credit Suisse, which sees more volatility just around the corner. The firm forecasts that the VIX will trade at a median of 12.5 in 2018, higher than the 10.9 level from last year.

Credit Suisse identified three things that could cause wild stock price swings and spiking volatility this year:

1) Sharply higher bond yields

Credit Suisse says that its 10-year Treasury yield"danger level" for stocks is 3.5%. Treasuries were trading near 2.55% as of Tuesday morning, meaning that the ongoing bond market selloff will have to continue in order for this threshold to be breached.

"In order to get such a rapid rise in yields, we would need to see a sharp acceleration in US wage inflation and a much more hawkish Fed," Credit Suisse equity derivatives strategist Mandy Xu wrote in a client note.

The firm notes that the only time there's been an empirical relationship between higher rates and a higher VIX is when yields rise sharply in response to surprise Federal Reserve tightening measures. For evidence of this, look no further than the so-called "taper tantrum" that transpired in May 2013 after then-Fed chair Ben Bernanke made surprising comments about slowing asset purchases:

2) A trade war

In the near term, Credit Suisse is looking at the March deadline for talks to modernize NAFTA, noting that there's been little progress up to this point.

The firm also sees mounting risk around a possible "full-scale trade war" with China as US trade penalties risk "tit-for-tat retaliation" from China.

Meanwhile, there's been speculation that the US may exit NAFTA entirely, something that Credit Suisse notes has been factored into the Mexican market. However, there's been no such comparable risk premium priced into US equities, either on a single-stock or whole market basis, the firm says.

3) Geopolitical risks

This is perhaps the most obvious possible negative catalyst for the US stock market, and also potentially the most dangerous. Credit Suisse highlights the following five areas as inspiring the most worry (all bullets verbatim):

• North Korea: “fire and fury,” escalation of rhetoric/sanctions
• Middle East: Iran, Syria, Saudi Arabia > upside risk for oil prices
• United States: government shut down, Russia investigation
• Europe: Italian elections, Catalonia independence, etc.
• Cyberattacks: from state and non-state actors

SEE ALSO: A dangerous trade that reminds experts of the 1987 market crash is riskier than ever

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