UBS chairman not concerned about weakened Merkel

GERMAN Chancellor Angela Merkel's slim majority after the federal elections has left her weakened in championing Europe and international issues but it will lead to France coming forward resulting in more collaboration, said Axel Weber, chairman of the board of directors of UBS.

"Unfortunately it's going to be more inward-looking ... but it's not something to worry about," noted Mr Weber on Wednesday. He was speaking to Asian journalists in Zurich.

Following Sunday's elections, Mrs Merkel was still trying to cobble together a coalition government.

Mr Weber said that over the next four years the chancellor will need to spend more time on the domestic front leaving a vacuum in international affairs. According to him, French President Emmanuel Macron "will flow into the vacuum" and there will be a joint determination to move Europe forward.

Mr Weber added that he's "not concerned" as he sees a "much more collaborative" effort and felt that the shift in the power balance might have some positive effects.