1358 GMT - UBS Group's negotiations over capital backing for foreign subsidiaries continue to wane as an issue, Jefferies' Joseph Dickerson and Theo Massing say. The Swiss Senate's Economic Affairs and Taxation Committee on Monday recommended allowing UBS to support foreign subsidiaries with 50% CET1 and 50% AT1 or other qualifying capital, down from the originally proposed 100% CET1. "The legislative process remains ongoing, but we expect investor focus to increasingly shift from capital uncertainty to [return on tangible equity] improvement & capital returns," the analysts say. Shares are down 1.5%.