The Economist magazine placed Switzerland first in a recent ranking of currency manipulators. According to the analysis, China, commonly thought of as the world’s champion at keeping its currency’s value artificially low, appears to be doing the opposite: actively trying to push the value of its currency up. On the other hand, Switzerland that has […]
Swiss banks taking more risks to compensate for record-low interest rates
Brought to you by Investec Switzerland. Swiss banks focused on property lending are taking more risks to compensate for the impact of record-low interest rates, increasing the threat of a real-estate bubble, Swiss National Bank Vice President Fritz Zurbruegg said. “Exceptionally low interest rates are putting pressure on interest rate margins and this is weighing […]
Swiss National Bank won’t cut record low interest rate again, survey shows
Brought to you by Investec Switzerland. The Swiss National Bank, which has the lowest interest rate among the world’s major central banks, may be done cutting. SNB President Thomas Jordan and his fellow policy makers will keep the deposit rate unchanged at minus 0.75 percent until at least the end of the first quarter of […]
Swiss exports exceed level before franc’s shock rise
In the third quarter of 2016, Swiss exports reached CHF 52.5 billion, 8.1% higher than they were for the same period in 2015, according to statisticians in Bern. Industries contributing to the rise were jewellery and precious metals (+21%) and pharmaceuticals (+17%). The industry showing the most negative shift was watchmaking (-8%). Stronger pharmaceuticals exports […]
Why Switzerland’s franc is still strong in four charts
Brought to you by Investec Switzerland. Swiss National Bank President Thomas Jordan keeps saying the franc is “significantly overvalued.” And that’s despite the central bank’s record-low deposit rate and occasional currency market interventions. While the franc is typically a top choice for foreign investors looking for a safe place to park their money, anxieties about […]
Franc surge temporary after ECB sends mixed signals
Brought to you by Investec Switzerland. The SMI is set to finish flat this week (-0.12%), outperforming global equity market (MSCI World -0.68% ) with European stocks losing value after the long awaited ECB policy meeting. Stock markets around the world were mixed with risk appetite increasing ahead of Thursday’s European Central Bank (ECB) policy […]
Swiss franc rises on ‘Brexit’ angst
Brought to you by Investec Switzerland. Once again, Switzerland is getting saddled with unwanted currency appreciation due to other nations’ struggles. The franc posted its biggest gain since August against the euro as concern that the U.K. may exit the European Union dragged down the pound and with it the 19-nation shared currency. China’s decision to cut […]
Swiss stocks suffer amid global sell off as financial heavyweights are punished.
12 February 2016 – Swiss and global market roundup. Brought to you by Investec Switzerland. The SMI is expected to underperform global markets again this week after stocks lost further ground on rapidly declining global investor sentiment. Equity markets around the world tumbled as Japan, Europe and emerging Asia suffered heavy losses with global banking stocks […]
Why Switzerland’s economy is solid despite a strong franc
The most recent Economist Big Mac index places Switzerland at the top with the world’s most expensive burgers. This tongue in cheek analysis compares the relative strength of national currencies by comparing the price of a Big Mac around the world and it suggests that the Swiss franc is 42.4% overvalued. The only other currency […]
Switzerland – staring down the barrel of deflation
The recent rise in the Swiss franc is driving deflation in Switzerland. The prices of imported goods are declining and there is talk of reducing salaries in some corners. Deflation is bad for an economy, particularly for the heavily indebted – your mortgage remains the same even if your salary declines and Government debts increase […]
