SNB & CHF

Summary Busiest week of Q4. Fed, BOJ, and BOE, only the last is expected to change policy. Flash EMU CPI and US jobs. Positive developments in Italy, less so in Spain. The week ahead will be among the busiest in Q4. In this note, we provide a brief sketch of the different events and data points that will shape the investment climate. Given the importance of initial conditions, we will begin with an overview of the...

The focus in Europe has been Catalonia’s push for independence and the attempt by Madrid to prevent it. Tomorrow’s ECB meeting, where more details about next year’s asset purchases, is also awaited. There are three developments that we suspect have been overshadowed but are still instructive. First, the ECB reported that its balance sheet shrank last week. With the ECB set to take another baby step toward the exit, many...

Ernesto Bertarelli is one of Switzerland's 35 billionaires (Keystone) - Click to enlarge The total wealth of the world’s 1,542 billionaires – including 35 in Switzerland – grew 17% to $6 trillion (CHF5.93 trillion) last year, led by a surge in Asia’s emerging billionaire class and growth in the materials, industrials, financial and technology sectors. The wealth of Switzerland’s billionaires grew by a mere...

A Swiss man (centre, between his lawyers) has confessed to spying on the tax authorities in the German state of North Rhine-Westphalia. (Keystone) - Click to enlarge A Swiss man accused of spying on the German state of North Rhine-Westphalia’s (NRW) tax authority has confessed and named names. In a Frankfurt court on Thursday, the 54-year-old man, identified only as Daniel M., explained via his defence team...

– Gold is better store of value than bitcoin – Goldman Sachs report– Gold will continue to perform well thanks to uncertainty and wealth demand– Bitcoin’s volatility continues to impact its role as money– Gold up 12% in 2017, bitcoin over 600% – BTC is six times more volatile than gold – see chart– Gold’s history and physical property shows it meets requirements as a medium of exchange and store of value Bitcoin Price...

The most significant part of China’s 19th Party Congress ended in the usual anticlimactic fashion. These events are for show, not debate. Like any good trial lawyer will tell you, you never ask a question in court that you don’t already know the answer to. For China’s Communists, that meant nominating Xi Jinping’s name to be written into the Communist constitution with the votes already tallied. Without any objection,...

Japan is hot, really hot. Stocks are up to level not seen since 1996 (Nikkei 225). Prime Minister Shinzo Abe called snap elections in Parliament to secure a supermajority and it worked. Things seem to be sparkling all over the place, with the arrow pointing up: “Hopes for a global economic recovery and US shares’ strength are making fund managers generous on Japanese stocks,” said Chihiro Ohta, general manager of...

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An employee of MAN Diesel & Turbo Switzerland grinds turbine blades of a turbo compressor in Zurich in 2015 (Keystone) - Click to enlarge The recent appreciation of the Swiss franc has sent shockwaves through Swiss firms, resulting in job losses and lower research budgets. But viewed long-term, Switzerland’s export-driven economy has adapted remarkably well to a strong currency. This is the overall...

Silver generation: the Swiss pension system remains strong, despite some issues. (Keystone) - Click to enlarge The Swiss pension system has ranked eighth in an annual international study looking at the sustainability and efficiency of retirement schemes. This represents a drop of four places in the past two years, largely driven by sustainability issues. The Global Pension Indexexternal link, published by...