SNB & CHF

Summary: China’s PPI rose for the first time in four years. It is related to the rise in commodities. Yet there are good reasons there is not a perfect fit between China’s PPI and commodity prices. US and UK CPI to be reported next week, risk is on the upside. China reported its first increase in producer prices in four years earlier today.  As one might suspect, producer prices are often driven by commodity...

SMI The Swiss Market Index is set to finish the week lower, but outperforming global stocks, thanks to a strong week of luxury good stocks. SMI Index, October 15. - Click to enlarge Economic Data Global stocks fell to their lowest levels since July on Thursday as investors rushed to the safety of government bonds, yen and gold after renewed concerns over weakness in the Chinese economy and as the Federal Reserve...

I am proud to have published essays by Zeus Y. since 2008. Part 2 will be published tomorrow. Ending a Taking Economy and Creating a Giving Economy: Confronting the Zero Interest Rate Policy (ZIRP) and Taking Effective Action by Zeus Yiamouyiannis (guest essay) Introduction The world can no longer afford a taking economy, where “make a killing” is the motto. Together we need to create a giving and sharing economy that...

The Swiss merchant navy celebrates its 75th anniversary in 2016. Up until the 1960s, the crews of Swiss ocean-going freighters were still mainly Swiss. (SRF, swissinfo.ch) --- swissinfo.ch is the international branch of the Swiss Broadcasting Corporation (SBC). Its role is to report on Switzerland and to provide a Swiss perspective on international events. For more articles, interviews and videos visit swissinfo.ch or subscribe to our YouTube channel: Website: http://www.swissinfo.ch...

Swiss Franc The EUR/CHF remains in the range of 1.0815 to 1.0980. The SNB usually intervenes below 1.0850. I am expecting that speculators are reducing their CHF short positions. More tomorrow. EUR/CHF - Euro Swiss Franc, October 13 2016(see more posts on EUR/CHF, ). - Click to enlarge FX Rates The US dollar is firm, and the euro has slipped below $1.10 for the first time since late-July. Although the dollar’s...

Summary: The increase in the yen’s share of reserves was flattered by the yen’s 9% appreciation. The dollar and euro’s share of reserves were stable. Chinese integration has seen the share of unallocated reserves fall. Starting with Q3 data, (available end of March 2017) will break out the yuan’s share of reserves. The IMF provides the most authoritative data on central bank reserves. The composition is...

20 Minutes. Visa quotas for non-EU workers will rise next year. The increased quotas will include 3,000 B-permits and 4,500 L-permits, 1,000 more than this year. These limits are still lower than in 2014, when Swiss politics turned against the free movement of workers from the EU. 2014 quotas of 3,500 B-permits and 5,000 short-term L-permits, were reduced to 2,500 (B) and 4,000 (L), after a referendum to limit...

Quiet Fascism has no purpose other than to aggregate more power, maintain its secrets and lay waste to anyone who questions its Imperial authority. So my little-visited Wikipedia entry was minding its own business, not bothering anyone, until I dared to criticize the Clinton Foundation. The next day, my Wikipedia entry was taken out and shot by a mysterious “editor.” It was just coincidence, right, that my Wikipedia...

Summary: Regardless of outcome early next week, the High Court’s decision will likely be appealed. The issue is the role of parliament. The greater the role, the greater the risk of a delay, but also a better chance to minimize a hard Brexit. The UK decision to leave the EU has been both a political and economic shock. The near-term focus now shifts to the constitutional crisis that has ensued. The key issue...

Swiss Franc EUR/CHF Overview, October 12 2016(see more posts on EUR/CHF, ) - Click to enlarge FX Rates News that UK Prime Minister May has accepted that Parliament should vote on her plan for exiting the EU stopped sterling’s headlong slide. Sterling had been pounded for roughly 8.5 cents since the start of the month including the last four sessions. The idea that parliament, where the Conservatives enjoy a...