SNB & CHF

It wasn’t entirely unexpected, though when it was announced it was still quite a lot to take in. On September 1, 2005, the Bureau of Economic Analysis (BEA) reported that the nation’s personal savings rate had turned negative during the month of July. The press release announcing the number, in trying to explain the result was reduced instead to a tautology, “The negative personal saving reflects personal outlays that exceed disposable personal income.” Why had it...

At least since I first read George Orwell’s Politics and the English Language, I have been a student of the use of weasel words. I have joined what he called the “struggle against the abuse of language,” because “Political language…is designed to make lies sound truthful…and to give an appearance of solidity to pure wind.” I even found the phrase’s origins interesting. As explained by phrases.org, “It has long been a widespread belief that weasels suck the yolks...

(Disclosure: Some of the links below may be affiliate links) April 2020 is now over! That was one of the weirdest months of our life. We spent the entire month in our village, mostly at home. We only went out to buy groceries and help some of my relatives. Fortunately, we have a large backyard, so we spent a lot of time outside. And Switzerland is not in full lockdown, so we still went out for walks. But we respected the two meters distance and almost did not talk...

Swiss Franc The Euro has risen by 0.10% to 1.0532 EUR/CHF and USD/CHF, May 07(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: There is a sense of indecision in the air today. There have been several developments, but investors seem mostly reluctant to extend positions. China reported a surge in exports in April and an increase in the value of reserves. Australia reported a rise in exports in March. The Bank of...

The SNB avoids giving firm guidance on where it believes the currency should be, keeping speculators guessing (Keystone) When the Swiss National Bank (SNB) followed last year’s $50 billion (CHF48.6 billion) profit with a record $39 billion first-quarter loss, it was a stark illustration of the volatility created by a decade of unconventional monetary policy. The SNB’s balance sheet has ballooned over the past decade as the bank has snapped up other currencies in an...

Is this what the new normal looks like for business? (Keystone / Alessandro Crinari) “Our analysis of what the biggest global companies in Switzerland are up to. This week: the new normal for business, luxury watches, and biotech dilemmas.” Switzerland is easing up on the lockdown but what the new normal looks like for big companies is still a work in progress. Last week, the Swiss government announced it was taking its foot off the brakesexternal link and re-opening...

Here is a nine-minute clip of a chat I had with Ben Lichtenstein at TD Ameritrade. Ben captures futures traders’ energy and breadth of vision.  Often in institutional settings, one develops a specialization, but in my experience, futures traders are more likely to look across the markets and asset classes.  It is one of the lasting lessons learned early in my career on the floor of the CME.  We focus on the S&P 500 and yesterday’s German court decision, which I...

UK has been confirmed to have the highest death toll in Europe the dollar is getting more traction Reports suggest Congress is resisting President Trump’s call for a payroll tax cut; ADP private sector jobs data is expected to come in at -21 mln Brazil is expected to cut rates 50 bp; Fitch cut its outlook on Brazil to negative; Chile is expected to keep rates steady Sterling remains under pressure as Brexit talks sour; the EC warned that the future of the eurozone is...

Longtime correspondent Paul B. suggested I re-publish three essays that have renewed relevance. This is the second essay, from July 2008. Thank you, Paul, for the suggestion. I received this timely inquiry from astute reader Paul B.: I’m interested in # 1, while you seem to take into account 300 million people in your writings–would you comment on rubber-meets-the-road impacts and proactive actions we can take to help shield ourselves (and our local communities) from...

Charles Hugh Smith joins us to discuss the economic reality on Main Street, totally disconnected from Wall Street. From the abrupt loss of jobs, to a consumer that's nowhere to be found and inflation ready to run rampant, here's robust discussion about these unprecedented, dark times... Some of the questions that developed during today’s discussion: How are things on the ground in Hawaii right now? How is the coronavirus is wreaking havoc on the US economy? The inflation-deflation...