SNB & CHF

These embedded processes strip away autonomy, equating compliance with effectiveness even as the processes become increasingly counter-productive and wasteful. Would any sane person choose America’s broken healthcare system over a cheaper, more effective alternative? Let’s see: the current system costs twice as much per person as the healthcare systems of our developed-world competitors, a medication to treat infantile...

The two sides have agreed to discuss lowering barriers to transatlantic trade, helping to de-escalate tensions. While positive, the US’s dispute with China still needs watching. US President Trump and EU Commission President Juncker this week struck an unexpected deal to de-escalate the trade dispute between the EU and the US. Importantly, Trump agreed to put his threat of tariffs on EU cars on hold as bilateral trade...

The two sides have agreed to discuss lowering barriers to transatlantic trade, helping to de-escalate tensions. While positive, the US’s dispute with China still needs watching. US President Trump and EU Commission President Juncker this week struck an unexpected deal to de-escalate the trade dispute between the EU and the US. Importantly, Trump agreed to put his threat of tariffs on EU cars on hold as bilateral trade...

Keep an eye on the system’s buffers. They look fine until they suddenly collapse. The doom-and-gloomers among us who have been predicting the unraveling of an inherently unstable financial system appear to have been disproved by the reflation of yet another credit-asset bubble. But inherently unstable / imbalanced systems can stumble onward for years or even decades, making fools of all who warn of an eventual reset....

© Gregl87 | Dreamstime.com Foreigners who don’t work in Switzerland can benefit from special tax deals known as lump sum taxation, or for fait fiscal in French. Instead of paying tax on their worldwide income and assets their tax is calculated based on their living expenses. When someone becomes Swiss they automatically lose eligibility. The regime, which generated CHF 767 million of tax revenue in 2016, is frequently...

Swiss Franc The Euro has risen by 0.22% to 1.1597 CHF. EUR/CHF and USD/CHF, July 27(see more posts on EUR/CHF and USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Trends The US dollar is trading firmly in Europe after consolidating yesterday’s gains during the Asian session and ahead of the first look at Q2 GDP. Yesterday’s economic reports, including durable goods orders and inventory data, saw the...

Today’s Governing Council meeting did little to break the seasonal torpor. We continue to expect its first rate hike to come in September 2019. There was no change in interest rates or forward guidance at today’s ECB Governing Council meeting. The Governing Council reaffirmed that bond purchases will end in December and that key interest rates are expected to remain at their present levels “at least through the summer...

© Jakub Jirsák | Dreamstime.com In Switzerland, the official retirement age for women is 64, a year earlier than it is for men. A poll by gfs.bern shows that around two thirds are in favour of raising the retirement age of women to 65. Only 16% are against the idea, with a further 18% somewhat against it. Men (78%) are more in favour of the change than women (54%), according to the newspaper 20 Minutes. In addition,...

Note: This will be a short update. We are shifting the timing of some of our reports. The monthly Global Asset Allocation update will now be published in the first week of the month, aiming for the first of each month. I’ll put out a full report next week. The Bi-Weekly Economic Review is shifting to a monthly update, published on the 15th of each month. We are doing this to make room for some new reports, podcasts and...

Swiss Franc The Euro has fallen by 0.29% to 1.1597 CHF. EUR/CHF and USD/CHF, July 26(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates The dollar is mostly firmer. The Australian dollar is off the most (~0.35%, ~$0.7425), after peaking a little above $0.7460. The price action reinforces the $0.7300-$0.7500 range. The yen is the strongest of the majors. Near JPY110.80, the yen...