SNB & CHF

A Spike in Bank Lending to Corporations – Sign of a Dying Boom? As we have mentioned on several occasions in these pages, when a boom nears its end, one often sees a sudden scramble for capital. This happens when investors and companies that have invested in large-scale long-term projects in the higher stages of the production structure suddenly realize that capital may not be as plentiful as they have previously...

In 1999, real GDP growth in the United States was 4.69% (Q4 over Q4). In 1998, it was 4.9989%. These were annual not quarterly rates, meaning that for two years straight GDP expanded by better than 4.5%. Individual quarters within those years obviously varied, but at the end of the day the economy was clearly booming. It also helped that these particular two years followed two good ones before them. GDP growth in 1997...

A cry was heard last week when President Trump expressed displeasure with the Fed’s rate hikes. Some, like former Treasury Secretary Lawrence Summers, claimed that this was another step toward becoming a “banana republic.” Jeffrey Sachs, another noted economist, claimed that “American democracy is probably one more war away from collapsing into tyranny.” The line that Trump supposedly crossed did not change investors’...

UBS may have seen quarterly profits rise year-on-year, but chief executive Sergio Ermotti says the threat of trade wars and political unrest has dampened investor enthusiasm and continues to hold back financial markets. - Click to enlarge UBS may have seen quarterly profits rise year-on-year, but chief executive Sergio Ermotti says the threat of trade wars and political unrest has dampened investor enthusiasm and...

Rising bank credit flows confirm that domestic fundamentals remain solid across most of the euro area. The ECB’s M3 and credit report for June just published confirms that lending dynamics continue to be in a good shape in the euro area, boding well for private investment. Bank credit flows to non-financial corporations (adjusted for seasonal effects and securitisations) amounted to €10bn in June, down from €25bn in...

Swiss Franc The Euro has risen by 0.04% to 1.1613 CHF. EUR/CHF and USD/CHF, July 25(see more posts on EUR/CHF and USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates The US dollar is trapped in narrow trading ranges. That itself is news. At the end of last week ago, the US President seemed to have opened another front in his campaign to re-orient US relationships by appearing to talk the dollar down....

Federal aviation authorities have decided to limit the number of time slots for planes at Switzerland’s main airport in Zurich. The Federal Office of Civil Aviationexternal link said it has ordered a freeze on landings after 9pm and for take-offs after 10:20pm to reduce the noise for residents living near the airport. - Click to enlarge Federal aviation authorities have decided to limit the number of time slots for...

Physical Gold Is The “Best Defence” Against “Escalating Currency Wars” As governments around the world debase their currencies, you need an asset that can ride out the hard times. And nothing fits the bill like gold writes John Stepek of Money Week We’ve always said that you should have a bit of physical gold in your portfolio (about 5%-10%, depending). And note that, by gold, we do mean gold, not gold miners. If you...

Speculators in the futures market are still net long the euro. They have not been net short since May 2017.  In the spot market, the euro approached $1.15 in late-May and again in mid-June. Last week’s it dipped below $1.16 for the first time in July and Trump’s criticism of Fed policy saw it recover. Yesterday it reached $1.1750 before retreating. On the pullback, it held the 61.8% retracement of the recovery...

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