SNB & CHF

Zurich, 19 January 2017 – Switzerland’s major cities saw net prime yields for multi-family homes drop to 2.6% in 2016 from an average of 2.8%. This is equivalent to a 6% increase in net present value. These low yields are creating additional incentives for investors to seek out higher returns in less central locations. Yet the number of vacant rental apartments – which has already doubled since 2009 – is likely to...

Summary: US reported stronger than expected series of data, including a large drop in weekly jobless claims for the week of the next NFP survey. Draghi remained dovish, with key phrases retained. Euro needs to break $1.0575 now to confirm a top is in place. Markets still uncertain ahead of the start of the new Administration. The combination of stronger US economy data and a dovish Draghi has seen the US...

Swiss Franc EUR/CHF - Euro Swiss Franc, January 19(see more posts on EUR/CHF, ) - Click to enlarge GBP/CHF GBP/CHF has been range bound in recent weeks but anything but predictable! Of course one of the main, if not the main driver on this rollercoaster is the pound which has been much weaker and stronger according to the sentiments over the Brexit. On the whole the market is predicting the pound will be weaker...

Zurich, 19 January 2017 – Switzerland’s major cities saw net prime yields for multi-family homes drop to 2.6% in 2016 from an average of 2.8%. This is equivalent to a 6% increase in net present value. These low yields are creating additional incentives for investors to seek out higher returns in less central locations. Yet the number of vacant rental apartments – which has already doubled since 2009 – is likely to...

The Producer Price Index (PPI) or officially named "Producer and Import Price Index" describes the changes in prices for producers and importers. For us it is interesting because it is used in the formula for the Real Effective Exchange Rate. When producers and importers profit on lower price changes when compared to other countries, then the Swiss Franc reduces its overvaluation. The Swiss PPI values of -6% in 2015...

Tens of millions of Americans and their employers pour money into pension plans each month, counting on those funds to grow and to be there when needed at retirement. But a time bomb awaits. The bulk of U.S. pension funds are dangerously underfunded, and the assets are often invested in securities that have bleak prospects for providing income that keeps up with a general decline in purchasing power. A pension plan...

Tens of millions of Americans and their employers pour money into pension plans each month, counting on those funds to grow and to be there when needed at retirement. But a time bomb awaits. The bulk of U.S. pension funds are dangerously underfunded, and the assets are often invested in securities that have bleak prospects for providing income that keeps up with a general decline in purchasing power. A pension plan...

IMF Managing Director Christine Lagarde, Italian Finance Minister Pier Carlo Padoan and Founder, Chairman and Co-CIO of Bridgewater Associates, Ray Dalio - Click to enlarge As we scoffed oveernight, who better than a handful of semi, and not so semi, billionaires – perplexed by the populist backlash of the past year – to sit down and discuss among each other how a “squeezed and Angry” middle-class should be fixed. And...

Swiss Franc EUR/CHF - Euro Swiss Franc, January 18(see more posts on EUR/CHF, ) - Click to enlarge GBP/CHF Yesterday morning Theresa May, the UK Prime Minister set out a clear and realistic plan for the UK’s Brexit, which is likely to begin at the end of March this year. Many had expected to see her give a ‘Hard Brexit’ leaning speech and the Pound had lost value in the lead up to her comments, but when she...

One of the topics at this year’s World Economic Forum in Davos is: Squeezed and angry: how to fix the middle class crisis. As a precursor, the WEF published the 135 page  Inclusive Growth and Development Report 2017, which ranks Switzerland 3rd behind Norway and Luxembourg on inclusion, out of a group of 30 advanced economies. In addition, unlike Luxembourg, which is headed slowly backwards, both Switzerland and Norway...