SNB & CHF

Two more manufacturing surveys suggest sharp deceleration in momentum, or, more specifically, the momentum of sentiment (if there is such a thing). The Federal Reserve’s 5th District Survey of Manufacturing (Richmond branch) dropped to barely positive, calculated to be just 1.0 in May following 20.0 in April and 22.0 in March. It follows an all-too-familiar pattern, where sentiment spiked to start this year after being...

Erik Townsend welcomes back Jeffrey Snider to MacroVoices. Erik and Jeffrey look at Eurodollars and the Eurodollar shortage. They discuss the real drivers of the US Dollar bull market and the flaws in the reflation trade narrative. The discuss the connection between Eurodollars and gold and the impact of QE on Eurodollar system.

"V" welcomes back Charles for an in-depth discussion regarding Charles's blogs: TINA's Legacy: Free Money, Bread and Circuses and Collapse, How Higher Education Became an Obscenely Profitable Racket That Enriches the Few at the Expense of the Many (Student Debt-Serfs) and Want to Understand Rising Wealth Inequality? Look at Debt and Interest. Charles's website: http://www.oftwominds.com/ We are political scientists, editorial engineers, and radio show developers drawn together by a shared...

Summary Moody’s downgraded China’s rating from Aa3 to A1 with stable outlook. Reports suggest that the PBOC has informed local banks that it is changing the way it sets the daily fix. Moody’s downgraded Hong Kong’s rating to Aa2 from Aa1 with stable outlook. Philippine President Duterte declared martial law on Mindanao island. Egypt’s central bank unexpectedly hiked rates by 200 bp. S&P moved the outlook on...

  Money Supply and Credit Growth Continue to Falter The decline in the growth rate of the broad US money supply measure TMS-2 that started last November continues, but the momentum of the decline has slowed last month (TMS = “true money supply”).  The data were recently updated to the end of April, as of which the year-on-year growth rate of TMS-2 is clocking in at 6.05%, a slight decrease from the 6.12% growth rate...

The Swiss spend three hours more per week on average at the office than other Europeans, but working conditions are still good. (Keystone) While the overall health and well-being of Swiss employees is still good, a new survey shows that Switzerland has lost its place ahead of 34 other European countries when it comes to stress and autonomy in the workplace. In 2005, survey answers from Swiss employees on their working...

Jenisch has driven performance under difficult circumstances at Sika - Click to enlarge The markets have welcomed Lafarge Holcim’s choice of chief executive to guide the company out of a reputational hole. Jan Jenisch, who will take over in October, has experienced difficult situations having spent the last two and a half years driving up Sika’s results against the backdrop of a shareholder civil war. Investors...

There is no change to the risk budget this month. For the moderate risk investor, the allocation between risk assets and bonds is unchanged at 50/50. There are, however, changes within the asset classes. We are reducing the equity allocation and raising the allocation to REITs.  Based on the bond markets there has been little change in the growth and inflation outlook since the last asset allocation update. Based on...

Swiss Franc The Euro has fallen by 0.01% to 1.0902 CHF. EUR/CHF - Euro Swiss Franc, May 26(see more posts on EUR/CHF, ) - Click to enlarge FX Rates The markets are unsettled. It is not so much in the magnitude of moves as the breadth of the move. The nearly 1% rally in gold is a tell, but also the inability of equity market to follow the lead of the US markets, where the S&P 500 and NASDAQ set new records. US...

Central Zurich – © Andreas Zerndl | Dreamstime.com It is widely believed that as the price of real estate climbs those on low incomes are forced out of city centres. A study by the University of Geneva, commissioned by the Swiss Federal Statistical Office focused on the period between 2010 and 2014, shows this is not true in Switzerland. Rich leaving the centres Those earning the most were the most likely to move and...