SNB & CHF

A Quick Chart Overview Below is an overview of charts we picked to illustrate the current market situation. The selection is a bit random, but not entirely so. The first set of charts concerns positioning and sentiment. As one would expect, these look fairly stretched at the moment, but there are always ways in which they could become even more stretched. First a look at the NAAIM exposure index: NAAIM Exposure Index,...

© Helder Almeida | Dreamstime.com - Click to enlarge Switzerland continues to see a disconnect between executive pay and company performance three years after voters passed some of the world’s strictest limits on compensation, according to a study by corporate governance group Ethos. While the so-called fat-cat initiative has helped to improve transparency, absolute amounts paid to top managers and the boards of...

Summary: Obama Administration has taken a hardline against China’s trade practices. Other countries are also resisting China’s arguments that it is a market economy. Last week, US imposed anti-dumping duties on imported washing machines from China. As was the campaign and the initial appointments, the election of an unorthodox candidate promises to change the way things are done in Washington. However, just as...

The Democratic Party has become everything it once was against. Let’s get one thing straight right at the start: criticizing the Democratic Party and its ruling elites is not the same as “supporting Trump.” The either-or accusation is a classic propaganda technique to silence dissent. During the Vietnam War, for example, anyone dissenting against the official narratives supporting the war was accused of “supporting the...

Summary China will raise the sales tax on small cars to 7.5% in 2017. New methodology used by Turkstat to measure Turkish GDP has led to significant upward revisions. Turkish authorities are growing more concerned about the weak lira. Fitch moved the outlook on Chile. Chile’s central bank shifted to an expansionary policy bias. Colombia selected Juan Jose Echavarria to be the new central bank governor. Fitch revised...

The Swiss Post’s e-voting system had a baptism of fire in November for regional elections in canton Fribourg. It follows a simultaneous e-voting roll out in Geneva. (SRF/swissinfo.ch) --- swissinfo.ch is the international branch of the Swiss Broadcasting Corporation (SBC). Its role is to report on Switzerland and to provide a Swiss perspective on international events. For more articles, interviews and videos visit swissinfo.ch or subscribe to our YouTube channel: Website:...

SMI 2016’s December rally continued this week as Swiss and European equities outperformed global stocks. The US dollar continued to surge after the Federal Reserve increased interest rates for only the second time in a decade on Wednesday. SMI Index, December 16 - Click to enlarge Economic Data Fed Head Janet Yellen told reporters that inflation expectations have risen ‘considerably’ on the back of Donald Trump’s...

Swiss Franc EUR/CHF - Euro Swiss Franc, December 16(see more posts on EUR/CHF, ) - Click to enlarge FX Rates Some mild position squaring pressures are evident ahead of the weekend, and for many market participants the year is coming to an end. Outside of the BOJ meeting next week, the calendar turns light and markets are moving into holiday mode. The Dollar Index is seeing this week’s gains trimmed, but it is...

Summary: Biggest change is that Fed sees three instead of two hikes next year. Minor tweaks in the forecasts. Fiscal policy could raise the long-run growth potential, which would be a net good but not needed to reach full employment. As has been tipped since at September the Federal Reserve increased the Fed funds target range by 25 bp to 50-75 bp.  The market’s understanding of the Fed reaction function and the...

According to UN trade statistics, the small Alpine nation exported US$ 2.4 billion1 of coffee in 2013. This figure is far higher than its cheese (US$ 615 million2) or chocolate (US$ 822 million3) exports, two far more famous Swiss exports. In 2013, Swiss coffee exports ranked 4th behind Brazil ($5.3b), Germany ($3.4b) and Vietnam ($2.9b). Ethiopia, where the coffee plant originated, trailed back in 13th place with $771...