SNB & CHF

The market's focus has shifted to the two-day FOMC meeting that begins today.  The Federal Reserve should be pleased with recent developments.  Labor market slack continues to be absorbed.  Core inflation measures continue to edge higher.   Market-based measures of inflation expectations have risen, and the 10-year breakeven is a little above levels that prevailed before the December FOMC meeting.  The volatility in the capital markets that characterized the first six weeks of the year...

The US dollar is steady to firmer against most of the major and emerging market currencies.  Equity markets are heavier, and oil continues to surrender some of its recent gains.  Profit-taking is weighing on eurozone bonds and JGBs while US Treasuries and UK gilts are firmer.   The main exception to the firmer dollar is the Japanese yen.  The Bank of Japan left policy unchanged, as widely anticipated.  Its assessment was seen as somewhat less dovish than many expected.  While...

Swiss food giant Nestlé turns 150 this year. Baby milk powder, one of its big products, was developed in the 1800s and went on to become a huge success. But the product has also attracts strong criticism. (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...

The price of oil is seeing its biggest decline today since February 23.   The ostensible reason is that Iran once again reiterated it would only consider capping its output after it reached four million barrels a day, its pre-sanction output.  Last month, the Saudis and Russia (joined by Venezuela and Qatar) indicated they were prepared to freeze output on the condition that the Iranians (and others would join).  It was clear that the Iranians could not and would not join.  Iran had just...

http://www.oftwominds.com/blog.html Like #Berniesanders, economist, author, and financial blogger Charles Hugh Smith believes college should be free (or nearly free.) The way to do this, he says, is not by taxing others, but by re-thinking traditional educational delivery methods (ex: expensive buildings, classrooms, professors, etc.) and taking advantage of modern technology. Higher education as currently delivered, says Charles Hugh Smith, is a relic from the 19th century that is...

The introduction of negative interest rates in Japan and the subsequent chance for yields has seen domestic investors move further out on the curve.  They have also stepped up their purchases of foreign bonds.  In three weeks (through March 4) since the negative deposit rate went into effect, Japanese investors bought JPY4.4 trillion of foreign bonds.  This is the second most since at least 2001 (when Bloomberg's time series began), trailing slightly behind the August 2010 flurry. In the...

The US dollar is firmer but largely confined to the ranges seen before the weekend against most of the major currencies.  The yen is also firmer as dollar sellers reemerged near JPY114.00.    The dollar is gaining against most emerging market currencies, though Asian currencies, notably the Korean Won, are firmer.  Although emerging market currencies and commodities are heavier, global equities are continuing their advance since bottoming February 11-12.  Even disappointing industrial...

14.03.2016 09:15  - FSO, Economic structure and analyses (0353-1600-90) Women and Science 2015 Under-representation of women in science greater in Switzerland than in Europe Neuchâtel, 14.03.2016 (FSO) – In Switzerland, women are outnumbered by men in the field of science and research, especially in academic careers. Only 18% of directors of higher education institutions are women. Furthermore, their participation in public and private research (for all economic sectors) is often below the...

On the week, the prices of the metals didn’t move all that much. However, the move around 6am (Arizona time) on Thursday is notable. The price of silver spiked up from around $15.12 to $15.64—3.4%—by around 8am. Twelve hours later, the price touched $15.73 before sliding off. We are always interested in the fundamentals, as we watch price moves. The question is always: is this speculators, betting with leverage on the silver price using futures? Or is it industrial or stacker demand for...

EM enjoyed an extended rally last week, and it should carry over to the early part of the week. The Wednesday FOMC meeting poses a risk to EM, especially if markets continue to price in a more hawkish Fed. The dot plots and press conference will be very important. BOE and the Norges Bank also meet this week, with the latter expected to deliver a 25 bp rate cut to 0.5%. Firm commodity prices are helping sentiment, with WTI making new highs for 2016 and approaching the $40 area. While weaker...