SNB & CHF

Summary: BOE neither cut rates not announced a new asset purchase plan. Sterling rallied hard. However, the BOE indicated an August ease and I look for sterling to pare knee-jerk gains. The Bank of England surprised many, if not most, participants by not changing policy.  There was no rate cut and no asset purchase plan. However, there can be little doubt that the BOE will take action next month.  The minutes...

Negative for 10 Years Overnight, we previewed what was about to be a historic for the eurozone bond auction, when this morning Germany sold its first ever 10Y bonds with a zero coupon. As it turned out the issue was historic in another way as well: with the prevailing 10Y bond trading well in negative yield territory, it was largely expected that today’s bond auction would likewise issue at a negative yield, and...

14.07.2016 09:15  – FSO, Prices (0353-1607-00) Producer and Import Price Index in June 2016 0.1% rise in Producer and Import Price Index Neuchâtel, 14.07.2016 (FSO) – The Producer and Import Price Index rose in June 2016 by 0.1% compared with the previous month, reaching 99.9 points (base December 2015 = 100). Whereas the Producer Price Index declined by 0.2%, the Import Price Index rose by 0.8%. The slight increase...

When the city of Bern tried to stop shooting practice at a summer camp, they were surprised at the backlash. Now the courses are coming back. (SRF, swissinfo.ch) Every summer, children in Swiss cities can take part in a wide range activities to keep busy during the holiday months. One course offered by Bern’s youth office and the surrounding municipalities is aimed at children from the age of five. They can do activities ranging from art to sport and nature camps. The activities on offer...

SNBCHF offers you the possibility to obtain a Swiss domicile. Room to let in the tax haven Freienbach, Canton Schwyz. Tax Rate Corporations: 11.7% Highest Marginal Tax for Individuals: 19% Average Tax for Individuals (income 200K): 10% More details on the room. We provide additional consultancy to improve your tax situation. Contact us. Contact us

Swiss Franc Improving US job data also helped to increase demand for EUR/CHF long. For last week’s sight deposits see here. Click to enlarge. The combination of the rebounding US job growth and gains in the S&P 500 to near record levels before the weekend is helping boost the US dollar against the major currencies, while the emerging market currencies are mixed.  In addition, indications that Japan will put...

(Here is the latest monthly column I write for Caixin.  It is on Brexit and I wrote it as an email to my mother.  Here is the link.  The text follows) To: Mother Date: July 4, 2016 Subject: Re: Did you know Britain was leaving Europe? Should I worry? Glad to see you figured out how to access your email account. I smiled when I saw your note in my inbox. Thank you, though I am not sure that Thomas Watson felt the...

Summary: European Court of Justice could rule on July 19 that private investors do not have to be bailed in before public money can be used to recapitalize banks. Italy stands to gain the most, at least immediately, from such a judgment. Italian bank shares recovered after initial weakness. After the 2007-2008 bank recapitalization by governments, which means taxpayers’ money, Europe changed the rules.  The...

  Alphas and Epsilons BALTIMORE – One of the delights of being an American is that it is so easy to feel superior to your fellow countrymen. All you have to do is stand up straight and smile. Or if you really need an ego boost, just go to a local supermarket. Better yet, go to a supermarket with a Trump poster in the parking lot. Trigger warning: In the following ramble, we make fun of democracy, Trump, obesity,...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Amerexit and Brexit… Doubts About Debt This was a shortened week, due to the American holiday of July 4, celebrating the start of the war that lead to “Amerexit”, 240 years ago. The prices of the metals were up this week, +$25 in gold and +$0.48 in silver. The gold to silver ratio dropped a fraction of a point, showing...