20 Minutes. After reaching a historical low in the third quarter of 2016, rates started rising in the fourth quarter. Rate increases hit mortgage tenors of five and ten years. © Ashumskiy | Dreamstime.com - Click to enlarge Compared to Q3, fixed mortgage rates on loans of ten years went up an average 0.2% to 1.62% according to price comparison website Comparis.ch. Five year fixed rate loans went up from 1.08% to 1.14%....
Read More »Squeezed and angry: how to fix the middle class crisis – a look at Switzerland
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 are moving towards higher inclusion. © Marcelmooij | Dreamstime.com...
Read More »Swiss franc less overvalued according to latest Big Mac index
On 12 January 2017, the Economist came out with its latest Big Mac index. Also known as the burger benchmark, the index compares the price of a Big Mac around the world. This catchy, if highly incomplete means of comparing the relative purchasing power of different currencies, uses the United States and the US$ as its base. Countries where Big Macs cost less than in the United States (in US$ terms) have weak currencies, and those where they are more expensive have overvalued currencies. ©...
Read More »Changes to health insurance zones could lead to steep premium rises for some
In Switzerland, how much you pay for compulsory health insurance depends on where you live. Premiums vary hugely by canton. For 2016, average monthly adult premiums in Basel City are CHF 545.60, Switzerland’s most expensive, compared to CHF 326.70, in lowest-cost Appenzell-Innerhoden. The difference between the two cantons is 40%. © Ginasanders | Dreamstime.com In addition to big differences between cantons, prices vary within some cantons, which are sliced up into zones. For example, Zurich...
Read More »Swiss mortgage rates climb in 4th quarter
20 Minutes. After reaching a historical low in the third quarter of 2016, rates started rising in the fourth quarter. Rate increases hit mortgage tenors of five and ten years. © Ashumskiy | Dreamstime.com Compared to Q3, fixed mortgage rates on loans of ten years went up an average 0.2% to 1.62% according to price comparison website Comparis.ch. Five year fixed rate loans went up from 1.08% to 1.14%. While loans with a term of one year remained stable at around 1%. Mortgage rates remain low,...
Read More »2016 saw fewer passengers on Switzerland’s highest railway
The train, which takes sightseers to the Jungfraujoch in the Bernese Alpes, carried 916,500 passengers in 2016, significantly fewer than the year before. In 2015, a record 1,007,000 made the journey. Despite the decline, 2016 was still the second best performance recorded. And, at the price of CHF 218.80 for a first class round trip, brought in a lot of money. The ski season saw a large drop in the number of passengers compared to last season. From the beginning of the season up until 2...
Read More »SMI set to end 2016 in negative territory
Investec Switzerland. In the last week of the year, the Swiss Market Index deepened its loss for the year as banks continued lower on low trading volumes. The SMI is set to end 2016 with an annual loss of 6.8% as banking and pharmaceutical giants pulled the index down in a year of turbulent trading. © Aprescindere | Dreamstime.com A volatile 2016 started with a brutal equity sell off as investors dumped global stocks on fears of an accelerating economic slowdown in China...
Read More »Miners, including Swiss-based Glencore, unearth a profit bonanza with rally set to last into 2017
Investec Switzerland. Miners had been digging in one of Australia’s oldest collieries for almost a century until operations wound down a year ago, the victim of plunging global commodity prices. Now owner Glencore Plc is resuming output at the Queensland site, the latest sign of a profit bonanza bringing the world’s top metals and energy producers back from the brink. © Carol Buchanan | Dreamstime.com Everything from coal to iron ore to zinc soared in 2016, rebounding from...
Read More »Sentiment appears positive as investors close their books for the year
Investec Switzerland. Ahead of the Christmas break, trading volumes were thin this week amid a lack of new market catalysts. Swiss and European equities were generally unchanged through the week, tracking global stock markets. Overall, sentiment appears to be positive as investors close their books for the year. © Gary718 | Dreamstime.com The European banking sector was this week’s main story with Deutsche Bank, Credit Suisse and the world’s oldest lender, Banca Monte dei...
Read More »Seven banks fined in Swiss probes of rate-rigging cartels
Investec Switzerland. Switzerland handed out about $100 million in antitrust fines against seven U.S. and European banks for participating in cartels to manipulate widely used financial benchmarks. © Ron Sumners | Dreamstime.com JPMorgan Chase & Co. was fined 33.9 million francs ($33 million) for operating a cartel with Royal Bank of Scotland Group Plc for more than a year, with the aim of influencing the Swiss franc Libor benchmark, which is tied to the London interbank...
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