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Investec Switzerland. Swiss stocks, dislodged in 2015 as a haven from European volatility, have seen the status restored following Brexit — so much that some investors are balking at valuations. After trailing shares from Germany to France and Italy for most the past year, the Swiss Market Index is finding a new appeal in the fallout of the U.K. vote to leave the European Union. Investors buying up...

Swiss Franc Once again the SNB was heavily intervening and the pound fell against both euro and CHF.Thanks to SNB interventions, the Euro did not even dip under 1.08. Click to enlarge. Brexit What a difference a few days make.  Many saw last week’s equity market advance a sign that Brexit anxiety was overdone. However, quarter-end position adjustments appear to have been misread.  Equity markets are falling now....

Summary The IMF identified three banks that posted the most significant systemic risks. It has been overshadowed by new pressure on Italy’s banks, and. Three UK commercial real estate funds have been frozen to prevent redemptions. The conventional narrative has it backward. It worries about the threats to stability emanating from the periphery in Europe.  Policymakers, investors, and economists still refer to...

Following James Traub’s mind-numbingly-elitist rebuttal of the democratic rights of “we, the people” in favor of allowing “they, the elite” to ensure the average joe doesn’t run with scissors, “It’s time for the elites to rise up against the ignorant masses.” The Brexit has laid bare the political schism of our time. It’s not about the left vs. the right; it’s about the sane vs. the mindlessly angry… The Guardian’s...

FX Rates No fundamental development can compare with the UK decision to leave the EU. It has set off a chain reaction whose outcome is still far from clear.   Sterling is firm, alongside most of the major and emerging market currencies today.  Sterling narrowly edged above yesterday’s highs to reach almost $1.3425 before encountering selling pressure. Click to enlarge. Equity fund managers may find themselves over...

The UBS Consumption Indicator rose to 1.35 points in May from 1.24, extending its positive month-on-month run. The indicator was, however, adversely affected by the recently released employment figures for 1Q 2016. Zurich, 29 June 2016 – The UBS Consumption Indicator’s rise to 1.35 in May from 1.24 points represents a month-on-month improvement, albeit one measured from a lower level. The April figures were revised...

The global capital markets are stabilizing for the first time since the UK referendum.  It is not uncommon for markets to move in the direction of underlying trends on Friday’s; see follow-through gains on Monday, and a reversal on Tuesday.  That is what is happening today.  Turnaround Tuesday after such dramatic price action over the last two sessions has the feel of the proverbial dead cat bounce. Brexit There has...

The Swiss Sovereign Money Initiative targets the Swiss banks, that already today are quite conservative in giving new loans.  It fails to target the real responsible of the massive Swiss money creation, the Swiss National Bank. “If you want to continue to be slaves of the banks and pay the cost of your own slavery, then let bankers continue to create money and control credit.” –Josiah Stamp Isaac Davis, Staff...

“We’re moving into a global recession that has nothing to do with Brexit,” warns Marc Faber stressing that Britain leaving the EU would not be disastrous, saying that if Switzerland can operate in a “single” market and outside of the EU so can Britain.  “Brexit is a victory of ordinary people, common sense and people who are prepared to take responsibility for the sake of freedom against a political and...

Summary If conditions are exceptional, isn’t BOJ intervention more likely? If conditions are exceptional, the ban on European government supporting banks might not be valid. Italy is leading the charge in Europe. How exceptional are market developments? Much rests on the answer. If these are extraordinary circumstances, then Japanese intervention becomes more likely. Of course, Japanese policymakers have been...