Tag Archives: SNB

Headlines Week January 02, 2017 Who has read Milton Friedman knows that the Trump reflation trade is now showing its positive side. US wages are rising by 2.5%, while inflation is still relatively low. According to Friedman, inflation will increase only later. This implies that speculators are long the dollar and short the Swiss franc and the euro. The last ECB meeting showed that the ECB might be dovish for a longer...

Headlines Week Ending December 23 , 2016 Who has read Milton Friedman knows that the Trump reflation trade is now showing its positive side. US wages are rising by 2.5%, while inflation is still relatively low. According to Friedman, inflation will increase only later. This implies that speculators are long the dollar and short the Swiss franc and the euro. The last ECB meeting showed that the ECB might be dovish for a...

Institutional sector Non-financial corporations: 1106 bn CHF of assets, 1987 bn liabilities Almost half of financial assets of non-financial corporations are accounted for by the shares and other equity item and a quarter by loans. Total financial assets increased by CHF 34 billion to CHF 1,106 billion in 2015, mainly as a result of corporate acquisitions abroad and corporate group reorganisations. The liabilities...

Kosten eines Vollgeld-Systems sind hoch Eine Umsetzung der Vollgeld-Initiative würde grossen Schaden anrichten und dürfte im Ergebnis selbst die Initianten enttäuschen. Verbesserungen verspricht dagegen eine «sanfte» Reform: die Einführung von elektronischem SNB-Geld für alle. Der Präsident des Vereins Monetäre Modernisierung Hansruedi Weber (Mitte) und zwei verkleidete Aktivisten reichen im Dezember 2015 bei der...

Kosten eines Vollgeld-Systems sind hoch Eine Umsetzung der Vollgeld-Initiative würde grossen Schaden anrichten und dürfte im Ergebnis selbst die Initianten enttäuschen. Verbesserungen verspricht dagegen eine «sanfte» Reform: die Einführung von elektronischem SNB-Geld für alle. Der Präsident des Vereins Monetäre Modernisierung Hansruedi Weber (Mitte) und zwei verkleidete Aktivisten reichen im Dezember 2015 bei der...

Overview In the third quarter of 2016, the current account surplus amounted to CHF 21 billion. This was CHF 2 billion less than in the year -back quarter. As a result of lower receipts from direct investment, the receipts surplus in primary income (labour and investment income) declined by CHF 4 billion to CHF 1 billion. The surplus of receipts from trade in goods increased by CHF 2 billion to CHF 17 billion, while the...

The Swiss National Bank uses a strange formula on the basis of economic growth for the provisions for FX losses. It would be much easier to connect this number to the size of the balance sheet, for example 10% of the balance sheet. The risks of losses are particularly high, because FX rates are very volatile and nearly all SNB investments are in foreign currency. From the press release: Allocation of CHF 4.6 billion...

Swiss direct investment abroad Companies domiciled in Switzerland invested CHF 100 billion abroad, compared with disinvestment of CHF 1 billion the year before. Thus, Swiss direct investment abroad was significantly above the average for the past ten years. At CHF 54 billion, over half of the investment was made by finance and holding companies (2014: CHF 3 billion). Substantial fluctuations in direct investment by...

When Draghi extended QE in the November ECB meeting, it is was clear that Draghi was wrong. He is expecting lower inflation in 2018, maybe around 1%. The SNB reduced her inflation expectation by 0.1% for both years again, 0.1% in 2017 and 0.5% in 2018. Swiss National Bank leaves expansionary monetary policy unchanged The Swiss National Bank (SNB) is maintaining its expansionary monetary policy. Interest on sight...

Headlines Week December 09, 2016 Who has read Milton Friedman knows that the Trump reflation trade is now showing its positive side. US wages are rising by 2.5%, while inflation is still relatively low. According to Friedman, inflation will increase only later. This implies that speculators are long the dollar and short the Swiss franc and the euro. Last week’s ECB meeting showed that the ECB might be dovish for a...