30 minutes after the SMI closure, we dive into the financial markets which are at the heart of the global economy. By reporting on the national as well as the international stock exchanges, we stress the links between Switzerland and the rest of the world. Our renowned guests play a key role to help us explain and understand the financial world.
The Russian ruble took a tumble after the U.S. announced additional sanctions on the country. According to Paul Domjan, global head of research at Exotix, the sanctions are not harming the economy at large
The spring meeting with the IMF and the World Bank Group was all about a possible trade war, says best-selling author and international financial markets expert Sandra Navidi in an interview with CNNMoney Switzerland.
The cooperation agreement between the 14-member OPEC cartel and the 10 non-OPEC producers, led by Russia, to cut oil production by 1.8 million barrels per day led to higher oil prices last year. A possible trade war could have an impact on global economic growth and therefore on the future demand, says oil expert Cornelia Meyer in an interview with CNNMoney Switzerland.
FANG stocks – Facebook, Amazon, Netflix and Google – have seen their prices tumble by up to 10% in just one week. Investors had not anticipated the regulation now coming amid the Facebook privacy revelations, says Larry Hatheway, chief economist at GAM. Now, another challenge is looming: a higher taxation regime, especially in the European Union, with concerns that tech firms may be set to pay taxes at the same rate as other companies.
As large Swiss companies report their results for the first quarter of 2018, Alastair McCaig, head of investment management at Fern Wealth, looks at the commonalities. In his view, it took a while for markets to absorb structural rebalancing, which was followed by changes at the top.
As the world's debt load balloons to a record USD 164 trillion, the International Monetary Fund says governments should use the current level of strong economic growth to strengthen their finances. However, debt will not affect investors in the short to mid-term, according to Larry Hatheway of Gam Investments.
For today's investors, it's not enough to perform well financially. They now seek investments that also have a positive impact on society. But that can't be done overnight, argues Wim Van Hyfte, global head of responsible investments and research at Candriam Investors Group. He says that sustainable investments will lead to a sustainable economy, and eventually deliver what investors expect in the long run.
Exchange traded funds have experienced 20 percent annual growth over the past decade to reach $4.6 trillion globally. On the 25th anniversary of ETFs last month, Swiss funds and asset management association director Markus Fuchs said: "The real acid test for ETFs will probably not come until the next substantial correction on the stock markets." Bryon Lake, head of international ETF at J.P. Morgan disagrees. He believes ETF structures are "extremely robust" and that investors should not be worried.
According to Norman Villamin, chief investment officer at UBP, a lot has been done when it comes to banking regulations. Given the economic situation and the current leverage ratios of banks, the radical measures required by the sovereign money (Vollgeld) initiative seem to be too extreme.
With markets in risk-off mode earlier this year, risky assets like high-yield bonds weakened. But according to Wolfgang Bauer, fixed income fund manager at M&G, the mood has changed back to risk-on over the last few weeks – meaning that traditional safe haven assets have suffered.
As French President Emmanuel Macron prepares for his long-awaited speech about the future of Europe and the eurozone in Strasbourg on Tuesday, Markus Will, a senior economist at the University of St. Gallen, looks at the economic situation in Italy. In his opinion, problems could arise once interest rates are raised in the eurozone.
The NAFTA agreement could be renegotiated in the next few weeks, U.S. Vice President Mike Pence and Canada’s Prime Minister Justin Trudeau said on Saturday in Peru. In an interview with CNN Money Switzerland, Erik Rubingh, head of systematic strategies with BMO Global Asset Management, assesses the possible outcomes of the negotiations.
This week the Swiss franc reached a three-year low against the euro. According to Gero Jung, chief economist at Mirabaud Asset Management, the strong euro is the main reason for the slide – not U.S. sanctions against Russia as some have feared. And although the franc is edging closer to 1.20 per euro – a boon for the Swiss National Bank and export-reliant SMEs – Jung warns that the Swiss currency is still strong.