The Swiss National Bank is expected to record a huge loss for 2018. That shouldn’t be an issue, says Alan Mudie, global head of investment strategy at Societe Generale Private Banking. The SNB has plenty of reserves to continue its distribution policy, which is good news for shareholders.
Logitech, Galenica, Arbonia, and Komax released their earnings, but UBS grabbed most of the market attention. The stock price of Switzerland’s largest bank fell sharply amid capital outflows in its core business: the wealth management unit. The SMI closed down 0.50 percent to 8,966.34.
Wall Street was closed today for Martin Luther King Jr. Day, as other stock markets experienced diverging trading sessions. In Switzerland, the SMI was down 0.14 percent to 9,011.41. Interroll and China’s slow growth were also in focus.
Hopes for peace in the trade dispute between the United States and China have supported markets across the board. The SMI ended the day up 1.23 percent at 9,023.96. We also look at the UBS CEO’s personal bet.
René Morgenthaler, head of discretionary at Banque Bonhôte & Cie, is surprised that, amid Brexit and Italy’s situation, the Swiss franc isn’t even stronger than its current level. But if the franc were to strengthen, he explains why he believes the Swiss National Bank would not react immediately.
Marc Brütsch, chief economist at Swiss Life, argues that despite low mortgage rates, it’s expensive to buy a home, especially for the young. He also warns that the recent good numbers in the Swiss labor market are lagging indicators, and don’t reflect the actual slowdown.
Earnings season is here, and Geberit produced good figures. Also on our radar, the low mortage rates in Switzerland as the housing market slows down, and the expected results from Nexflix. Finally, the SMI ended the day up 0.45 percent to 8,914.14.
In our special Brexit debate, Eleanor Taylor Jolidon, co-head of Swiss & Global Equity at UBP, and Esty Dwek, senior investment strategist at Natixis Investment Managers, examine the markets after UK lawmakers rejected the divorce deal with the EU.
On Wednesday, Denmark’s DSV made a USD 4.1 billion takeover bid for Swiss transport giant Panalpina. Investors, speculating on another bid by Swiss rival Kuehne + Nagel, sent Panalpina shares soaring over 27 percent. The SMI ended the day up 0.56 percent to 8,873.77.
Investing in emerging markets is on the radar of many investors these days. Luc D’hooge of Vontobel Asset Management remains cautious when it comes to Turkey or India, but in his view Argentina is on the right track.
This Tuesday, Lindt & Sprüngli shares dipped after it revised its growth targets. Meanwhile, reinsurer Swiss Re revealed the heavy cost of catastrophes, from wildfires to hurricanes. Finally, the SMI bounced back finishing the day up 0.74 percent to 8,824.73.
With markets back on a bumpy road, Carlos Mejia, head of investments at Rothschild & Co Bank, actually has a positive outlook for the coming weeks, but volatility, in his view, is going to stay high for the rest of the year, meaning investors will need to be more disciplined going forward.