Axel Lehmann, president of UBS Switzerland, met with Hannah Wise at the Swiss Economic Forum in Interlaken. They discussed the strength of Swiss SMEs, how digitization is impacting UBS, and potential rate hikes in Switzerland. Lehmann said the Swiss National Bank “will take careful measures and will not only observe what the European Central Bank is doing, but what other central banks and other major leading currency movements are really doing." Yesterday, the chairman of the SNB told us it was "much too early" to start raising interest rates.
After the latest economic projections by the Federal Reserve, the U.S. dollar weakened. Michael P. Reilly, chief investment officer at TWC, sees many reasons why the greenback will strengthen moving forward.
Regulators have been warning about imbalances in the mortgage and real estate market. Rudolf Minsch, chief economist at economiesuisse, shares their apprehension as central banks keep interest rates low.
In the midst of central banking news, Levi Strauss soared as high as 35 percent upon its return to The New York Stock Exchange. Low and negative interest rates hurt the banks’ business, and they were the worst performing entries in the SMI, which closed down 0.10 percent to 9,454.05.
Think twice before incorporating IPOs into your portfolio. That’s the advice from Ian Heslop, head of global equities at Merian Global Investors. Ridesharing apps Uber and Lyft both have set their sights on going public in the near future but Heslop remains cautious.
Italy is rolling out the red carpet for Chinese President Xi Jinping ahead of signing on with China’s Belt and Road Initiative. For François Savary, chief investment officer at Prime Partners, it’s a dangerous move for Europe, since Italy is one of the founding members of the EU.
Lars Kalbreier, CIO at Vontobel Wealth Management, explains why the coming initial public offering by Stadler Rail—and possibly later by RUAG—are part of a global phenomenon. Karlbreier also discusses the Fed’s expected decision and the risk of a recession in 2019.
Stadler Rail announced its intention to launch an IPO. CNNMoney Switzerland’s Andreas Schaffner explains why it has to do with the family of the main shareholder, Peter Spuhler. But it’s also to help the company face global competition and expand in driverless and high-speed trains.
Despite the ongoing challenges in Europe, Cédric Tille, professor of international economics at the Graduate Institute in Geneva, sees the large Swiss banks well capitalized and a sound system still in place.
Deutsche Börse’s announcement to team up with Swisscom and Sygnum didn’t catch Jos Dijsselhof, CEO of SIX, by surprise. He still sees SIX way ahead of the curve. After selling its cashless payment business, the Swiss exchange operator is ready for takeovers.
Novartis was down just over half percent as its subsidiary Alcon cemented its leading position in the eyecare market. A potential blockbuster German bank merger put its Swiss peers in investors’ favor, as UBS, Credit Suisse, and Julius Baer led the SMI, which ended up 0.15 percent to 9,496.93.