With inflation coming back, all eyes are on the central banks. The U.S. Federal Reserve Board is willing to raise rates, but the European Central Bank is taking a more cautious approach towards tightening monetary policy. According to Bryan Whalen, portfolio manager at TCW, we won't see a rate hike in Europe before 2019.
In 2017, asset managers in Switzerland looked after around 2 trillion Swiss francs, a volume increase of 5 percent year-on-year. On Friday, the Swiss Funds and Asset Management Association (SFAMA) will hold its 25th Annual General Meeting in Bern. Ahead of the event, Martina Fuchs spoke exclusively to its Managing Director Markus Fuchs, and asked him about the key drivers behind that growth.
The private social network will be the first listed social media company on the SIX Swiss Exchange. The first trading day is scheduled for next Tuesday, 20 March 2018. According to ASMALLWORLD Chairman Patrick Liotard-Vogt, the reason for going public is mainly to "get access to the capital markets, which will facilitate potential M&A transactions."
Inflation, political uncertainty and a possible trade war between the U.S. and the E.U. is all part of the current economic environment. How should investors react and how should a bank advise their clients? Nannette Hechler-Fayd'herbe, Head of Investment Strategy and Research at Credit Suisse, gave Andreas Hohn the "One House View".
As the airline releases one of the best annual results in its history, it is vital that prospects be created at Zurich Airport for further business growth in keeping with growing demand, says its CEO Thomas Klühr. Swiss International Air Lines has profited from the disappearance of competitors like Air Berlin. In an interview with CNNMoney Switzerland, Klühr explains it will be important to hold their own in an ever competitive global air transport market.
In an interview with CNNMoney Switzerland, Francesc Balcells, executive vice president and portfolio manager at PIMCO talks about his view on the Russian economy. From a cyclical point of view, he sees good signals as the economy is picking up. When he looks at the long-term picture however, Balcells sees some issues with Russia.
The first meeting of the Swiss National Bank (SNB) in 2018 on Thursday may be quiet, anticipates Samy Chaar, chief economist at Lombard Odier. All signals are positive, he predicts, for a move towards a normalisation of monetary policy, the one exception. The SNB still has to wait for its European counterpart to act first. Chaar doesn't expect the ECB to really act before 2019.
In an interview with CNNMoney Switzerland, the Author and Journalist Jürg Müller talks about the findings in his book “The End of Banking” and how technology is fundamentally changing the banking world.
Is inflation good or bad? Marie Owens Thomsen, Global Chief Economist of Indosuez Wealth Management in Geneva, believes higher inflation is one of the main risks to the current business cycle. Owens Thomsen is concerned by monetary policies which push for higher prices. She believes it will eventually eat into consumers' purchasing power. When you know about that private consumption, which has been driving growth since 2011, it can only hurt the economy she argues. Owens Thomsen also points to protectionist measures which may accelerate inflation.
China is among the economies most at risk for a banking crisis. This according to indicators compiled by the Bank for International Settlements in Basel. In an interview with CNNMoney Switzerland, Alastair McCaig, director of investment management at Fern Wealth, agrees with the findings.
In an interview with CNNMoney Switzerland, Jon Cox, head of Swiss equities at Kepler Cheuvreux, talks about the IPOs likely to come here this year. In his view, it's a very good sign for Switzerland as a financial center.
CNNMoney Switzerland's Paula Dupraz-Dobias spoke to Mukhisa Kituyi, UNCTAD's secretary general, on how member states are reacting to U.S. President Donald Trump's announcement Thursday of tariffs on steel and aluminium. The head of the United Nations agency criticized the move, saying it may lead to the erosion of the existing international rules-based trading system. "Populism," he said, "may win you an election, but it cannot deliver economic prosperity."
The chairman of Raiffeisen, Johannes Ruegg-Stuerm, has stepped down, effective immediately, amid the continued investigation into the bank’s former CEO, Pierin Vincenz. CNNMoney Switzerland’s Andreas Hohn met with Pascal Gantenbein, Raiffeisen’s temporary chairman, this Friday and began by asking him why Ruegg-Stuerm stepped down so suddenly.
The European Central Bank (ECB) made a big change in its policy outlook on Thursday. The reason behind the change was that the economic recovery has come sooner than expected. But in an interview with CNNMoney Switzerland, UBP Private Banking CIO Norman Villamin says that he doesn't expect the ECB to raise interest rates before 2019.
A looming trade war is making Peter Rosenstreich, head of market strategy at Swissquote, "quite concerned". After President Trump announced tariffs on steel and aluminium last week, the European Union is preparing to hit back with similar measures on bourbon, peanut butter and cranberries. "Tariffs on trade are a nuclear option," Rosenstreich argues, pointing out that the economic growth achieved in the past years has been based on good trade relations.
Companies in the field of sustainable and impact investing are booming. According to Christoffer Dahlberg, Head of Client Relations at Symbiotics, the company could double its assets under management in the next few years. “We are quite certain that we can double the number of people working at our company in the next three to four years,” he says in an interview with CNNMoney Switzerland.
Last Friday, LafargeHolcim's new chief executive revealed his turnaround plan, which will include cost-cutting, selling assets, and focusing on fewer markets. It comes as the world's largest cement-maker announced a $4 billion write-off. Here, CEO Jan Jenisch explains his strategy for growth after the tricky 2015 merger between France's Lafarge and Switzerland's Holcim.
Shareholder activists have gained significant influence in Switzerland, one reason being that Swiss companies are still undervalued compared to their peers in other parts of the world. We discussed the issue with Peter V. Kunz, business law professor at the University of Bern, who also cited the lack of barriers for foreign investors as a draw for activist shareholders.
With Italian elections not resulting in a clear majority for any party, we take a closer look at our southern neighbor's economic situation. “Political uncertainty is a major barrier for productivity growth,” claims Jan Mischke, partner at McKinsey Global Institute. But digitalization, he claims, could boost productivity in selected countries.
From the risk of money laundering to Finma's latest guidelines on ICOs, Marc Bürki talks about the coming challenges for the banking system and bets on a stable future for cryptocurrencies – a main driver behind the bank's positive results in 2017
Despite solid results in 2017, the stock price of Adecco plunged more than 8 percent on Thursday. "We announced an outlook for January and February of 5 percent, which is slightly lower than the 7 percent we had in the fourth quarter," says CEO Alain Dehaze. Nonetheless, he remains positive and says this comes off the back of a strong quarter and underlying profit.
Figures look good for industrial companies such as Sulzer, Georg Fischer, Sika and Geberit. "The outlook is positive for 2018," says François Savary, chief investment officer at Prime Partners. However, he warns that their business relies heavily on the growth of the global economy. Moreover, the weakening of the dollar could impact orders in the coming months.
Despite the political risks, there are opportunities for investors in Russia, according to Nick Payne, head of global emerging market equities at Old Mutual Global Investors. In his view, the country is emerging from a recession and offers a positive risk-return trade-off.
The insurance company Swiss Life reported a net profit over 1 billion Swiss francs for the first time ever. The company benefited from strong momentum in all business segments, especially in the second half of 2017. Our reporter Andreas Hohn spoke to CEO Patrick Frost about the strategy in life insurance and the main drivers of the yearly result.