With the big vote on the Brexit deal imminent, markets reacted cautiously. We take a closer look at smaller companies like Aryzta and Hochdorf, who both have had difficult periods. Regarding the blue chips, the SMI closed the day down .10 percent to 9,331.62.
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.
U.S. investors reduced their holdings in Swatch Group, Swiss Re, and Credit Suisse, among others, Bilanz reported recently. We asked Ron William—founder and principal strategist at RW Market Advisory, a London-based institutional investment research and consulting firm—why this was happening.
Thomas Wille, head of investment strategy at LGT Bank, warns that the regulation China just passed to facilitate foreign investment will take time to be implemented, if ever. Small Swiss companies will need to wait to see a difference, while large firms, such as Nestlé and ABB, probably won’t notice any change.
Most stock markets were up, supported by the latest twist in the Brexit saga and new U.S.-China trade optimism. The SMI was also up but only fractionally, finishing at 9,483.10. UBS, meanwhile, closed the week on a sour note following the release of its 2018 annual report.
Ken Hu, Invesco’s CIO fixed income for Asia Pacific, sees a positive outcome for the Chinese economy once the foreign investment law is passed on Friday. In his view, productivity of Chinese firms will improve in light of new competitors.
While global markets prepared for another round of Brexit decisions, most Swiss stocks had a good day, Komax being the notable exception. Swatch reported higher margins and is still looking toward China. As for the rest of the SMI, it continued its positive run and closed up 1.01 percent to 9,481.90.
In his assessment of the latest Brexit developments, Martin Lück, regional chief investment strategist at BlackRock, still sees a lot of confusion. Brexit would further dampen European growth but the impact on the economy would be stronger in the UK.
With the Brexit debate at a fever pitch, investors are focusing on the movements of the British pound. According to Alastair McCaig, director of investment management at Fern Wealth, you can clearly see signs of relief.