While most Swiss still prefer grocery stores and restaurants to ordering dinner online, the demand is growing for fast, inexpensive food delivery. In the second part of our special edition on the future of this booming market, we delve into why something so popular is so unprofitable.
It started with a phone call in 1998. Today Switzerland’s burgeoning food delivery market is worth an estimated CHF 180 million and is expected to reach a turnover of around CHF 265 million by 2023. But according to experts, major regional differences in eating habits and a strong food retail sector make changing people’s mindsets no easy feat.
Tech stocks carry most of the weight of U.S. markets, says billionaire investor Ken Fisher. Even though Swiss tech stocks are strong performers, he says the current market climate means investors should look elsewhere for their portfolios (hint: it’s all about timing).
Cloud software giant Salesforce has been bolstering its presence in Switzerland with new hires in response to growing digital demand. Blaise Roulet, area vice president for Switzerland, tells CNNMoney Switzerland that while certain sectors such as watches and pharma have been quick to adopt new technologies, mid-sized companies are still playing catch up.
Bond markets have been flashing warnings that a recession could be looming. But Anastassios Frangulidis, head of the multi-asset team at Pictet, says that strong labor markets point to low risk of a downturn within the next six to nine months.
Swiss corporate earnings are mixed midway through the season, with some companies disappointing and others ‘’delivering the goods,’’ according to Johan Utterman, head of Swiss equities at Lombard Odier IM. “I think you’re seeing some of the weakness in the broader economy showing up in corporate earnings now,” he says.
Straumann, the Basel-based dental company with operations worldwide, recorded double-digit growth in all regions in the second quarter. CEO Marco Gadola sees the strong franc, particularly against the renminbi and the euro, as one of the biggest risks to the rosier outlook.
Loss-making food group Hochdorf is facing “a desperate situation” as it struggles with mounting debt, digesting a large acquisition, and challenges in some of its markets, warns Ronald Wildmann, partner at Research Partners. He argues that the company, which will release its half-year results next week, should focus on strengthening its dairy business.
The “extremely negative interest rate” environment is bleak and is forcing Swiss Life to readjust products offered to clients, warned CEO Patrick Frost in an interview with CNNMoney Switzerland. His comments came as the life insurer reported a 10% jump in net profits in the first half of the year.
Recession fears have fueled record-setting rallies this year while depressing bond yields. Gerald Moser, chief market strategist for Barclays Private Bank, says equities remain the best choice for investors, especially defensive stocks.
While unrest in Hong Kong rattled markets Monday, the protests themselves are unlikely to spark a major sell-off or pose a threat to global economic growth, says Esty Dwek, senior investment strategist at Natixis Investment Managers.
Björn Rosengren will have his work cut out for him when he takes over as chief executive officer of ABB, says Anders Roslund, analyst at Pareto Securities. The Swiss engineering group is undergoing a deep restructuring and will take time to turn around.
China’s electric car boom shows no signs of slowing down, which also means the country is far more prepared for the changing car industry than its European counterparts. In part two of our debate on the future of mobility, we look at what Europe and Switzerland are doing to catch up.
How will you get to work in the future? In our special debate on the future of mobility, Electrosuisse’s Claudio Pfister and UBS Wealth Management’s Rolf Ganter question whether Switzerland is ready, both financially and logistically, for a road filled with robots and electric cars.