The Swiss franc has appreciated to its highest level against the euro so far this year, as safe-haven flows channeled into the currency amid rising political and economic risks in Europe. But how much higher will it go? Martin Eichler, chief economist of BAK Economics, says he doesn't expect the currency's value to strengthen much more. "It’s related to the Turkish crisis, and if this does not get any more serious then the franc should not appreciate further against the euro."
As U.S. President Trump prepares to meet G7 leaders in France, tensions escalated back home as China launched retaliatory tariffs, and Trump denounced Federal Reserve Chairman Jerome Powell on Twitter for not taking more action on rates. Economist Cornelia Meyer says Powell has no choice but to sit on the fence because the Fed itself is divided.
Avenir Suisse backs a free trade agreement between Switzerland and the United States in a new report. Jennifer Anthamatten, one of the co-authors, explains what the gains would be—including for politics—and tells us how agriculture and climate change fit into the equation.
Markus Schomer, chief economist at PineBridge Investments, explains why the U.S. Federal Reserve has to respond to the new easing move that the European Central Bank has triggered. He also explains why the period of negative yields will become the norm moving forward.
Switzerland’s SMI is one of the top performing indexes this year thanks to its high cash-flow returns and stability. Eleanor Taylor Jolidon, co-head of Swiss and global equities at UBP, says health care and diversified financial players are among her top picks, favoring insurers over banks.
Demand for flexible office space has been growing in Switzerland as small businesses and start-ups look for shorter, less burdensome leases and trendier co-working spaces. But even larger companies are now jumping on the trend, according to CBRE Switzerland’s Head of Research & Consulting David Schoch.
Yields on the fixed income market may look depressing, with more zero-coupon bonds to come in Switzerland and elsewhere. However, Ritu Vohora, investment director at M&G, says the equity market is more buoyant. She tells CNNMoney Switzerland which countries she favors.
The Swiss National Bank has already intervened to the tune of around CHF 10 billion this summer in order to keep its strong currency in check, says Patrick Zwiefel, chief economist at Pictet AM. A further interest rate cut by the European Central Bank in September is likely to prompt the SNB to follow suit with 25 basis point cut of its own, he adds.
Alexis Gray, senior economist at Vanguard Investment Strategy Group, comments on the depressed economic outlook and explains why investors are putting their money in safe havens such as German and Swiss long-term bonds with no yield. However, Gray says that the market is too pessimistic and tells us why she does not expect a recession in the U.S.
Economics professor Cédric Tille explains how global trade tensions are impacting the economy in Switzerland. He calls for fiscal spending as a countermeasure in the event of an economic downturn in the country. Budget surpluses would be better used giving money back to taxpayers rather than paying off public debt, argues Tille.
Swiss watchmakers have been hit hard by the protests in Hong Kong, their biggest global market. Jon Cox, head of Swiss equities at Kepler Cheuvreux, forecasts a 20% drop in exports to Hong Kong in 2019— 40% in the worst-case scenario—with Swatch Group and Richemont among the biggest casualties.
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.