Monthly Archive: May 2021

FX Daily, May 18: Risk Appetites Return Bigly

2021-05-18

by

2021-05-18

In Asia, equities markets rallied strongly, led by the more than 5% gain in Taiwan, the most in over a year as Monday's 3% drop was more than overcome. The Nikkei gained more than 2% despite the deeper than expected contraction in Q1 GDP. Hong Kong, South Korea, and India also rose more than a 1% gain as tech came roaring back.

Read More »

Technically Speaking: Yardeni – The Market Will Soon Reach 4500

2021-05-18

by

2021-05-18

S&P 500 Earnings Revisions, 1990 - 2020
“The strong economic recovery will not get interrupted by inflation or a credit crunch, and the market will soon reach 4,500.” – Ed Yardeni via Advisor Perspectives. After discussing BofA’s view of why the market could drop to 3800,  I thought it fair to discuss a more optimistic view.

Read More »

Only vaccinated to get Covid certificates before end June in Switzerland

2021-05-18

by

2021-05-18

chaiyan-anuwatmongkonchai
Initially, in Switzerland, only those who have been vaccinated will get a Covid certificate. Those who have received a negative test result or have been infected and recovered will have to wait, according to a report in the TagesAnzeiger. This information was later confirmed by the Federal Office of Public Health (FOPH), according to RTS.

Read More »

Money-Supply Growth Finally Slows in March, Drops to 10-Month Low

2021-05-18

by

2021-05-18

Money Supply, M2 and TMS / Rothbard-Salerno Measure, 1998 - 2020
After three months in a row of hitting new all-time highs, money supply growth slowed in March, dropping to a 10-month low. This slowdown, however, does not suggest any significant departure from the past year's high growth in money supply—which came in the wake of unprecedented quantitative easing, central bank asset purchases, and various stimulus packages.

Read More »

Sickcare is the Knife in the Heart of Employment–and the Economy

2021-05-18

by

2021-05-18

Health Expenditures per Capita, 2005-2021
We need to change the incentives of the entire system, not just healthcare, but if we don't start with healthcare, that financial cancer will drag us into national insolvency all by itself. American Healthcare is a growth industry in the same way cancer is a growth industry: both keep growing until they kill the host, which in the case of healthcare is the U.S. economy. While a great many individuals in the system care about improving the...

Read More »

FX Daily, May 17: US and Europe may Announce Tariff Truce

2021-05-17

by

2021-05-17

There are two general developments as the busy week gets underway. First, despite accelerated price readings in the US (CPI, PPI, import prices, and University of Michigan survey), US rates are soft. The 10-year yield is near 1.61% after rising to 1.70% after the CPI surprise last week.

Read More »

Swiss Private Banks at Odds with Clients over ESG

2021-05-17

by

2021-05-17

Switzerland used to be a place where the rich came with their money to escape the world’s problems, not to confront them. These days, the private banks that dot the pristine streets of Zurich and Geneva are no exception when it comes to the wave of enthusiasm that has broken over the asset management world for better environmental, social and governance standards.

Read More »

Swiss Producer and Import Price Index in April 2021: +1.8 percent YoY, +0.7 percent MoM

2021-05-17

by

2021-05-17

Switzerland Producer Price Index (PPI) YoY, April 2021
The Producer and Import Price Index increased in April 2021 by 0.7% compared with the previous month, reaching 101.6 points (December 2020 = 100). Higher prices were seen in particular for computer, electronic and optical products, machinery, basic metals, semi-finished metal products and metal products.

Read More »

Yes, Paul Krugman, Booms Are Unsustainable

2021-05-17

by

2021-05-17

Personal Saving Rate, 1960 - 2020
That Austrians and Keynesians do not share many views on economics (or probably anything else) is obvious, so a difference of opinion between the two hardly should surprise anyone.

Read More »

Swiss Life pays $77.4 million to placate US tax authorities

2021-05-16

by

2021-05-16

Switzerland's largest insurance company Swiss Life has agreed to pay CHF70 million ($77.4 million) and enter a deferred prosecution agreement in the United States to resolve accusations it conspired to help wealthy Americans to avoid taxes.

Read More »

Organic farming continues to gain ground in Switzerland

2021-05-16

by

2021-05-16

Switzerland continues to shift towards organic farming. Between 2000 and 2020, the number of organic farms has risen by 54%. In 2020, the number rose 3.8%. Organic farms now make up 15.3% of total farms in Switzerland, up from 6.9% 20 years ago. In 2000, there were 4,902 organic farms. By 2020, the number had risen 54% to 7,561.

Read More »

Ban Paternalistic Government

2021-05-16

by

2021-05-16

What is it about paternalists that prevents them from minding their own business? They are obsessed with minding everyone else’s business and, even worse, using the power of government to force people to live their lives the way paternalists want them to live them.

Read More »

Why Wage Inflation Will Accelerate

2021-05-15

by

2021-05-15

Wages Share Income, 1960 - 2020
The Fed has created trillions out of thin air to boost the speculative wealth of Wall Street, but it can't print experienced workers willing to work for low wages. The Federal Reserve is reassuring us daily that inflation is temporary, but allow me to assure you that wage inflation is just getting started and will accelerate rapidly.

Read More »

Nearly two thirds of Swiss support EU framework agreement, suggests poll

2021-05-15

by

2021-05-15

Switzerland and the EU have been working at failing to agree on a new agreement on Switzerland’s relationship with the EU for sometime now. One point of negotiating leverage used by Switzerland is that Swiss voters would reject the deal proposed by the EU in a referendum. However, a recent poll suggests that might not be true.

Read More »

Vaccine Passports and Medical Paternalism

2021-05-15

by

2021-05-15

Vaccine passports have been implemented, or are being developed, in a number of countries around the world. In February 2021, Israel introduced its "Green Pass," which becomes "effective the week after receiving the second dose" of the vaccine and expires after six months.

Read More »

FX Daily, May 14: Softer Yields = Softer Dollar

2021-05-14

by

2021-05-14

The surge in consumer prices reported on Wednesday saw rates jump and the dollar push higher. Stronger than expected producer prices yesterday, and news of wage increases (average 10%) at Mcdonalds and for 75,000 people Amazon wants to hire, saw rates ease and the dollar's upside momentum stall.

Read More »

Covid: vaccination of 12 to 15 year olds on the horizon in Switzerland

2021-05-14

by

2021-05-14

Covid Vaccination
Those with teenagers wishing for the greater travel freedom likely to come with proof of vaccination may have cause for hope. On 7 May 2021, Pfizer submitted an authorisation application to Swissmedic, Switzerland’s drug approval agency, for use of its vaccine against Covid-19 on those aged 12 to 15 years old.

Read More »

The US Government Is On Track to Top Last Year’s Record-Breaking Deficits

2021-05-14

by

2021-05-14

U.S. Deficit, 2020 - 2021
The Treasury department has issued its spending and revenue report for April 2021, and it’s clear the US government is headed toward another record-breaking year for deficits. According to the report, the US federal government collected $439.2 billion in revenue during April 2021, which was a sizable improvement over April 2020 and over March 2021.

Read More »

FX Daily, May 13: Long Lost Bond Vigilantes Sighted, Gives Dollar Fillip

2021-05-13

by

2021-05-13

It is as if the bond vigilantes were pushed too far. US inflation is accelerating more than expected, and it cannot all be attributed to the base effect, and the Federal Reserve, to many investors, is tone-deaf. With powerful fiscal stimulus, nominal growth above 10%, and the economy re-opening, albeit unevenly, does the monetary accelerator need to be fully engaged?

Read More »

Overtourism could give way to Sustainable Travel

2021-05-13

by

2021-05-13

Let me state from the outset, you won’t get a discount if you mention to your travel agent that you read this article when you book your trip to Switzerland this summer. But it will be nice to have you back; Switzerland – in line with much of Europe – is planning to open up to overseas visitors in a few short weeks. And since we haven’t seen you in a while, I expect you’ll be welcomed with open arms!

Read More »