Monthly Archive: June 2021

FX Daily, June 09: Without Yield Support, the Dollar Wilts

2021-06-09

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2021-06-09

Falling US yields weigh on the US dollar. The 10-year Treasury yield is flirting with the 1.50% mark, and the greenback is trading heavily against all the major and most emerging market currencies. European and the Asia Pacific benchmark yields are lower as well.

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Switzerland clears Covid-19 vaccine for 12 to 15 year-olds

2021-06-09

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2021-06-09

On 4 June 2021, Swissmedic, Switzerland’s drug approval authority, announced it was extending authorisation of the Pfizer/BioNTech vaccine to 12-15 year olds. The vaccine, also known under the brand name Comirnaty®, has had temporary ordinary authorisation for use in Switzerland on people aged 16 or over since 19 December 2020.

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The Sources of Rip-Your-Face-Off Inflation Few Dare Discuss

2021-06-09

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2021-06-09

Job Openings, 2006 - 2021
Inflation will be transitory, blah-blah-blah--I beg to differ, for these reasons. There are numerous structural sources of inflation, which I define as prices rise while the quality and quantity of goods and services remain the same or diminish.

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FX Daily, June 08: Marking Time ahead of the Week’s Big Events

2021-06-08

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2021-06-08

The capital markets appear to be in a holding pattern ahead of this week's big events, including the US CPI and the ECB meeting. Equities are little changed but with a heavier bias evident. Most of the large bourses in the Asia Pacific region were lower, except Australia, which eked out a small gain.

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Swiss pesticide votes – pesticides, antibiotics, gut bacteria, hormones and disease

2021-06-08

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2021-06-08

As we move through time scientific research improves our understanding of the world. The resulting revelations often point to changes that could lead to progress. However, these changes are rarely painless. Shifting away from the use of antibiotics on livestock and the agricultural use of pesticides are not small adjustments.

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9 Top-Ranked Crypto Blockchain Project Coins You’ve Probably Never Heard of Before

2021-06-08

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2021-06-08

Cryptocurrencies have been all the rage this year with total market capitalization surging 132% since the beginning of the year. Given this crypto frenzy, it is quite remarkable how some of the top marketcap ranking firms have eluded  mainstream attention.

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Price Discovery is Alive and Well in Crypto

2021-06-08

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2021-06-08

“If the market continues to see wild swings based on Elon Musk tweets, it’s going to be a big setback for this asset class,” Matt Maley, chief market strategist for Miller Tabak + Co. told Bloomberg. “The fact that it sees such wild swings to the tweets from one person takes away the legitimacy of the asset class.”

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Resetting the Federal Debt

2021-06-08

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2021-06-08

Federal Debt: Total Public Debt, 1970 - 2020
According to the US Treasury, the federal government owes $28.2 trillion. It crossed the “28” threshold on the last day of March. The debt was just under $25 trillion at the end of April a year ago. There’s no question it’s growing at a faster and faster pace, and now there’s the excuse of Covid to spend more.

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FX Daily, June 07: The Greenback Steadies after Retreating on the Jobs Data

2021-06-07

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2021-06-07

After falling to 1.55% after the US employment data, which, while mixing expectations, could hardly be considered weak, the US 10-year yield has come back firmer today (1.58%) This may be lending the greenback a better tone. Equity markets are quiet. Most markets in the Asia Pacific region edged higher.

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Swiss Consumer Price Index in May 2021: +0.6 percent YoY, +0.3 percent MoM

2021-06-07

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2021-06-07

Switzerland Consumer Price Index (CPI) YoY, May 2021
The consumer price index (CPI) increased by 0.3% in May 2021 compared with the previous month, reaching 101.0 points (December 2020 = 100). Inflation was +0.6% compared with the same month of the previous year. These are the results of the Federal Statistical Office (FSO).

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Post-Pandemic Metamorphosis: Never Going Back

2021-06-07

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2021-06-07

People caught on that the returns on the frenzied hamster wheel of "normal" have been diminishing for decades, but everyone was too busy to notice. The superficial "return to normal" narrative focuses solely on first order effects: now that people can dispense with masks and social distancing, they are resuming their pre-pandemic spending orgy with a vengeance, which augurs great profits for Corporate America and higher tax revenues.

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Global minimum tax deal bad for Switzerland, say experts

2021-06-07

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2021-06-07

The decision by the leading industrial nations (G7) to support a global minimum tax of 15% for large corporations is not good news for Switzerland, according to Swiss economists. Certain cantons in particular would come under pressure.

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Electricity watchdog sounds warning on Swiss energy security

2021-06-06

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2021-06-06

The Federal Electricity Commission (ElCom) has again voiced concern about Switzerland’s ability to secure sufficient power supplies in the coming years. While there is no immediate danger of shortfalls in the Alpine state, the electricity watchdog said on Thursday that more should be done to ensure domestic energy security in the mid to long term.

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A Libertarian Approach to Disputed Land Titles

2021-06-06

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2021-06-06

The recent spate of bombing violence in Israel's West Bank, East Jerusalem, and Gaza demonstrates the enduring attachment both Israelis and Palestinians have to physical land in the country. Both sides make claims—legal, moral, and political—to land within Israel, from the southernmost tip of Gaza to the northernmost tip of the Golan Heights.

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Cobalt must be included in Swiss responsible business legislation

2021-06-05

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2021-06-05

Business and human rights experts argue that Switzerland should seize the opportunity to require responsible sourcing of cobalt, an in-demand mineral whose risks to human rights are often overlooked. The government is holding consultations on a new law to hold companies accountable for the adverse impact of their operations on people after the Responsible Business Initiative failed at the ballot box last year.

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The Economics of the Extended Family: From Risk Management to Human Capital

2021-06-05

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2021-06-05

When we think of analyzing economic organizations, we generally think of firms and corporations. But there is another organization that is just as critical to economic development: the extended family. Indeed, the advantages offered by this institution are numerous and include risk sharing, mutual aid, human capital building, social capital building, and resource complementarity and coordination.

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FX Daily, June 04: US and Canada Report on Jobs as G7 Fin Mins Talk Taxes

2021-06-04

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2021-06-04

Stronger than expected US employment data, ahead of today's monthly report and compromise proposal on corporate tax by the White House to help secure a deal on infrastructure sent US bond yields and the dollar high. Late dollar shorts were forced to cover.

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Futuristic underground cargo project moves a step closer to reality

2021-06-04

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2021-06-04

Goods that are normally trucked on busy Swiss roads are a step closer to travelling underground on driverless vehicles after an ambitious cargo project got a first legislative go-ahead. The Cargo sous terrain (CST) project sounds like science fiction: a 500-kilometre network of tunnels to transport freight between Switzerland’s busiest cities.

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FX Daily, June 03: Don’t Believe Sino-American Thaw or Fed’s Corporate Bond Divestment is a Policy Signal

2021-06-03

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2021-06-03

Market participants appear to be biding their time ahead of tomorrow's US jobs report as they digest recent developments. The dollar is firmer, equities are mixed, and benchmark bond yields are a little firmer. China and Hong Kong shares continue their recent underperformance, while most of the large markets in the Asia Pacific region edged higher.

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Covid: how is Switzerland going on vaccinations?

2021-06-03

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2021-06-03

On 23 December 2021, a 90-year old resident of Luzern, was the first person in Switzerland to be vaccinated against Covid-19. In the roughly 5 months since then, more than 3 million people in Switzerland have received at least one dose of vaccine, representing around 36% of the population.

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