Category Archive: 1) SNB and CHF

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European break up now looks more likely, says Blond

2016-11-14

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2016-11-14

If there’s one country with reason to resent the rise of populist movements, it’s Switzerland. Twenty-two months after it abandoned its 1.20-per-euro exchange-rate cap, the Swiss National Bank still finds the franc in focus every time there’s a major event that threatens to upset markets.

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Serious Flaws in ECB’s Economic Thinking

2016-11-14

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2016-11-14

Marc Meyer shows that the European Central Bank has big flaws in their economic thinking. Lowering the ECB Deposit Rate means depressing the economy. The ECB takes the risk when it buys Greek bonds. Should Greek bonds devalue then the ECB equity ratio falls under zero and European banks write must write-down their ECB Deposits.

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Swiss National Bank agrees to pay out 1 billion francs annually

2016-11-12

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2016-11-12

The Swiss National Bank (SNB)
Today, the Swiss National Bank (SNB) announced a new agreement with the Federal Department of Finance, to pay the Swiss confederation and cantons CHF 1 billion per year, as was previously the case. The deal will run from 2016 to 2020, according to an official press release.

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Federal Department of Finance and SNB enter new distribution agreement

2016-11-10

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2016-11-10

Swiss National Bank
The Federal Department of Finance (FDF) and the Swiss National Bank (SNB) have signed a new agreement regarding the SNB’s profit distribution for 2016 to 2020. Subject to a positive distribution reserve, the SNB will in future pay CHF 1 billion p.a. to the Confederation and cantons, as was previously the case. In future, however, omitted distributions will be compensated for in subsequent years if the distribution reserve allows this.

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Swiss government opposes initiative to transform monetary system

2016-11-09

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2016-11-09

SNB money supply initiative
The Swiss government urged rejection of a popular initiative that would transform the monetary system and end fractional-reserve banking, according to its dispatch to Parliament. The measure seeks to put the central bank solely in charge of money supply and forbid commercial banks from granting loans that aren’t fully backed by deposits, effectively ending the way banking has been conducted for centuries.

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We’re All Hedge Funds Now – Central Banks Become World’s Biggest Stock Speculators

2016-11-08

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2016-11-08

CBS
At first, the idea of central banks intervening in the equity markets was probably seen even by its fans as a temporary measure. But that’s not how government power grabs work. Control once acquired is hard for politicians and their bureaucrats to give up. Which means recent events are completely predictable.

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THIS Time A Swiss Franc Hedge Makes More Sense

2016-11-08

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2016-11-08

Swiss Franc, Money Market Diverge
Money markets and the Swiss franc have diverged despite a presumed increase in event risk from the U.S. Presidential election. Moreover, shorts against the Swiss franc have risen. This surprising divergence opens up a presumed opportunity use the franc as a hedge against a surprise outcome from the election. This time I agree with the strategy even as I suspect that, once again, any subsequent incremental strength in the Swiss franc will be...

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Major Currency Pairs & The Election (Video)

2016-11-08

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2016-11-08

Foreign Exchange
We focus on the Election effects regarding the major currency pairs and the US Dollar in this video. Check out the Swiss Franc and the Mexican Peso Price Action after the election. This election has probably been great for CNN`s ratings, that would be a short after the election cycle is over.

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SNB Sight Deposits November 7: No interventions, EUR/CHF under 1.08 with political jitters

2016-11-07

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2016-11-07

Euro/Swiss Franc FX Cross Rate, November 07
Sight Deposits: show that the SNB has not intervened to sustain the euro, that dipped under EUR/CHF 1.08. We considered the 1.08 as line in sand for the SNB. The odds of Trump are rising. This causes fear and demand for Swiss Franc. The EUR/CHF fell to 1.0750. Speculators were net short CHF January 2015, shortly before the end of the peg, with 26K contracts. Then again in December 2015, when they expected a Fed rate hike, with 25K contracts. We see...

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Der SNB-Milliardengewinn täuscht Stärke vor. Tatsächlich ist die SNB so schwach wie nie.

2016-11-03

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2016-11-03

Swiss National Bank
Voller Stolz präsentiert die SNB ihr Zwischenergebnis für die ersten 9 Monate dieses Jahres: 28.7 Milliarden Franken Gewinn. Und die Medien kolportieren diese Zahlen unbedarft. Die Devisenreserven der SNB seien erneut gestiegen wird da behauptet; und zwar allein in diesen neun Monaten um 73 Milliarden auf sage und schreibe 666 Milliarden Franken. Solche Schlagzeilen sind oberflächlich und lenken von der grossen Gefahr ab, in welcher sich die SNB...

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Swiss National Bank Results Q3 / 2016: Volatility of Results is Increasing

2016-11-02

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2016-11-02

Interim results of the Swiss National Bank as at 30 September 2016 The Swiss National Bank (SNB) reports a profit of CHF 28.7 billion for the first three quarters of 2016. But the volatility is rising: The SNB may lose 50 billion in one year and win 60 billion in the next year or the opposite.

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SNB Line in Sand Breaks, EUR/CHF under 1.08

2016-11-02

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2016-11-02

EUR/CHF - Euro Swiss Franc
We have always emphasized that the SNB intervenes between 1.08 and 1.0850. Even if there was no change in sight deposits the 1.08 "line in sand" broke.

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Und nun kommt der Nobelpreisträger daher und will uns weismachen, wir müssten den Mindestkurs wieder einführen

2016-11-01

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2016-11-01

Euro-Swiss franc
„Es kostet fast nichts, Franken im richtigen Umfang zu drucken.“ Das sagte der Wirtschaftsnobelpreisträger Joseph Stiglitz am World Economic Forum (WEF) in Davos anlässlich eines Interviews mit dem Tages-Anzeiger.

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Risk Happens Fast

2016-10-31

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2016-10-31

As a teenager brimming with testosterone my reptilian brain loved action movies. Top of my list were Steven Seagal movies. Clearly it wasn't for his acting skills, which are only marginally better than Barney the dinosaur. What I loved about Seagal was that he was both deadly and terribly fast.

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Jim Grant Puzzled by the actions of the SNB

2016-10-27

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2016-10-27

James Grant, Wall Street expert and editor of the investment newsletter «Grant’s Interest Rate Observer», warns of a crash in sovereign debt, is puzzled over the actions of the Swiss National Bank and bets on gold.

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L’argent des banques centrales finit dans les paradis fiscaux!

2016-10-24

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2016-10-24

Nous savions que la crise avait laminé les finances des Etats, de l’économie publique et des familles. Jusque là rien de nouveau. Mais en finance, quand quelqu’un perd, il y a en général quelqu’un d’autre qui gagne la même somme et peut-être plus. A moins qu’il ne s’agisse de billets physiques que l’on flambe, c’est comme ça.Nous allons donc nous intéresser aux grands gagnants de la crise financière.

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SNB verteilt Bussenzettel über 1,5 Milliarden pro Jahr

2016-10-23

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2016-10-23

Am 15. Januar 2015 hat die Schweizerische Nationalbank (SNB) erstmals Negativzinsen anstelle des Mindestkurses eingeführ. Unmittelbar danach stürzte der Euro um 20 Prozent ab und erholte sich seither auf knapp 1.10 zum Franken. Klarer und eindeutiger kann man nicht vordemonstriert bekommen, dass Negativzinsen den Euro nicht stärken, den Franken nicht schwächen. Negativzinsen bringen nichts – ausser Gewinne für die SNB.

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Swiss central bank can cut rates further if needed, says bank president Jordan

2016-10-11

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2016-10-11

SNB Chairman Jordan speaks to media during a news conference in Bern
The Swiss National Bank can cut interest rates further into negative territory if needed, President Thomas Jordan said. “We have still some room to go further if necessary,” Jordan said Saturday in an interview in Washington with Bloomberg Television’s Francine Lacqua. Jordan, who is attending the annual meetings of the International Monetary Fund and the World Bank, noted that the bank has already pushed rates quite far.

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Switzerland’s central bank offers a glimpse behind the curtain

2016-10-07

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2016-10-07

SNB Behind the Curtains Thomas Jordan
The Swiss National Bank is offering a rare look into how it sets monetary policy. A video of SNB President Thomas Jordan and fellow members of the governing board shows them beginning their quarterly policy assessment discussing the state of the economy with about 30 people.

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Is Someone Trying To Buy The Swiss National Bank?

2016-10-06

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2016-10-06

By now it is well-known that as we profiled previously, one of the most ravenous buyers of US stocks in recent years, has been a central bank: the Swiss National Bank... However, it is far less known that not only is the Swiss National Bank also a publicly traded stock, but is also one of the best performing stocks in the world this year.

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