Tag Archive: Featured

Swiss regulator censures Bank Syz over money laundering

2020-09-26

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2020-09-26

The Swiss financial market regulator FINMA has reprimanded Bank Syz for breaching money laundering rules involving a business relationship with an Angolan client.

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Rapid Covid-19 tests could offer a path back to normal

2020-09-26

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2020-09-26

Swiss pharmaceutical company Roche plans to launch a test that can detect the coronavirus in 15 minutes. Could tests like this become the norm?

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“The U.S. economy felt like a balloon in search of a needle” – Part II

2020-09-26

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2020-09-26

In this surreal policy environment, how has the role and the investment process of the value investor evolved, especially over the last decade?  How can one still identify value in a world of subsidized binge borrowing, extreme indebtedness, and stock buybacks? 

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Dollar Firm as Markets Digest Rising Virus Numbers

2020-09-26

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2020-09-26

Low Death in the "Second Wave", 2020
Markets are digesting the rising infection rates across Europe; the dollar is taking another stab at the upside. Speculation is picking up that a compromise on a stimulus package could be reached; reports suggest House Democrats are working on a new $2.4 trln package as a basis for these negotiations.

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FX Daily, September 25: Sentiment Remains Fragile Ahead of the Weekend

2020-09-25

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2020-09-25

The dramatic week is finishing on a quieter note.  The modest gains in US equities yesterday helped the Asia Pacific performance today.  Most markets but China and Hong Kong pared the weekly losses, and easing regulations in Australia spurred a rally in financials that saw its stock market close higher on the week. 

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Monetary policy assessment of 24 September 2020

2020-09-25

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2020-09-25

SNB Switzerland Conditional Inflation Forecast, September 2020
The coronavirus pandemic continues to exert a strong influence on economic developments. The SNB is therefore maintaining its expansionary monetary policy. In so doing, it aims to cushion the negative impact of the pandemic on economic activity and inflation.

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2500 students quarantined at Lausanne’s hotel school

2020-09-25

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2020-09-25

Around three quarters of the students at the hotel school of Lausanne (EHL) have been placed in quarantine after a number of students tested positive for SARS-CoV-2, reported RTS.

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Switzerland and UK balance sovereignty with EU market access

2020-09-25

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2020-09-25

Britain’s controversial Internal Market Bill has prompted Switzerland’s former chief negotiator with the EU, Michael Ambühl, to examine the thorny issue of sovereignty in EU talks.

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And Silver Crashes Some More! 24 Sept

2020-09-25

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2020-09-25

A few days ago, we wrote about a big silver crash. The price dropped around 7.5%. And the basis dropped from around 2% to 0.6%. At the end, we said: “The key question is: what is the follow-through? If the price stays down and the basis goes back up, that will be a bearish signal. If the basis stays down, that means the silver market is markedly tighter at $24.50 than it was at $26.75.”

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Carter vs. Reagan: The Last Semi-Intelligent Presidential Race

2020-09-25

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2020-09-25

Presidential campaigns in the United States tend to be discouraging affairs, even if one is not a libertarian who has zero expectations that anything good can come from American elections. The old saw that insanity consists of doing the same thing repeatedly and somehow expecting different results applies to presidential campaigns as well as to anything else.

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FX Daily, September 24: Darkest Before Dawn

2020-09-24

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2020-09-24

The two recent market developments, push lower in stocks, and higher in the dollar is continuing. Tuesday's gains in the S&P 500 and NASDAQ were unwound on Wednesday and this is helping drag global markets lower. The MSCI Asia Pacific Index fell for the fourth consecutive session today and many markets (India, Shenzhen, Taiwan, and Korea) fell more than 2% and most others were off more than 1%.

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Parliament clarifies federal government powers to manage Covid-19 crisis

2020-09-24

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2020-09-24

Measures put in place by the federal government to help manage the coronavirus crisis can be officially extended thanks to a decision by parliament.

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The Silent Exodus Nobody Sees: Leaving Work Forever

2020-09-24

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2020-09-24

Wages share income,1960-2020
The "take this job and shove it" exodus is silently gathering momentum. The exodus out of cities is getting a lot of attention, but the exodus that will unravel our economic and social orders is getting zero attention: the exodus from work. Like the exodus from troubled urban cores, the exodus from work has long-term, complex causes that the pandemic has accelerated.

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Uh Oh, The Dollar Has Caught A Bid

2020-09-24

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2020-09-24

Trade Weighted U.S. Dollar Index, 2007-2020
Anyone who follows Alhambra knows that we keep an eye on the dollar. It is a very important part of our process of identifying the economic environment. A rising dollar, when combined with a falling rate of growth, can be a lethal combination. That was the situation in March and of course during the financial crisis of 2008.

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FX Daily, September 23: Trying to Find Solid Ground

2020-09-23

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2020-09-23

A more stable tone is evident in the capital markets after the S&P 500, and NASDAQ rose more than one percent yesterday.  Japan returned from a two-day holiday, and local shares slipped fractionally, while China, Hong Kong, South Korea, and Australian shares rallied.  India and Taiwan fell.

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Swiss balance of payments and international investment position: Q2 2020

2020-09-23

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2020-09-23

Current Account Switzerland Q2 2020
In the second quarter of 2020, the current account surplus amounted to CHF 10 billion; in the same quarter of 2019 it was CHF 21 billion. This decline was principally due to lower receipts from direct investment abroad. While the goods trade balance and the services trade balance changed only marginally, there was a significant decrease in receipts and expenses.

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WEF Davos conference in doubt for 2021

2020-09-23

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2020-09-23

The World Economic Forum’s (WEF) flagship summit may not take place in Davos next year, businesses in the alpine town have been warned. The pandemic had already forced organisers to postpone the event from its usual January slot to a potential early summer date.

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Dollar Remains Firm Ahead of Powell Testimony

2020-09-23

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2020-09-23

Sweden Data and Central Bank Rate, 2016-2020
The dollar remains firm on continued safe haven flows but we still view this situation as temporary. Fed Chair Powell appears before the House Financial Services Panel with Treasury Secretary Mnuchin; the text of Powell’s testimony was released already.

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“The U.S. economy felt like a balloon in search of a needle” – Part I

2020-09-23

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2020-09-23

As we move deeper and deeper into this covid crisis, more and more people understand that there’s a lot more to fear besides the disease itself. As the economic impact and the full scale of the damage caused by the lockdowns and the shutdowns become undeniable, there are too many questions lacking any sort of convincing answer and the future for so many employees, business owners, investors and ordinary savers seems bleak and uncertain.

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Inflation and “Socialism-Lite” Are Just What the Billionaires Want

2020-09-23

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2020-09-23

The Fruit of Financialization
After a bout of inflation and "socialism-light", we could end up with even more extreme inequality when the whole rotten structure collapses.

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