Tag Archive: newsletter

FX Daily, June 20: Doves Rules the Roost Except in Oslo

2019-06-20

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2019-06-20

Overview:  The prospect of "lower for longer" continues to fuel the bond and stock rally.  The initial US equity response to the Fed was positive but not strong and closed about 0.3% higher.  Asia Pacific equities followed suit with mostly modest gains, except for China and Hong Kong, where gains of more than 1% were recorded.

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Switzerland Construction prices rose by 0.5 percent in April 2019

2019-06-20

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2019-06-20

Development of the construction price index in Switzerland
20.06.2019 - The construction price index recorded a rise of 0.5% between October 2018 and April 2019, reaching 99.8 points (October 2015 = 100). This result reflects an increase in building prices and a stabilisation in civil engineering prices. Year on year, construction prices increased by 0.7%. These are the results of the Federal Statistical Office (FSO).

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Dear Central Bankers: Prepare to be Swept Away in the Next Wave of Populism

2019-06-20

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2019-06-20

The Fruit of Financialization: Soaring Income Inequality
The political moment when the "losers" connect their discontent and decline with central bankers is approaching. The Ruling Elites' Chattering Classes still haven't absorbed the key lesson of the 2016 U.S. presidential election.

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Gold Bullion International Lease #1 (gold)

2019-06-20

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2019-06-20

Gold Offers for Gold Bullion International
Monetary Metals leased silver to Gold Bullion International, to support the growth of its gold jewelry line. The metal is held in the form of inventory in a third party depository.

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General Electric to slash 450 more Swiss jobs

2019-06-20

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2019-06-20

United States engineering giant General Electric has revealed it will cut a further 450 jobs at two of its Swiss sites. Since 2016, the company has already shed some 2,000 workers. The company, which generated profits of $954 million (CHF952 million) last year, blamed the latest cuts on “financially challenging conditions”. But its GE Power division reported an operating loss of nearly $1 billion globally.

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China looks to new policies to boost infrastructure spending

2019-06-19

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2019-06-19

Growth in Chinese Fixed-Asset Investment by Sector, 2013-2019
To stabilise growth, the Chinese government will likely put more focus on infrastructure investment. A new policy announced recently could give a further boost to this sector.Activity data in May point to continued weakness in Chinese economic momentum, with growth in both fixed-asset investment and industrial production slowing last month.

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FX Daily, June 19: Still Patient?

2019-06-19

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2019-06-19

Overview:  Risk-taking was bolstered by the dramatic shift in Draghi's rhetoric less than two weeks after the ECB meeting and a Trump's tweet announcing that there was going to be an  "extended" meeting between him and Xi at the G20 meeting and that the respective staff would begin coordinating. It was later confirmed by the Chinese media.

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Swiss Franc at 5 month highs vs the Pound

2019-06-19

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2019-06-19

Tory leadership debate does little to help the pound. Sterling has remained under a lot of pressure against a number of currencies including vs the Swiss franc. The Tory leadership race is now down to 5 candidates after former Brexit secretary Dominic Raab only managed to get 30 votes. This was short of the required 33 to progress to the next round.

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Swiss health insurance deductibles to remain changeable annually

2019-06-19

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2019-06-19

One idea for containing rising healthcare costs was to remove the possibility of changing health insurance deductibles every year, making it possible only every three years. If people are able to switch from high to low deductibles annually then they can save money by opting for a high deductible one year, while postponing visits to the doctor until the following year when they opt for a low one.

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Swiss gold refinery turns back on artisanal miners

2019-06-19

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2019-06-19

Swiss gold refinery Metalor Technologies has announced it will no longer deal with artisanal mining operations. The company cites the increasing cost of ensuring that gold is being produced by small mines in compliance with human rights and environmental standards. Metalor has come under repeated fire for doing business with gold mines in South America that care neither for their workers or surrounding habitat.

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FX Daily, June 18: Draghi Ends Calm Ahead of FOMC, Sending the Euro and Yields Down

2019-06-18

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2019-06-18

Overview:  ECB President Draghi underscoring the likely need for more stimulus broke the subdued tone as market participants took a "wait and see" stance ahead of tomorrow's FOMC decision.  Draghi's comments sent the euro through $1.12 for the first time in two weeks and drove European bonds yields to new lows.

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Das Einmaleins des neuen Leitzinses

2019-06-18

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2019-06-18

Die Schweizerische Nationalbank (SNB) führt neu einen Leitzins ein. Hatte sie denn bis jetzt gar keinen? Doch, hatte sie, aber der hiess anders. Nutzen wir doch die Gelegenheit, um zu klären, was eigentlich ein Leitzins ist. Und was sich nun geändert hat. Eine Notenbank benutzt einen Leitzins, um das gesamte Zinsniveau in einem Land zu beeinflussen – und damit indirekt den Gang der Wirtschaft.

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How Much of Your “Wealth” Is Hostage to Bubbles and Impossible Promises?

2019-06-18

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2019-06-18

S&P/Case-Shiller U.S. National Home Price Index, 1990-2015
All asset "wealth" in credit-asset bubble dependent economies is contingent and ephemeral. A funny thing happens to "wealth" in a bubble economy: it only remains "wealth" if the owner sells at the top of the bubble and invests the proceeds in an asset which isn't losing purchasing power.

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Raiffeisen bank announces CHF1 million executive pay cap

2019-06-18

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2019-06-18

Switzerland’s third largest bank will limit the annual remuneration of top management to CHF1 million (around $1million) from July 1. The announcement was made at the bank’s general meeting on Saturday in Crans-Montana. CEO Heinz Huber’s compensation has already been adjusted when he took up his duties in January.

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The Elephant in the Gold Room, Report 16 June

2019-06-17

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2019-06-17

Gold and Silver Price
We will start this off with a pet peeve. Too often, one is reading something about gold. It starts off well enough, discussing problems with the dollar or the bond market or a real estate bubble… and them bam! Buy gold because the dollar is gonna be worthless! That number again is 1-800-BUY-GOLD or we have another 1-800-GOT-GOLD in case the lines on the first number are busy!

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FX Daily, June 17: Quiet Start to Big Week

2019-06-17

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2019-06-17

Overview: The global capital markets are off to a subdued start to what promises to be a busy week, featuring the FOMC, BOE, BOJ meetings, and the flash June PMIs. Investors also expect some signal whether Presidents Trump and Xi will at the G20 meeting later this month. Asian equities were narrowly mixed.

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Swiss healthcare costs expected to rise well above inflation

2019-06-17

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2019-06-17

The cost of health insurance in Switzerland is expected to rise 3% both this year and next, warns the umbrella group for health insurers, Santésuisse. This is way above the forecast rise in consumer goods prices of 0.9% for 2019.

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Supplementary accommodation recorded more than 16 million overnight stays in 2018

2019-06-17

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2019-06-17

Overnight stays according to host country and accommodation type in 2017-2018, hotel industry
17.06.2019 - In 2018, supplementary accommodation posted a total of 16.6 million overnight stays, i.e. an increase of 4.2% compared with 2017. With 11.2 million units, Swiss visitors represented more than two-thirds of demand (67.4%), i.e. a rise of 2.9%. Foreign visitors registered a 6.9% increase with 5.4 million units. With 4.5 million units (+6.7%), European visitors generated the most overnight stays by foreigners.

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Misplaced Pride: Most of the “Middle Class” Is Actually Working Class

2019-06-17

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2019-06-17

Concentration of stock ownership by Wealth Bracket
If we look at these charts, it looks like only the top 10%, or perhaps the top 20% at best, might qualify as "middle class" by the metrics described below. The conventional definition of working class is based on income and education:the working class household earns between $30,000 and $69,000 annually, and the highest education credential in the household is a two-year community college degree or trade certification.

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Swiss restaurant ranked best in the world

2019-06-16

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2019-06-16

A ranking by Elite Traveler placed the restaurant Hôtel de Ville de Crissier first in a list of the world’s 100 best restaurants, eight places higher than last year. The ranking is based on the votes of readers of the magazine, which is distributed to private jet companies around the world.

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