Tag Archive: newsletter

‘Farinet’ local currency to be withdrawn from circulation

The Farinet – a local currency introduced in canton Valais in 2017 – is to be withdrawn from circulation at the end of 2019 after failing to stimulate the regional economy as hoped. Farinet banknotes were introduced in Valais in western Switzerland in spring 2017. But on Tuesday the association behind the currency announced it planned to withdraw it at the end of this year.

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USD/CHF remains above 100-day SMA as bulls cheer risk-on, USD strength

USD/CHF holds on to recovery gains above 100-day SMA amid increasing hopes of the US-China trade deal. Comments from Fed’s Daly add to the pair’s strength. The US PMIs, JOLTS Job Openings to decorate the economic calendar while trade/Brexit headlines will mostly drive risk-tone.

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Switzerland’s growth hampered by trade tensions, economic slowdown

Trade tensions coupled with a slowdown in Europe are likely to take a toll on the Swiss economy over the next two years, the OECD forecasts. The Organisation for Economic Co-operation and Development (OECD) has revised its growth forecasts downwards for Switzerland. It also recommended Switzerland raise its retirement age.

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November Monthly

Two main developments drove the foreign exchange market in October.  First, the market grew more confident that a hard Brexit could be avoided.  This drove sterling sharply higher.  It rallied from $1.22 on October 10 to a little above $1.30 on October 21 before doubts grew about the likelihood that Parliament will approve the new agreement.

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The Middle Class Is Now The Muddle Class

The net result is the muddle class has the signifiers but not the wealth, power, capital or agency that once defined the middle class. The first use of the phrase The Muddle Class appears to be The rise of the muddle classes (Becky Pugh, telegraph.co.uk) in January 2007. The "muddle" described the complex nature of defining "the middle class," which includes education, class origins, accents, and many other financial, social and cultural...

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Targeting nGDP Targeting, Report 3 Nov

Not too long ago, we wrote about the so called Modern Monetary so called Theory (MMT). It is not modern, and it is not a theory. We called it a cargo cult. You’d think that everyone would know that donning fake headphones made of coconut shells, and waving tiki torches will not summon airplanes loaded with cargo. At least the people who believe in this have the excuse of being illiterate.

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FX Daily, November 4: Investor Optimism Carries into the New Week

Overview: Investor optimism is reflected by the risk-taking appetite that is lifting equity markets and bond yields. With Japanese markets closed for a national holiday, the MSCI Asia Pacific Index was led higher by more than 1% gains in Hong Kong, Taiwan, South Korea, and Thailand. The regional benchmark advanced for the seventh session in the past eight and is approaching the year's high.

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Why Nestlé won’t meet its zero-deforestation pledge

When it came under fire from environmental groups over its harvesting of palm oil, Swiss food giant Nestlé committed to eliminating deforestation from its supply chain by next year. But it will take another three years to come close to accomplishing that goal.

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Gretchen-Parlament: Für Thomas Jordan ein Segen

„Gretchen-Parlament“ – diesen Ausdruck wählte ich in Anlehnung an die grüne Greta und ihre Jünger und Jüngerinnen europaweit. Kann von einem legalen Wahlkampf die Rede sein? Grüne Frauen wurden gewählt aufgrund sexueller Übervorteilung. Ich selber war Ständeratskandidat in Basel, wurde aber an keine einzige Podiumsdiskussion zugelassen. Women only.

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USD/CHF technical analysis: Repeated bounces off 50 percent Fibo. keeps bullish bias intact

USD/CHF nears 100-day SMA amid yet another bounce off 50% Fibonacci retracement. 61.8% of Fibonacci retracement adds support to the downside. With its yet another bounce off 50% Fibonacci retracement of August-October advances, USD/CHF nears 100-day Simple Moving Average (SMA) while taking the bids to 0.9865 amid initial trading on Monday.

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Steady euro area growth and rise in core inflation

According to Eurostat’s preliminary figures, euro area GDP grew by 0.2% quarter on quarter in Q3, the same pace as in Q2 and in line with our expectations. Country wise, France, Italy and Spain grew at the same pace in Q3 as in Q2. In particular, household and investment spending grew at a solid pace in both France and Spain. The preliminary GDP figure for Germany will not be released until 14 November.

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FX Weekly Preview: Synchonized Emergence from Soft Patch?

There have been plenty of developments warning of a global economic slowdown. Yet, seemingly to justify the continued advance in equity prices, there has begun to be talk of possible cyclical and global rebound. That is the new constellation, connecting the better than expected Japanese, South Korean, and Chinese September industrial output figures,  a slightly stronger than expected Q3  GDP reports from the US and the eurozone. 

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EM Preview for the Week Ahead

EM should continue to benefit from the generalized improvement in the global backdrop. Trade tensions have eased whilst the risks of a hard Brexit have fallen, at least for now. Yet recent developments in some major EM countries underscores how important it is for investors to differentiate between the strong credits and the weak ones.

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Swiss government cuts drug prices by 100 million francs

Switzerland’s Federal Office of Public Health (FOPH) recently announced it had reduced the price Swiss healthcare providers and patients will pay for 257 drugs by 16.3%. These lower prices, which take affect on 1 December 2019, are expected to save CHF 100 million annually.

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Minimum Swiss internet speed to triple in 2020

The Federal Council, Switzerland’s executive, has confirmed a decision made by parliament to raise the minimum speed of broadband internet connections in Switzerland. From 1 January 2020, the minimum download speed specified in Switzerland’s universal service agreement with Swisscom will rise from 3 to 10 megabits per second (Mbits/s) and the minimum upload speed will rise from 0.3 to 1 Mbit/s.

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More Synchronized, More Downturn, Still Global

China was the world economy’s best hope in 2017. Like it was the only realistic chance to push out of the post-2008 doldrums, a malaise that has grown increasingly spasmatic and dangerous the longer it goes on. Communist authorities, some of them, anyway, reacted to Euro$ #3’s fallout early on in 2016 by dusting off their Keynes. A stimulus panic that turned out to be more panic than stimulus.

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Switzerland calls time on phone booths

The last telephone box in French-speaking Switzerland, on the shores of Lake Geneva, was dismantled on Thursday. Swisscom will remove the one in the country – in Baden, northern Switzerland – on November 28. An era in the history of Swiss telecommunications is thus coming to an end, an era that witnessed millions of declarations of love, tears and banal conversations in the little cabins that once stood on almost every street corner.

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The Inventory Context For Rate Cuts and Their Real Nature/Purpose

What typically distinguishes recessions from downturns is the inventory cycle. Even in 2008, that was the basis for the Great “Recession.” It was distinguished most prominently by the financial conditions and global-reaching panic, true, but the effects of the monetary crash registered heaviest in the various parts of that inventory process. An economy for whatever reasons slows down.

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Mexico vs. Brazil Near-Term Outlook

Both Brazil and Mexico are in a good position to benefit from the current improvement in market sentiment. However, when comparing the factors driving the currencies of both countries, we think there are relatively more near-term positives for the Mexican peso than for the Brazilian real.

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Time To Replace Bonds With Gold

◆ “It may be time to replace bonds with gold”according to the just released excellent new Investment Update by the World Gold Council.◆ Central banks have shifted to a new regime of easy monetary policy, thus reducing expected bond returns.

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