Tag Archive: Switzerland

Pros and Cons of the Swiss Countercyclical Capital Buffer

emu vs. swiss m3 credit, exceeds eurozone
Switzerland is currently living in a big real estate boom. The bubble bursting would imply that banks' collateral in the form of real estate falls in value. Therefore the banks' assets might fall because many home buyers might not be able to repay their mortgage.  If a real estate bubble pops, then banks should be better capitalized to absorb such a shock. Therefore the Swiss National Bank introduced macro-prudential measures, like the so-called...

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Inflation Difference between Eurozone and Switzerland Narrows to 0.5 percent

2014-01-10

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2014-01-10

Swiss CPI vs. Euro zone July 2013
Another five months till Swiss inflation is higher? When the European economy starts to expand again, who will hike rates first, the SNB or the ECB? December Update According to Swiss Statistics the inflation rate remained stable at 0.1% y/y, while the inflation measured by the European HICP standard was +0.3% y/y, slightly higher than … Continue reading »

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Global Purchasing Manager Indices (outdated)

Manufacturing PMIs : most leading and important economic indicators.

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Swiss GDP Details Compared to UK, USA, Germany, Japan and Australia, Q3 2013

2013-12-03

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2013-12-03

Switzerland United States USA UK Germany Australia
The Swiss GDP was again one of the strongest major economies. The quarterly growth rate in the third quarter was 0.5%, the yearly one 1.9%. U.S. GDP improved by 3.6% QoQ annualized. For comparison purposes, our figures are not annualized; hence the equivalent is 0.9% QoQ. In Japan and Switzerland private consumption rose by 0.1% … Continue reading...

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Japan Beats the United States in GDP Growth per Capita for Last Decade

GDP Growth per Capita in Developed Nations in the following order: Australia Sweden Germany Switzerland Netherlands Japan Canada United States France United Kingdom Ireland Spain Italy Greece

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European Industrial Production Still Contracting, Switzerland Expanding Again

2013-10-16

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2013-10-16

Industrial Production 2010-2013
Swiss industrial production is rather insensitive to price changes and to the recent slowing of global demand thanks to the concentration on pharmaceuticals and luxury products.   Based on Eurostat’s industrial production for July and August , we compared the values from 2010 to 2013 for these two summer months. This aggregated two-months comparison is …

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Debt Reduction, the new Financial Cycle, an Important Driver of EUR/CHF

Swiss Debt and Deficit to GDP
In this analysis we describe why the long-lasting financial cycle of debt reduction is one key driver of the EUR/CHF exchange rate. We claim that EUR/CHF can rise more strongly only when the competitiveness of the European periphery increases. When this happens, then debt will be reduced and both public and private deficit spending will stop.

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A Nationalization of Swiss Foreign Assets? SNB Owns 56% of Swiss Net International Investment Position

Net International Invest Position Switzerland
The SNB currently owns 56% of the Swiss net international investment position (“NIIP”). In the year 2007 this number was only 12%. Is the central bank implicitly nationalizing the Swiss international companies?

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Swiss industrial production unimpressed by global slowing

2013-07-08

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2013-07-08

Swiss industrial production rose by 3% in the first quarter 2013 compared with the same quarter of the previous year. Turnover rose by 3.7%. Details

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The End of Swiss Deflation

2013-07-05

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2013-07-05

Swiss CPI Eurozone Comparison June 2013
The yearly change of the Swiss consumer price index has risen from -0.5% to -0.1%, the end of deflation is near. Swiss inflation measured with the European standard HICP has even improved to +0.2% y/y. Details

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Excessive Money Supply: Switzerland Could Follow in Spain’s and Ireland’s Footsteps

swiss m3 and lending growth 1995 2013
In the Euro zone bank lending is contracting, M3 is rising very slowly. As opposed to that, Swiss bank lending is currently rising by 4.4% per year, M3 is increasing by 10% per year.

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Swiss home price to income ratio small in historic and global comparison

Swiss US UK Germany Home Price to Income a
Based on four different data source, we find out that Swiss home price to income ratio is small in global comparison. Therefore we wonder why the SNB must contain home price rises, but the Fed must artificially increase them.

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Italian Retail Prices Remain close to Switzerland, Germany Far Cheaper

2013-06-16

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2013-06-16

German vs. Italian prices since 1998
Disinflation Finally Starting in Italy The Swiss site preisbarometer.ch is run by the Swiss Consumer Association. Their price data shows that a food basket is 46% more expensive when compared between the German “Kaufland” shop and the Swiss “Coop”. Going to France into “Leclerc” gives you an advantage of 38% against Coop. However, for a …

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Swiss Inflation Rises, Services Up 0.6 percent YoY, Goods Swiss Origin +0.3 percent, Energy Tames

2013-06-06

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2013-06-06

Switzerland Inflation Eurozone April 2013
Cheaper energy prices and long-lasting contracts help against inflation. Swiss inflation increased by 0.1% against April. According to Swiss Statistics, on a year basis, the CPI fell by 0.5%. Major reasons for lower figures were the 6.3% YoY decrease in energy prices, 4.5% YoY lower clothes and footwear price and technological improvements in communication that caused … Continue reading »

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Swiss Inflation Unchanged, HICP Difference Euro Area to Switzerland Down to 1.6 percent

2013-05-09

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2013-05-09

Switzerland Inflation Eurozone April 2013
Swiss inflation unchanged in April against March. The inflation difference between the Euro area and Switzerland on a new low. While in early 2012 it was near 4%, if has shrunk now to 1.6%. Details

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Global Purchasing Manager Indices

2013-04-11

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2013-04-11

Global PMIs December 3, 2012
Manufacturing Purchasing Manager Indices (PMIs) are considered to be the leading and most important economic indicators.   August 2013 Update Emerging markets: Years of strong increases in wages combined with tapering fears have taken its toll: Higher costs and lower investment capital available. EM Companies have issues in coping with developed economies. Some of them …

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March Swiss Inflation Up 0.2 percent MoM, Down -0.6 percent YoY

2013-04-09

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2013-04-09

swiss cpi eurozone march 2013 switzerland
Swiss inflation edged up 0.2% MoM when seasonal effects on clothes and footware were corrected. On a year basis, the CPI fell by 0.6%. Major reason were the falling energy prices, details

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European Wealth Reports: Why “Median” Italians are Far Richer than Germans

Italy home sales business loans 2000-2012
We explain why according to the European wealth reports "median" Italians are more wealthy than Germans. The main reasons are high savings and accumulation of wealth for the average family until the 1990s, often invested in homes and real estate. Low ECB interest rates finally let the value of the home rise strongly.

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