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’Moody’s puts UBS on review for downgrade
Just as the ECB warns that commercial banks in the euro-zone may lose another $283bn by the end of next year on financial writedowns, Moody’s finds equivalent cause for concern at Switzerland’s most beleaguered bank,
Rolex, anyone?
The latest Swiss watch export figures do not a pretty picture paint. Data gathered by the Federation of the Swiss Watch Industry in April, showed exports fell 26.3 per cent in the month, continuing the precipitous decline which began in October 2008.
At least one central bank in the Q1 happy bank club
The Swiss National Bank (SNB), being a listed institution, reports every quarter just like any other publicly traded bank. On Friday the SNB reassuringly announced that it — like most other banks in the quarter — was also back in the black;
Tick, tick, tick…Switzerland
The Telegraph’s Ambrose Evans Pritchard is a little worried about Switzerland. Specifically about the prospect of imminent deflation. As he writes on Monday:
Watch Switzerland closely. It is tipping into deflation,
Swiss QE, déjà vu
So Switzerland’s starting quantitative easing?
This chart, of the Swiss money supply (M1) between 2003 and 2008 begs two particular questions:
Just when did QE really begin and how far up is that line going to go?
(HT Sean Corrigan of Diapason Commodities)
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The Swiss franc factor
For those concerned about the prospect of a round of competitive currency devaluations, the Swiss National Bank’s abrupt move on Thursday to intervene to push down the Swiss franc raised alarm bells.
It was the first time a leading central bank has intervened in the forex markets since Japan sought to weaken the yen in 2004,
Swiss struggles
The Swiss franc, along with Swiss banks, is taking a beating this morning.
In fact, RBC Capital Markets contend the currency is rapidly losing its safe haven status and decoupling from the US dollar.
Switzerland may have to print money to stave off deflation
The Swiss National Bank has cut interest rates to 0.5pc and opened the door for emergency stimulus, becoming the first country in Europe to flirt with zero policy rates, the Telegraph reported. Thomas Jordan,
Swiss bank chief notes Singapore secrecy
Singapore should expect tougher international scrutiny of its banking secrecy rules, as the Asian city-state continues to expand its wealth management and private banking businesses, said the chief executive of the Swiss Bankers Association.
Spot of Swiss
Switzerland’s famous for chocolate, cheese, knives, neutrality and banking. It’s the latter that could be problematic.
From VoxEU:
In this crisis, the strength of a bank’s balance sheet is of little consequence.
This carry trade is made in Switzerland
Historically, Switzerland’s currency has been the strong, silent type, says the Wall Street Journal: the tiny nation’s steady economy and peaceful geopolitics have long lured investors to the Swiss franc in times of global economic turmoil.