Swiss property markets too hot to handle? Not for now, says UBS
Low interest rates and rising property prices have pushed Zurich into eighth place on UBS’s 2019 Global Real Estate Bubble Index, with the top 10 dominated by European cities. Matthias Holzhey, head of Swiss real estate investments at UBS Global Wealth Management, says the bank doesn’t predict that Zurich will enter bubble risk territory but warns that prices will not be sustainable if Switzerland were to fall into a steep recession.
Fiscal policy is no easy fix to economic slowdown, warns KOF
The latest barometer from the KOF Swiss Economic Institute paints a worrying picture, dropping to its lowest point since 2015. KOF’s director Jan-Egbert Sturm reviews what could pull out Switzerland, and he shares his view on whether the country should brace for a recession, or not.
Behind the scenes of the art auction market
Art is often more affordable than we think. Tanya König went behind the scenes of Christie’s Swiss art sale and tells Hannah Wise what influences the price paid for artwork at auction and that it’s not all about record sales.
Draghi’s measures spark wave of hawkish discontent at ECB
The abrupt resignation of German ECB appointee Sabine Lautenschläger from the executive reflects growing dissent at the top of the central bank over the latest stimulus measures and challenges to come for Mario Draghi’s successor Christine Lagarde. Christian Nolting, chief investment officer for Deutsche Bank Wealth Management, says the “game changer” needs to come from politicians with a push into more fiscal policy.
Swiss franc left out of Libra currency basket
The Swiss franc won’t be used to back Facebook’s Libra—at least not for now. Speaking at a blockchain event hosted by the UN in Geneva, Libra Association’s managing director Bertrand Perez responded to critics of the cryptocurrency and gave more insight into how much activity would take place at the Geneva headquarters.
Switzerland remains digitally competitive but there’s room to improve
Switzerland remains No. 5 for the second consecutive year in the 2019 IMD ranking of digital competitiveness. But a closer look at this year’s report shows there’s less to brag about. Internet adoption, e-commerce, and tablet ownership are some of the areas where there’s room for improvement. The country also scores low when it comes to women in the digital workforce.
Credit Suisse spy drama: Here are the facts
The two largest Swiss banks are in the midst of a dispute after star banker Iqbal Khan left Credit Suisse last month to join archrival UBS. CNNMoney Switzerland’s Editor in Chief Andreas Schaffner explains what we know thus far.
Credit Suisse vs Iqbal Khan: a wake-up call for Swiss banks
The scandal surrounding Credit Suisse and top banker Iqbal Khan should serve as a warning to an industry that continues to play by its own rules, says Daniel Bühr, chairman of Ethics and Compliance Switzerland and a partner at the law firm LALIVE. While Bühr declines to comment on the Khan case specifically, he says companies need to have a “clear set of values and a good culture of compliance” to avoid reputational damage in the digital age. He also stresses the importance of external investigations of allegations of corporate misconduct.
Emerging markets find renewed demand for their debt
Emerging market bond sales have picked up recently, as central banks in developed countries continue to cut rates. Luc D’hooge of Vontobel Asset Management, says emerging markets are attractive to investors chasing yields.
Failure to act on whistleblowing could cost Swiss economy billions
A failure to finalize legislation protecting whistleblowers in Switzerland could cost the Swiss economy as much as CHF 10 billion over the next 10 years, warns Daniel Bühr, chairman of Ethics and Compliance Switzerland. In a newly published white paper, the nonprofit organization urges the Swiss parliament to act quickly to pass the stalled law and incorporate more protection for whistleblowers into the draft bill.
“Swiss Banks are leading the way in Europe,” says Mark Lieb of Spectrum
Despite the negative rates environment, Mark Lieb, founder, president, and CEO of Spectrum Asset Management, sees Swiss banks in a better situation compared to their European peers, thanks to the strength of their balance sheets and their market positions. Other European banks need to follow, he says, a process that will lead to a reduction of jobs.
Carmignac: Germany will deliver on fiscal stimulus
A number of European governments, including Spain, Italy, and France, have stepped up spending this year to spur economic growth, says Kevin Thozet, portfolio adviser at Carmignac. With Germany on the brink of a recession, he believes Chancellor Angela Merkel can’t hold out much longer.