As the United States and China get closer to a trade war, the two superpowers will not be the biggest losers if such a conflict eventually occurs and spreads globally. Countries that rely on trade the most will take the hardest hit, warns Marie Owens Thomsen, global chief economist at Indosuez Wealth Management. And among those nations is Switzerland. Exports and imports represent 120 percent of the Swiss GDP, while it’s only 37 percent for China and 27 percent for the U.S.WATCH MORE
Everything you need to know about the Swiss A220 fleet grounding
The latest grounding of the Swiss A220 fleet over engine concerns has impacted 100 flights and roughly 10,000 passengers. It’s the third incident for this aircraft since July. CNNMoney Switzerland’s Olivia Chang reports on the latest details.
Why the IMF may need to cut its growth forecasts even more
The International Monetary Fund on Tuesday cut its growth forecast for the global economy to 3 percent this year and 3.4 percent in 2020. Patrice Gautry, chief economist at UBP, says the outlook for next year is still “very, very ambitious,” even assuming an imminent pickup in global trade.
Swiss property market facing “systemic problem,” says Bestag
The key to a successful property sale is transparency, says Patrice Choffat, whose proptech start-up Bestag matches home sellers with property brokers. He warns that systemic problems in the Swiss property transaction market is costing sellers.
AMS says battle for Osram isn’t over yet
Armed with a 20 percent stake, AMS is refusing to admit defeat after its takeover offer for Osram fell through last week. Reto Huber, senior analyst at Research Partners, predicts the Swiss-listed sensor maker will ultimately succeed in its quest for control of the German lighting group.
Where Citi stands on the Libra project
The Libra Association is meeting in Geneva to review a charter and appoint a board of directors. But with big backers like Mastercard, Visa, PayPal and eBay abandoning the project, the question now is how big banks are approaching the digital currency. Citi’s Chief Innovation Officer Vanessa Colella is taking a cautious approach: “As banks we are custodians of a safe and sound financial system.” In her view, Citi is not “jumping on” in any sense, because what the company needs to do should be both forward-looking and prudent.
Repaying public debt “a waste,” create sovereign fund instead, says report
Paying back public debt in a low interest rate environment is inefficient, says Cédric Tille, economics professor at The Graduate Institute Geneva. In a new research report, he argues that Switzerland could run a deficit and finance a sovereign wealth fund instead. “We have an asset ‘the brand of Switzerland’: Why not use it,” he says.
