The World Economic Forum just released its annual global competitiveness index, and Switzerland has dropped down one place to fifth in the report. But the WEF’s Saadia Zahidi says what’s really holding the country back is that its tariff regime is far too complex, placing it last in that category.WATCH MORE
Economic growth: quantity vs quality
The new head of the International Monetary Fund, Kristalina Georgieva, says the U.S.-China trade war could cost the global economy around $700 billion by 2020—a loss equivalent to the size of the Swiss economy. Eleanor Taylor Jolidon, co-head of Swiss and global equity at UBP, questions the need for growth at a high level, saying the world should start thinking about the quality of expansion.
SNB takes first steps toward digital central bank money
The SNB has long been wary in its approach to digital assets. But now the national bank is teaming up with the Swiss SIX Exchange to explore a digital central bank money that could be used to settle trades of tokenized assets. Martin Liebi, director at PwC, welcomes the move, saying it would further cement the country’s status as a crypto nation.
Swiss rank last in WEF report when it comes to tariffs
The World Economic Forum just released its annual global competitiveness index, and Switzerland has dropped down one place to fifth in the report. But the WEF’s Saadia Zahidi says what’s really holding the country back is that its tariff regime is far too complex, placing it last in that category.
Haunted by last year’s rout investors play it safe this October
Investors are reducing risk as the year draws to a close, migrating from equities into debt markets, and shifting from volatile tech stocks into more stable sectors such as utilities, says Alastair McCaig, director of Fern Wealth. October 2018 was a horrible month for stocks and “so far this month hasn’t proven to be any better,” he says.
Sunrise CEO: “I don’t have a plan B”
Sunrise is locked in a feud with its largest investor, Germany’s Freenet, which opposes the takeover of Liberty Global’s UPC business for CHF 6.3 billion. In an extraordinary meeting on Oct. 23, shareholders will vote on a capital increase needed to fund the takeover. For Sunrise CEO Olaf Swantee, this is a once-in-a-lifetime chance. “We will not have another possibility to drive consolidation in the Swiss market,” he says. He does, however, see potential job losses in management, administration, and back-office.
Meat alternatives: a sizzling business
Alternative meat is all the rage at the moment with Barclays recently estimating that the sector could reach USD 140 billion worldwide in the next decade. And now Nestlé has just launched its own plant-based burger in Switzerland. So what does the future of alternative meat start-ups look like now?
Citi’s Fordham: Impeachment could boost Trump’s election prospects
The impeachment inquiry into U.S. President Donald Trump could galvanize his base, improving his chances of reelection, says Tina Fordham, Citigroup’s chief global political analyst: „We are really living in a time of political impossibilities being very much real.’’
U.S. set to top Germany as Switzerland’s main export destination
The U.S. is likely to leapfrog Germany as Switzerland’s biggest export destination over the next two years, according to Swiss Life’s Chief Economist Marc Brütsch. The U.S. accounts for around 13.2 percent of trade exports from Switzerland, but that could increase to up to 17 percent in the coming years as the country reduces its reliance on its neighbor, Brütsch said. Currently around 15 percent of Swiss exports go to Germany.
Seeking solace in the U.S. jobs report
A week of dismal economic data ended on a brighter note Friday as the U.S. jobs report showed that employers added jobs at a steady pace in September. “Today’s job numbers in the U.S. gave some positive feedback that the economy is slowing, yes, but it’s still growing,’’ says Thomas Wille, head of research and strategy at LGT Bank.
