Catherine's Feed
Sep 2, 2011

Soaring Swiss franc puts squeeze on German enclave

BUESINGEN, Germany (Reuters) – Since a 19th-century treaty established a German village wholly within Switzerland, the people of Buesingen have become accustomed to navigating between Berne and Berlin.

Yet for the residents of this leafy village of 1,400 on the banks of the river Rhine, the record-strong Swiss franc is generating even more heat than the summer sun.

Aug 31, 2011

Swiss minister: must live with strong franc

ZURICH, Aug 31 (Reuters) – Switzerland has to live with a
strong franc for now, its economy minister said on Wednesday,
detailing plans to offset the currency’s impact on the economy
but not to directly counter its strength.

Worries about the global economy and about government debt
in the euro zone and the United States have prompted investors
to seek a safe haven in the franc, making Swiss exports more
expensive and putting corporate profits under pressure.

Aug 31, 2011

Swiss minister: must live with strong franc for now

ZURICH, Aug 31 (Reuters) – Switzerland has to live with a
strong franc for now, its economy minister said on Wednesday,
outlining moves to offset its impact on the economy but not to
directly counter the currency’s strength.

“We’ll have to keep living with the strong franc for some
time. It must be a combination of measures that will lead us
into the future,” Economy Minister Johann Schneider-Ammann said.

Aug 23, 2011

SNB’s target rate poised to turn negative

ZURICH (Reuters) – The market interest rate the Swiss National Bank targets looks set to turn negative this week, sending jittery investors seeking to safeguard their funds in Switzerland into uncharted waters.

The key rate has been trending towards zero for several days but it has never before been negative, making it hard to gauge exactly how market participants will react to the prospect of negative returns.

Aug 23, 2011

Swiss franc dampens Swiss exports in July

ZURICH (Reuters) – Sluggish growth in key trading partners and the strong franc weighed on Swiss exports in July, adding to signs the Alpine economy will slow in the months ahead.

Swiss exports have long held up despite a nearly 30 percent rise for the franc since the 2008 financial crisis.

Aug 22, 2011

Swiss stocks – Factors to watch on Aug. 22

ZURICH, Aug 22 (Reuters) – The following are some of the
main factors expected to affect Swiss stocks on Monday:

CREDIT SUISSE

The record-strong Swiss franc and low interest rates are
pressuring Credit Suisse’s revenue but it is confident it will
meet its profitability target of 15 percent ROE in the medium to
longer term, its chief executive told a newspaper on Monday.

Aug 17, 2011

Scenarios: What Switzerland could do to fight strong franc

ZURICH (Reuters) – The Swiss National Bank may have to resort to tougher measures to weaken the red-hot Swiss franc because slashing interest rates to zero and pumping liquidity into markets has not had much effect thus far.

The SNB on Wednesday announced it would expand sight deposits to 200 billion Swiss francs ($250 billion), its third round of easing measures in as many weeks.

Aug 17, 2011

SNB makes low-key move to tame franc; currency spikes

ZURICH (Reuters) – The Swiss National Bank on Wednesday made fresh efforts on Wednesday to tame a runaway franc but again steered clear of direct intervention, disappointing markets that had positioned for more radical measures and sending the currency sharply higher.

The central bank said it would further boost liquidity by expanding sight deposits to 200 billion Swiss francs from 120 billion francs, and would if necessary introduce further measures.

Aug 17, 2011

SNB makes low-key move to tame franc

ZURICH (Reuters) – The Swiss National Bank made fresh efforts on Wednesday to tame a runaway franc but again steered clear of direct intervention, disappointing markets that had positioned for more radical measures and sending the currency sharply higher.

The central bank said it would further boost liquidity by expanding sight deposits to 200 billion Swiss francs from 120 billion francs, and would if necessary introduce further measures.

Aug 11, 2011

Swiss eye more steps to quell franc rise

ZURICH, Aug 11 (Reuters) – The Swiss National Bank could
ease monetary policy further without having to resort to
currency interventions to counter a soaring franc, Vice Chairman
Thomas Jordan was quoted as saying on Thursday, as investors
speculated over the bank’s next move.

Analysts say the bank could be leaning towards the
imposition of negative interest rates — forcing banks to charge
clients to hold their money — something Switzerland last saw in
the 1970s and which was used more recently by Japan.