GENEVA, SWITZERLAND – The Swatch Group continued in 2011 to have “record numbers at all levels” as it posted its 2012 financial figures Tuesday 7 February. Gross sales were CHF7.14 million, up nearly 22 percent over 2010′s record sales, at constant exchange rates. “The continued weakness in the euro and the dollar during the year had a major negative impact on sales of about CHF 700 million,” the watchmaking-centred group announced in a statement.
Investors will be happy with its operating profit of CHF1.61 million, up 12.4 percent over the previous year, net income up 181 percent to CHF1.28m and proposed dividends 15 percent higher. More than 2 800 new jobs were created in 2011.
The group says the outlook for 2012 is promising despite the “higher benchmark” challenges and it will continue to invest in production in Switzerland “despite the high Swiss franc”.
SBA CEO Urs P Roth
Zurich, Switzerland (GenevaLunch) – EU citizens with bank accounts in Switzerland will pay a withholding tax on income from all investments, not just on savings income as at present, if a proposal from the Swiss Bankers Association (SBA) goes ahead. The group, at its annual meeting in Zurich 17 September suggested that the money collected would be transferred to the respective countries’ tax authorities without disclosing the name of the bank customer. The SBA proposal would extend withholding tax on EU citizens to include dividend income generated by stocks and mutual funds, as well as capital gains.
Switzerland has levied a withholding tax on its own and EU citizens since 2005, but it covers only income from certain types of investment, principally from bonds.
Verbier, Valais, Switzerland (GenevaLunch) - Televerbier, which operates the lift system in the commune of Bagnes, which includes the resort of Verbier, has bought out the 20 percent share of French company La Compagnie des Alpes for some CHF20 million.
The four emerging major markets known as the BRIC nations are holding their first summit this week in Moscow to discuss common issues, one of which is the idea of an investment alternative to the US dollar. Brazil, Russia, India and China together account for 15 percent of the $60.7 trillion global economy, reports Reuters, which quotes Goldman Sachs as saying that in 20 years the four could “dwarf” the G7 economies and China’s economy could be larger than that of the US.
Chinese official Guo Shuqing, meeting with Americans this week in Beijing to discuss the economy, says his country will continue to back the US dollar as the global reserve currency. The bulk of Chinese foreign investment is in dollars; the Financial Times notes that only 6 percent is in direct investment. The Chinese have been calling on the US to develop a more conservative fiscal policy to avoid undermining the dollar.
Lausanne, city of natural light
Lausanne, Switzerland (Le Temps, Fre) – The city of Lausanne is launching a series of measures that will significantly increase its involvement in green energy forms, starting with a new energy investment fund. The city council is asking the local parliament for a CHF30 million credit to establish a new company that will be owned entirely by the city and which is expected to raise CHF120-150 million from wind, solar and other renewable energy projects. Read more…
China is sitting on the world’s “largest stockpile of foreign exchange reserves,” $2 trillion, so its recent quiet shift to shorter term US Treasuries because of its concern over the growing US debt is being watched carefully. Reuters
The US town of Fairfield Connecticut filed a lawsuit against Bernard Madoff to recoup some of its 42 million Dollar loss in pension funds. Connecticut Superior Court Judge Arthur Hiller filed an order Monday 13 April to secure 25 million in cash escrow accounts and properties owned by Madoff’s relatives and business partners. According to the town’s lawyer, Fairfield is the first party suing Madoff to obtain orders securing pledges of cash or property. Reuters, Connecticut Post
A three-part special on housing and the international population in the Lake Geneva region: part 1
(Also see part 2: Myth and reality: how housing in the Lake Geneva region adds up)
Geneva, Lausanne, Switzerland (GenevaLunch) - Switzerland’s population grew by 1.6 percent in 2007, the highest rate since 1963, thanks to immigration fueled by a healthy economy and the country progressively opening up to the Schengen Area free movement of labour, starting in 2002. One result was to put more pressure on the demand for housing, especially in the Lake Geneva region where demand has long been greater than supply.
A new peak in housing demand in 2008 in canton Geneva coincided with new construction falling off, leaving Geneva with an apartment vacancy rate of 0.25 percent on 1 June 2008, the date when national figures are compiled.
Mega-investor Warren Buffett five years ago warned that financial derivatives were a “time bomb” waiting to go off and he ordered the insurance branch of his company, Berkshire Hathaway, to get out of the business, reports Reuters. The original story: BBC, March 2003, Buffett told Fortune magazine that such contracts were devised by “madmen.” Commentary, 16 September, Bloomberg
