Burgundy comes to Sierre's sunny Vinea: Colline de Cortons wines were guests
Sierre, Valais, Switzerland (GenevaLunch) – For the 16th year in a row, Vinea, the main wine fair for Swiss wines, managed to order sunshine for its two days of wine-tasting. This is the first year that the fair, organized originally by Valais winemakers to promote their own wines, has been opened to bottles from throughout Switzerland. Some 1,200 wines were on offer, and more than 10,000 people from around the country showed up to sample them.
Switzerland produces 1.12 million hectolitres of wine, a little over half of which is red wine, and Swiss consumers drink 37 litres per inhabitant a year.
The foreign wine guest of honour was the Colline de Cortons region in Burgundy, France, which brought 2006 bottles from several of its producers, providing a good basis for comparison within the region.
Zurich, Switzerland (GenevaLunch) – Zurich is preparing for the Jamaican superstar sprinter Usain Bolt to show whether he can improve on his recent world record at Berlin. Friday evening 28 August he will be the chief attraction at the Weltklasse Zurich meet. The 100-metre final is scheduled for 21:10.
In the meantime locals will have the chance to race against a paperboard “double” that will race at his world record speed at RailCity, Zurich’s main station, Thursday 27 August between 11:30 and 13:30.
Details: iaaf.org
Update 21 August Miami, Florida, USA (GenevaLunch) - A banker for NZB (Neue Zürcher Bank), Hansruedi Schumacher, and a Geneva and Zurich lawyer, Matthias Rickenbach, both Swiss, were indicted Thursday 20 August in Miami, Florida on charges of conspiring to defraud the US. The two are accused by the US of helping US residents to evade American taxes, including Jeffrey Chernick of New York and John McCarthy of Pasadena, California, two of four UBS clients who recently have been indicted for tax fraud after their names were given to the IRS in February 2009 by the bank, and who turned themselves in.
The two are accused, among other things, of telling “a New York businessman they paid an unnamed Swiss government official a $45,000 bribe for information on whether the businessman’s account would be revealed to US investigators,” Associated Press reports court documents as stating. AP also says the two are in Switzerland and it is not clear if they have US attorneys to represent them.
The New York Times says the new indictments indicate “that the American authorities are starting to pursue smaller players that may have helped Americans hide their money.”
Bern and Zurich, Switzerland (GenevaLunch) – Shares in the bank UBS rose nearly 5 percent by closing Thursday 20 August in Zurich to CHF17.56 after the Swiss government sold its 9 percent stake, 332.2 million shares (convertible notes to be converted 25 August), at a price of CHF16.50. The sale had been announced late Wednesday. In addition, UBS has agreed to pay the government CHF1.8b in cash, which waives its right to future coupons on the convertible notes.
The government has thus withdrawn its stake in the bank completely, and the initial investment of CHF6 billion in January 2009 to bail out the bank has been completely recovered, with the government making a net profit of CHF1.2b.
The eight-month investment provided an annual rate of return of more than 30 percent.
Update 2 0:30 Update 1 20 August 0:08 Bern, Switzerland (GenevaLunch) – The Swiss government is selling 332.2 million shares in bank UBS, withdrawing “immediately and entirely” its stake in the bank. The announcement was made by Bern after details were published Wednesday 19 August of the Swiss-US out of court settlement in the UBS bank case.
Bern and Zurich, Switzerland (GenevaLunch) – Highlights of the agreement between the US and Switzerland in the UBS out of court settlement, provided by the Swiss government, include (Ed. note: US Department of Justice page on the settlement):
Shares up; Swiss bankers hire US lobbyist
Zurich, Switzerland (GenevaLunch) - It may be no more than rumour based on several unnamed sources being cited, but the financial world is now expecting the Swiss and US governments to sign on Wednesday an agreement involving Swiss bank UBS. The bank’s shares have continued to climb most of this week, reaching the level they were at in December 2008 before the bank agreed to hand some names to the IRS tax authority, in early February. UBS shares closed in Zurich at CHF16.90 Tuesday 19 August.
Once the agreement is signed by both parties, details can be released. Widespread speculation by industry observers and media has UBS delivering some 5,000 clients’ details to the IRS, but the figure could take on a new aspect with the IRS specifying Tuesday 19 August that it is now investigating for criminal activity 150 of the 252 client names provided to it by the bank in February 2009.
(correction: price of gold) Zurich, Switzerland (GenevaLunch) – The Swiss National Bank has posted a positive half-year result of CHF5 billion before provisions, compared to a loss of CHF3.4b a year earlier. The SNB ended 2008 with a loss of CHF4.3b. The central bank’s legal obligations require it to set aside provisions that allow it to maintain currency reserves at a level necessary for monetary policy. For the first six months, CHF701.8 million will be allocated to provisions. The stabilization fund set up to bail out bank UBS had no impact on the results, the SNB points out.
Swiss trade surplus grew, investment income fell
Zurich, Switzerland (GenevaLunch) - Switzerland’s net investment earnings are negative for the first time since the Swiss National Bank (SNB) began compiling statistics in 1947, ironically, as a record trade surplus was posted for 2008. Losses from Swiss banks’ foreign subsidiaries caused 2008 income from direct investment abroad to fall sharply, from CHF60 to 8 billion. Meanwhile, the trade surplus for 2008 widened by CHF5b to CHF19b, as exports grew and imports fell. The impact of the global economic crisis affected trade figures only in the fourth quarter, after three quarters of strong growth.
Net investment earnings show the earnings from Swiss investments abroad, minus payments to foreigners on their investments in Switzerland. This is historically a large surplus because of the earnings of Swiss multinationals, including banks. Their earnings have been declining, but the bailout solutions for bank UBS meant yet more money flowed out of Switzerland.
Zurich, Switzerland (GenevaLunch) - A couple racing to the hospital for the birth of their child were caught in rush-hour traffic in Zurich Monday at 18:30, ats/romandie reports. The husband phoned the police who managed to reach them, and one of the police officers took over at the wheel, since the woman was unable to get out of the car, and with sirens blaring he followed the police car to the hospital. A boy was born at 18:37, who was still nameless Tuesday.
UBS New York headquarters
Update 2 Florida, USA; Bern and Zurich, Switzerland (GenevaLunch) – The bell hasn’t yet quite tolled for anyone in the US court case where the IRS is asking for names of UBS bank clients. Judge Alan Gold in Miami late Friday 7 August, Swiss time, gave the two governments another week, until 12 August and at their request, to hammer out details of an out of court settlement.
Reactions were mixed, with the Financial Times reporting that “Friday’s setback caused confusion” for investors, arguing that the “failure” to reach an agreement will hurt UBS shares. Swiss media were more phlegmatic, viewing the delay as an acceptance that a resolution of several technical issues requires more time, which the judge has given.
UBS New York headquarters
Update 3 17:25 Bern and Zurich, Switzerland/Miami, Florida and Washington, DC, USA (GenevaLunch) - Shares in UBS rose more than 4 percent in the minutes following the news that Switzerland and the UBS have reached an Agreement in Principle in the civil case brought by the US Treasury department against Swiss bank UBS. The case will now be settled out of court, the Swiss government says in a statement issued late Friday afternoon. (background)
The two governments have reached an agreement in principle on the major issues in the case involving UBS and the IRS tax authority, US Justice Department attorney Stuart Gibson told the judge presiding over the case Friday 31 July. Neither he nor Judge Alan Gold provided details about the agreement, and the Swiss government says that “confidentiality has been agreed for the full duration of the negotiation process.”
Some early media reports noted that the judge has postponed the evidentiary hearing, whose opening had been delayed to Monday 3 August, until a week later, 10 August, with the parties scheduled to hold a status conference 7 August. But according to the Swiss government, the court has simply asked for an update on the details of the settlement Friday 7 August, and has scheduled a conference for this purpose.
Swiss Foreign Minister Micheline Calmy-Rey and US Secretary of State Hillary Clinton meet today in Washington, DC.
For the heart, better up than down: the Swiss Alps and Lake Geneva
Zurich, Switzerland (GenevaLunch) - Researchers at the University of Zurich, in a study of 1.6 million German-speaking Swiss people over a 10-year period, confirm that the risk of having a heart attack or stroke is dramatically lower if you live above 1,000 metres, and that climate is probably a key factor. Previous studies have provided conflicting results, in part because of the mixed populations studied, say authors David Faeh, Felix Gutzwiller and Matthias Bopp for the Swiss National Study Cohort Group.
The people with the lowest risk are those born at high altitude who continue to live there, their study shows.
The risk of coronary heart disease falls by 22 percent for each 1,000 metres of altitude and the risk of stroke drops by 12 percent per 1,000m. The study included men and women ages 40 to 84, who lived at altitudes ranging from 259 metres to 1960m.
American Heart Association, 28 July 2009
Zurich, Switzerland (GenevaLunch) – Bank Julius Baer has announced a fall of 37 percent in consolidated net profit to CHF 324 million in the first six months of 2009, compared to the same period a year earlier.
But who will take our money to finance the mortgage?
Update 25 July 07:20 Switzerland (GenevaLunch) - Two well-known Swiss cooperative banks, Migros and Bank Raiffeisen, have made changes in recent weeks to their policies concerning customers who are US citizens, or who are resident in the US. Specifically, both banks refuse all contact from the US. The steps taken by the banks, who are best known for mortgages and retail banking to middle-class customers, are a clear indication that US pressure is having an impact on the Swiss banking system. The moves are part of a trend that saw UBS in July 2008 alert non-US citizens who were resident in the US that their accounts would be closed as it reduced its US business.
Ironically, it is Americans trying to lead normal lives and pay their bills through their banks who are most affected – not the infamously wealthy and stealthy people the Internal Revenue Service (IRS) is hunting down. Also affected: Swiss citizens living in the US and people of other nationalities who have at some point lived in both countries. These are not the mythical secret, numbered accounts made famous by the likes of James Bond, but typical Swiss bank accounts covered by data protection laws in Switzerland.
The problem is complicated for US citizens and residents living outside the US because, according to American Citizens Abroad, a Geneva-based group, US banks are increasingly applying “due diligence” rules to refuse banking services outside the country.
