Neuchatel, Switzerland (GenevaLunch) - Swiss producer and import prices fell for the third consecutive month in Switzerland. According to federal figures, the overall decline of 0.5 percent in September was followed by a 0.6 percent decline in October. Domestic products registered a price decline of 0.3 percent while imported products fell 1.2 percent. Year-to-year inflation is lower than in 2007, at 2.9 percent.
Bern, Switzerland (GenevaLunch) - The Euro 2008 football cup will serve as a model for future large sports events and marked a turning point in terms of sustainability, a report on the event concludes. It praises Austria, Switzerland and the eight host cities for their efforts, pointing in particular to the 65-80 percent use of public transport, reusable drinks containers and solar panels, and good access for wheel chairs.
The headlines on the front page of the 7 November New York Times, one after the other, tell a stark story of an economy in a tailspin: Unemployment rate at 14-year high after big October losses; Ford plans cuts as it burns through $7.7 billion; Retailers report a [double digit] sales collapse.
Where do we turn when we’re worried about the economy? Google, it seems, whose business is booming and when it turned in a better than expected quarterly profits report, and said it would curb spending although it has just hired 500 people, its share rose 10% in an otherwise gloomy market Thursday. Reuters
Bern, Switzerland (GenevaLunch) - Swiss unemployment was stable at 2.4% in September, the same as the previous month, but it was lower than 12 months earlier. The number of new jobs that were vacant rose very slightly and partial unemployment, often used by Swiss companies in an economic downturn, fell.
Updated 14:00
Zurich, Switzerland (GenevaLunch) - European markets reacted badly to weekend news that banks in Ireland, then Denmark and Austria are providing guarantees to savers, seeing it as a sign of a deepening financial crisis. Shares fell more than 5% during the morning on several markets, with Moscow suspending trading late in the morning for an hour when share prices dropped 7.60% and 9.60% in 20 minutes on the RTS and Micex indexes; oils prices also fell (TSR, Fre and Bloomberg) .
Bern, Switzerland (GenevaLunch) - Switzerland’s growth will slow down to 1.9% for 2008 and 1.3% for 2009, although 2009 carries a higher than usual risk the situation will change, the federal government’s team of finance experts at Seco (finance ministry) said Thursday morning.
Germany was quick to reject and Britain was close behind in its dismissal of France’s initiative to create a common financial backing plan to keep European banks safe from the global financial crisis. Financial Times
In the US Congress, the Senate Wednesday voted in favour of a “sweetened” financial package that includes help for small businesses and guaranteed savings protection raised from $100,000 to $250,000, compared to the bill rejected Monday by the House. The new bill now goes to the House, which is expected to vote on it Friday. BBC, CNN
The International Herald Tribune and NY Tines carry a feature today that looks at the possibility many Americans may be more interested in seeing the wealthy punished than in saving the economy.
Lausanne, Switzerland (GenevaLunch) - Edipresse, the Lake Geneva region’s largest publisher, Wednesday announced that net income for the group rose 10% in the first six months of the year, to CHF24.2 million. Overall revenues dropped, however, by 10.1% to Read more…
The European Commission Wednesday reduced its growth forecast for the European Union to 1.4% (1.3% for the euro area), down about a half point from its forecast in April, saying that growth is “expected to slow down sharply and inflation is set to remain higher than usual for some time.” The area will escape recession, but just, it added. The EC cited high commodity prices, housing market “corrections” and a global slowdown in growth as factors.
Zurich and Geneva, Switzerland (GenevaLunch) - Multinationals contribute heavily - 34% of GDP (gross domestic product) - to the Swiss economy, with Swiss-based multinationals responsible for 24% and foreign companies 10%. In a flatter world, thanks to technology, says the Swiss-American Chamber of Commerce in a new study, Switzerland will have to do more to keep this key part of the economy here. “Multinational companies on the move: How Switzerland will win the battle” was published this week and makes five recommendations for what Switzerland should do to remain attractive to multinationals:
- continue to be competitive on the tax front
- ensure a sufficient supply of local skilled and specialized labour
- increase national cooperation for a joint Swiss approach (versus the piecemeal cantonal approach of the past)
- improve the basic infrastructure for multinationals (airline connections, IT infrastructure, international schools
- communication - project a contemporary picture of a real Switzerland, not Heidi-land images.
