Publications

03 Dec

Sharp economic slowdown in Japan in Q3

Anaemic GDP growth of +0.1% in Q3. Consumption slows. Exports contract. BOJ in holding pattern pending a government stimulus plan. Key Points GDP growth in Japan ground to a halt in Q3 (+0.1%) Exports fell further, but the trade balance is once again showing a surplus Industrial output dipped again at year-end after showing some […]

28 Nov

Switzerland’s GDP strengthens in Q3, surprising forecasters

Nominal GDP has passed the CHF 700 billion per year mark. Equity valuations above their historical average. Clear overvaluation of the Swiss franc in terms of PPP. Key Points Swiss GDP’s +0.4% growth rate in Q3 comes as afavourable surprise to forecasters Switzerland’s GDP exceeds CHF 700 billion peryear for the first time Growth is […]

01 Oct

Q4 Investment Strategy & Outlook 2019

Global Investment Climate – Key Points Excessive pessimism ultimately favourable to growth in the US Potential economic upturn in the euro area without Germany Technical recession could be avoided in the UK Private and public sectors shore up GDP in Japan Consumption will remain the primary driver of growth in Switzerland UAE Investment Climate – […]

26 Sep

Actual risks of recession in the US overestimated

GDP up +2.2% in 2019. Declining nominal and real rates beneficial to the economy. Leading indicators still wavering. Rebound in long-term rates. Beware of PE ratios. Key Points Excessive pessimism unfounded but ultimately favourable to economic growth Nominal and real rates will support economic momentum The Fed confirms +2.2% GDP growth expectations for 2019 Economic […]

24 Sep

Supreme Court reduces threat of no-deal Brexit

GDP down -0.2% in Q2. Real risk of recession. Likelihood of no-deal withdrawal decreases. BOE in wait-and-see mode. Possible upswing of long-term sterling rates. Key Points Boris Johnson’s strategy defeated by the Supreme Court Threat of a no-deal Brexit diminishes A technical recession might be avoided following the -0.2% decline in GDP in Q2 The […]

19 Sep

Can European growth recover without Germany?

GDP up +0.2% in Q2. Germany poses a problem. The ECB to inject 20bn/month for two years. Rebound of the euro. Asset rotation favourable to European equities. Key Points Contraction of Germany’s GDP hampers growth in Europe Underlying trends in consumption and investment remain positive Leading indicators may have seen the worst and finally seem […]

17 Sep

Private and public spending boost Japanese GDP

GDP up +0.3% in Q2. Consumption still robust. Exports plunge. BOJ could decide to sit tight. Earnings of listed firms down. Key Points Japanese GDP maintains positive momentum in Q2 with +0.3% growth Consumption, up +0.6%, bolsters growth Falling exports (-10.2% in August), in particular to Asia, hurt Japanese economy Trade deficit shrinks to -136 […]

13 Sep

General uncertainty also impacting Swiss economy in Q2

Low GDP growth in Q2 (+0.3%). Scaled down prospects for 2019. Decrease in rates will not last. High equity valuations. Extreme real estate premiums. Key Points Logical slowdown in GDP growth in Q2 in a very uncertain context (+0.3%) Consumption is the main GDP growth driver (+0.3%) Things finally looking up for leading indicators Growth […]

31 Jul

Q3 Investment Strategy & Outlook 2019

Global Investment Climate – Key Points US growth not under threat Eurozone seeking a second wind Chinese slowdown mitigated by strong consumption A more favourable second half of the year in Japan Outlook remains strong in Switzerland UAE Investment Climate – Key Points UAE Economic Highlights UAE Eases Rules on 100% Foreign Ownership to boost […]

01 Jul

G20 fails to provide solutions but may induce Fed not to act

Power struggle to carry on beyond G20 meeting. Expectations of key rates’ cuts too high. Consumption to drive GDP. Reduce equity exposure once again. Key Points G20 fails to provide solutions but truce could induce Fed to hold off Central bank faced with a difficult choice Lowering rates will consolidate recession scenario Waiting until September […]