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  • Swiss Gold Boom Threatened By Imminent U.S. Tariffs On One-kilogram Bars

    Swiss Gold Boom Threatened By Imminent U.S. Tariffs On One-kilogram Bars

    Swiss gold smelters have experienced a surge in business recently, leveraging a lucrative price differential between US gold futures and the London spot price. However, this profitable chapter is at risk of closing as new punitive tariffs may soon reshape the landscape of gold trading.

    This gold transfer bonanza enabled Swiss refineries to capitalize on a unique arbitrage opportunity by remelting hefty 12.5-kilogram bars—standard in Europe—into the smaller one-kilogram bars preferred in the US. Acting as a gold processing hub, Switzerland has been remelting these substantial bars into packages roughly the size of a smartphone, catering to eager American buyers.

    While the increased trading volume painted a rosy picture in trade balance figures, the reality of these transactions was clouded by a crucial detail: although these bars were counted as exports to the US, they initially entered Switzerland as imports.

    Pricey Tariffs Threaten Low-Margin Business

    Recent reports from the Financial Times suggest that this booming business may be upended by new tariffs set to be imposed by the US. If the information holds true, the introduction of a blistering 39 percent tariff on Swiss goods, specifically targeting one-kilogram gold bars, stands to catch the industry off guard. This decision is rooted in a ruling letter issued by US Customs and Border Protection on July 31, which classifies these gold bars under a customs code subject to steep levies.

    Industry insiders had anticipated that one-kilogram gold bars would sidestep the notorious “Trump tariffs,” given that they dominate trading on Comex, the world’s leading gold futures market, making up the bulk of Swiss gold exports to the US.

    Gold Futures React to New Tariff News

    In the wake of the tariff reports, gold futures on the Comex shot up to a notable high of $3,534 per troy ounce, demonstrating the market’s sensitivity to regulatory changes. The tariff announcement has been described as yet another stumbling block for Swiss gold trading with the US. Christoph Wild, president of the Swiss Precious Metals Dealers and Processors Association, expressed concerns about meeting the burgeoning demand for gold amidst these new obstacles. “Our prevailing thought was that gold melted down by Swiss refineries and exported to the US would be ship-free,” Wild remarked. “However, tariff classifications for different gold products lack clarity.”

    Over the twelve months leading to June, Switzerland exported a staggering $61.5 billion worth of gold to the US, underlining the scale of the trade relationship at stake. Experts from Lombard Odier argued that this situation warrants a nuanced perspective from the US government, urging them to consider the temporary nature of such commodities in their broader trade negotiations. Yet, so far, the Trump administration appears primarily focused on the total value of imports, without accounting for the complexity of specific product classifications.

    Questions & Answers

    What factors contributed to the recent boom in Swiss gold smelting?
    The boom was primarily driven by the price differential between US gold futures and the London spot price, allowing Swiss smelters to capitalize on arbitrage by remelting larger gold bars into smaller, US-preferred sizes.

    How will the new tariffs affect Swiss gold exports to the US?
    The introduction of a 39 percent tariff on one-kilogram gold bars will likely make it difficult for Swiss exporters to meet US demand and may halt their low-margin processing business.

    What is the potential impact of these tariffs on gold futures?
    In response to the tariff news, gold futures have risen significantly, reflecting heightened sensitivities in the market surrounding regulatory changes affecting trade relations.

  • Swiss Banks Face Growing Concerns: A New Challenge on the Horizon

    Swiss Banks Face Growing Concerns: A New Challenge on the Horizon

    The New Challenge Facing Swiss Banks: Operational Resilience

    Swiss banks are currently grappling with a pressing issue: operational resilience. This concern has intensified, not only due to tightening regulations emanating from the EU but also because of real-world events that have shaken confidence in banking infrastructure. A recent blackout in Spain and Portugal highlighted vulnerabilities in modern banking systems, shifting the conversation from hypothetical scenarios to stark realities.

    Operational resilience, while a cumbersome term, has become a focal point in the IT departments of Swiss financial institutions. These banks are now tasked with shielding themselves from an array of technical risks, such as cyberattacks—think DDoS attacks targeting e-banking—outdated legacy systems, and a growing reliance on cloud providers. As new regulatory requirements for data protection and overall resilience come into effect, the pressure is mounting.

    Blackout: A Wake-Up Call for Banks

    The implications of power outages have taken on new significance. Historically viewed as an unlikely disaster, the blackout that struck Spain and Portugal on April 28 changed the game. “This is no longer a theoretical risk; banks have finally realized such an event could very well occur in our region,” says Henning Gebert, a digitalization expert at Capco, a management and technology consulting firm that assists financial institutions in their digital transformation efforts.

    Since the blackout, numerous Swiss banks have sought Gebert’s expertise. They urgently require stress tests to assess their vulnerabilities. The incident underscored several critical shortcomings:

    Firstly, many branches either lacked adequate uninterruptible power supplies (UPS) or were not prepared for short outages, leading to significant disruptions. With cash availability being a crucial backup during severe crises, it’s vital that contingency plans for cash logistics are established ahead of time. Secondly, during the blackout, redundancy systems seemed to be the privilege of larger institutions; many branch offices were left paralyzed when mobile and internet connections failed, crippling point-of-sale systems. Finally, while banks’ core payment infrastructure remained intact, customer access was gravely limited, effectively nullifying cash withdrawal capabilities at ATMs and branches.

    “In such situations, it’s critical that systems can autonomously restart without relying on external authentication, which typically falters during a blackout,” Gebert explains, emphasizing the need for robust internal systems.

    New Regulations Adding Pressure

    The stakes are high for banks that fail to bolster their IT security measures. Not only do they risk operational outages, but they also face the potential of hefty fines and substantial reputational damage. The Digital Operational Resilience Act (DORA) implemented in January, has brought forth stricter regulations for banks, insurers, and asset managers across the EU. It mandates rigorous ICT risk management, standardized incident reporting, resilience testing, and stringent guidelines for outsourcing IT services.

    Swiss Banks Caught in the Crossfire

    Though Swiss banks are not directly bound by DORA, they are nevertheless affected. They must adapt their governance frameworks, IT contracts, and processes to comply with these evolving standards or risk exclusion as third-party providers in the future. DORA’s cross-border implications are undeniable, even without a direct EU mandate.

    Gebert notes a marked increase in awareness among banks post-blackout. The clarion call for action has become too loud to ignore, and it appears Swiss institutions are finally ready to plot a more resilient path forward. After all, in the world of finance, it’s always wise to be prepared for the unexpected—even if that means wrestling with the jargon of operational resilience.

    Questions & Answers

    Why is operational resilience becoming a critical issue for Swiss banks?
    Operational resilience is under scrutiny due to increasing regulatory pressures, highlighted by recent power outages that exposed vulnerabilities in banking infrastructure.

    What were some key challenges faced by banks during the recent blackout?
    Banks struggled with inadequate uninterruptible power supplies, reliance on outdated systems, and failed connectivity that left many customers unable to access cash or banking services.

    How are new EU regulations impacting Swiss financial institutions?
    The Digital Operational Resilience Act (DORA) compels Swiss banks to adapt governance and IT protocols to avoid exclusion as third-party providers, even though they are not directly mandated to follow it.

  • Swiss Craftsmanship Meets Hollywood: IWC Schaffhausen Stars In F1 The Movie 2025

    Swiss Craftsmanship Meets Hollywood: IWC Schaffhausen Stars In F1 The Movie 2025

    Swiss Timepieces Take the Spotlight in Cinematic Showcase

    As the lights dimmed and excitement filled the air, the Arthouse Le Paris cinema in Zurich played host to the premiere of F1 The Movie 2025. The event was not merely a celebration of film but a showcase for IWC Schaffhausen, the prestigious watchmaker, proudly standing as the official partner of the fictional racing team APXGP. This film, steeped in racing drama, brings Swiss craftsmanship to the forefront, and the atmosphere crackled with anticipation.

    Directed by the talented Joseph Kosinski, known for his work on the blockbuster Top Gun: Maverick, filming began in 2023. IWC has a well-established connection to Kosinski; after all, Tom Cruise donned an IWC timepiece in his previous high-flying adventure.

    What sets this production apart is its groundbreaking technique of in-camera filming, where cameras are mounted directly in the race cars, presenting viewers with an authentic cockpit experience that blurs the lines between cinema and real-life racing action.

    Star Power Behind the Wheel

    The ensemble cast features heavyweights like Brad Pitt in the role of Sonny Hayes, and Damson Idris as Joshua Pearce. Their performances go beyond mere acting; many scenes were shot during actual driving maneuvers, lending an exhilarating authenticity to the film. The result is a visual spectacle that often convinces viewers they are trackside at a live Grand Prix rather than seated comfortably in a cinema.

    In a twist of fate worthy of a Hollywood script, these two characters embody contrasting philosophies and generations in the fast-paced world of racing—an ideal backdrop for the IWC watches they wear.

    Watches that Tell a Story

    Representing the old guard, Pitt’s character wears the Ingenieur SL, distinguished by its green dial and designed by the legendary Gérard Genta. Initially overlooked and later discontinued, this watch has rebounded into the hearts of collectors—a testament to resilience and underrated talent.

    In an unexpectedly poetic turn, Sonny Hayes, after an ill-fated career marred by a serious accident, finds an unexpected shot at redemption with the help of his beloved watch. Both Hayes and the Ingenieur SL share the narrative of undervalued potential and the struggle for recognition, a resonant theme that echoes throughout the film.

    A Modern Marvel for a New Generation

    In contrast, Joshua Pearce, played by Idris, is a young, ambitious risk-taker representing the new generation of racers. He sports the Pilot’s Watch Performance Chronograph 41, an exclusive model developed just for the film, released in two limited stainless steel editions. Its design mirrors the APXGP race car’s aesthetics, perfectly encapsulating themes of innovation, speed, and modernity.

    A Prelude to a Timeless Tale

    The audience’s experience was further enriched by a YouTube short titled The Most Brilliant Failure, which set an emotional context for the story. This narrative intertwined the journeys of both Sonny Hayes and Gérard Genta. Both men, visionaries in their fields, faced early challenges in gaining recognition—Hayes as an exceptional driver and Genta as an artistic watchmaker.

    Genta’s humility, poignantly expressed in the short when he says, “I am an artist, a painter. What do I know about watches?”, resonates deeply with Hayes’ quiet resilience in the film’s final moments. Their stories remind us that greatness often lies not in boastful declarations but in quiet determination and unyielding creativity.

    Questions & Answers

    What unique filming technique was used in F1 The Movie 2025?
    The film utilized in-camera technology, embedding cameras directly into the race cars to create authentic cockpit perspectives for viewers.

    How do the watches worn by the characters symbolize their journeys?
    The Ingenieur SL worn by Sonny Hayes represents undervalued talent and resilience, while the Pilot’s Watch Performance Chronograph 41 worn by Joshua Pearce embodies ambition and dynamism in modern racing.

    What emotional context did the YouTube short provide for the film?
    The short, titled The Most Brilliant Failure, highlights the parallel journeys of Sonny Hayes and Gérard Genta, emphasizing themes of unrecognized brilliance and eventual redemption.

  • Swiss Banking: Navigating the Fine Line Between Confidence and Self-Reliance

    Swiss Banking: Navigating the Fine Line Between Confidence and Self-Reliance

    Private wealth management thrives on discretion, making the open dialogue at the recent Private Banking Day all the more significant. In an era of increasing global pressure and uncertainty, the event’s celebration of “Swissness” serves as a clear declaration of intent.

    Switzerland’s Continued Financial Dominance

    As a global frontrunner in private wealth management, Switzerland has compelling reasons to defend its prestigious standing. In times of volatility, stability and security are paramount, and the Swiss financial ecosystem boasts strong expertise, collaborative industry relationships, and a proactive synergy between public and private sectors.

    Even more promising, the demand for private wealth management is expected to surge in the coming decades, with global private wealth projected to soar.

    Voicing Concerns and Commitment

    The ninth Private Banking Day held on Tuesday in Zurich, organized by the Association of Swiss Private Banks (VSPB) and the Association of Swiss Asset Management and Wealth Management Banks (VAV), underscored this optimistic outlook. The day kicked off with remarks from the esteemed Minister of Economic Affairs, Guy Parmelin, who urged everyone in attendance to rally around efforts that ensure Switzerland retains its status as a premier financial hub. However, he also reflected on his poignant experiences with three bank bailouts—Banque Cantonale Vaudoise, UBS, and Credit Suisse—expressing a firm hope that he wouldn’t have to navigate a fourth.

    Neutrality Under Pressure

    In a broad-ranging address, Parmelin highlighted various pressing issues touching on wealth management. He expressed optimism about upcoming trade negotiations with the U.S., while also acknowledging the challenges posed by rising international regulatory pressures, which risk diminishing national identities. He was candid about the current trend of deglobalization, characterizing it as the “return of protectionism.”

    Another Perspective on Industrial Policy

    Amid this discussion, Parmelin pushed back against suggestions for Switzerland to adopt an industrial policy reminiscent of other nations that use government tools like subsidies to push specific sectors. He maintained that automatic stabilizers like unemployment insurance should be adequate for Switzerland’s needs.

    Daniela Stoffel, State Secretary for International Finance and a panelist, echoed this sentiment but acknowledged the growing debate in Bern regarding how long Switzerland can adhere to rule-based economic principles while many countries now overtly support key companies with extensive incentives.

    Walking a Fine Line on Neutrality

    Stoffel, who aptly described her job as part of “Swissness,” tackled a thorny issue: Switzerland’s alignment with EU sanctions against Russia. While this move came with significant implications for the banking sector, she insisted that Swiss neutrality remains intact—albeit with a hint of uncertainty.

    The Wealth Management Landscape

    Returning to the theme of wealth management, Giorgio Pradelli, President of the VAV, highlighted the sector’s vital role, pointing out that it employs about 30,000 individuals, with roughly two-thirds situated in Switzerland. Noteworthy too are the roughly 2.4 trillion francs in assets under management and an impressive “export share” of 60 percent from the member banks.

    Lessons from the Watch Industry

    These statistics rival those of Switzerland’s illustrious watch industry, often viewed as the epitome of Swissness. Not surprisingly, the event featured Christoph Grainger-Herr, CEO of IWC, who captivated the audience with a keynote on successful branding for products “that no one really needs,” humorously likening luxury watchmaking to the entertainment sector—perhaps a reflection that some bankers found amusingly relatable.

    Networking or Real Debate?

    Events like these primarily serve as networking opportunities, offering both camaraderie and collective reinforcement rather than engaging dialogue. Against this backdrop, Grégoire Bordier, President of the VSPB, concluded the day by emphasizing the essential value of hard work and cultivating humility amongst the attendees.

    This blend of buzzwords like proportionality, risk-based regulation, and international competitiveness was prominent throughout the day. On the surface, these terms seem agreeable, yet they mask complex trade-offs and conflicting objectives, especially given the absence of a cohesive hierarchy among them.

    Smaller bank representatives argue for proportional regulation, while UBS contends that competitiveness should take precedence, irrespective of other countries’ regulations. Economists may call for a risk-based approach to maintain financial stability, yet Credit Suisse’s recent challenges illustrate that implementing such theories isn’t as straightforward as one might hope. And isn’t that part of the fun?

    Questions & Answers

    What was the primary theme of the 9th Private Banking Day?
    The central theme was “Swissness,” highlighting Switzerland’s commitment to maintaining its position as a global leader in private wealth management.

    Who was the featured speaker at the event?
    The event featured remarks from Minister of Economic Affairs, Guy Parmelin, who shared concerns about the future of Switzerland’s financial center.

    What parallels were drawn between wealth management and other Swiss industries?
    Speakers compared the wealth management sector’s economic significance to that of the renowned Swiss watch industry, reinforcing the idea of “Swissness” in both contexts.

  • Revolut Business Aims to Double Swiss Client Base, Says Chief Executive

    Revolut Business Aims to Double Swiss Client Base, Says Chief Executive

    Currently boasting around 10,000 corporate customers in Switzerland, Revolut Business is making a significant impact across the landscape of local enterprises. They cater to a diverse clientele ranging from solo entrepreneurs to established international corporations. The sweet spot for their core clients typically falls within small to medium-sized businesses, housing between five to fifty employees and experiencing an annual turnover of one to ten million. These Swiss companies often have cross-border operations, whether importing from Europe or exporting to the UK, leveraging Revolut’s services to manage foreign currency transactions and global payments. About half of global users consider Revolut their primary business banking account, a figure that holds strong, albeit slightly lower, in Switzerland.

    Understanding Swiss Business Dynamics

    While approximately 40 percent of Swiss businesses utilize Revolut as their primary account, it is evident that the platform is more than just a tool for occasional international payments. With plans for accelerated growth, Revolut’s expansive offerings are set to become even more attractive, especially with an already impressive traction in the region.

    What Fuels Growth?

    The rise in popularity can be credited to several distinct factors. First and foremost, Revolut presents an all-in-one solution, encapsulating everything businesses need in a single, user-friendly web and mobile interface. The onboarding process is surprisingly quick and straightforward, allowing companies to manage their finances with ease. Spending controls add an extra layer of security, enabling businesses to set limits and define approval protocols for corporate expenditures, key for advertising and day-to-day expenses. Of course, the ability to execute transactions in over 30 currencies at interbank rates serves as a significant lure, especially attractive to Swiss SMEs engaged in European trade.

    A Currency-Forward Thinking Strategy

    Revolut maintains its competitive edge not just in its functionalities but also in its continuous adaptation to customer needs. Recently, it launched access to foreign currency money market funds—ideal for businesses looking to optimize cash management rather than leaving funds idle. While holding investments in foreign currencies may not appeal to everyone, adoption has been swift—especially among startups with USD funding and companies operating in foreign markets. They are keenly aware that a forthcoming launch of local savings options in Swiss francs will broaden appeal even further.

    Upcoming Innovations for Swiss Market

    Looking ahead, Revolut is poised to introduce three exciting offerings in Switzerland. A Euro-denominated savings account, traditional cash savings options, and merchant solutions that enable businesses to accept card payments—complete with physical terminals. Most notably, the FX Forwards product will allow Swiss companies to lock in future exchange rates, catering to a market rife with cross-border trading.

    Seizing Market Share

    With a keen eye on the competitive landscape dominated by established giants like Worldline, Revolut’s strategy focuses on delivering superior technology and pricing. The integration of multiple services on one platform eliminates the need for separate accounts and enables businesses to manage finances seamlessly. Their recent push into active marketing, backed by a growing sales team, highlights their commitment to gaining traction in the Swiss market where approximately 10 percent of the population already uses the Revolut app.

    A Bold Target Ahead

    As the company sets its sights on ambitious growth for 2023 and beyond, General Manager James Gibson is aiming for a 100 percent year-on-year expansion. Doubling their base of business customers in Switzerland within the next year is the goal—an aspiration that promises to reinvigorate the local financial services landscape.

    Questions & Answers

    What is the current focus for Revolut Business in Switzerland? The immediate focus is on expanding our product offerings, including launching a Euro-denominated savings account and merchant payment solutions.

    How does Revolut plan to differentiate itself from competitors in the Swiss market? By providing a fully integrated platform that is user-friendly and competitively priced, we aim to streamline financial management for our customers.

    What does Revolut foresee for its expansion in Switzerland? We anticipate significant growth, aiming to double our Swiss client base within the next 12 months as we invest more resources into the local market.

  • Revolut Targets Swiss Market with Yield-Focused Retail Strategy

    Revolut Targets Swiss Market with Yield-Focused Retail Strategy

    Revolut is enhancing its presence in Switzerland by introducing flexible money market funds and virtual Swiss IBANs tailored for business clients.

    In an exciting development for the Swiss business landscape, Revolut has announced the launch of a product suite designed to empower companies with new financial tools. By offering flexible money market funds in multiple currencies and virtual Swiss IBANs, Revolut aims to enhance financial management for businesses of all sizes.

    Flexible Money Market Funds

    Starting immediately, Swiss customers using Revolut Business accounts—specifically those on Grow, Scale, or Enterprise subscriptions—can diversify their liquidity investments. Available in euros, US dollars, and British pounds, this offering democratizes access to financial products that were once primarily available to large corporations.

    Revolut highlights the attractive yield of its GBP-denominated fund, which offers variable returns of up to 4.08 percent (as of April 27, 2025). “This innovative fund allows business clients to grow their assets effectively,” stated Revolut in their announcement.

    Introducing Virtual Swiss IBANs

    In addition to flexible funds, Revolut is now providing virtual Swiss IBANs to streamline payment processes for businesses. The key features of this service include no costs for deposits and withdrawals, daily yield payouts, and convenient access to funds. James Gibson, Head of Revolut Business, expressed enthusiasm about these offerings, stating, “We are excited to support businesses of all sizes in managing their money efficiently and without high fees.”

    Strong Growth Momentum

    Revolut’s expansion into Switzerland is backed by impressive growth metrics. The company reports nearly 80 percent increase in monthly transaction volumes and a 63 percent rise in business deposits, reflecting a strong demand for its services among local enterprises.

    Future Considerations

    While Revolut is rolling out a broader range of services, such as FX forwards and enhanced integration with Swiss accounting software, the reception of foreign currency money market funds remains uncertain amid current market volatility. Over the past year, the Swiss franc has appreciated against major currencies, with the US dollar dropping approximately 9.5 percent against the franc, and the euro and pound also seeing declines.

    As Revolut continues to innovate, its new offerings stand to significantly impact the retail sector in Switzerland by providing businesses with cost-effective financial solutions. This expansion not only aligns with current consumer trends favoring digital banking but also reflects a broader shift in how companies manage their finances in an increasingly volatile economic environment.

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  • Top Financial Leaders Gather in Zurich to Discuss Retail Trends

    Top Financial Leaders Gather in Zurich to Discuss Retail Trends

    Top leaders from the realms of politics, finance, and technology will converge in Zurich for the highly anticipated third edition of the Point Zero Forum. This event, taking place from May 5 to 7, 2025, aims to address pivotal issues impacting the financial sector amid changing market dynamics.

    A Call for Trust and Stability

    Recent turbulence in financial markets has heightened awareness of the need for trust and stability, elements essential for fostering innovation and sustainability within the industry. The Point Zero Forum offers a vital space for high-level discussions focused on the future of global finance.

    Key Themes for Discussion

    As part of its agenda, this year’s forum will tackle several pressing topics relevant to the evolution of financial systems:

    • Path to Europe’s Technology Independence: Explore strategies for Europe to build a solid policy and infrastructure foundation that ensures digital sovereignty.
    • Demographic Challenges: Identify innovative policies that can bolster social and economic inclusion amid significant demographic transitions.
    • Startup Founders Spotlight: Examine how Europe’s entrepreneurial landscape can harness innovation and funding to enhance economic resilience and global competitiveness.

    Esteemed Speakers Lead the Dialogue

    The forum features an impressive lineup of distinguished speakers, including:

    • Guy Parmelin – Swiss Minister at the Federal Department of Economic Affairs and Research
    • Martin Schlegel – Chairman of the Governing Board, Swiss National Bank
    • Andrea Maechler – Deputy General Manager, Bank for International Settlements (BIS)
    • Axel Weber – Former UBS Chairman
    • Mike Dragan – Group Chief Operations and Technology Officer, UBS Group
    • Dirk Klee – Head of BlackRock Switzerland

    A Collaborative Effort

    The Point Zero Forum is jointly organized by the Swiss State Secretariat for International Financial Matters (SIF) and the Global Finance & Technology Network (GFTN), an initiative pioneered by the Monetary Authority of Singapore (MAS).

    As this prestigious gathering brings together top decision-makers, it is poised to inspire actionable insights and collaborative strategies that could reshape the future of the global financial landscape. The outcomes from the forum may significantly influence retail news, consumer trends, and the broader marketplace, ensuring that stakeholders are equipped to navigate the complexities of an ever-evolving financial world.

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  • Swiss National Bank Expands Activities in Singapore

    Swiss National Bank Expands Activities in Singapore

    The SNB takes a step to better optimize operations in a number of different currencies, markets, and time zones.

    The Swiss National Bank’s operating unit will start a two-year pilot project from August 2023 under which it will split operations between Zurich and Singapore, according to information received by finews.com. With that step, it intends to improve processing and execution in different currencies, markets, and time zones, an SNB spokesperson confirmed.

    As part of that, two individuals will be based there to handle securities, currency, and derivatives transactions while managing overall financial market asset inventories. In Singapore, the central bank employs 11 people in total and it is currently the SNB’s only foreign branch.

    Carolin Reiss leads it and has been since October 2022, when she succeeded Marco Huwiler, who subsequently returned to Switzerland. Reiss has been working for the SNB for ten years, mainly in the currency trading department and as an advisor for its so-called Department III (money markets and foreign exchange, asset management, banking operations, and information technology).  She is a native German citizen from Hannover who previously worked at Commerzbank and she possesses a Masters’s Degree from Humboldt University in Berlin although she also studied at the University of Zurich.

    The Singapore branch has stood the test of time given that it is celebrating ten years of existence this year. Its presence in the city-state allows it to more efficiently manage currency reserves in Asia and Oceania in local time zones while assisting with monetary policy operational requirements in foreign exchange markets. Its close proximity to regional market participants allows it to profit from a network of local institutions and market participants.

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  • Swiss Banks See Opportunity From Google and IT Layoffs

    Swiss Banks See Opportunity From Google and IT Layoffs

    Tech giants such as Google, Meta, and Microsoft are cutting tens of thousands of jobs worldwide. Swiss financial service providers, desperate for IT talent, are now positioning themselves.

    We are seeing candidates with careers at the big tech groups looking for new employment,» observes Stephan Surber.

    This should greatly boost the active job market for these sought-after forces, the Switzerland head and senior partner of executive recruiter Page Executive said.

    The Swiss financial industry waited a long time for this to happen. Until now, it has been practically impossible to poach IT talent from Google, which has around 5,000 employees in Switzerland. Banks were not only outdone in terms of coolness but also in terms of wages.

    But now the winds are shifting. American companies Amazon, Microsoft, and Google parent company Alphabet are planning to lay off 40,000 employees worldwide in the next few months. The Facebook group Meta is said to be cutting 11,000 jobs.

    The technology giants are not only correcting the exuberant job growth during the Corona crisis but responding to business model headwinds. Rapid growth has become more difficult in the face of a weakening economy. Investors are not as flush with cash as they once were since the central banks ended loose monetary policies.

    As the financial portal Inside Paradeplatz reported, the wave of layoffs is hitting one of the country’s most sought-after employers: Google Switzerland. According to internal e-mails, management is preparing the workforce for possible job cuts. However, they said this could only take effect in a few months.

    Swiss Banking is keeping its ear to the ground, according to Reto Jauch, a managing partner at Zurich-based executive search firm Schulthess Zimmermann & Jauch.

    Downsizing at tech firms is already an issue at many Swiss banks, he says. Boards and managements are assuming they can attract talent.

    This comes after financial institutions struggled to attract up-and-coming technology talent, like most Swiss industries desperate for IT expertise. A survey conducted by the industry association Arbeitgeber Banken in 2021 showed IT is the only area in which the institutions still plan to create jobs in the next few years, amidst a declining employment trend for the profession as a whole.

    Even if the job cuts in tech offer a golden opportunity to poach experts, this will not be a cakewalk for the banks. It is by no means enough to place advertisements. «A clear positioning is needed; these forces demand purpose and a destination from their employer,» says headhunter Jauch.

    The search for purpose in one’s work, is often laughed off as a fad by veteran bank managers. UBS CEO Ralph Hamers, a fan of digitization who coined the term in Swiss banking, is seen by more than a few as an irritant because of it.

    But the country’s largest bank is not letting anything go to waste in the battle for IT talent. Not only does UBS advertise a culture of engineers it also beckons with continuing education for IT specialists and internal awards. Borrowing from tech industry practices and depending on their level of training, employees can call themselves Certified Engineer, Distinguished Engineer or even Technology Fellow.

    It remains to be seen whether UBS will be able to score points with these titles given the cutbacks at Google & Co. For Oliver Berger, partner at search boutique Witena in Zurich, this means that at most one battle has been won, but not the talent war.

    This has just started and will continue for the next ten to 15 years, says the executive recruiter. What we are seeing at the moment are just the precursors, he . That’s because he said Switzerland has too few skilled workers, trains too few, and lets too few cross the border.

    Accordingly, the layoffs at tech companies are also likely to be short-lived before the market picks up again, he warns. We’re kind of experiencing a bull market rally in a bear market here.

  • Swiss Stock Exchange Gets Boost From China

    Swiss Stock Exchange Gets Boost From China

    After a record year for IPOs in 2021, the market for initial public offerings (IPO) cooled significantly this year. Yet Switzerland has been able to buck the trend.

    The Swiss stock exchange listed more companies than London and Amsterdam this year, while a recent EY study shows that globally the number of IPOs fell 45 percent from 2021, which was a record year for IPOs.

    The fourth quarter of 2022 was the weakest fourth quarter in more than 10 years, both in terms of numbers and proceeds, Tobias Meyer, head of transaction accounting and IPO services at EY in Switzerland said in the firm’s report.

    Yet, in Switzerland, the stock exchange SIX Group recorded 13 additions this year with a total volume of more than 3.8 billion Swiss francs ($4.1 billion), with 2.26 billion francs coming in the fourth quarter.

    The increase is due to a program launched by SIX and approved by the financial regulator Finma in July this year, allowing Chinese companies to list global depository receipts (GDRs) on the Swiss exchange.

    In 2022, significantly more companies went public on the Swiss stock exchange than in 2021, in particular, due to GDR listings by Chinese companies, Meyer is quoted as saying.

    However, the Chinese listings have failed to attract European investors, or even Western banks at scale, as reports. Chinese banks are pitching these listings as arbitrage opportunities where they sell new stock listings in Zurich back to shareholders in China at a discount, the outlet wrote, quoting a BNP Paribas equities expert.

    The expert also said that in future larger, more liquid offerings would transpire.

    Yet, looking ahead globally, there are no signs of a change in sentiment on the IPO market due to the difficult market environment and geopolitical tensions, with EY’s study showing that companies were still holding back on their IPO plans.

    Nonetheless with interest rate rises slowing and volatility declining, IPO activity could pick up in the second half of next year, Meyer said.

    Citigroup investment bankers recently came to a similar conclusion, saying that the second half of next year could see an increase in IPO activity when pent-up deals materialize.

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  • Bitcoin Suisse Partners With Lukka

    Bitcoin Suisse Partners With Lukka

    Swiss crypto Bitcoin Suisse is partnering with US crypto software and data specialist Lukka to support its middle and back office operations and further improve its systems. Lukka’s data and software are designed specifically for crypto and blockchain data, providing Bitcoin Suisse and its institutional client’s wide-ranging asset coverage and flexible reporting, according to a media release Thursday.

    Bitcoin Suisse is focusing on institutional grading for its professional private and institutional clients to be at the forefront of the growing demand in this client segment, said CEO Dirk Klee. He added, this marks the beginning of an integrated technology partnership that strengthens institutional- crypto asset support in Switzerland’s Crypto Valley.

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  • Swiss Banks Face a Tense Future in China

    Swiss Banks Face a Tense Future in China

    President Xi Jinping’s report to the 20th Communist Party congress hints at more tax and regulatory measures aimed at reducing wealth disparities.

    In the last two decades, the Swiss wealth management sector has been forced to directly confront and contend with the vagaries of the world’s two largest economies in the world – China and the US.

    In the case of the US, it has been anything but a delicate balancing act. Most of the wealth management industry has been manhandled into coughing up material fines for abetting tax evasion attempts by American citizens.

    China has been different. The wealth management sector has seen the country as the greatest new market of our time. For decades, bankers have returned wide-eyed from trips to Beijing and Shanghai, effusively spouting about this wide-open, boundless future full of promise. Many have been able to benefit copiously, from the unheard-of growth rates that country has experienced since the turn of the millennium.

    The two major Swiss banks have built onshore presences. And the smaller private banks and wealth managers that haven’t can still catch any passing outflows from the wealthy Chinese with their booking centers in the proximate cities of Hong Kong and Singapore.

    Although the political and economic differences between the US and China are indescribably wide, there is one striking similarity. They both tax citizens on their worldwide income. In China, almost all nationals are defined as being domiciled in China unless they live in Hong Kong, Macau, or Taiwan.

    That similarity could be a very significant inflection point for private banks and wealth management. And that looks likely to continue unhindered, at least according to President Xi Jinping’s report to the 2022 party congress on Sunday. In a translated transcript published by Nikkei Asia that was provided to journalists covering the event, he indicated:

    We will enhance the roles of taxation, social security, and transfer payments in regulating income distribution. We will improve the personal income tax system and keep income distribution and the means of accumulating wealth well-regulated. We will protect lawful income, adjust excessive income, and prohibit illicit income.

    That message has already been made very clear to China’s celebrities and influencers who were fined late last year for tax evasion.

    It is going to be very tough going for anyone trying to bank what many would consider the core target client base for a wealth manager or a private bank.

    That view seems to be borne out more generally, with Hong Kong’s daily English newspaper, the South China Morning Post , writing on Thursday that the wealthy Chinese could face a rocky road ahead.

    All of this, taken together, puts wealth managers in a double bind. Not only are they going to have to parse carefully and regularly review and re-review their client base for possible tax discrepancies, but they are going to have to go to pains to make sure that they are not making anyone excessively wealthy, at least not in the eyes of the Chinese government.

    What that means in practice is anyone’s guess. But for an industry traditionally known for privacy and discretion, it is a very big ask.

  • Swiss watchmaker Jacob & Co launches its first store in Japan

    Swiss watchmaker Jacob & Co launches its first store in Japan

    Swiss luxury watchmaker, Jacob & Co, has landed in Japan, opening its first brick-and-mortar store in the bustling district of Ginza this month.  The opening ceremonies, scheduled to take place on October 13, will be attended by the brand’s chairman and founder Jacob Arabo.  Situated between Ginza Station and Shimbashi Station and spanning one floor, the Jacob & Co Ginza store adapts the brand’s signature store design concept in black and white. While the ceiling features L

    Situated between Ginza Station and Shimbashi Station and spanning one floor, the Jacob & Co Ginza store adapts the brand’s signature store design concept in black and white. While the ceiling features LED lighting with Jacob & Co’s geometric lines, a large LED monitor is stalled on the wall to display the brand’s latest campaign.

    The store will be home to Jacob & Co’s full collection of watches, including the brand’s signature ‘Five Time Zone Watch’, which simultaneously displays the time in five different countries.

    The launch is part of its international footprint expansion plan. CEO of Jacob & Co, Benjamin Arabov, earlier this year said the company was planning to double its international footprint in the coming years.

    Founded in 1986 by Jacob Arabo, Jacob & Co has a presence in 31 countries and regions, including South Korea, India, Mainland China, Malaysia, Hong Kong and Singapore.

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  • Goldman Sachs Expands Services to Swiss Clients

    Goldman Sachs Expands Services to Swiss Clients

    Goldman Sachs is expanding its investment banking services in Switzerland and Europe as it chases stable revenues on the continent.

    Goldman Sachs is offering transaction banking services to corporate clients in the EU, adding services outside of its investment bank’s core areas of trading and advisory, it said in a statement Tuesday.

    Rolled out from Goldman Sachs’ hubs in Frankfurt am Main and Amsterdam, the offering will address the day-to-day payments and cash management needs of businesses and be available to corporates in Europe and Switzerland, a spokesman from the bank confirmed.

    Transaction banking was named as one of Goldman Sachs’ key focus areas in the bank’s 2020 investor day presentation and was introduced in the US in the same year.  The additional service could help fill holes from deal-making losses within the investment bank this year, resulting from lower stock prices, rapidly accelerating inflation and interest rates as well as an energy crisis.

  • Swiss watch brand Norqain opens first store in Asia

    Swiss watch brand Norqain opens first store in Asia

    Swiss-made watch brand Norqain has made its debut in Singapore, as part of an expansion into the Asia market.  The watch retailer has collaborated with Southeast Asia distributor Melchers, a Singapore branch of Melchers Group, for the launch. This is also the brand’s second global flagship store after the first opened in Zermatt, Switzerland, last year.  Norqain says the new store, located on Orchard Road, aims to replicate the feeling of the Swiss Alps, features an original ski-lift ch

    Norqain says the new store, located on Orchard Road, aims to replicate the feeling of the Swiss Alps, features an original ski-lift chair from Zermatt.

    The store’s interior was inspired by the Swiss Alps, with black, blue, and white as the primary colours running throughout the space. There is also a wooden bar inside the store.

    Norqain says on its Instagram that it wants to convey to customers “a real feel for the Norqain world and the Norqainer spirit”.

    The family-owned Swiss watch company is based in Nidau (Bienne), the heart of the Swiss watch industry. Founded in 2018, it makes mechanical automatic watches designed in-house.

    Jean-Claude Biver, a well-known Luxembourgish-Swiss watchmaker who used to serve as president of the LVMH Watch Division, announced in June that he would join Norqain’s board as an advisor.

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