Nothing surprising came out of this SNB meeting. The increase in the oil price is the main explanation of the upward revision of the inflation outlook. However, the effects of oil are short-termed. In a couple of months, this should disappear. The SNB sounds a bit too optimistic, in our view, on the US and European outlook, which will be also key to its monetary policy. Things might be slower than what the SNB displays.
Carefully, Brexit risk is too high, it is what emerges from the report published today by the ECB, which remains cautious about the economic outlook with the prevalence of downside risks.
"The most recent data indicate a continuation of growth in the second quarter, albeit at a rate that may be lower than the first quarter – it says – in perspective, the Governing Council expects the economic recovery to proceed at a moderate but steady pace . domestic demand continues to be supported by the transmission of monetary policy to the real economy. Conditions favorable financing and improvements in the profitability of the business they continue to promote investment. "
An IT employee of the Geneva branch of Mossack Fonseca, the Panamanian company that deals with the creation of offshore companies, was arrested on charges of removing large amounts of data.
The Swiss daily Le Temps reported the news, adding that the man for several days was placed in custody on suspicion of embezzling recently a large amount of confidential documents.
The Labour MP Jo Cox, attacked today in Birstall, near Leeds, has died, the police said. The woman, according to the BBC, was wounded with a knife and also of gunfire. He was in his constituency for the usual meeting with voters.
The assailant was identified. His name is Tommy Mair, for allegedly assaulting her, as reported by local investigative sources quoted by the media. Also according to sources, the man is 52 years old and is originally from Batley, Yorkshire, not far from the place where the ambush took place.
Art Basel has announced it will produce a new report on the annual art market in collaboration with UBS. The author will be Clare McAndrew, the known economist for the report on the art market of TEFAF, which will stop sign. It is unknown if TEFAF will continue to produce a report and who will be the author.
The latest Fed minutes had opened the door to a second rate hike in response to continued solid consumer spending figures, an acceleration in demand for credit, and a squeeze on wages, as the US is almost in full-employment. However, the latest job creation figures (38,000) dashed hopes of a rapid rate hike.
From next August PostFinance will reduce the interest rates of different current accounts: the private account in CHF or EUR is even zero, from the current 0.01%. The result of this decision is the current difficult context of the interests in domestic and international financial markets, leading to pressure on operating results.
The interest rate on savings E-bill for private customers, business or associations (in CHF or EUR) is reduced to 0.05% from 0.10%, as the press release informs.
The EU could soon introduce a regulation on payments in cash, by the Fourth Directive to combat money laundering by 2017. Brussels could impose at European level a ceiling for cash transactions of 5,000 euro. The proposal came from the German Finance Minister, Wolfgang Schaeuble, who believes that establishing a European threshold, beyond which it would be forbidden to pay cash, would be the best solution.
