Fixed income

Deutsche Bank on Thursday said its third-quarter profit more than doubled, beating analysts’ expectations, despite a fall in revenue. The German bank said net income in the quarter was €649 million ($766.7 million) compared with €278 million in the same period last year, helped by lower operating costs and legal expenses.

“While the revenue environment remained challenging, we have made significant progress on our key initiatives,” Chief Executive John Cryan said in a statement. Shares in Deutsche Bank were seen opening 2.5 percent higher in pre-market trade following the results.

Novartis’s third-quarter core net income rose 4 percent at constant currencies, beating analyst expectations, as the Swiss drugmaker said it made “significant progress” in preparing its Alcon eyecare unit for a possible spinoff by the first half of 2019.

For fiscal 2017, the company continues to expects net sales to be broadly in line with prior year and core operating income to be broadly in line or decline low single digit, both at constant currency rates.

The number of requests for asylum in Switzerland has fallen sharply after authorities in other European countries closed the Balkan land route used by thousands to flee conflicts, Swiss authorities said Thursday.
Requests for asylum in Switzerland fell by one-third in September compared to the corresponding period last year, the State Secretariat for Migration said.

Swiss Re, the world’s second-largest reinsurer, estimated its claims burden from hurricanes Harvey, Irma and Maria in the United States and from two earthquakes in Mexico at roughly $3.6 billion in the third quarter.

"Swiss Re maintains a very strong capital position and high financial flexibility to support our clients’ needs, respond to market developments and execute on our capital management priorities," Chief Financial Officer David Cole said in a statement on Friday. Of the claims burden, which is net of retrocession and before tax, around $175 million was from the earthquakes in Mexico.

Switzerland’s federal government said Wednesday it is prepared to pay almost 1 billion Swiss francs ($1.02 billion) toward Sion hosting the 2026 Winter Olympics.
The Swiss federal council voted to support the proposed candidature, which could still be stopped by public opposition. It was a rare signal of support for hosting the Games after voters in the Austrian city of Innsbruck gave a thumbs down to the idea on Sunday, joining around a dozen cities that have pulled out of the running.

British Euroskeptics now have a new watchword: Beware the “Swiss Trap.” Theresa May’s government is reportedly heading towards a Swiss-style model for its relationship with the European Union after Brexit. To the frustration of hardline Brexiteers within the Conservative Party, the deal Switzerland has with the EU is now being seriously considered within Whitehall and has not been ruled out by the prime minister, according to Politico.

Nestlé, the world’s largest food maker, reported an increase in real internal growth for the first nine months of the year but expects its trading operating profit margin to drop 40-60 basis points due to higher restructuring costs. The Swiss company said net divestments had a negative impact of 2.6% due to the creation of the Froneri joint venture.

The Swiss consumer giant said Thursday it struggled in its largest market, the U.S., where it is trying to sell its confectionery business. Elsewhere, its ability to raise prices was limited by weaker currencies in some emerging markets.

Luxury goods maker Richemont expects first-half net profit to rise by more than two-thirds, partly benefiting from the nonrecurrence of exceptional items.

Swiss watchmakers are recovering from a severe downturn in demand, mainly due to a collapse of the Hong Kong market that had prompted the world’s second-biggest luxury group to buy back excess inventory of unsold watches and cut jobs and replace almost all its brand chiefs.