Macroeconomics

Online catering marketplace, Caterwings, have conducted a study regarding the global price of basic food items, as preliminary research ahead of their expansion into foreign markets. The research highlighted in particular that the cost of meat around the world is remarkably varied. To share these insights, Caterwings have released the 2017 Meat Price Index, which details the cost of meat in over 50 countries worldwide. The study revealed that Switzerland has the highest meat prices, at 141.9% more expensive than the average cost worldwide, followed by Norway (63.7% more expensive) and Hong Kong (61% more expensive), while Ukraine has the least expensive meat prices, at 52.3% less expensive than the average cost, closely followed by Malaysia (50.3% less expensive).

Eurozone inflation was stable in July and unemployment reached its lowest rate since February 2009. In your opinion, how that can impact the ECB’s interest rates?

I think that that the ECB might be happy about the growth outlook, but inflation is still looking really subdued. There is still some more slack in the economy, which would mean the European Central Bank is fairly patient and extremely gradual in its policy.

The U.S. is set for steady economic growth, while the U.K. and Russia appear to be heading for slowdowns, according to leading indicators released Tuesday by the Organization for Economic Cooperation and Development.

The leading indicator for the U.S. was unchanged at 99.7 for the third straight month, signaling that its growth outlook has steadied, albeit at a weaker rate than normal. This is an improvement on indicators published in July, which hinted at a U.S. slowdown, and implies global economic prospects could be boosted as U.S. trade flows pick up.

Swiss consumer confidence strengthened in July, survey results from the State Secretariat for Economic Affairs, or SECO, showed Wednesday.

The consumer confidence index rose to -3 in July from -8 in April. The score came in line with expectations. A similar high score was last posted in January 2017 and was the highest since July 2014.

Switzerland’s central bank on Monday reported a net profit of 1.2 billion Swiss francs for the first half of 2017 as big foreign exchange losses weighed on earnings from its foreign investments.

The Swiss National Bank made a profit of 100 million francs from its foreign currency positions, as exchange related losses of 11.8 billion francs almost wiped out the earnings from bonds and shares it holds.
The institution’s foreign currency investments have ballooned to 728 billion francs, 12% larger than the entire Swiss economy.

The UBS Swiss consumption indicator rose to 1.38 points in June from a downwardly revised 1.32 in May, the Swiss bank’s economists said on Wednesday.

"UBS consumption indicator printed 1.38 in June, pointing to subdued growth in Swiss private consumption in recent months. Relatively weak growth in employment was much to blame for the lackluster number, however this was offset somewhat by robust new car registrations data and overnight hotel stays by Swiss nationals" the noted reported.

The International Monetary Fund’s board on Thursday approved a $1.8 billion loan to Greece – but will only release the money if the country gets debt relief from its European creditors.

The IMF has praised Greece for taking steps to reduce its budget deficits, including expanding its tax base and cutting spending on pensions. But the lending agency is pressuring Greece’s eurozone lenders to provide enough relief to ensure the battered country can pay its bills.

The European Central Bank’s (ECB) July policy meeting has ended with policy-makers opting to maintain a cautious tone, presumably to keep a lid on rising Eurozone interest rates and currency.

The ECB kept its deposit rate deep in negative territory and maintained monthly bond purchases at €60-billion, in line with the expectation of most analysts in a Reuters poll.