Switzerland

The Swiss financial markets regulator (FINMA) ordered private bank Coutts & Co to pay back 6.5 million Swiss francs for having “seriously breached” money laundering rules by failing to fully monitor its business with indebted Malaysian sovereign wealth fund 1MDB.

Coutts, owned by Royal Bank of Scotland Group Plc, "failed to adequately clarify the circumstances surrounding a number of business relationships and unusually large, high-risk transactions," FINMA said in a statement.

It said a total of $2.4 bn in 1MDB-related assets moved through Coutts accounts in Switzerland, referring to a probe of operations conducted between 2009 and 2015.

Swiss watch and jewelry maker Swatch Group Thursday reported that its fiscal 2016 net income declined 47% to 593 million Swiss francs from 1.119 billion francs in the year-ago period.

Swiss watchmakers have been grappling with eroding sales in their biggest markets, Hong Kong and the United States, and tourist shoppers avoiding Europe for fear of extremist attacks, but recently mainland China sales turned the corner.

Operating result for the year fell 44.5 percent to 805 million francs from 1.451 billion francs last year. The group’s operating profit margin deteriorated to 10.7%, from 17.2% last year.

The OTC Swiss Blockchain Consortium announced a new Ethereum-based “encryption module” for their blockchain-based transaction platform for securities that are traded over-the-counter (OTC), as reported in the press release.

Launched in September, the consortium includes Swisscom (Switzerland’s largest Telco Company), SIX (the Swiss Market Exchange operator), and Zürcher Kantonalbank (Switzerland’s 3rd largest bank), but also do the young and innovative companies ti&m, Inventx and Incore Bank. The group is receiving support from Switzerland’s Commission for Technology and Innovation (CTI), a research organization supported by the federal government.

The statistical office of the European Union has taken a survey of 440 comparable foods across Europe to create an index of food, beverage, and tobacco prices categorized by nation. According to purchasing power, their 2015 data concludes that Switzerland has Europe’s most expensive food and drinks. They’re followed closely by Norway, Denmark, and Iceland.
For fruit and vegetables, including potatoes, Switzerland is the most expensive country in the EU, then Denmark and Ireland.

Swiss private banking group Julius Baer reported Monday that its fiscal 2016 net profit attributable to shareholders, on IFRS basis, increased by 411 percent to 619 million Swiss francs. Earnings rose by 414% to 2.85 franc per share.

The prior-year period’s results included provision of $547.25 million or 521 million francs for a settlement with the U.S. Department of Justice or DOJ regarding the legacy U.S. cross-border business.

Swiss health insurance premiums will double by 2030. According to a study by EY (Ernst & Young), insurers will have to help reduce the costs of health care by focusing on innovation and digitalization.

The consulting firm estimates that health costs are expected to rise by 60% by 2030, for a total of 116 billion francs. If in 2014 in Switzerland, the average expenditure was equal to 6% of their income for health insurance premiums, the rate is set to rise to 11% in 2030, as stated today by EY analysts in a conference call.

Benoit Hamon secured the French Socialist Party’s presidential nomination on Sunday, beating rival Manuel Valls. Initial results gave Hamon 58 percent of the vote and Valls only 42.

Hamon was the more left-wing choice of the two politicians. He supports a universal basic income and wants to reduce the traditional work week to 35 hours. He has also spoken in support of legalizing cannabis and increased investment in renewable energy. Valls, on the other hand, has called himself a more "Clintonite" leftist with a strong belief in pragmatism and individual responsibility.

Johann Schneider-Ammann, Switzerland’s economy minister said Sunday he wants to have “background” talks with Britain so that a trade deal can be in place as soon as the UK leaves the EU.

“My objective is clear. Not one day should pass after Britain’s exit (from the EU) without new regulations in place,” he told Blick daily.
“It should be at least as good” as the present deal, he said.

The paper said Britain’s International Trade Secretary Liam Fox declared during the recent World Economic Forum (WEF) annual meeting that he was very interested in a trade agreement with Switzerland.