The St. Galler Kantonalbank forecasts further interest rate cuts by the Swiss National Bank, but not below zero, while emphasizing the attractiveness of high-dividend equities in a low-rate environment. Bitcoin is deemed a speculative asset unsuitable for strategic allocation, contrasting with gold, which remains a reasonable hedge. Geopolitical risks are acknowledged but viewed as short-term fluctuations rather than decisive factors.
St. Galler Kantonalbank forecasts further interest rate cuts by the Swiss National Bank, but not below 0%, while emphasizing the attractiveness of high-dividend equities in a low-rate environment. Despite the strong performance of gold and Bitcoin, the latter is deemed a speculative asset unsuitable for strategic allocation, with significant price volatility and high correlation to stocks.
Francois Villeroy de Galhau, a member of the European Central Bank's Governing Council, indicated that the ECB may need to lower interest rates to stimulate economic growth. He emphasized that there is "significant room" for easing before rates negatively impact output, with a further reduction expected in December. Villeroy urged officials to remain flexible regarding the pace and magnitude of future cuts.
Sequoia Capital, a prominent venture-capital firm established in 1972, showcases a striking cross-section of a 38-million-year-old redwood at its Menlo Park headquarters. This solid stone artifact, gifted by the firm's current leader, symbolizes the enduring legacy of the organization in the fast-paced environment of Silicon Valley.
Volkswagen is facing significant challenges as it prepares for strikes starting December 1st due to plans to close three factories in Germany and reduce wages. The situation worsens with the bankruptcy of Northvolt, a battery startup backed by VW and BMW, while Donald Trump threatens to impose a 25% tariff on imports from Mexico and Canada, potentially disrupting supply chains.
Northvolt, once hailed as a battery pioneer and a symbol of European industrial success, filed for bankruptcy on November 21st. Following this setback, founder Peter Carlsson announced his resignation, raising questions about the factors that led to the company's downfall.
Bernard Arnault, head of LVMH, denied involvement in an alleged espionage scheme targeting French MP François Ruffin during a court appearance. Prosecutors claim that former security chief Bernard Squarcini spied on Ruffin at LVMH's request, using state resources, while Arnault attributed the actions to a deceased former executive. He criticized Ruffin for using the trial for personal gain, asserting he was unaware of any wrongdoing.
The European Central Bank should monitor supply shocks that affect prices, according to Governing Council member Klaas Knot. He emphasized that while it may be appropriate to overlook temporary shocks if inflation expectations remain stable, a strong response is necessary if there is a risk of those expectations becoming unanchored.
ECB President Christine Lagarde has urged EU leaders to collaborate with the new U.S. president, advocating for increased purchases of U.S. goods to mitigate trade tensions. She warned that a full-scale trade war could harm global economic growth and recommended a "checkbook strategy" over retaliatory tariffs, emphasizing the need for diplomatic engagement to stabilize the trade landscape.
DNB Bank ASA is seeking to expand its use of significant risk transfers (SRTs) to mitigate credit risk, according to CFO Ida Lerner. The bank is considering additional deals, although any future SRT transactions will require regulatory approval.