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Donald Trump demands NATO countries increase military spending to 5% of GDP, while the EU faces rising debt and discontent among its member states. Switzerland, thriving through various industries, resists EU integration, with political leaders struggling to gain public support for a contentious treaty that may face significant opposition in upcoming elections.
Billionaires leading the anti-EU Compass initiative are struggling to gather enough signatures, with a focus on Switzerland's annual payment of 350 million to the EU despite a trade imbalance favoring Switzerland. The NZZ supports the treaty, highlighting vague protections for workers and warning that rejecting it could lead to unfavorable terms in future negotiations.
The Swiss stock exchange closed lower, with the SMI down 0.26% at 11,384.92 points, marking a 3% loss over the week and reducing year-to-date gains to just 2%. Investor uncertainty stems from the Federal Reserve's cautious approach to interest rate cuts and concerns over a potential U.S. government shutdown. Notable declines were seen in UBS, Partners Group, and various insurance companies, while Idorsia plummeted 50.35% due to delays in drug negotiations.
Bitcoin's price dropped to $92,118, marking its lowest since early December, following a record high of $108,364 earlier in the week. The decline is attributed to investor concerns over inflation and interest rate signals from the US Federal Reserve, prompting a shift towards safer investments. Meanwhile, the Swiss bond market remains stable as traders prepare for the new year, with minimal activity noted ahead of key US economic data releases.
EU President Ursula von der Leyen returned to Brussels without a finalized submission treaty after the Swiss Federal Council opted for a piecemeal approach to negotiations, fearing public backlash. This decision marks a significant victory for EU opponents in Switzerland, delaying any agreements until at least 2026.
Robert Rackind, former global head of real estate at Credit Suisse, now leads FACT II Acquisition Corp, a SPAC targeting real estate investment managers amid a challenging market. He emphasizes the advantages of SPAC mergers for faster liquidity and capital access, particularly for mid-sized firms struggling against larger competitors. The current landscape, marked by a decline in SPAC activity and traditional IPOs, presents unique opportunities for strategic growth in the real estate sector.
The Swiss stock exchange closed down for the third consecutive day, with the SMI Index falling 1.01% to 11,642.39 points, marking its sharpest decline in nearly a month. Investor caution prevailed ahead of key economic data, including US inflation figures and upcoming rate decisions from the Swiss National Bank and the European Central Bank.In the market, Richemont and other economically sensitive stocks like ABB and Geberit faced declines, while Nestlé hit a new yearly low. The financial sector was impacted by discussions surrounding UBS's takeover of Credit Suisse, with several insurance companies also struggling.
The proportion of women on the boards of directors at Switzerland's 30 largest listed companies has stagnated at 35%, while the figure for management boards in the Swiss Leader Index is lower at 25%, despite a 4% increase this year. Adecco leads with 50% female representation, followed by Holcim at 45%, and both Straumann and Partners Group at 43%. The Federal Council's future requirements call for a minimum of 30% women on boards and 20% on executive boards.
Partners Group, a Swiss private market investment firm, is set to acquire Empira Group, a prominent Swiss real estate platform with a €14 billion portfolio in residential properties across Europe and the U.S. The deal, part of Partners Group's strategy to enhance vertical depth in key sectors, is expected to close in the first half of 2025 and will not significantly impact financial results for the upcoming year. Founded in 2014 and based in Zug, Empira specializes in various investment strategies, including sustainable initiatives and real estate lending solutions.
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