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Switzerland's federal government is proposing a €4 billion savings package, which includes the controversial end of a popular tax optimization method affecting private pension provisions. The plan, overseen by Finance Minister Karin Keller-Sutter, faces criticism from centre-right parties, who argue it undermines retirement planning for small and medium-sized enterprises. As the package heads to parliament, it is likely to be dissected into individual proposals rather than passed as a whole.
Swiss citizens own approximately 200 tons of gold bars and coins, valued at nearly 15 billion francs, with 22% of the population possessing an average of 101 grams each. Notably, 39% store their gold in bank safe deposit boxes, while 20% hide it at home or in gardens. The primary motivations for investing in gold include its stability, protection against economic crises, and inflation hedging.
The Swiss stock exchange SIX has signed a Memorandum of Understanding with the China Construction Bank Corporation (CCB) to enhance cooperation in securities services and product development. This partnership aims to explore new business opportunities as Chinese firms increasingly view Switzerland as an alternative to U.S. exchanges. UBS, which holds a significant stake in SIX, is driving this initiative amid a challenging environment marked by delistings.
UBS shares dipped 0.1% to CHF 27.98, making it one of the SMI's losers, with a trading volume of over 1.3 million shares. The stock is currently 2.86% below its 52-week high of CHF 28.78 and 25.38% above its low of CHF 20.88. The dividend forecast for this year is USD 0.823, up from CHF 0.640 last year, while Q3 2024 results are expected on October 30, 2024.
Berner Kantonalbank shares experienced a slight decline of 0.20% to EUR 249.50 on October 22, 2024, despite a 2.67% increase over the past month. The bank plans to distribute a dividend of EUR 10.00 per share, yielding 4.13%, appealing in the current low interest rate environment. The P/E ratio stands at 13.30, indicating moderate valuation, prompting discussions on whether to buy or sell shares.
UBS strategists predict the euro will slightly decline to CHF 0.93 over the next year, facing resistance between 0.95 and 0.96 francs. A support level is anticipated at 0.92 francs, with expectations that the SNB will intervene to prevent significant appreciation of the Swiss franc.
Holger Frey and Bruno Azevedo are key figures in UBS Asset Management's Thematic Equities team, focusing on sustainable investment strategies. Frey, with a background in computer science and musicology, leads the Climate Solutions Equity strategy, while Azevedo specializes in fundamental analysis and portfolio management. Natural refrigerants like ammonia and carbon dioxide are gaining traction due to their low environmental impact and cost-effectiveness. Innovations in CO2 refrigeration systems are expected to enhance energy efficiency, particularly in North America, where adoption rates remain low despite significant growth potential.
UBS is selling its 50% stake in Swisscard to American Express, making the latter the sole owner. This move follows UBS's acquisition of Credit Suisse, from which it inherited the stake. Swisscard will continue to issue credit cards from American Express, Mastercard, and Visa, with no impact on current cardholders or partners.
An estimated 200 tonnes of gold, valued at nearly CHF15 billion, is privately owned in Switzerland, with 22% of the population holding an average of 101 grams each. Despite a decline in popularity as an investment, 65% view gold as a sensible choice due to its stability. Many owners trust banks for storage, and while emergency sales are common, an increasing number are selling to realize profits amid rising gold prices.
Switzerland's UBS 2024 Housing Attractiveness Index highlights Vevey as the top community for families, emphasizing infrastructure, leisure options, and living costs. Medium-sized centers like Locarno and Aarau also rank well, while major cities like Zurich and Geneva struggle with affordability for average households. Families are increasingly willing to commute longer distances, reflecting changing living preferences.

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