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The Federal Council's savings program faces backlash from the left and cantons, as it shifts financial burdens onto them. While the government plans to increase various taxes, including VAT and capital withdrawal taxes, critics argue that low-income earners and the middle class will bear the brunt. To gain public support for budget cuts, a more equitable distribution of the financial burden, including contributions from high-income earners, is essential.
Idorsia's share price dropped 2.64% to EUR 1.604 on October 2, 2024, amid ongoing financial difficulties, including a negative price/earnings ratio of -0.93 and a net loss of EUR 300 million last year. With a market capitalization of EUR 303.2 million, investor concerns are mounting as they await the quarterly report on October 20, which may provide insights into the company's four drug candidates in clinical phase 3.
Interest rate speculation has led to a rally in government bonds, with the "Eidgenoss" reaching its lowest level since February 2022. Traders now estimate an 85% chance of a 25 basis point cut by the European Central Bank in October, up from 75% on Monday and 45% a week ago. The ECB has already reduced rates by 25 basis points in both June and September, bringing the current rate to 3.5%.
Mathias P. Rohr has been appointed as the new Head of Institutional Clients at Schwyzer Kantonalbank (SZKB), effective October 1, 2024. With over 20 years of experience in the financial sector, he aims to enhance the bank's services for pension funds, foundations, and church institutions. Rohr previously held senior roles at ZWEI Wealth Experts AG and UBS, focusing on institutional client development.
The State Bank of Ticino has appointed Marialuisa Parodi Aostalli and Marco Passalia as new directors, filling the positions vacated by Raoul Paglia and Giovanni Jelmini. Parodi Aostalli brings extensive experience in investment fund management and is an advocate for gender equality, while Passalia has a strong background in business consulting and has been active in various economic associations in Ticino.
Martin Schlegel made his first public appearance as the new Chairman of the Swiss National Bank (SNB) in Ticino, where he discussed the global economic outlook. He highlighted high geopolitical risks and projected moderate economic growth, with GDP expected to rise by 1% this year, below the long-term average. Schlegel's visit was met with pride by local officials, including Christian Vitta, head of the Ticino Department of Finance and Economy.
EFG International's Liechtenstein branch has welcomed four former client advisors from Banque Havilland, following the latter's decision to cease operations and enter voluntary liquidation. The new hires, including Metin Emer, Matthias Delvavier, Daniel Gunsch, and Raphaela Dietsche, will report directly to CEO Tobias Wehrli. The potential for an asset deal remains uncertain, as EFG International has not commented further on the situation.
Zurich Cantonal Bank (ZKB) CEO Urs Baumann asserts that the Swiss financial center maintains sufficient competition following the Credit Suisse bankruptcy. He emphasizes that while only UBS and ZKB can meet the needs of large corporate clients, numerous international banks are emerging in the market. Baumann also highlights the capabilities of cantonal banks in corporate finance, advocating against significant increases in capital requirements for systemically important banks.
The Federal Criminal Court is hearing an appeal involving UBS, which has taken over Credit Suisse following its merger. The case stems from a 2022 ruling that found a former CS employee guilty of laundering drug money, but UBS argues it cannot be convicted without a living accused. The court's decision on UBS's request to suspend proceedings is pending.
An appeal trial regarding money laundering linked to the Bulgarian mafia commenced at the Federal Criminal Court in Bellinzona, with UBS now facing charges after the conviction of Credit Suisse. The court previously ordered Credit Suisse to pay a fine of 2 million francs and 19 million in compensation for aiding Evelin Banev's criminal network. UBS has sought to suspend the appeal process, arguing that the demise of Credit Suisse should absolve it of responsibility, a claim rejected by the Court of Appeals.
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