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The Swiss repo market, crucial for monetary policy implementation, marks its 25th anniversary, highlighting its liquidity, security, and efficiency. With around 120 billion francs in outstanding repos, the market has evolved from unsecured to secured transactions, leveraging advanced technology for improved settlement and collateral management. The SNB emphasizes the importance of this market for financial stability and innovation, particularly through distributed ledger technology.
China's transformation from a planned communist economy to a dynamic capitalist powerhouse is explored in "The Great Transformation: China’s Road from Revolution to Reform" by historians Odd Arne Westad and Chen Jian. Key factors include the era of reform under Deng Xiaoping, the impact of the Cultural Revolution, and the emergence of early entrepreneurs, all set against a backdrop of complex political dynamics and external pressures. The book delves into how these elements shaped China's economic landscape and its ongoing reforms.
As Donald Trump assembles a foreign-policy team filled with China hawks, understanding the evolving dynamics of U.S.-China relations is crucial. With a weakened Chinese economy, rising tensions over Taiwan and the South China Sea, and the global impact of the Ukraine war, new strategies must consider Xi Jinping's motivations and the risks he is willing to take.
China has unveiled new policy measures to safeguard its export sector in response to potential tariff increases by the incoming Trump administration, which could raise duties by about 60%. The measures aim to counter "unreasonable foreign trade restrictions" and foster a supportive environment for exports. Key initiatives include expanding export credit insurance and enhancing financing support for international trade enterprises.
The stock market experienced significant selling pressure due to rising geopolitical tensions and allegations against the Adani Group by the US SEC. On November 21, foreign institutional investors (FIIs) net sold shares worth Rs 5,321 crore, while domestic institutional investors (DIIs) net bought Rs 4,200 crore. For the year, FIIs have net sold Rs 2.93 lakh crore, contrasting with DIIs' net purchases of Rs 5.61 lakh crore.
South Africa's central bank has implemented a cautious quarter-point interest rate cut, reducing the benchmark rate to 7.75%. This marks the second consecutive meeting with a rate decrease, as policymakers indicate that further cuts may be possible, although the economic outlook remains highly uncertain. Governor Lesetja Kganyago confirmed that the decision aligns with the expectations of economists surveyed.
In 2025, tensions may arise between President Trump and Federal Reserve Chair Jerome Powell over interest rates, particularly if inflation rises due to Trump's expansionary fiscal policies. While Trump may push for lower rates, the Fed's traditional approach could lead to conflicts, especially as Powell's term ends in 2026. Economic impacts from Trump's policies may take time to manifest, potentially delaying any Fed response.
The Indian rupee fell to a record low of 84.5013 against the US dollar on November 21, driven by Foreign Portfolio Investors' (FPI) selling and a strong dollar index. Analysts suggest that ongoing dollar demand and higher US interest rates are prompting FPIs to withdraw funds, although the Reserve Bank of India’s interventions and healthy foreign exchange reserves may help stabilize the currency.
TAP Air Portugal reported a net profit of 117.8 million euros for Q3 2024, down 62.8 million euros from last year, yet showing a 2% revenue increase compared to 2019. Despite challenges like rising personnel costs and currency losses, the airline's capacity reached 97% of pre-crisis levels, with a load factor of 86.2%. The company maintains a strong liquidity position of 943.1 million euros and continues to invest in fleet modernization and expansion, particularly in the Brazilian market.
Saxenhammer, a management consultancy specializing in small and medium-sized enterprises (SMEs), has opened its first office in Zurich to meet the growing demand from the Swiss SME sector. Led by Andreas Pöllen, the firm aims to provide tailored M&A advisory services, focusing on deals in the CHF 10 to 100 million range, amidst a shift in lending practices from traditional banks to alternative providers. The expansion is seen as a response to increasing pressures on Swiss SMEs for reliable and transparent M&A strategies.
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