Franc lost value against most of its counterparts but the reversal was most significant against the dollar as dollar rallied across the board mostly on profit taking and slight negative data from the industrial sector in the Europe.
[B]Debate over VAT Reform Heats Up[/B]
Opinions are divided over a proposed overhaul of Switzerland’s complex value added tax (VAT) system as a consultation period nears an end. The Swiss Business Federation (economiesuisse) championed a flat rate of six per cent with no exemptions on Wednesday. But opponents believe this will hit households hard, particularly if health care attracts the levy.
[B]First-Half Profit Jumps At Kuehne + Nagel[/B]
The logistics company Kuehne + Nagel has reported a 27 per cent increase in its net profit for the first six months to SFr265.4 million ($221 million).The company, which is based at Schindellegi in canton Schwyz, posted turnover of SFr9.97 billion, as air and ocean shipments increased.
First-half profit jumps at Kuehne + Nagel - SWI swissinfo.ch
[B]Swiss Reinforce Anti-terrorism Ties With US
[/B]A new counter-terrorism treaty between Switzerland and the United States is expected to come into force this autumn, according to a senior Swiss diplomat. State Secretary for Foreign Affairs Michael Ambühl made the announcement after two days of talks in Washington on issues such as terrorism, the future status of Kosovo and the Middle East. Ambühl said the new Operative Working Arrangement (OWA), which has been approved by both chambers of the Swiss parliament, would replace an existing treaty in force since 2002.
Franc lost value against most of its counterparts but the reversal was most significant against the dollar as dollar rallied across the board mostly on profit taking and slight negative data from the industrial sector in the Europe. As of 12:00 EST USDCHF was trading at 1.2150. Against the Euro, Franc fell to its weakest ever on speculation that ECB will further lift interest rate.
[B]Equity Market: Swiss Market Index:[/B]
Swiss shares declined sharply today leading US markets record drop yesterday. The stocks were further pulled down when Adecco?s, the world?s largest supplier of temporary workers, biggest competitor missed earnings estimate. Banking & agricultural shares also plummeted. The benchmark Swiss Market Index closed down 1.4% at 8922.71. Adecco tumbled 5.5 percent and Zurich Financial was down 2.9 percent. Technology shares, on the other hand, were up as Temenos Group, a bank software provider, said that it is looking to buy companies to strengthen its core business by providing new products.
[B]Fixed-Income Market: 10-Year Swiss Government Bonds:[/B]
Swiss government bonds gained today investors shifted money amid declining stocks. The 10-year dropped 2.6 basis points closing at 3.154 for the day