How to interpret a Swiss sports win
SNB fears, exports by the numbers and a win that speaks volumes
Dear Insider,
They won’t make the front cover of a global sports magazine.
They probably won’t make millions either.
But the Swiss women’s curling team will do something else - come home winners.
After a European championship win last year, the group followed up with a win against Sweden (the all-time winningest country) again this year.
Why should we care?
Because (as explained below) - curling may be one of the best sports to demonstrate what Switzerland is good at.
Enjoy,
Ian
💡PS: Feel free to connect with me on LinkedIn and on X. Or simply reply to this email and share your feedback. Thank you!
Person in the news - Martin Schlegel
One man has more responsibility for Swiss finance than anyone else.
And he is worried.
Swiss National Bank president Martin Schlegel expressed concerns this week about the bank's equity levels, stating they are insufficient to cover the risks associated with its expansive balance sheet.
The SNB's assets have grown significantly due to extensive foreign currency interventions aimed at stabilizing the Swiss franc.
(At one time, the SNB was the largest holder of Facebook stock, besides Mark Zuckerberg.)
This expansion has led to increased exposure to market fluctuations, as evidenced by the record loss of CHF 132 billion in 2022.
Schlegel also had another warning: negative interest rates may return.
🥌 A singularly Swiss win
Besides Roger Federer, Switzerland isn’t well-known for sporting greatness.
But a new international championship - the second in a row - may change that.
The Swiss women's curling team, featuring Selina Witschonke, Carole Howald, Silvana Tirinzoni, and Alina Pätz, successfully defended their European Championship title with an 8-4 victory over Sweden in Lohja, Finland.
Establishing dominance early, they scored a deuce in the first end and stole a stone in the second, leading to a halftime score of 5-1.
This win marks their eighth European gold medal, solidifying Switzerland’s position as the second most successful nation in the tournament's history behind Sweden's 21 titles. Remaining undefeated throughout the tournament, the team extended their winning streak from previous championships in Aberdeen, Sandviken, and Prince George.
The Inside Look:
💡 While not wildly popular around the globe, curling as a sport has its special class of fans in countries - like Switzerland - where winter sports are tops.
💡 With a mixture of precision, short-term athletic effort and close teamwork, curling makes for a unique reflection of the things that make Switzerland great. One person lines up the puck, two guide it to its goal.
Strategic placement is key. Sounds a lot like the formula for building a strong economy or a safe geopolitical position.
💡Sustained success in curling also points to a speciality that Swiss teams can exploit. Every country, every person - every business needs its niche.
⚖️ Swiss lawyers doing crypto
Not all law firms are into new tech and new industries. But some are…and in Switzerland there are more than a few that work in the crypto assets space.
Here are 10 Swiss legal firms to know in the crypto space.
📦 Ship it out
Is the world really falling apart?
For Swiss exporters - not really.
In October 2024, Swiss exports reached a record high of 24.39 billion francs, marking a 10.2% increase from the previous month.
This surge was primarily driven by the chemical and pharmaceutical sectors, which grew by 15.2% and now constitute nearly 60% of total exports. The machinery, electronics, and metal industries also experienced growth after previous declines.
Geographically, exports to Europe rose by 16.1%, and those to North America increased by 7.4%. This growth in exports to Europe comes as a surprise, given the weakness of the EU economy and Germany in general.
Exports to Asia remained stable. Imports saw a modest rise of 1.8%, totaling 18.42 billion francs.
The Inside Look:
💡 So far, the raw stats don’t look too bad. Export growth - despite a strong Swiss franc - has continued to rise over the last five years. As usual, pharma takes the top spot.
💡 A key consideration for the steady balance of exports is the sector - with “essential” products like medicines unlikely to face the same cyclical pressures as automobiles, for instance.
A chart is worth…
The category says “life sciences” but the majority of that is pharmaceuticals. And it is a big part of why Swiss exports continue to grow…
🔁 Make sure to share this post with a friend or colleague - they will thank you!
The Bonus
🕳 Unholy holes - Drama continues in the Swiss pension system. New data show that the Swiss disability fund (IV) will fall short of the 10 billion CHF it owes to the general AHV fund. (Link)
☑️ Limiting factors - New proposals for construction standards in Switzerland want to focus not only on heating systems, but also on the CO2 emissions of concrete and window glass. (Link)
🥇 Top job - After serving in the Swiss Federal Council, Ruth Metzger-Arnold will take over the leadership of another national body - the Swiss Olympic Committee. (Link)