'Security' in Numbers
The first 2022 edition of The Swiss Insider
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Time flies and times change. But the need to ‘know’ never does…or only rarely.
We’re back with another edition of The Swiss Insider today - with a shorter format, but still the same focused insights.
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Gunning for power?
In June 2022, the United Nations will vote to add new non-permanent members to its Security Council. Switzerland is one of the candidates - and it has sparked a renewed debate about the country’s place in the world.
The Swiss candidacy was launched in 2011 by Swiss President Micheline Calmy-Rey.
While non-permanent members hold lesser sway than permanent powers such as the US, China, and Russia, there would seem to be a considerable advantage in being part of the exclusive group.
One major advantage would be to further enhance the reputation and attractiveness of Geneva, with its strong reputation as an international hub.
With ongoing tensions between the US and Russia over Ukraine, Switzerland may see its value as a neutral country rise.
Still positive
The Swiss National Bank will issue its confirmed profit and loss statement in early March. However, it is already clear that Thomas Jordan and his colleagues have managed yet another year of profit - around CHF 26 billion according to estimates. But that is not all to take note of…
In Q4, the SNB noted a loss of CHF 15 billion as global markets took a dive on the news of persistent inflation.
With extended exposure to US equities, including high-growth stocks, the SNB faces a potentially bumpy road if markets turn south.
A stronger Swiss franc has also changed the outlook for Switzerland’s central bank. So far, the SNB has been restrained in reacting - perhaps due to the fact that higher inflation in Europe has allowed Swiss exports to remain generally attractive. Switzerland’s level of exports reached a new high in May.
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Sweet Swiss sleep
Switzerland is known for its pharmaceutical industry. Now a well-known couple from the industry, Martine und Jean-Paul Clozel, are aiming to repeat their previous success with a new sleeping pill named Daridorexant - and make out big in the USA.
The Clozels sold their first company, Actelion, to Johnson & Johnson in 2017 for CHF 30 billion.
Their new firm, Idorsia, has now brought its new and highly effective (according to initial data) sleeping pill to market in the US.
Part of its marketing there includes the support of renowned actress Jennifer Aniston.
With the drug, the Clozels aim to be profitable in 3 years and eventually see their new medicine reach “blockbuster” status - with yearly sales of over USD 1 billion.
Contrarian on inflation
Most major commentators have admitted that global inflation is more than transitory. Swiss Life Chief Economist Marc Brütsch, however, remains on the other side of the fence. His prognosis for 2022 sees inflation in Switzerland falling back under 0.5%.
Despite missing predictions for 2021, the Swiss Life executive maintains that much of the current environment is tied to supply-chain troubles.
He also sees a move towards parity between the Swiss franc and the Euro, something which would seem to be a “fair exchange rate.”
Sort of a king
For those who have enough money - the sky is the limit. In recent years, several colorful figures have taken it upon themselves to become “kings” - after a fashion.
Jonas Lauwiner received a 65 000 ha piece of land from his father for his 20th birthday. There he has his castle and the title of His Royal Highness Jonas I of the Lauwiner Empire, which he gave himself during a special ceremony complete with a crown and actors to accompany him.
Peter Johannes Kraska also declared himself royalty in 1980. He died in 2016.