BOJ Raises Interest Rates to 31-Year High, Signals Strong Focus on Inflation Risks 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
J.P. Morgan Sees Major Upside for Prysmian as Optical Fiber Prices Surge 
New Zealand Unemployment and Inflation Debate Intensifies Ahead of 2026 Election 
Gold Tumbles Below $4,400 on NFP Shock: Fed Easing Bets Crater, Sell on Rallies to $4,300 
Indonesia Central Bank to Draft New Regulations After Expanded Economic Growth Mandate 
SpaceX Stock Gets $175 Target as Analysts See Massive Growth Ahead 
J.P. Morgan Sees Potential Vestas Guidance Upgrade Amid Strong Wind Energy Demand 
Swiss growth has surprised economists and analysts (including us), who expected a contraction in growth, slowdown in exports, weakness in manufacturing activity.
Latest data points, all positive, baffling everyone as the economy shows significant strength. Even latest PMI report showed expansion in the manufacturing sectors.
However, while economy shows strength, what baffling Swiss National Bank (SNB) policymakers is that inflation trajectory, which is showing no sign of rebound.
Blame it on whatever you like, lower oil price, weakness in commodities, weak domestic demand, stronger Franc....one thing is certain SNB is creating an image that it is out of tools or at wits end to revert deflation and risks deflationary expectations to set in, if it hasn't already.
While Swiss GDP was able to expand by 0.2%, for three months to June but inflation dropped by another -0.2% in August, down -1.4% from a year ago.
Recently SNB has stepped efforts to weaken Franc and we expect it continue such efforts more aggressively over the coming months.
Swiss Franc is currently trading at 0.976 against Dollar.
