Switzerland

Swissport has started providing short-term loans to companies linked to the HNA Group, raising concerns among investors about the intermingling of the Swiss airline services company’s funds with its Chinese parent, the Financial Times reported. HNA acquired Swissport at the start of 2016, financing the deal with junk bonds and leverage loans, during the height of the Chinese conglomerate’s international buying spree. In a financial statement to its bondholders published this month, Swissport disclosed that it lent $100m to a “related party” on June 28 that was repaid nine days later.

The Swiss franc’s fall is showing no signs of slowing down, the Financial Times reported. The continued rise of the euro on the back of strong economic data and an upbeat tone to global markets is weighing on the franc, traditionally a haven asset in times of market turmoil. At pixel time, the euro is up by 0.7 per cent on the day at SFr1.1472 – a new post-limit low for the franc. The Swiss currency has fallen 4.2 per cent in the last 10 days as greater domestic demand for foreign assets and positive eurozone figures lured investors towards riskier assets.

Swiss commodities trading group ECOM has received approval from German cartel authorities to purchase German cocoa grinder Euromar Commodities GmbH which declared insolvency in December, Euromar's insolvency administrator said on Tuesday, Reuters reported. Production at Euromar's plant at Fehrbellin near Berlin could resume in coming days, the administrator, Rolf Rattunde, said in a statement. A sale contract for Euromar's factory, equipment and site had been signed and approved by Euromar's creditors in March but German cartel authorities had to approve the purchase.

Swiss commodities trading group ECOM has agreed to buy the factory of German cocoa grinder Euromar Commodities GmbH which declared insolvency in December, Euromar's insolvency administrator said on Monday, Reuters reported. ECOM plans to resume production at Euromar's plant at Fehrbellin near Berlin, insolvency administrator Rolf Rattunde said in a statement. No one was available for comment at ECOM's Swiss head office. Rattunde said a sale contract for Euromar's factory, equipment and site has been signed with ECOM and approved by Euromar's interim committee of creditors.

Credit Suisse Group AG’s push to expand in some areas of trading and across its wealth management businesses will make it harder to build up capital buffers at the same pace as last year, Chief Financial Officer David Mathers said. After selling billions in unwanted assets, the bank entered 2017 with a bigger capital ratio than analysts expected -- this in a year that ended up a loss following a $5.3 billion legal settlement, Bloomberg News reported.

Swiss commodities trader Glencore Plc is considering additional sugar and ethanol mills takeovers in Brazil, where it recently bought a second plant, to ramp up operations in the world's No. 1 sugar producer, three people familiar with the plan said on Tuesday. According to the first source, who asked for anonymity because the plans remain private, Glencore is seeking to add another mill to the portfolio of two it already has in order to expand its production cluster in Sao Paulo state. The person declined to elaborate on potential targets.

Glencore, the miner and commodity trader, has announced plans to repurchase up to $1.25bn of bonds as part of an ongoing plan to reduce debt and leverage, the Financial Times reported. The buy back is targeting bonds that mature in 2018 and 2019 with investors being given until the end of the month to tender their notes, writes Neil Hume in London. The world’s biggest miners are slashing costs and cutting their debt burdens after being shaken to the core by the worst price rout in a generation.

When the European Union pressured Switzerland to scrap tax breaks for foreign companies, Geneva had most to lose. Now, the canton that is home to almost 1,000 multinationals is set to use tax to burnish its appeal, the Irish Times reported. Geneva will on August 30th propose cutting its corporate tax rate to 13.49 per cent from 24.2 per cent, according to sources. For an interim period of five years, the rate will be a slightly higher 13.79 per cent, the sources said.

Swiss voters on Sunday overwhelmingly rejected a proposal to guarantee an income to Switzerland’s residents, whether or not they are employed, an idea that has also been raised in other countries amid an intensifying debate over wealth disparities and dwindling employment opportunities, the International New York Times reported.

The authorities in Switzerland said on Tuesday that they had begun criminal proceedings against one of the country’s oldest banks, BSI, after allegations that it had laundered huge sums for “politically exposed” individuals linked to a scandal-plagued Malaysian state investment fund, the International New York Times reported. The Swiss attorney general’s office said in a statement that it suspected “deficiencies in the internal organization of the BSI S.A.