Switzerland

The Swiss National Bank cut its interest rate by 50 basis points on Thursday, its biggest reduction in almost 10 years, responding to weaker than expected inflation in Switzerland and growing uncertainty about the global economy, Reuters reported. The central bank flagged tepid price increases, rising risks around future U.S. economic policy and political hazards in Europe as it reduced its policy rate from 1.0% to 0.5%, the lowest since November 2022.

Switzerland's financial regulator said on Wednesday it would regularly review how it oversees UBS as the country's authorities prepare to overhaul regulations to make the banking sector more robust, Reuters reported. Laying out its strategic goals for 2025 to 2028, FINMA said it would enhance supervision of institutions it watches and have them develop their governance and risk culture towards higher requirements and clear risk tolerance thresholds.

Swiss solar panel maker Meyer Burger Technology AG said its ability to continue operating cannot be assured given its indebtedness and cash burn, underscoring the industry’s troubles as cheaper Chinese modules flood the market, the Wall Street Journal reported. The company saw sales halve in the first six months of 2024 compared to a year earlier, while generating a loss of CHF123.5 million ($142 million) in terms of earnings before interest, taxes, depreciation and amortization.

Swiss Finance Minister Karin Keller-Sutter said efforts to revamp banking regulation are designed to ensure trust in the nation’s financial center and help it remain a world leader in the aftermath of Credit Suisse’s demise, Bloomberg News reported. “We have to find a balance between competitiveness on the one and the protection of the economy on the other side,” said Keller-Sutter, 60.

Swiss Steel has "categorically denied" rumors of insolvency proceedings. This is the ailing steel group's response to media reports that the company could soon run out of money despite the recent capital increase, SwissInfo.ch reported. Despite reports to the contrary, the Swiss Steel Group is in regular and constructive contact with all lenders,” the company stated on Friday. Last weekend, both the NZZ am Sonntag and the SonntagsZeitung reported that Swiss Steel’s financial situation had deteriorated further.

Swiss inflation weakened to the slowest pace in more than three years, pointing to further monetary easing by the country’s central bank, Bloomberg News reported. Consumer prices rose 0.8% from a year ago in September, Switzerland’s statistics office said Thursday. That’s much lower than the 1% median estimate in a Bloomberg survey and compares with 1.1% in August. Costs for holidays and air travel fell, as did prices for gasoline, heating oil and diesel, offsetting higher charges for clothing and footwear, according to a statement.

Thai retail and property conglomerate Central Group said on Monday it will take over the operational business of Magazine zum Globus AG, which operates luxury department stores in Switzerland, Reuters reported. Globus is another piece of the fallen empire of Austrian property tycoon Rene Benko, whose sprawling Signa group folded late last year, sending shockwaves through a European property sector already beset with problems.

Proper Music Group, the Swiss company formerly known as Utopia Music, has been hit with bankruptcy proceedings in Swiss court after the group failed to attend a court hearing related to a debt of 23,000 Swiss Francs ($27,360), Digital Music News reported. The provisional announcement of bankruptcy was filed on Tuesday, September 24. “We are disappointed that bankruptcy proceedings have been triggered.