SNB’s Jordan is still wibbling on about the 1.2 floor on the Swissy v Euro and steps being considered to protect competitiveness. What does Switzerland export anyhow? Most imagine it’s all financial services, but it’s actually pretty much the same as UK, around 70% fin.serv and 20% manufacturing, so it does hurt when they get beefed up by flight-to-safety fund inflows. (I assume the other 10% is chocolate, tourism, prostitution and clocks).
What is more interesting is that Swiss fin.min. Widmer-Schlumpf is considering capital controls. I did wonder how long it would be before these words were spoken out loud. I wouldn’t be at all surprised to see that gather pace. Not just in Switzerland either. I do think a Euro breakup is less likely than likely in the short term. Greece’s exit more likely than not in the short term. But if the fit did hit the shand, the good old UK wouldn’t be too slow on the capital controls side. Worked in the 60s & 70s a treat. Constrict outward fund movement – constrict inward immigration.
