Znüni Money Buzz – Thursday November 3.

Financial Highlights in Switzerland

Swiss Manufacturing PMI fell to 54.9 in October 2022 from 57.1 in September. The reading pointed that growth is weakening in factory activity since November 2020. 

A survey published Tuesday by Credit Suisse showed that industrial producers are more worried about a deficit of electricity than natural gas. One in three firms has taken measures against potential energy shortages. 

On Monday, the Swiss National Bank reported a loss of CHF 142.4 Billion for the first nine months of 2022, but the SNB’s directive is to ensure monetary stability, not turn a profit.

The Swiss federal government and the cantons became accustomed to regular profit distributions from the Swiss National Bank (SNB). Now withdrawal symptoms are looming, and with these results, it is increasingly unlikely that the institution will be able to make the payout.

Financial Highlights in the World

UK: Prices in stores increased by the highest amount since 2005. The British Retail Consortium revealed that prices rose by 6.6% YoY in October, and the food price increased by 11.6% YoY.

EUROPE: Euro Area Manufacturing PMI revised lower to 46.4 in October 2022 from a preliminary of 46.6, pointing to a fourth straight month of falling factory activity and the biggest contraction since May 2020. Output and new orders fell at near-record rates, and export demands also sank sharply as geopolitical uncertainty, high inflation, and weaker economic conditions around the world weighed on foreign client spending. 

Euro Area Inflation Rate hits double digit. It continued to break record-high levels and jumped to 10.7% in October 2022 from 9.9% in September, and higher than market forecasts of 10.2%.

USA:  The Federal Reserve raised the Interest rate by 0.75% to 4% during its November 2022 meeting. And another hike expected in December.

US ISM Manufacturing PMI fell to 50.2 in October 2022 from 50.9 in September, pointing to the slowest growth in factory activity since the contraction in mid-2020. Still, figures came slightly higher than market forecasts of 50. Companies continue to manage headcounts through hiring freezes and attrition to lower levels, with medium- and long-term demand still uncertain. 

Financial Highlights in Companies 

Maerks: The company revised down its expectations for the shipping market, noting that demand will fall 4% this year and that it may retreat in 2023 as well, at a time when economic uncertainty is already affecting orders. In any case, EBIT in the third quarter amounted to USD 9.5 MM (vs est. USD 8.6 MM), and the company kept its annual earnings forecast intact.

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