As of 1 January 2017, the Automatic Exchange of Information (AEoI) arrived now also in Switzerland. In order for the flood of data to be recorded and passed on to the right authority, large quantity of information pertinent to an individual bank customer need to be first collected. Switzerland will be ready to exchange information for the first time in 2018. Following Fatca, AEoI seems to be yet another paper tiger of the white money strategy.
By far the most important political event in January was the transfer of power from Obama to Trump. Acting the big shot, Trump used the hour to lash out in all directions. The aim of his accusations this time were: the Russian secret service, Obamacare and the pharmaceutical industry, and then Mexico and all companies, which make money predominantly outside of the USA. Trump’s main objective as well as his grand election promise is the creation of new jobs. To accomplish this, he intends to bring investment and manufacturing facilities back into the United States. Trump’s first target will be the automobile industry and its manufacturing plants in the neighbouring Mexico, which he threatens to penalise with an imposition of WTO-non compliant tariffs. Numerous reputed economists see Trump as a liability for the US economy, especially, o the account of his intended isolationist policy measures.
In the spirit of Trump, the new British Prime Minister, Theresa May, has called for a hard Brexit. The War of Roses in this divorce from Europe will possibly leave many losers and no winners. With his prophesies that there will be further countries exiting the European Community, Trump provides a welcome backing for the hardliner May.
Following Trump’s steps, Marine Le Pen now tries to influence the upcoming elections in her favour with ludicrous isolationist policy slogans. Should she indeed win, she will – as she passionately promises – dismantle the euro as the common currency and will reintroduce the old accounting system of ECU. This would have the implication of all European countries having to get back to their own currencies and, consequently, tying them to the ECU. In such a scenario, some individual countries could gain competitive advantage by means of their currency devaluation. Back to the Stone Age!
The Chinese head of state Xi Jinping has paid an official visit to Switzerland. The powerful symbolism of this visit should not be underestimated, as China has an exceptional and long-term relationship with Switzerland. Not only was Switzerland the first industrialised nation to sign the free trade agreement with China; Switzerland often serves for the Chinese leadership as a model for their new and independent orientation.
Your Wealth at a Glance.