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Deutsche Bank: CHF could be a better inflation hedge than gold – Kitco NEWS

Published

2 years ago

June 17, 2022

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(Kitco News) – Analysts at the German inventment bank Deutsche Bank have released a controversial research note suggesting that the Swiss Franc (CHF) is a better inflation hedge than gold. The analyst note said the “Swiss franc is now a better hedge against spiraling inflation than gold”. The Swiss National Bank (SNB) hiked interest rates yesterday by 50 bps for the first time in 15 years. It has been touted by some analysts that the SNB only made the decision to keep up with the likes of the BoE and Fed.

“This rate hike will come as a considerable surprise to the domestic market in particular, where expectations for any policy change today had been minimal going into this meeting” said Robert Winkler, currency analyst at Deutsche Bank.

He added “Combined with the large rate hike, the signal to the market is even clearer than it has been in recent months: the SNB now desires a stronger Swiss franc. The rationale is clear: to prevent the transmission of excessive inflation from the Eurozone.”

The SNB like all the other central banks made this move to stop inflation “spreading more broadly”. The inflation hit 2.9% in May, the highest level for around 14 years. The bank said “The tighter monetary policy is aimed at preventing inflation from spreading more broadly to goods and services in Switzerland. Lastly the bank noted, “It cannot be ruled out that further increases in the SNB policy rate will be necessary in the foreseeable future.”

Looking at the daily chart below, the price of USD/CHF did fall following the rate decision but we need to see if the trend continues as inflation seems to bite. This only seems like a brief retracement from a decent uptrend and a break of the support level on the chart would inspire more confidence from the CHF bulls.

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Business

Restaurant Brands reports US$357M Q3 net income, down from US$364M a year ago

Published

10 hours ago

November 5, 2024

Anne Joseph

TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.

The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.

Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.

Consolidated comparable sales were up 0.3 per cent.

On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.

The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:QSR)

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Business

Electric and gas utility Fortis reports $420M Q3 profit, up from $394M a year ago

Published

10 hours ago

November 5, 2024

Anne Joseph

ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.

The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.

Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.

Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.

On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.

The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:FTS)

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Business

Thomson Reuters reports Q3 profit down from year ago as revenue rises

Published

10 hours ago

November 5, 2024

Anne Joseph

TORONTO – Thomson Reuters reported its third-quarter profit fell compared with a year ago as its revenue rose eight per cent.

The company, which keeps its books in U.S. dollars, says it earned US$301 million or 67 cents US per diluted share for the quarter ended Sept. 30. The result compared with a profit of US$367 million or 80 cents US per diluted share in the same quarter a year earlier.

Revenue for the quarter totalled US$1.72 billion, up from US$1.59 billion a year earlier.

In its outlook, Thomson Reuters says it now expects organic revenue growth of 7.0 per cent for its full year, up from earlier expectations for growth of 6.5 per cent.

On an adjusted basis, Thomson Reuters says it earned 80 cents US per share in its latest quarter, down from an adjusted profit of 82 cents US per share in the same quarter last year.

The average analyst estimate had been for a profit of 76 cents US per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:TRI)

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