SNB: the Year-End Policy Decision
The Swiss National Bank (SNB) will convene on Thursday for its final monetary policy meeting of the year. Market consensus points to a 25-basis-point rate cut. However, given the current macroeconomic landscape and inflation expectations, the Governing Board’s stance will be closely scrutinized. Key points to watch include:
- Policy Adjustment Timing: Will the SNB opt for a more aggressive 50-basis-point cut to preemptively address 2025’s monetary policy challenges?
- Negative Rates Outlook: Could there be a new signal of a potential return to negative rates?
- US Tariff Risks: How will the SNB evaluate the potential economic impact of new US tariffs?
- Inflation Insights: Any commentary on consumer price trends will provide more clarity on the outlook
Markets Show Resilience Amid Events
In a demonstration of remarkable steadiness, financial markets have absorbed recent developments with little to no tension — events that, in different times, might have triggered heightened volatility. Among the most notable are:
- French Government Downvote: the Government was ousted by the National Assembly through a motion of no confidence, an event that had not occurred since 1962
- South Korea’s Martial Law Announcement and Withdrawal: a brief but alarming development that was swiftly reversed
- Romania’s Election Cancellation: a move that raises a number of questions about political stability
- Collapse of the Assad Regime in Syria: an event with the potential to escalate geopolitical instability in the region.
Bitcoin Surges to $ 100’000
Bitcoin has reached the symbolic USD 100’000 milestone, earning its new title as “digital gold.” The surge has been fueled by the recent U.S. election of Donald Trump:
- Bitcoin as a National Reserve: the U.S. is reportedly exploring the creation of a national Bitcoin reserve, drawing comparisons to a modern-day Fort Knox
- Crypto Advocates in Power: Donald Trump, alongside Elon Musk, is a vocal supporter of the crypto space, adding momentum
- Pro-Crypto Regulation: Paul Atkins, the new head of the SEC, is seen as significantly more favorable toward cryptocurrencies compared to his predecessor, Gary Gensler
El Salvador, the first country to adopt Bitcoin as legal tender in 2021, is undoubtedly reaping the rewards of its pioneering move in the crypto world.
Notre-Dame Cathedral Reopening
On December 7, 2024, after extensive restoration following the 2019 fire the Notre-Dame Cathedral was reopened:
- High-Profile Ceremony: the event was led by Archbishop Laurent Ulrich and attended by dignitaries, including President Macron, Prince William, and U.S. President-elect Donald Trump
- Epic Restoration Effort: over 2’000 workers contributed to the $760 million project, supported by nearly $1 billion in global donations
- Symbol of Resilience: the reopening celebrates cultural and historical preservation, with the cathedral once again welcoming visitors through a free reservation system
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