Energy Shortage Fears

2023-01-24T21:55:35+01:00

In autumn the Swiss government started warning the population about possible energy shortages during the winter season. Due to the Ukraine war there was a serious possibility that we would not have enough gas or electricity to help us through the winter.

Companies, shops and people were encouraged to start saving energy like turning down the temperature a little during the cold winter months. Cities cut down on public lighting.

Indeed February has turned into a very cold month sometimes with temperatures well below -10°C. But meanwhile things look better than predicted. It seems the call for saving energy was really heard. And the feared energy shortage has not really happened so far.

Our homes are still warm and cozy. But the possibility of energy shortages is something that has not happened to this prosperous country as far back as anyone would remember.

Energy Shortage Fears2023-01-24T21:55:35+01:00

Opening Up

2021-05-04T17:47:19+02:00

In contrast to Germany, France and Italy, at end of April the Swiss government was opening up much of the country. As the weaker population is almost fully vaccinated the Covid cases have been declining or are stable. Recently we have hardly had any more death due to Covid.

Restaurants are allowed to serve customers outside of their premises. The view here is from the sun terrace of the restaurant Marbachegg at 1500m. The background offers a view of the impressive mountain ridge called Schrattenfluh (2000m).

The Marbachegg is a 10’ ride by cable care. Public transport from Bern takes 55’ to get to Marbach where you can purchase the ticket and get your ride up. It is a great area for skying in winter or hiking during the rest of the year.

Opening Up2021-05-04T17:47:19+02:00

Gas price tumbles

2020-04-29T22:41:24+02:00

The gas price is at a historic low. It just shows that much less gas has been consumed over the past weeks of the corona lockdown. And amazing how much environmental pollution has cleared up too. Switzerland has been under lockdown since March 16. The Swiss have strictly kept to social distancing guidelines and unless necessary haven’t much left their homes. And the measures have clearly slowed the increase of cases. Starting April 27 the Swiss government is carefully opening up our country with three measured steps. It is a difficult balance act of trying to limit the growing immense damage to the economy and saving lives.

Gas price tumbles2020-04-29T22:41:24+02:00

Coronavirus and Switzerland

2020-02-19T12:23:26+01:00

While the coronavirus is still raging in certain areas in China, it has been very quiet here in Switzerland. We don’t have one known infection yet! But we are fully aware that the virus keeps spreading. The question is more, how much can it really be contained and controlled….

The impact of the virus in China is clearly felt on several fronts here too:
The media keep reporting, how the coronavirus is spreading. Facials masks are mostly sold out, even though no one is wearing them yet.
The economy is also clearly getting affected. Interlaken is one of the main tourist spots in Switzerland. There are no guests from China anymore. The Chinese restaurant in the picture was empty when I visited around 1pm!
The production of goods in China is affected. This has even an impact on global companies such as Apple and Co.

Our hearts go out to China, that is going through an extreme situation. We are looking forwards to the time, when guests from China are again able to enjoy the beauty of Switzerland strolling around leisurely without having to wear facial masks!

Coronavirus and Switzerland2020-02-19T12:23:26+01:00

Mont Soleil

2018-05-29T13:49:46+02:00

This mountain rises to a heights of 1289m. A cable car or also a rather narrow road leads up from the small city of St. Imier. This area is part of the French speaking bernese Jura. The rolling soft hills and the large meadows are characteristic for the Jura.

On Mont Soleil (in French „Sun Mountain“) is a center for research on wind and solar power. In the center are many different kinds and types of sun panels that convert sun rays into energy. And there are at least a dozen wind mills that generate additional power.

The larger windmills are quite spectacular with a heights of 150m. The rotor measures 112m! It weighs 410 tons and produces 3’300kW. The noise production of the rotor is less prominent than expected. When the sun shines the movement of the rotor blades can be a little distracting because of the moving shadow on the ground.

About 80 million Swiss Francs were invested into this project. The production of energy from Mount Soleil covers about 80% of the need of the 17’000 inhabitants in the area including industry.

In Switzerland about 35% of the electric power is generated by atomic plants and almost 65% by water hydraulic plants. The mountains are an ideal set up for the later.

There are guided tours at the information center of Mount Soleil, explaining how energy is produced through wind and direct sun power.

Mont Soleil2018-05-29T13:49:46+02:00

Geneva International Motor Show

2018-03-19T17:00:39+01:00

This annual car exhibition is one of the major international auto shows. It started way back in 1905. This year the show was held as usual next to the Geneva airport from March 8-18, attracting about 700’000 visitors yearly.

Almost 900 cars from Germany, Italy, France, Spain, UK, Sweden, the Czech Republic, Japan, Korea and the US were on display. The trend to alternatives to the combustion engine were a big topic. Many of the big brand names are in the process of switching to electric or hybrid cars. One example is the I-Pace from Jaguar, a very powerful challenger to Tesla.

There were quite a number of concept cars on display, trying to give a glimpse into the future of automobiles. The tendency again is clearly to vehicles that are totally automatic without the need of a driver.

China is well positioned and has growing experience with electric cars. It is not impossible the China will dominate the car market of the future!

Geneva International Motor Show2018-03-19T17:00:39+01:00

Lot’s of Snow

2018-01-24T18:06:51+01:00

Over the past few days it had been raining non-stop down in the lower areas of our country. However up in the mountains and especially in the Southern part of Switzerland (Valais and Graubünden) meters of snow have come down and covered everything. Some villages are cut off and people can only come and go via helicopters.

The picture was taken in the village of Davos by a friend of ours who lives there. Davos is also under a thick blanket of snow.

At the moment the village of Davos is again taken hostage by this years WEF. Last year the president of the PRC, Xi Jin Ping, attended the forum. This year the US president Trump is attending, along with many other important figures ranging from politicians to market leaders and trend setters.

Lot’s of Snow2018-01-24T18:06:51+01:00

UBS

2018-01-02T21:03:21+01:00

In Switzerland the UBS is one of the biggest economic players that suffered a tremendous image loss and lost a a lot of money during the subprime mortgage crisis (Dec 07 to June 09). Meanwhile the bank has recovered its image and the money and is now again making a lot of money.

The Union Bank of Switzerland (UBS) is a global finance service company and one of the biggest wealth management banks. By 2016 it was represented in 54 countries with over a 1000 branches. In Switzerland alone there are around 300 branches that cater to the needs of people from all walks of life and not just a wealthy clientele only. Most of their 1’250 ATMs are mainly in Switzerland. It’s e-banking is really excellent.

On a global scale the UBS competes with the other Swiss banking giant, the Credit Swiss. Since its recovery from the big crisis where the Swiss government had to bail out the bank it has overtaken the Credit Swiss. The UBS is among the top 10 of the world’s investment banks.

Switzerland is really a small country with quite a number of big players, such as the two huge Swiss banks (UBS and Credit Swiss), Nestlé, Glencore, Novartis, Zurich Insurance Group, Roche Group, ABB etc

UBS2018-01-02T21:03:21+01:00

Migros

2017-03-21T09:50:56+01:00

Migros is the largest supermarket chain in Switzerland closely followed by it’s eternal competitor Coop. Both companies have countless smaller and bigger stores all over the country with articles at reasonable prices.

Eating out is rather expensive. But many locals get their lunch at a Migros or Coop store. Just have a look at a store and get anything from food to pocket knife or fondue!

How did it all start?

In 1925 Gottlieb Duttweiler kicked off his first market in Zurich. He introduced the first discounter store with lower prices but a bigger volume. At first he just sold six articles only such as rice, coffee, sugar etc from the back of a truck in areas with little access to markets. As a broad resistance from competitors arose Duttweiler started creating his own products such as meat, milk and chocolate.

Duttweiler was very successful and by 1941 he handed his business over to the customers by creating cooperatives. By 1950 the founder had formulated his fifteen theses that Migros still adheres to such as:

  • his shops would sell no alcohol, no cigarettes and no pornographic materials.
  • No dividends would get paid but the earnings above 5% would get passed on to the customers by lowering prices.
  • Any living adult in the country can become a member
  • 0.5% of it’s revenue is used for cultural projects
  • the general interest is placed higher than the interest of the cooperative

Nowadays Migros is called the „orange giant“. A capital M is it’s trade mark. Migros owns not only a huge super market chain but also a Migros Bank, it offer evening courses on many different topics (languages, cooking, computing etc), a travel agency, a sports shop chain, electronics chain, garden shops, restaurants, petrol stations etc. It employs over 100’000 people.

Migros is by now a real heavy weight and over the years has pushed out many smaller shops or bought up competitors. Migros owns 70% of Denner who does sell alcohol and cigarettes. Many farmers complain that Migros and Coop dictate the prices. Some critics say that Migros has somewhat lost touch with it’s founders ideals.

Recently smaller competitors were able to push into the Swiss market such as Aldi and Lidl bringing in even more choice. Both companies are from Germany and have successfully challenged the two giants.

Migros2017-03-21T09:50:56+01:00

WEF – World Economic Forum

2017-08-03T12:14:27+02:00

The President of the People’s Republic of China Xi Jinping has just arrived in Switzerland. The Swiss government treated him and his wife here in Berne with the highest honours.

Switzerland hopes for even better trade relations with China, which is our most important trading partner in Asia and the third most important partner after the EU and the US. The trade volume in 2015 was CHF 31 billion. An innovative strategic partnership was established during the visit by the President of the Swiss Confederation, Johann Schneider-Amman, in April 2016.

President Xi Jinping is actually attending the annual WEF (world economic forum). The WEF annual meeting is one of the most important economic and socio-political events in the world. It always takes place in Davos, in a mountain resort in the Southeast of Switzerland.

This year it takes place from January 17-20. Among the participants are not only the president of China, but also Theresa May of UK and other world leaders. Over 2’500 participants from more than 100 countries, 1200 economic leaders and quite a few stars meet in the lovely village of Davos. The official motto is „Responsive and Responsible Leadership“. The unofficial motto is rather „Brexit and Trump“.

WEF – World Economic Forum2017-08-03T12:14:27+02:00

VAT 8%

2016-07-25T09:51:51+02:00

In Switzerland the VAT (Value Added Tax – or MWSt – Mehrwertsteuer) is set at 8% for most articles. Basic foods and medication are only taxed 2.5%.

This is an indirect tax on all services and products purchased within Switzerland. The state gets about a third of its income through the VAT.

Companies offering services or products within Switzerland with less than a CHF 100’000 revenue may be exempt from having to charge their customers the VAT.

The VAT of 8% in Switzerland is quite low in comparison with Germany 19%, France 20%, Italy 22%, Austria 20%, UK 20% and Sweden 25% etc.

Visitors from China who buy expensive watches in Switzerland are probably best advised to pay the VAT in Switzerland because at home the China Sales tax is 17%.

Switzerland is quite an expensive country. Salaries are very high. That is a main reason why services are expensive in comparison with Europe or the rest of the world.

For Swiss residents it is tempting to shop across the borders. Services and goods are a better deal than at home. When crossing the border the Swiss residents can additionally apply for a tax return.

VAT 8%2016-07-25T09:51:51+02:00

BREXIT

2017-08-03T12:14:27+02:00

The British Embassy in Bern with the flags of Great Britain and the EU.

On June 24 the official result of the vote was out early in the morning: the UK is going to leave the EU (European Union)! Shockwaves rocked the markets. Fortunes were erased. Nobody had anticipated that this would happen. Everybody thought that by a small margin the UK would opt to stay. It seems that even Boris Johnson, who as a lead figure for leaving the EU, was taken by surprise. He then soon announced that he would not want to be a candidate for the job of the next prime minister.

Great Britain is quite divided over the issue. Greater London was clearly for staying in the EU. Scotland and North Ireland also wanted to stay and might now possibly leave the UK to reapply as new members of the EU. At the moment the consequences of the Brexit no one is really able to fully anticipate and it will take years to sort it all out.

Switzerland is working closely with the EU but is also not a member of the EU. It is feared that some of our important negation points with the EU are now put on the back burner as the EU has more pressing matters to attend to.

In crisis moments many investors opt for the stable Swiss Franc. The Swiss National Bank (SNB) is buying heaps of € in order to keep the Swiss Franc from rising and hurting our export industry. Switzerland also hopes that big UK companies will move their seat to Switzerland.

Another unexpected Brexit happened last week when during the Euro Soccer Cup the prestigious English team lost the eighth finals on June 27 to Iceland (1-2), a nation of just a few hundred thousand heads!

BREXIT2017-08-03T12:14:27+02:00
Go to Top