The business week in review

Switzerland's second largest bank, Credit Suisse, dominated the business headlines this week, after announcing strong profits and a takeover in the United States.

Credit Suisse on Wednesday announced it is to buy the American investment bank, Donaldson, Lufkin and Jenrette (DLJ). The deal will cost Credit Suisse around SFr20 billion ($11.5 billion), and comes two months after Switzerland’s biggest bank, UBS, bought the US broker, PaineWebber.

On Thursday, Credit Suisse published its half-year figures, which showed net profits up 35 per cent to SFr3.6 billion. The strongest growth was recorded by Credit Suisse Private Banking, which posted profits growth of 61 per cent to SFr1.382 billion.

The country’s largest telecommunications operator, Swisscom, this week said that half-year operating profit slumped by a third to SFr1.1 billion. Net profit doubled to SFr2.4 billion on asset gains made through the sale of a one-third stake in the cable television company, Cablecom.

It was also announced that the 10 companies interested in joining the race for the third generation of mobile phone licences will all be allowed to take part in the auction, which kicks off on 13 November.

The Federal Office for Communications said it was satisfied that all 10 applicants have the required finances and had fulfilled all other pre-selection criteria.

Shares in the specialty chemicals group, Clariant, came under pressure this week after profits remained virtually unchanged over last year. First-half net profits edged up to SFr281 million compared SFr277 million for the same period last year.

Swiss Post saw its net profit fall by more than half, and blamed the poor performance on the cost of new staff and modernisation.

And finally, Switzerland reiterated this week that its banking secrecy laws were immutable. The Finance Minister, Kaspar Villiger, on a visit to Berlin this week, told his German counterpart, Hans Eichel, that banking secrecy was not up for negotiation.

Earlier in the week, the economics commission of the House of Representatives had backed the Government in defending banking secrecy.

swissinfo and agencies