A Global Market Based on Gold Bars Shudders on Tariff Threat
(Bloomberg) — The global gold market relies on a network of banks, refineries and couriers that can fly bullion between key trading hubs at a moment’s notice in pursuit of the highest prices. On Friday, a shock US ruling suggesting that the metal would be subject to tariffs plunged that system into chaos.
The apparent decision by the US Customs and Border Protection agency — announced privately in a letter to a Swiss refiner on July 31 and made public Friday — sent gold futures in New York soaring to a record, as insiders warned the tariffs would have dire consequences for the market. Then, just as quickly, prices tumbled after the Trump administration suggested imports of gold bars wouldn’t face tariffs after all.
It was the latest example of President Donald Trump’s trade war triggering wild gyrations in markets, for equities, raw materials and finished products alike.
Gold bullion is typically treated more as a financial instrument than a physical product, and slapping tariffs on it would have such profound consequences that many traders argued Friday the ruling had to be a mistake.
“The problem was that the government didn’t look outside of the question of the physical format and did not take into consideration that this widget was actually gold,” said Robert Gottlieb, a former precious metals trader and managing director at JPMorgan Chase & Co.
A complex and sometimes fragile system for making and moving gold bars underpins the global market for the metal, including the futures exchanges in New York and Shanghai as well as a huge over-the-counter market overseen by London banks. Key consumer hubs in Mumbai, Dubai and Hong Kong rely on it as well.
There is more than $1.1 trillion in gold bars stored in vaults to underpin trading in New York and London alone, with much of it stored by major dealers including JPMorgan and HSBC Holdings Plc.
Refineries in Switzerland play a crucial role in facilitating the flow of gold between London and New York. A trade group representing them said Friday that the apparent tariffs would render any future US shipments unviable. Asian refineries put a temporary halt on US-bound sales. At the epicenter of the turmoil in New York, observers warned that tariffs would pose a major threat to the gold futures market itself.
“The disbelief isn’t just that several billion dollars have been made and lost overnight,” said Ross Norman, a four-decade veteran of the industry who now runs Metals Daily, a pricing and analysis website. “The problem is we’re not in a good position when things become disrupted. When things blow out, you get lots of injuries.”
The dysfunction was immediately reflected in the spread between prices on CME Group Inc.’s Comex exchange in New York and the global benchmark price set in London. New York futures hit a new high above $3,530 an ounce on Friday, while the London market was more than $100 lower.
That was a record gap, but the 3% spread would be nowhere close to covering the apparent cost of import levies, which would differ from country to country under Trump’s reciprocal tariff regime.
Typically, if New York prices rise sufficiently, the large-format bars that are traded in London are melted down in Switzerland and recast as smaller, 1-kilogram (2.2 pound) bars that are deliverable on Comex. But with Switzerland facing a 39% reciprocal tariff, Comex prices would have needed to rise to about $4,700 an ounce for the shipments to become feasible.
To plug the gap, US buyers might have been able to turn to other key suppliers, including Canada and Mexico. But Trump has threatened stiff tariffs on those countries, too.
Unlike gold miners, independent refineries survive on razor-thin margins. The Swiss trade group warned Friday that shutting them out of such a significant market would have adverse consequences for the global gold trade.
The hope — similarly held among the investors, traders, banks, and logistics firms blindsided by the US ruling — was that the White House would step back from the brink. It may do just that: The administration intends to post an executive order clarifying what it called misinformation about the gold tariffs, according to an official.
“From day to day, we learn more about new rules that could dramatically change the landscape of each commodity,” said Darwei Kung, head of commodities and portfolio manager at DWS Group. “Perhaps more change will result from the negotiation in the days to come.”
–With assistance from Elise Harris.
©2025 Bloomberg L.P.
Swiss pensions have fallen by 16% since 2002
Those who retire after a lifetime of work are receiving less and less money from the Swiss pension system. The combined old-age and survivor’s pension (OASI) and pension fund payouts have fallen by an average of 16% since 2002.
This is the conclusion reached in an analysis published today by the financial services provider VZ VermögensZentrum.
While OASI payments have tended to remain constant over the years and will increase slightly with the introduction of the 13th monthly payment from 2026, pension funds have massively reduced their benefits: pension payments are 40% lower than in 2002. The reasons are low interest rates that may soon turn negative again, rising life expectancy and the failure of the occupational pension reform.
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In theory, pensions should pay out 60% of the final salary but this is no longer the case. Concretely, a person currently earning CHF100,000 per year will receive about 51% of his or her final salary in the form of a pension at retirement. With an income of CHF150,000 the share drops to as low as 42%.
Reality is also often more bitter than expectations: pension expectations are systematically too high, warns VZ Vermögenszentrum on the basis of a survey. On the other hand, erosion is evident: a 55-year-old man with an income of CHF120,000 in 2002 could still count on an annual pension of CHF74,920; in 2025 this figure is only CHF62,860.
The downward trend is also expected to continue. Among other things, the latest cut in the guide rate to 0.0% by the Swiss National Bank (SNB) and the further increase in life expectancy will weigh heavily.
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Swiss and American parliamentarians meet in Geneva
Although this meeting is scheduled to take place twice a year regardless of the current crisis, tariffs were discussed.
“We obviously talked about it, but we talked about a lot of other things,” Swiss parliamentarian Laurent Wehrli told new agency Keystone-SDA on Friday afternoon at the end of the meeting. The Swiss delegation, led by the president of the Switzerland-US Friendship Group Damien Cottier, was considerably smaller in number than the 28 members of the US House of Representatives.
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The American representatives, who included 20 Republicans and eight Democrats, are not leading members of Congress. And none are considered to be very close to President Donald Trump.
Visit to the WTO
“In the current context, it is important that all channels continue to talk to each other,” said Wehrli specifying that any communication would come from the Americans. The Federal Council is in charge of the negotiations but parliamentarians “can accompany” the dialogue, he added.
For his part, North Carolina representative Greg Murphy expressed his hope on social networking sites that “the trade situation with Switzerland will be resolved quickly”. “The Swiss have always been important partners” on medicines and foreign affairs, he said. “Let’s sort this out”, added the member of the Republican Party.
Security at the Intercontinental Hotel, which is used to holding discussions of greater scope than this one, was more tense than usual. Instructions were given by the delegations’ security managers to keep journalists away, as the elected representatives did not wish to speak immediately.
The American representatives had another experience of world trade in Geneva. On Wednesday, they visited the headquarters of the World Trade Organisation (WTO), an institution openly opposed by Donald Trump, Keystone-SDA learned from a source close to the matter.
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WTO improves its world trade forecast thanks to Trump’s tariffs
The World Trade Organisation (WTO) expects world trade to grow by 0.9% this year, better than expected in April. US imports surged in the first quarter as a result of Donald Trump’s tariff announcements.
Imports to the US rose by 11% in the first half of the year compared with the same period last year, the organisation said in Geneva on Friday. American companies rushed to buy goods from their foreign partners amid uncertainty over the situation following the three-month pause in tariffs decreed by the US President.
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“World trade has shown resilience” in the face of disruption, “including recent tariff increases”, said WTO Director-General Ngozi Okonjo-Iweala. “The full impact of recent tariff measures, however, has yet to be felt,” she added.
In April, in the midst of the trade war between the United States and China, the WTO was predicting a 0.2% contraction in world trade this year. However, the new tariffs are expected to have a corrective effect in the second half of the year.
The truce between Washington and Beijing and certain exceptions are making a positive contribution. But the new tariffs that came into force on Thursday will have a greater impact on imports into the United States. These are expected to fall by 8.3%.
Asia in first place
And the situation now looks particularly difficult for next year, according to WTO economists. Growth is likely to be 1.8%, compared with a previous estimate of 2.5%.
Another explanation for this year is that the global economic situation is more favourable. The depreciation of the dollar should ease conditions for developing countries. And the fall in oil prices should support growth in the industrialised economies, even if it should reduce demand for imports in oil-rich regions.
By region, Asia will continue to drive world trade, with exports up by 4.9% and imports up by 3.3%. European exports are set to fall by 0.9%.
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Swiss gold exports might not face US tariffs after all
Gold exports to the United States may not be taxed after all. The White House plans to issue an executive order in the near future to clarify misinformation about the taxation of gold bullion, in particular.
This announcement of a future clarification decree, transmitted on Friday by news agency AFP, follows information from US customs that caused panic among specialists and on the markets. A customs document dated July 31 that was made public on Friday indicated that one-kilo and 100-ounce gold bars would be subject to customs duties. This was in fact “false information”, Bloomberg later reported, based on a statement by an official who requested anonymity.
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The White House plans to issue an executive order shortly to clarify matters. In the meantime, fears that gold might be taxed sent the price of the precious metal soaring on Friday evening to a new record of $3,534.10 an ounce (31.1 grams), before falling back to $3,461.40 at around 8pm, after the clarification.
For Switzerland, a major gold refining centre, a tax on gold would represent a further blow after Switzerland was hit on Thursday with heavy tariffs of 39% on its products entering the United States.
Until now, investors have always taken it for granted that gold was exempt, along with pharmaceutical products, which are under threat of a separate tariff.
Traders hold their breath
The Swiss Association of Manufacturers and Traders in Precious Metals (ASFCMP) expressed its concern on Friday about the possibility of taxation. A tax on gold “would make its export to the United States economically unviable”.
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Now the association holds the view that precious metals remelted by Swiss refineries and exported to the United States could be shipped duty-free. ASFCMP added that the customs classification of the various gold products was not always precise.
The association is in discussions with the Swiss authorities, the London Bullion Market Association (LBMA), the World Gold Council (WGC) and key American bodies. It also points out that the sector does not depend solely on the important US market.
Speaking to the media in Bern on Friday, Swiss President Karin Keller-Sutter said that Switzerland had been the victim of bad timing when it came to calculating its trade surplus of almost $40 billion with the United States, which had prompted Donald Trump to set a customs surcharge of 39%. The calculation was based on figures for 2024, a year in which Swiss gold exports to the United States were particularly strong due to demand boosted by expectations of a tax.
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The Swiss waste 2.8 million tonnes of food per year
This corresponds to around 330 kilograms of avoidable food waste per person per year.
This is according to the Federal Office for the Environment (FOEN) with reference to a study by the Swiss federal institute of technology ETH Zurich. The waste can occur during cultivation, processing, sale and consumption.
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However, not all food is equally relevant for the climate. “The environmental impact of a tonne of food waste varies greatly depending on which products it is made up of and where in the value chain it occurs,” writes the FOEN.
According to the report, meat, coffee and cocoa beans have the greatest environmental impact in terms of food waste. Butter, eggs, cheese, fish, oils and products imported by plane also contribute significantly to Switzerland’s CO2 footprint. Unutilised fruit, vegetables and baked goods also play a role, as they are thrown away on a large scale.
To avoid food waste, WWF Switzerland recommends avoiding unnecessary purchases, utilising leftovers and storing food properly.
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No glasses for chickens – and other odd Swiss animal welfare laws
Switzerland stands out for its strict animal welfare laws that seem to go further than other countries. But is this really the case? Take, for example, the illegality of glasses and contact lenses for chickens.
Some time ago, the British BBC programme Quite Interesting posted a curious anecdote about the Switzerland on its Facebook page: “In Switzerland it’s illegal to force domestic poultry to wear glasses or contact lenses”.
Contact lenses and glasses for chickens prohibited by law? When did that ever happen? Is it possible that the BBC’s editorial staff had made a mistake.
No, they didn’t. Article 20 of the Animal Protection Ordinance (OPAn) lists prohibited practices on domestic birds. These include: ‘The use of glasses and contact lenses as well as the application of devices that prevent the beak from closing.’
The needs for such a regulation is linked to a practice that is still possible in various countries, even if it is no longer very widespread.
Cannibalistic chickens
According to Sibel Konyo from the Zurich-based animal rights foundation Tier Im Recht (TIR), the use of glasses and contact lenses on poultry is an attempt to adapt birds to housing conditions that are not “animal-friendly”.
When roosters and hens are confined to a limited space without sufficient distractions, they can injure each other and develop cannibalistic tendencies. To prevent this, one practice still used around the world is beak trimming. Another is the use of “glasses”. These are not designed to improve the chicken’s vision, but to reduce it, with red lenses or even blinders.
The idea behind the coloured lenses, first produced in the United States at the beginning of the 20th century, was to prevent poultry from distinguishing the colour of blood, which was said to make hens and roosters more aggressive.
A 1947 newsreel on glasses for chickens from the US manufacturer National Band and Tag Company:
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However, fitting these devices – with a clamp or a needle that pierces the beak – is painful for the animals, that also risk bumping into objects they can no longer see, explains Konyo.
Contact lenses serve the same purpose. In the 1980s, in the United States, the company Animalens patentedExternal link and promoted the use of red contact lenses for poultry.
Animalens extolled the supposed benefits of the invention: increased egg production, reduced feed consumption and lower mortality rates. However, subsequent studies showed that the only notable difference between a laying hen using contact lenses and one that did not was the incidence of eye infections.
A lexical curiosity
It is therefore not surprising that Switzerland introduced this ban in a major amendment to the Animal Protection Ordinance in force since 2008.
It should be noted, however, that similar rules already existed in other countries, including the United Kingdom.
The BBC should not be blamed for describing the rule as a Swiss peculiarity. British lawExternal link uses more technical terms in its list of prohibited operations: ‘fitting any appliance which has the object or effect of limiting vision to a bird by a method involving the penetration or other mutilation of the nasal septum’.
The term ‘chicken glasses’ is therefore a curiosity that derives from the lexical field rather than the legal field, and is probably due to the simpler and more direct language used in Switzerland (see box).
Swiss legal texts are clearer because they are multilingual
The authors of a recent study on the differences between Italian spoken in Switzerland and Italian spoken in Italy highlighted the greater clarity of Swiss legal texts.
“The official texts of the Swiss Confederation in Italian are almost always translations of German or French texts. Surprisingly, this is not an obstacle, but rather an opportunity for their communicative quality,” emphasised linguistics professor Angela Rossi of the University of Basel, who conducted the study, in September 2024.
The federal government’s translators act as careful ‘testers’, checking whether the source text is coherent and clear, and taking corrective action if necessary. Official legislative texts are translated as the originals are produced, discussed and, if necessary, reworded during the various parliamentary sessions, Rossi explained to news agency Keystone-SDA.
Animal dignity
Although the ban on glasses and contact lenses for chickens is not unique to Switzerland, this does not mean that Switzerland does not stand out internationally for its relatively strict animal welfare legislation.
The best-known example is that of guinea pigs. In Switzerland, it is illegal to own just one. This is because they are social animals which, like rabbits, ferrets and parrots, suffer if they do not have the company of their own kind.
This rule also came into force with the revision of the Animal Protection Ordinance in 2008, which was in turn drafted in the wake of the major amendment to the relevant federal law in 2005.
This revision is considered a major success for the Swiss Central Association for Animal Protection, many of whose demands were incorporated into the text, explained Heinz Lienhard, then director of the association, in this interview with swissinfo.ch.
The most important and uniquely Swiss aspect, says Sibel Konyo, is the introduction, with the 2005 revision, of the concept of ‘animal dignity’ (Art. 3 lit.a of the LPAn). “In terms of animal protection law, safeguarding animal dignity represents a milestone and a step into a biocentric dimension, granting animals a legally protected value regardless of their capacity for perception,” explains the expert, who believes, however, that there is much room for improvement.
“For example, due to the lack of a specific criminal provision, such as that contained in the German Animal Welfare Act, the killing of an animal without a valid reason remains unpunished under Swiss law.”
Not more than 300 hamsters per year
The regulatory machine has not stopped since 2008. Noteworthy for its Swiss precision is one of the latest amendments to the Animal Protection Ordinance introduced in February 2025. It establishes the number of animals that can be sold to third parties annually, beyond which farm managers are required to apply for cantonal authorisation.
‘Three hundred mice, rats, hamsters or gerbils’, reads point 4, for example. Its meticulousness pales in comparison to point 7 that restricts acquisition of exotic birds to “the offspring of no more than 25 pairs of birds no larger than a cockatiel, no more than 10 pairs of birds larger than cockatiels, or more than five pairs of macaws or cockatoos”.
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Legislators therefore continue to work tirelessly for animals, even if, at times, they are unable to maintain their composure.
“We have become a zoo by talking so much about animals,” said then-Senator Géraldine Savary ironically in 2015 during a session of the Senate in which the importation of shark fins was discussed. When, shortly afterwards, she had to ask the plenary to approve a motion to combat Scrapie disease affecting sheep, she was unable to suppress a giggle.
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Edited by Daniele Mariani. Adapated from Italian by DeepL/ac
A spark of hope for Swiss descendants without a Swiss passport
Descendants of Swiss emigrants who have lost their Swiss passport are fighting a desperate battle to reclaim their citizenship. Now they are pinning their hopes on a little-known law.
Switzerland was once a nation of emigrants. In the 19th century, thousands of Swiss citizens moved overseas, which is why the number of descendants of Swiss emigrants is substantial. In South America alone, they number in the tens of thousands.
>>>The Swiss still have a great appetite for emigrating, but many of them return after spending a certain number of years abroad.
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These descendants may have Swiss roots, Swiss ancestors and often maintain a strong, mostly emotional connection to Switzerland. Yet over the generations, many have lost their Swiss citizenship.
A nearly unnoticed initiative
While the demands of Swiss emigrants’ descendants made headlines earlier this year – with 11,500 people signing a petition for easier access to the coveted red passport – another political initiative quietly slipped under the radar.
The motion came from Senator Carlo Sommaruga of the Social Democratic Party. He called for the creation of an additional special quota of residence permits to make working in Switzerland easier for descendants of Swiss emigrants who hold neither a Swiss passport nor citizenship of a country within the European Union or the European Free Trade Association (EFTA). The motion, however, stood no chance in the Senate.
The idea behind it was to remove the hurdles these descendants face when applying for a residence permit to spend more time in Switzerland, for example to work. As non-Europeans, they do not enjoy freedom of movement but instead fall under a quota system. For descendants of Swiss citizens from so-called third countries, access to the Swiss labour market is considered possible only within strict limits, or so it was assumed until now.
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Special regulations for children of Swiss Abroad
But recently, another option has emerged. As revealed in the [government’s] response to two petitions by the Senate’s Political Affairs CommitteeExternal link, foreign-born children of Swiss citizens already have the right to obtain a residence permit under simplified conditions, if they are seeking reinstatement or facilitated naturalisation.
Upon request, the State Secretariat for Migration (SEM) has confirmed this. “There is a special legal provision for the admission of children of Swiss citizens today.” Employment is permitted under eased conditions according to article 29, paragraphs 2 and 3External link of the Ordinance on Admission, Residence and Employment (OASA) – without being subject to quotas or the requirement to give priority to Swiss or EU citizens, which is known as Inländervorrang.
This revelation has caught the attention of some descendants of emigrants who wish to regain their Swiss passport. It means that, after all, they can spend extended periods in Switzerland. “Until now, the main obstacle to regaining citizenship was the possibility to live legally in Switzerland without a passport,” writes Dylan Kunz, grandson of Swiss emigrants in Argentina.
But those hoping to regain citizenship or apply for facilitated naturalisation must have spent at least three years living in Switzerland, provided they missed earlier deadlines.
The Swiss law regulating how citizenship is passed on abroad is clear: children born abroad to Swiss parents lose their citizenship if they are neither registered with a Swiss representation nor entered into the Swiss civil registry by the age of 25, or 22 for those born before 1958. Once that deadline passes, descendants theoretically have ten years to apply for their citizenship to be reinstated.
If that deadline is missed, the only option left is to apply for reinstatement, provided the applicant has lived continuously in Switzerland for three years.
A glimmer of hope
The government took this fact into account when drafting the immigration regulations on admission requirements, the SEM’s response continues. “Foreign-born children of Swiss citizens can obtain a residence permit under simplified conditions, if they qualify for reinstatement of citizenship.”
However, applicants must demonstrate close ties to Switzerland, and there is no legal entitlement to a residence permit. “Refusing a residence permit would contradict the objectives of the Swiss Citizenship Act, as reinstatement in some cases requires residence in Switzerland,” the Committee’s response states.
“This is a significant step forward in our shared fight,” Kunz says looking optimistic.
But was Senator Sommaruga’s motion in vain? Indeed, he was unaware of the existing law, yet his proposal went even further. The existing special rule only applies to the first generation without Swiss citizenship.
The law should be extended
“My proposal targets everyone who can prove Swiss roots – beyond the first generation – and who maintains a link to Switzerland by engaging with the community of the Swiss Abroad and their descendants,” Sommaruga told Swissinfo upon request.
Still, this new development gives the “Nacionalidad Suiza para descendientes” community a major boost. “We will continue to advocate for this right to be extended to our grandchildren and future generations,” echoes from the Swiss Abroad community in Argentina. Each approval granted strengthens the arguments of Swiss expatriates’ descendants in the Swiss parliament.
Edited by Balz Rigendinger. Adapted from German by Billi Bierling/ds
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How Switzerland’s Tariff Drama Swung From Hope to Despair
(Bloomberg) — On July 4, as the US celebrated Independence Day, Switzerland’s top circle of ministers also had reason to rejoice. They’d secured a deal to avoid punitive tariffs from Donald Trump — or so they thought.
Three and a half weeks passed before Swiss President Karin Keller-Sutter or anyone else in the cabinet realized things were about to go horribly wrong. When Trump announced his tariff verdict, Switzerland was handed the highest levies in the developed world.
The shock hit just hours before the country’s own national holiday on Aug. 1, prompting Keller-Sutter to make a last-ditch trip to Washington to rescue the situation. Instead, she was ghosted by the White House.
“We had, on the 4th of July if I recall, no signs that there would be a problem,” Vice President Guy Parmelin said on Thursday, the day a very different reality descended on Switzerland with the imposition of 39% tariffs — more than double the European Union’s rate.
The disastrous outcome brought home Switzerland’s lack of leverage in an era of global instability and the misguidedness of trusting conventions when dealing with Trump. It leaves Swiss executives trying to figure out how to compete in the world’s biggest market and voters wrestling with the future of the country’s go-it-alone strategy.
This account of how Switzerland went from “the front of the queue” for a deal with the US to an economic nightmare is based on conversations with multiple people in Bern, Zurich and Washington, who requested anonymity describing private discussions.
The Swiss government declined to comment on the details of the negotiations. The White House and Commerce Departments did not immediately respond to requests for comment and the Treasury Department declined to comment.
Phase 1: Hope
On April 24, three weeks after Trump announced his sweeping tariffs on the world, Parmelin and Keller-Sutter met with US Treasury Secretary Scott Bessent in Washington. Afterward, she announced that Switzerland was set to get “somewhat preferential treatment.”
At this point, the Swiss believed they were on firm ground with the US president, because of the small size of their economy and the fact that they abolished industrial tariffs.
Switzerland could give Trump a quick win, an adviser on the Swiss side said at the time. And with Bessent and others, the often-fickle president was surrounded by people who understood the country wasn’t problematic.
The Swiss plan included concessions on some agricultural products and easier approvals for US medical devices. They also pointed to billion-dollar investments national pharma giants Roche Holding AG and Novartis AG have pledged.
In return, they sought a 10% tariff and a pledge that Trump won’t put punitive levies on medicines in his national-security investigations.
Phase 2: Procedure
In May and June, the office of US Trade Representative Jamieson Greer held more than 20 rounds of talks with the Swiss. Negotiations occurred frequently via video calls, sometimes even by WhatsApp.
Bessent was looped in, and on June 23, Keller-Sutter had a phone call with him and said they’re close to an agreement.
A few days later, there was a draft. It contained a clause that Swiss drug makers would no longer seek to source certain ingredients from China.
There’s different understandings of what happened next. Some people said that Bessent, Greer and Commerce Secretary Howard Lutnick signaled to Swiss negotiators that they’d support the accord in front of the president. Others said the US officials made clear to their Swiss counterparts they would simply brief the president on the positives and negatives of a potential deal but the final decision rested solely with Trump.
The idea that there was a completed deal that US Cabinet Secretaries pushed to Trump is inaccurate, one of the people said.
In Bern, Keller-Sutter and her fellow ministers still hadn’t heard directly from Trump. But they decided to rely on the word of his ministers and gave their formal approval on US Independence Day.
Phase 3: Catastrophe
Keller-Sutter says that in late July Greer’s office told Swiss negotiators that it would be helpful if she asked for a phone call with the US president. She did so.
One person familiar with the matter said the Swiss decided on their own to call Trump.
The conversation that changed everything for the Swiss started at 2 p.m. Washington time on July 31.
After offering congratulations for Switzerland’s national holiday the following day, Trump hit Keller-Sutter with an accusation: her nation was stealing from the US, he said, pointing out a trade deficit he rounded up to $40 billion.
The Swiss were caught off guard as the bilateral balance hadn’t come up in previous talks. They were comfortable they’d defused the issue by noting that the deficit in goods was almost completely offset by imports of services. They also highlighted that the country was the seventh-largest foreign investor in the US.
On the phone, the Swiss president — a stoic politician not prone to dramatic gestures or punchy one-liners — took the stance that Switzerland stands by its word and the pre-negotiated draft accord. If there was disagreement, it was no deal over a bad deal.
Two different narratives of the call have emerged. One portrays Keller-Sutter lecturing Trump and botching the encounter. The other suggests it was all show and Trump had made up his mind to hit Switzerland before picking up the phone.
The truth might lie in the middle. Unlike some other leaders, Keller-Sutter is not one to opt for pomp and flattery, like NATO Secretary-General Mark Rutte has done to woo the US leader.
“We will not make promises we cannot keep,” Keller-Sutter told reporters when asked if she should have followed such a negotiating style.
But Trump also may have wanted to make an example of Switzerland after facing criticism for caving in on tariffs, especially against big countries like China.
“The woman was nice, but she didn’t want to listen,” Trump later told CNBC.
Phase 4: Despair
On Aug. 1, Keller-Sutter tried to show a brave face. Speaking on the Rütli meadow — a field overlooking Lake Lucerne where, according to legend, Switzerland’s founding fathers swore to protect each other from foreign powers — she said the nation can handle the crisis.
“Switzerland is used to storms,” Keller-Sutter told the crowd. “I don’t want to give this too much room today — this is our day, the day of the Swiss people.”
Given the shock, that was a big ask, and critics quickly descended on the president, blaming her for not joining other countries in throwing Trump a token to allow him to claim victory, or at least having a Plan B.
With just days before the start of tariffs on Thursday, the government focused on diplomacy rather than retaliation. Negotiators sought contact with US counterparts with an improved offer. Options ranged from extended investment pledges to purchases of US defense goods and liquefied natural gas.
On Tuesday, with two days to go, Keller-Sutter made a surprise trip to Washington. But it was a desperate attempt. As her plane took off from Dübendorf Air Base near Zurich, she had no invitation to meet Trump.
She returned empty handed after only a courtesy meeting with Secretary of State Marco Rubio, who doesn’t lead negotiations on trade deals. It was her only official encounter with the US administration.
One hour before her plane landed back in Switzerland, the tariff kicked in and the storm started to unfold.
Swiss companies initiated emergency plans to relocate production elsewhere to avoid the levies or pause deliveries to the US.
While the Swiss government is keeping a delegation in Washington to pursue concessions, the steadfast faith on the country’s exceptionalism is now broken.
“In negotiations, such breaks can happen,” Keller-Sutter told reporters. “One has to live with that and carry on.”
–With assistance from Jordan Fabian and Catherine Lucey.
©2025 Bloomberg L.P.
Nasdaq Hits Highs as Apple Has Best Week Since ‘20: Markets Wrap
(Bloomberg) — Stocks saw their best week since June, with a rally in big tech driving the Nasdaq 100 to all-time highs. Also buoying sentiment were hopes the US and Russia will reach a deal to halt the war in Ukraine. Gold whipsawed.
The S&P 500 approached 6,400, closing on the brink of a record. Apple Inc. saw its best week since 2020 amid optimism that plans to spend an additional $100 billion on domestic manufacturing may help the company avoid tariffs. Fannie Mae and Freddie Mac soared on reports the US is preparing to sell shares in an offering that could start as early as this year.
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The yield on 10-year Treasuries rose three basis points to 4.28%. The dollar barely budged. Oil fluctuated. The Trump administration suggested it would issue a new policy clarifying that imports of gold bars should not face tariffs.
Donald Trump announced that he plans to meet “very shortly” with Russian President Vladimir Putin, as the US president looks to broker a ceasefire agreement in hopes of bringing an end to the war in Ukraine.
Bret Kenwell at eToro said momentum has been strong in equities, with both technicals and fundamentals working in bulls’ favor.
“While an unexpected risk could develop in the second half of 2025, earnings have been better-than-expected and the Fed is inching closer to lower interest rates,” he noted. “As long as the economy holds up, there are catalysts in play for stocks to continue higher.”
Trump said tariffs are “having a huge positive impact on the stock market,” adding that “almost every day, new records are set.” Hundreds of billions of dollars are “pouring into our country’s coffers,” he noted.
“Markets rebounded strongly this week with a clear ‘buy on the dip’ mentality,” said Florian Ielpo at Lombard Odier Investment Managers. “While market sentiment appeared to be waning last week, with subdued reactions to earnings beats, this week clearly demonstrated a different trend.”
And that begs the question: are we close to a solid ceiling?
“Our risk appetite indicator shows improvement from last week, but clearly has room to grow,” Ielpo said.
At Piper Sandler, Craig Johnson says that while the summer doldrums often lead to modest pullbacks in August and September, investors who have doubted this rally are now forced to “buy the dips… and not sell the rips.”
Despite the solid rebound, nearly $28 billion was redeemed from US stocks in the week through Aug. 6, while money market funds attracted about $107 billion, according to a Bank of America Corp. note citing EPFR Global data.
“With the major indexes at or near record highs, valuations are rich, and stock selection and diversification are more important than ever,” said Daniel Skelly at Morgan Stanley’s Wealth Management Market Research & Strategy Team.
On the macro front, BofA’s Michael Hartnett said a majority of the bank’s clients are betting on a “Goldilocks” outcome, which implies an economy that’s running neither too hot nor too cold. He said investors expect a scenario where lower rates would fuel a rally in equities.
Kenwell at eToro says that it would be a healthy price action for stocks to consolidate after a big rally — either by pulling back or digesting the move by trading sideways.
“This pullback would likely be viewed as an opportunity for investors to buy the dip rather than run for the hills,” Kenwell said.
“We believe stocks will stay supported amid solid fundamentals, but fresh headlines in the coming week may challenge investor sentiment that remains vulnerable to tariff, economic, and geopolitical risks,” said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management.
The next significant directional move in the market will be driven by fundamentals, either through macro resilience driving earnings estimates higher or further cracks in the labor market driving increased recession concerns, according to Mark Hackett at Nationwide.
“Given the moderation in technical indicators and the sluggish seasonal shift, a period of consolidation is not unexpected or unhealthy,” he said.
Federal Reserve Bank of St. Louis President Alberto Musalem said he supported last week’s decision by policymakers to leave interest rates steady, adding the US central bank is still missing more on the inflation side of its mandate.
Traders will soon shift their focus to next week’s release of US inflation numbers for clues on the Fed’s next steps.
“We expect the July CPI report to show that core inflation gained additional momentum,” according to strategists at TD Securities.
Corporate Highlights:
Meta Platforms Inc. has selected Pacific Investment Management Co. and Blue Owl Capital Inc. to lead a $29 billion financing for its data center expansion in rural Louisiana as the race for artificial intelligence infrastructure heats up, according to people with knowledge of the matter. Tesla Inc. is disbanding its Dojo team and its leader will leave the company, according to people familiar with the matter, upending the automaker’s effort to build an in-house supercomputer for developing driverless-vehicle technology. Intel Corp. Chief Executive Officer Lip-Bu Tan said he’s got the full backing of the company’s board, responding for the first time to US President Donald Trump’s call for his resignation over conflicts of interest. SoftBank Group Corp. is the buyer taking ownership of Foxconn Technology Group’s electric vehicle plant in Ohio, a move aimed at kick-starting the Japanese company’s $500 billion Stargate data center project with OpenAI and Oracle Corp. Taiwan Semiconductor Manufacturing Co. reported a 26% growth spurt in July, adding to evidence of accelerating spending on artificial intelligence. Expedia Group Inc. raised its full-year sales target after reporting strong second-quarter bookings, fueled mainly by its enterprise business as well as improved demand from US consumers. Pinterest Inc. reported second-quarter sales that beat analysts’ expectations, but earnings for the second quarter were less than Wall Street expected and user growth in the US and Canada, the company’s most lucrative market, was flat. Under Armour Inc. forecast worse-than-expected sales and profit for the current quarter, stalling a turnaround plan that was taking hold. Gilead Sciences Inc. lifted its full-year outlook after strong HIV drug sales in the second quarter helped revenue and earnings modestly beat analyst expectations. Wendy’s Co. cut its full-year sales guidance after posting a bigger-than-expected quarterly decline, highlighting the economic pressures weighing on the chain’s US business. Instacart posted its strongest order growth since 2022 for a second straight quarter and beat earnings estimates for the current period, a sign of resilience in its core delivery business after it rolled out initiatives to cater to price-conscious consumers. Trade Desk Inc. reported second-quarter results that spurred multiple downgrades. Firms note growing concerns about competition from Amazon.com Inc. Sweetgreen Inc. slashed its sales guidance after a second straight quarter of disappointing results, highlighting the salad chain’s struggles to sell $15 salads to budget-strained diners. What Bloomberg Strategists say…
“An improving geopolitical backdrop has become a headwind for oil prices, especially as peace in Ukraine looks closer. Traders will now increasingly look past geopolitical hurdles, leaving the market uncomfortably exposed to uncertain demand and rising supply.”
—Michael Ball, Macro Strategist, Markets Live
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Some of the main moves in markets:
Stocks
The S&P 500 rose 0.8% as of 4 p.m. New York time The Nasdaq 100 rose 0.9% The Dow Jones Industrial Average rose 0.5% The MSCI World Index rose 0.7% Bloomberg Magnificent 7 Total Return Index rose 1.6% The Russell 2000 Index rose 0.2% Currencies
The Bloomberg Dollar Spot Index was little changed The euro fell 0.2% to $1.1643 The British pound was little changed at $1.3450 The Japanese yen fell 0.4% to 147.75 per dollar Cryptocurrencies
Bitcoin fell 0.7% to $116,464.8 Ether rose 4.8% to $4,062.95 Bonds
The yield on 10-year Treasuries advanced three basis points to 4.28% Germany’s 10-year yield advanced six basis points to 2.69% Britain’s 10-year yield advanced five basis points to 4.60% The yield on 2-year Treasuries advanced three basis points to 3.76% The yield on 30-year Treasuries advanced three basis points to 4.85% Commodities
West Texas Intermediate crude fell 0.4% to $63.64 a barrel Spot gold was little changed ©2025 Bloomberg L.P.
