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Straits Times
04-07-2025
- Business
- Straits Times
Central banks tweak US dollar reserves, with euro and gold gaining ground: UBS survey
Sign up now: Get ST's newsletters delivered to your inbox Some institutions are reducing greenback holdings as Trump policies drive a re-assessment of risk. SINGAPORE - Although the US dollar is set to remain as the dominant currency in official reserves, it could have a shakier foothold in the years ahead, with the euro, renminbi and gold poised to gain ground. Economic and geopolitical risks are driving a re-evaluation of US dollar holdings, according to a UBS survey of 40 central banks and reserve managers. The majority of respondents had little trust in US President Donald Trump's right-leaning Make America Great Again (Maga) policies, which include tariffs and cost-cutting measures. Nearly a third of respondents had reduced or were planning to reduce their exposure to US assets. Dr Massimiliano Castelli, head of global sovereign markets strategy and advice at UBS Asset Management, said there were clear signs of diversification from the US dollar over the past year, with the euro being the biggest beneficiary of the move. For instance, more than half of respondents that altered their currency allocations lowered their dollar holdings, with only 23 per cent making additions. In contrast, almost 70 per cent of the respondents added to their euro reserves. UBS expects allocations to the euro and renminbi to continue to grow, in line with the findings of its previous survey. These currencies are 'most likely to benefit from macroeconomic and geopolitical shifts over the next five years', Dr Castelli said. Top stories Swipe. Select. Stay informed. World Trump says countries to start paying tariffs on Aug 1, floats range of 10% to 70% Singapore Sengkang murder: Man accused of killing elderly mother escorted back to crime scene Singapore Multiple charges for man accused of damaging PAP campaign materials on GE2025 Polling Day Singapore Jail for man who recruited 2 Japanese women for prostitution at MBS Singapore Seller's stamp duty rates for private homes raised; holding period increased from 3 years to 4 Asia Malaysia dismantles ISIS network involving workers from Bangladesh Asia Chinese national missing in Thailand rescued, embassy warns of shady job offers Asia Indonesian rescuers widen search for missing after ferry sinks Global central banks continue to keep the majority of their currency reserves in dollars, and this is unlikely to change. The reserves can be used for trade or to fulfil international obligations. But geopolitical developments and President Trump's fluctuating trade policies have put pressure on the US dollar. It has fallen by more than 10 per cent against a basket of major currencies in the first half of this year. This marked the greenback's worst first-half performance since 1973, when then US President Richard Nixon stopped allowing the currency to be converted to gold at a fixed rate. Most of the annual survey's respondents did not believe that Mr Trump's Maga policies would give a long-term boost to the US economy. Respondents cited the erosion of independence of the Federal Reserve, the weakening of the rule of law, and deterioration of economic data as their top concerns. They also raised the possibility of the US weakening the dollar in the future, which would boost the attractiveness of its exports. Dr Castelli told The Straits Times that 'Trump 2.0 policies have raised a lot of questions for reserve managers'. However, he said UBS has yet to see outflows from US Treasuries to non-US-dollar bond markets. One asset that has grown in prominence is gold, which is typically seen as a safe haven in times of uncertainty. A total of 36 per cent of respondents added to their gold reserves in the past year. More than half said they would raise their allocations to the precious metal over the next 12 months. 'Gold remains in strong demand and is expected to deliver the highest risk-adjusted returns over the next five years,' Dr Castelli said. 'The diversification trend across currencies, asset classes and regions is accelerating as a result of recent macroeconomic and geopolitical shifts,' he added.
Business Times
30-06-2025
- Business
- Business Times
Thai coconut water maker IFBH's shares jump in Hong Kong debut
[HONG KONG] Shares of Thai coconut-water maker IFBH rose as much as 67 per cent on their first day of trading in Hong Kong following a HK$1.16 billion (S$188 million) initial public offering (IPO), the latest sign of renewed vigour in the city's equity capital market. The stock jumped to as high as HK$46.50 in early morning trading after it was priced at HK$27.80 per share, the high end of its marketed range. The deal attracted robust demand as it was 2,682 times oversubscribed, which was bolstered earlier by high margin financing from retail investors for the shares. Its cornerstone investors included UBS Asset Management and Black Dragon. The IPO will help the company's ambition to expand its business in China, where it says it already boasts a leading market share. It also adds to a growing list of companies listing in Hong Kong, whose IPO market has shaken off years of sluggishness to stage a strong comeback as investors move to diversify. 'The ready-to-drink soft drink market in Greater China holds growth potential,' according to Tina Banerjee, an independent analyst who publishes on Smartkarma. IFBH's 'market leadership position provides it ample room to keep costs under control'. IFBH's revenue rose 80 per cent in 2024, primarily due to a sales increase in mainland China, according to its prospectus. The country accounts for more than 92 per cent of its total sales, it said. The company's 2024 sales growth outpaced that of some of its main competitors, including Vita Coco and Hainan Yedao, according Bloomberg-compiled data. Its rapid growth can be attributed its 'light asset' model that calls for outsourcing production and packing to others, according to Banerjee. Part of the IPO proceeds will be used to support its business in China, where the ready-to-drink soft beverage market is expected to expand at a compounded annual growth rate of 7.1 per cent by 2029, according to the company. The company also plans to expand to other regions, including Australia, the Americas and South-east Asia. Citic Securities was the sole sponsor for IFBH's listing in Hong Kong. BLOOMBERG
Forbes
17-06-2025
- Business
- Forbes
Short-Term Rentals In Switzerland: Tips For Profitability In 2025
Johan Hajji, Cofounder & Co-CEO at The BnB Group. Passionate about property management, real estate investment, proptech & business growth The Swiss property market shows an impressive upward trend, with rental prices in urban areas jumping as high as 7.5% in cities like Glarus and 6.3% in Zurich. Moreover, the Swiss National Bank's interest rate cut has created ideal conditions for short-term rental investment. Vacancy rates were expected to drop below 1% last year, while net immigration hit 98,900 in 2023, according to UBS Asset Management. These factors added pressure to the real estate market. Meanwhile, tourist hotspots like Valais are booming, with a 43% increase in U.S. visitors from January to October 2023 compared to 2019. With strong 2025 forecasts, well-placed investments in Swiss cities and vacation destinations could yield positive returns. My company works with owners located in Switzerland, so I want to explore what I've found are some of the top regions, income-boosting strategies and key rental laws short-term rental owners need to consider to keep investments compliant and sustainable. Regional variations in Switzerland's rental market create unique investment opportunities throughout the country. Real estate investors need to understand these differences to maximize their returns in the Swiss property market. Zurich, Switzerland's financial hub, boasts impressive short-term rental numbers: At the time of this writing, the average Airbnb occupancy rate is 75%, average daily rate is 145 euros and average monthly revenue is 40,564 euros, according to Airbtics. The city's vacancy rate is just 0.07%, SWI reported, which means demand keeps outpacing supply. In my company's experience, the city stays relatively open to short-term rentals, and the temporary housing and rental market in the Zurich market remains competitive. Geneva shows strong potential for short-term rentals, with 73% occupancy rates, daily rates of 127 euros and possible monthly revenue of 34,562 euros, per Airbtics. The housing crunch here is real—vacancy rates sat at just 0.46% in 2024. It's also worth noting that the city has a short-term rental limit of 90 days. Valais turns out to be a surprise leader in profitability. Airbtics' data shows that its occupancy rate is lower at 59%, but it pulls in higher daily rates (186 euros) and monthly revenue (41,517 euros). The canton sweetens the deal with tax perks, including options for lump-sum taxation, which may make it an attractive option for those concerned about Swiss property taxes. Looking beyond these major markets reveals several hidden gems for vacation rentals in Switzerland: • Lugano is an Italian-speaking part of Switzerland that I've noticed is popular among remote workers. • Alpine destinations like St. Moritz, Zermatt and Davos in the Swiss Alps have better odds of bringing in exceptional rental yields during peak seasons. • Crans-Montana often stays busy year-round thanks to events such as golf tournaments, skiing events and cultural festivals. Switzerland's real estate market has shown stability, drawing both local and international clients. Smart investors should look carefully at local rules, however, since they vary between cantons and can affect how well investments perform. Becoming skilled at pricing strategy remains crucial to running profitable short-term rentals in today's Swiss real estate market. Property owners can consider using dynamic pricing tools that automatically analyze market data and adjust rates based on immediate conditions. Price optimization can help you increase rates when demand peaks and lower them in slower seasons to minimize vacancies and boost revenue. Setting minimum stay requirements during peak seasons can also prevent revenue loss from short bookings. A two or three-night minimum for weekends and holidays can reduce turnover costs and increase overall income. Additionally, stay up to date on seasonal patterns revealed through occupancy analytics to help you run targeted promotions during slower periods. For example, alpine destination properties command premium rates during winter months but need compelling promotions during shoulder seasons. Strive for exceptional guest experiences to leverage premium pricing and ensure future bookings. Properties that maintain high ratings can charge more than similar accommodations with average reviews. This year, I expect to see a growing use of data analytics in rental operations. Immediate tracking of key metrics like occupancy rates and nightly revenue can help you spot trends and measure against competitors. I believe evidence-based management will shape the future of Swiss real estate market conditions. Swiss real estate investors face growing challenges with short-term rental regulations, particularly a widespread lack of compliance. Rules vary by region, making local knowledge essential for success. Requirements will vary by area, so be sure to consider regulatory differences. Many municipalities apply zoning laws to control rental activity, requiring specific residential ratios or area restrictions. In Ticino, owners can rent converted barns for up to 90 days without planning permission, even in protected areas, according to SWI. But this practice is under scrutiny and may trigger complaints, SWI also noted. Sustainability is now central to Swiss property trends. The national "Swisstainable" strategy encourages longer, eco-conscious stays and support for local culture and products. Property owners must follow environmental rules regarding waste, emissions and pollution. Property owners who break these standards risk steep fines for serious environmental violations. Meeting Minergie standards and gaining certification can boost energy efficiency and appeal, especially near public transport. As regulations tighten, staying compliant and building strong ties with local authorities will be key to long-term profitability. In my view, the Swiss short-term rental market shows strong investment potential through 2025, highlighting how important location is for renting apartments or investing in furnished properties. To help improve returns, investors can use dynamic pricing and set minimum stays during peak periods to reduce turnover costs. Combine this with excellent guest service for long-term success. Regulations differ by region, and stricter rules may emerge. Staying compliant and following sustainability standards like "Swisstainable" helps protect your investment in vacation or temporary housing. Swiss real estate remains a stable option in the European market and can be ideal for data-driven, regulation-aware investors. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
CNBC
10-06-2025
- Business
- CNBC
Expect inflation prints to really start to accelerate after this month, says UBS' Evan Brown
Evan Brown, UBS Asset Management portfolio manager and head of multi-asset strategy, joins 'Squawk Box' to discuss the state of the economy, inflation outlook, impact of tariffs, U.S. growth outlook, and more.
Mint
05-06-2025
- Business
- Mint
Japan 30-Year Bond Auction Sees Weakest Demand Since 2023
Japan's 30-year bond auction saw the weakest demand since 2023, ramping up pressure on the government to adjust issuance. The bid-to-cover ratio at the sale was 2.92, compared with a 12-month average of 3.39. The ratio for the previous auction was 3.07. The 30-year bond pared an earlier gain with the yield falling 2.5 basis points to 2.92% ahead of Thursday's sale, down from 3.185% last month, the highest level since it was first sold. The lowest price was 91.45, compared with 92 in a Bloomberg survey. Market players often focus on a survey estimating the lowest accepted price of the bond, which comes out in the lead-up to the auction result. They then compare that with the actual cut-off price to gauge the success of the sale. The tail, or the gap between average and lowest-accepted prices, was 0.49, versus 0.30 for the previous sale. Disappointing demand at sales of 20-year and 40-year bonds late last month exposed investor concern about a lack of appetite for longer tenors, sending a fresh warning to the government that it may need to rethink issuance plans. Although a 10-year auction this week brought some relief for the Japanese market, expanding deficits are putting longer bonds under pressure worldwide. Following the jump in long-term yields, Japan's finance ministry sent out a questionnaire to market participants that asked for their views on issuance and the current market situation, signaling that it may be preparing to adjust debt issuance. A draft of the government's annual fiscal policy plan seen by Bloomberg also emphasized the need for more domestic buying of Japanese government bonds. To calm volatility in the bond market, the government needs to stop issuing debt with maturities above 30 years, said Kevin Zhao, head of global sovereign and currency at UBS Asset Management. Demand for the tenor is dwindling due to demographic shifts in the country's aging society as Japanese life insurers and pension funds no longer need too stock up on bonds maturing in 30 years or longer like they have in the past decades, said the veteran portfolio manager. Read: UBS AM Says Japan Should Stop Issuing Long Bonds to Halt Selloff Bank of Japan Governor Kazuo Ueda hinted at the likelihood that the central bank will continue to slow the pace of government bond purchases next fiscal year. The BOJ will review its bond buying plans at its board meeting on June 16-17. This article was generated from an automated news agency feed without modifications to text.
