🪄 The Wizard of Ounce

You know that old joke about the man searching for his keys under the streetlight because that’s where it’s brightest? The Americans are doing the same — except their keys are gold bars. To “fix” their trade deficit, they’ve slapped a 39% tariff on Swiss goods. The only issue: they misread their own numbers last winter, when bullion was flowing into Switzerland through Geneva and Zurich. So Washington decided to punish the Swiss for “exporting too much gold”, while it’s actually the other way around. Since April, Switzerland has been buying theirs — 23 tonnes imported from the US in August, versus 2.7 going the other way. Classic Trumpian marksmanship: point, shoot, miss, declare victory.

But here’s the best part: instead of whining, Swiss refiners offered to build refineries in the US. When absurdity wins, the Swiss invest.

The gold trade is capitalism’s most elegant nonsense: 400-ounce London bars cross the Atlantic to be melted in Switzerland into 100-ounce bars — only to be shipped back to New York. A whole transatlantic ballet because London and Wall Street can’t agree on the size of their rectangles. It’s like having to fly through Geneva to translate an email from British English into American English. It costs $3–5 per ounce and keeps 1,500 people employed in Switzerland. Margins are thin, but volume compensates. While the French fight to save their car factories and the Germans watch their industry burn, the Swiss quietly turn one block of gold into another. Not glamorous, just profitable.

And the Swiss reaction to America’s 39% tantrum? No outrage, no retaliation threats, no press conferences. Geneva-based MKS Pamp simply announced it was “exploring opportunities to expand operations in the United States.” Translation: you want to play stupid games? Fine — we’ll refine your gold on your own soil. Metalor and Argor-Heraeus are already there. When an American refinery shut down for money-laundering (the irony of a gold refiner caught laundering money…), the Swiss were first in line to buy the assets. That’s Helvetic pragmatism: turn a punitive tariff into a growth strategy.

While others wave flags and stage protests, Switzerland just negotiates factory permits.

Meanwhile, the price of gold sits at $4,038 an ounce — twice what it was two years ago. Americans, spooked by the return of their favorite president, are hoarding the yellow metal again. And who refines that gold? The same Swiss refiners they’re taxing at 39%. It’s like boycotting your dealer while buying twice as much of his product.

Back in Bern, the State Secretariat for Economic Affairs politely chats with the precious-metals association to “find solutions.” No diplomatic crisis, no trade war — just businesspeople calmly plotting detours. Trafigura jumping into gold trading and poaching MKS talent? Business as usual.

Switzerland doesn’t do politics with gold. It does business.
And apparently, even at 39% tax, it still pays off.

That’s what happens when you try to punish a country whose national sport is turning problems into revenue.

Have a good week,
M. Hantale 🧀

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🗞️ Top Stories

• 🇮🇱 Conflict. The ceasefire between Israel and Hamas is holding, with several hostage and prisoner releases expected this morning. Donald Trump declared that the war between Israel and Hamas is “over.”
• 🇺🇸 Trade. Trump threatens to raise tariffs on Chinese imports by 100%, reigniting tensions between the world’s two largest economies.
• 🇫🇷 Government. France’s new cabinet led by Sébastien Lecornu has been unveiled, with 34 ministers appointed to stabilize the political situation before year-end.
• 🇷🇺 Security. NATO is considering an armed response to Russia’s escalating hybrid attacks.

💰 Economy & Finance

• 🌍 Gold. Gold prices hit a historic high above $4,000 per ounce as global uncertainty drives investors toward safe havens.
• 🇪🇺 Euro. ECB President Christine Lagarde urged stronger global use of the euro, lamenting Europe’s ongoing dependence on U.S. monetary policy.
• 🇪🇺 Sanctions. Belgium refuses to bear the full financial and legal risk of a €140B loan backed by frozen Russian assets, despite EU pressure.
• 🇺🇸 Shutdown. The U.S. federal government has been partially shut down for 12 days, leaving 620,000 employees on furlough.
• 🌍 Global Growth. The IMF expects only a mild slowdown in the global economy despite rising tariffs and geopolitical tensions.
• 🌍 World Trade. Global trade in goods is projected to exceed forecasts this year, fueled by AI expansion and U.S. resilience to tariffs.
• 🇫🇷 Trade Balance. France posted a €5.53B trade deficit at the end of August, continuing a long negative trend.
• 🇪🇺 Energy. The EU plans to end all Russian oil and gas imports by 2028, taking a first political step despite opposition from Hungary and Slovakia.
• 🇪🇺 Steel. The EU raised import tariffs on steel to 50% to protect its domestic industry — a measure also applied to Switzerland.
• 🇺🇸 Agriculture. U.S. tariffs of 39% have cut Swiss cheese exports to America by more than half.

🇨🇭 Switzerland

• 🇨🇭 Politics. Public trust in the Swiss Federal Council is slipping, though ministers Pfister, Parmelin, and Rösti remain popular.
• 🇨🇭 Taxation. Swiss voters will decide on a new federal tax reform in 2026 after a referendum gathered over 65,000 signatures.
• 🇨🇭 Employment. Short-time work compensation will be extended to 24 months from November, giving businesses security through July 2026.
• 🇫🇷 Transport. Franco-Swiss lake transport services on Lake Geneva will continue in 2026 under a strained budget deal, with reduced off-peak schedules.
• 🇨🇭 Borders. Switzerland will roll out a new digital entry-exit system at airports from October 12, replacing manual passport stamps for non-Schengen travelers.
• 🇨🇭 Business Lobby. Christoph Mäder will step down as president of Economiesuisse in 2025 amid internal struggles and two major upcoming referendums.
• 🇨🇭 Research. Nobel laureates Esther Duflo and Abhijit Banerjee will leave MIT to join the University of Zurich, leading a new poverty research center.
• 🇻🇦 Vatican. The Pope attended the swearing-in of 27 Swiss Guards — the first time in 57 years the ceremony was held before 800 guests.
• 🇨🇭 Media. 53% of Swiss voters support reducing the radio-TV license fee from 335 to 200 francs, despite government and parliamentary opposition.
• 🇨🇭 Cinema. For the first time, a Swiss documentary won the Golden Eye at the Zurich Film Festival — Moris Freiburghaus also took home the Audience Award.

🌍 Around the World

• 🇻🇪 Tensions. Venezuela warned the UN against possible U.S. military intervention, fearing lasting regional instability.
• 🇪🇹 Conflict. Ethiopia accused Eritrea of preparing for war and backing armed rebel groups on its territory.
• 🇰🇵 Defense. North Korea unveiled its new Hwasong-20 ICBM during a military parade, calling it the country’s “most powerful strategic nuclear weapon.”
• 🇸🇨 Politics. Opposition leader Patrick Herminie won Seychelles’ presidential election with 52.7%, marking the return of the former ruling party.
• 🇵🇪 Crisis. Peru’s president Dina Boluarte was impeached by parliament, leaving the country without stable leadership until the 2026 elections.
• 🇦🇷 Argentina. Congress voted to curb President Javier Milei’s use of executive decrees, deepening his struggle to govern without a majority.

• 🇨🇭 Banking. The Geneva Cantonal Bank will split its shares 10-for-1 on October 15, increasing accessibility without changing total capital.
• 🇺🇸 Banking. UBS posted a $111M loss tied to the sudden bankruptcy of U.S. consumer goods manufacturer First Brands.
• 🇺🇸 Energy. Swiss firms plan $6B in U.S. gas-sector investments in hopes of securing tariff relief under the Trump administration.
• 🇨🇭 Pharma. Relief Therapeutics and NeuroX merged to form MindMaze Therapeutics Holding, an AI-based therapy platform soon to be publicly listed.
• 🇺🇸 Pharma. Trump announced a deal with AstraZeneca to lower drug prices in the U.S., following a similar agreement with Pfizer.
• 🇺🇸 Manufacturing. Swiss medical-device firm Ypsomed is investing CHF 200M to open its first U.S. plant in North Carolina, aiming to double its 100-strong workforce.
• 🇨🇭 Energy. The municipality of Val de Bagnes approved a rescue plan for heavily indebted energy provider Altis (CHF 55M), granting emergency loans to cover payroll and suppliers.
• 🇨🇭 Environment. Nestlé has withdrawn from the Global Dairy Methane Reduction Alliance — which it co-founded — while pledging to maintain its climate goals.
• 🇨🇭 Defense. Four of the 36 F-35A jets ordered by Switzerland will be assembled and tested by RUAG in Lucerne, marking a step toward a European military aviation hub.

🗳️ When Politics Stalls, Switzerland Votes

It’s a real luxury, living in a country that actually works. In Switzerland, gridlock is a temporary inconvenience, not a political identity. No collapsing governments, no dissolved assemblies, no ministerial musical chairs every six months, and no budget held hostage for weeks on end.

Because when the system jams, the decision goes back to where it belongs — the people.

In Bern, the Federal Council is elected for four years and can’t be toppled by a vote of no confidence. Each of the seven members stays until they resign, and the presidency rotates annually. The result is a collegial, stable executive built on compromise. But the key is this: compromise is never the end of the story. At any time, citizens can challenge it.

A new law passed by Parliament? Gather 50,000 signatures in 100 days and it goes to a referendum. A national debate stuck in limbo? Collect 100,000 signatures in 18 months and it triggers a constitutional vote. The message to government is simple — ignore public sentiment, and the public will have the final say.

Then comes federalism — Switzerland’s second safety valve. Education, healthcare, taxation, urban planning: most of it is decided at the cantonal or communal level. A deadlock in Bern never freezes public life the way it does in centralized states.

Even public finances follow this logic. In urgent situations, the Finance Delegation of Parliament can approve emergency credits, and the Federal Council can issue guarantees, subject to later ratification. The Credit Suisse–UBS episode in 2023 proved the point: even when Parliament objected, legal and financial continuity prevailed. No “shutdowns,” no paralysis — just democratic arbitration.

Of course, direct democracy has its darker corners. Appenzell Innerrhoden, for example, denied women the right to vote until 1990, when the Federal Court finally forced its introduction under constitutional law.

Seen from abroad, that may sound shocking. Fair enough.

But everyone has their problems. Switzerland’s just happen to be local.
No regime crises, no government breakdowns, no shutdowns.
Because here, political tension doesn’t explode — it gets counted.

— Quentin de Gryse

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Diversify your assets in Switzerland
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