EU CAPITAL GOODS: SKF: 3Q25 Results Headlines       

"The Swiss National Bank is lowering the threshold factor for the remuneration of sight deposits of account holders subject to minimum reserve requirements from 18 to 16.5, effective as of 1 November 2025. The basis for calculating the threshold remains unchanged: for sight deposit account holders subject to minimum reserve requirements, the threshold corresponds to the moving average of the minimum reserve requirements over the preceding three years, multiplied by the applicable threshold factor; the other sight deposit account holders continue to have a fixed threshold."

• "The adjustment of the factor has no impact on the current monetary policy stance."
• "The lowering of the threshold factor counteracts the increase in thresholds due to the raising of the minimum reserve requirement as of 1 July 2024, thereby ensuring that the implementation of monetary policy remains effective and supporting an active money market."
• More generally, the SNB has a tiered reserve remuneration system to facilitate money market activity.
• Full press release here.

Riksbank September minutes here

Seim appears confident that the proposed food VAT tax cut, alongside other policies such as the easing of mortgage-based macro-prudential measures, will stimulate household consumption going forward. This is the main rationale for her dissenting vote, alongside the risk that potential output has been lowered by developments in the globalisation/tariff backdrop. It’s worth noting that she still believes “It is very difficult to assess the current situation and it is possible that the cut of 0.25 percentage points advocated by a majority of the Executive Board is well balanced”.

Some highlights from Seim:

• “One reason for this is that the budget for 2026 is more expansionary than normal and that the reduction in VAT on food to be implemented in April 2026 will have both direct and indirect effects on inflation and economic activity.”…“ The budget now being presented is explicitly aimed at stimulating household consumption and my assessment is that it will have the intended effect.”
• “The easing of the mortgage-based macro-prudential measures that is proposed to be introduced in April next year will probably also reduce amortisation and thus saving ratios, which will strengthen households’ cash flows. If they in addition affect price-setting on the housing market, they can also have wealth effects and in this way further stimulate consumption.”
• “The tendency towards increased protectionism, changes in trade flows and the risk of shortages of intermediate goods in the wake of the trade conflict could potentially break value chains and decimate production capacity. If this is the case, the GDP gaps in our analysis may be underestimated and combined with an increasingly strong domestic demand it could give rise to inflationary pressures”.
• “. The development I see as more probable is closer to that described in the alternative scenario with higher inflation”

SFIU6 96.00/95.80ps 1x2, sold the 2 at 0.75 in 2.5k