N°6 DECEMBER 2020 WWW.SWISSQUOTE.COM CHF 9.-
WWW.SWISSQUOTE.COM FINANCE AND TECHNOLOGY UNPACKED
CO The2 dirty tricks of car manufacturers
ALIMENTATION Frozen food makes a comeback
FITNESS At-home exercise is booming
DOSSIER
DIVIDENDSTIMEThe impact of the FOR pandemic | The RECOVERYSwiss exception | How to outperform SWISSQUOTE N°6 DECEMBER 2020 DIVIDENDS: TIME FOR RECOVERY COLLECTION Villeret
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Un nouveau départ
Par Marc Bürki, CEO de Swissquote
près des mois de confine- pré-covid, ils pourraient rebondir de ment, alors que des pans 12% dès 2021. Dans ce domaine, la entiers de l’économie sont Suisse fait néanmoins figure d’ex- p. 35 Aébranlés, nous voyons une lueur ception mondiale, puisque le niveau d’espoir poindre au bout du tunnel. À des dividendes n’a quasiment pas l’heure d’écrire ces lignes, la pandé- baissé cette année dans notre pays mie semble commencer à diminuer en par rapport à 2019. Une prouesse due Europe et en particulier en Suisse. Et, à la solidité des firmes helvétiques. pour éviter une troisième vague, plu- sieurs entreprises pharmaceutiques En cette période de crise sanitaire ont rapporté des résultats promet- mondiale, la thématique de ce teurs quant à l’efficacité de leurs dossier pourra heurter. Le fait que vaccins respectifs contre le corona- des sociétés continuent à rétribuer virus. Enfin des bonnes nouvelles ! leurs actionnaires apparaît à certains comme une décision indécente, au Dans ce contexte, nous espérons moment où de nombreuses entre- tous que l’économie redémarrera prises sont forcées de licencier ou avec vigueur en 2021. Et avec elle, le ont recours au chômage partiel, p. 30 versement de dividendes. En 2020, la voire bénéficient d’aides étatiques. rétribution des actionnaires a subi un Ce sentiment n’est pas totalement violent coup d’arrêt dans le monde, injustifié, et nous n’éludons pas la avec une baisse annuelle de 15% au controverse. Mais notre approche p. 38 moins par rapport à 2019, selon les éditoriale nous incite à nous tourner chiffres du Janus Henderson Global vers l’avenir, lequel devrait s’éclaircir. Dividend Index. S’il faudra au moins deux ans pour que les dividendes Bonne lecture, et joyeuses mondiaux retrouvent leur niveau fêtes de fin d’année !
3 SWISSQUOTE DÉCEMBRE 2020 SOMMAIRE SWISSQUOTE DÉCEMBRE 2020
58 ÉDITEUR Swissquote Chemin de la Crétaux 33 1196 Gland – Suisse 6 T. +41 44 825 88 88 www.swissquote.com [email protected]
Manager Brigitta Cooper
FITNESS RÉDACTION
Rédacteur en chef 62 Ludovic Chappex Rédacteur en chef adjoint Bertrand Beauté DOSSIER MICROSOFT 30 Direction artistique Natalie Bindelli et Caroline Fischer CANA atelier graphique Route de Jussy 29 – 1226 Thônex www.ateliercana.ch Dividendes : Journalistes UNIQLO Bertrand Beauté, Stanislas Cavalier, Ludovic Chappex, Gérard Duclos, 20 l’heure du rebond Salomé Kiner, Raphaël Leuba, Martin Longet, Angélique Mounier-Kuhn, Grégoire Nicolet, Gaëlle Sinnassamy, Julie Zaugg 44 74 Mise en page Natalie Bindelli, Caroline Fischer, Romain Guerini (CANA atelier graphique)
Couverture CANA atelier graphique
Photographies VOYAGE AFP, Keystone, Getty images, BELIMO DISNEY Istockphoto, Newscom, Reuters
IMPRESSION, RELIURE SOMMAIRE ET DISTRIBUTION Stämpfli SA Wölflistrasse 1 – 3001 Berne DOSSIER : www.staempfli.com 3. ÉDITORIAL 16. ANALYSES 30. Dividendes : 44. DIVERTISSEMENT 62. MODE par Marc Bürki Comment le virus Le streaming, planche Uniqlo, l’esprit nippon étend PUBLICITÉ transforme les l’heure du rebond de salut pour Disney son pouvoir d’attraction Infoplus AG 6. SCANS indices boursiers L’exception suisse Le geste qui passe mal Traubenweg 51, CH-8700 Küsnacht 35. 38. hans.otto i-plus.ch Panorama 50. ALIMENTATION 68. SWISSQUOTE @ de l’actualité 20. PORTRAIT Infographie Les cinq La revanche du surgelé Ouverture du bar-resto WEMF 36. 40. économique Belimo, un trésor les champions commandements l’Insider à Zurich REMP 2020 : 53’555 / Tirage : 60’000 ex de la Bourse suisse du dividende d'une bonne 54. PORTRAIT 14. TRENDS stratégie dividende Cathie Wood, une star 72. AUTOMOBILE La personnalité, 24. ENVIRONNEMENT est née à Wall Street MX-30, une rupture le pays, l’innovation Petites magouilles en douceur entre constructeurs 58. FITNESS Sport à domicile : 74. VOYAGE ABONNEMENT la nouvelle vague La Brévine, botte CHF 40.- pour 6 numéros secrète de la Suisse www.swissquote.ch/magazine/f/ MICROSOFT / BELIMO / DISNEY / PELOTON / AFP / TOURISME NEUCHÂTELOIS / GETTY IMAGES MICROSOFT / BELIMO DISNEY PELOTON AFP TOURISME NEUCHÂTELOIS
4 5 SWISSQUOTE DECEMBER 2020 SCANS SWISSQUOTE DECEMBER 2020
cloud Check-up time RANKING for Microsoft’s MICROSOFT’S UNDERWATER DATA data centre. This CENTRE IS A SUCCESS TOP 5 HIGHEST SCANS cylinder, filled with computer servers, After being underwater for two years FINANCED EUROPEAN was experimentally off the coast of Scotland, Microsoft’s INDUSTRIAL SECTORS submerged near the (from 5 to 30 October 2020, Orkney Islands in data centre successfully came back to in millions of euros) the surface in September. The project, northern Scotland. 1. FINTECH dubbed “Natick”, involved placing a 695 M watertight cylinder, 12 m long and 2.5 m wide containing 864 servers and a cool- 2. HEALTHTECH ing system, underwater. After testing, 468 M Microsoft researchers confirmed that 3. AGRITECH the failure rate of the servers was eight 319 M times lower than that of a traditional 4. AI “We cannot data centre. The project was success- 266 M ful for two main reasons: the absence 5. EDUCATION help every of oxygen (replaced by nitrogen) and 234 M company. We better protection against human error (technicians in traditional data centres Source : Tech.eu must save the sometimes bump the machines). The en- ones that are vironmental footprint was also reduced, TOP 5 START-UPS since the submerged cylinder needed FOR WHICH INVESTORS worth it. We less cooling. MSFT ARE EAGER FOR AN IPO need to be (October 2020) selective” 1. AIRBNB
Fabio Regazzi, MICROSOFT president of the Swiss Small 2. SPACEX Business Association (USAM), in the daily Le Temps.
digital smartphones 3. ROBINHOOD AMAZON ONE: CONTACTLESS PAYMENT WITH THE PALM OF YOUR HAND BLACKBERRY’S RENAISSANCE
4. STRIPE
5. IMPOSSIBLE FOODS
Source : EquityBee
BLACKBERRY TOP 5 MOST POPULAR MESSAGING APPS After a long descent into hell, the Cana- 70 M (October 2020, number of active monthly users in millions) dian company is back in the spotlight. The number of The firm has repositioned itself in con- male Chinese 1. WHATSAPP nected device software, which includes AMAZON citizens from which 2,000 software for vehicles. After the Jaguar Beijing took DNA Land Rover, BlackBerry’s QNX computing 2. FACEBOOK MESSENGER $189 BN Two Amazon Go shops in Seattle are cur- third-party clients such as other shops, samples, which is rently testing a new payment solution stadiums and corporate offices. But the system will equip models from Xpeng, 1,300 approximately 10% The projection of using biometric recognition. Since facial security of Amazon cloud servers was the Chinese electric vehicle start-up 3. WEIXIN / WECHAT of China’s entire online holiday sales recognition software is banned in the questioned, because the palm scans are supported by Alibaba and Xiaomi, and the 1,206 male population, in the United States, United States in the wake of anti-racist being stored in the cloud: since you can main local competitor of Tesla. Moreover, 4. QQ which would be which is a 33% protests, Amazon opted for a biometric never change your biometric data like Blackberry is still active in the smart- 648 system in which users place the palm you can with a username or password, a phone market. A new 5G model with the sufficient to find increase compared 5. SNAPCHAT of their hand above a device for their security breach would have serious con- brand’s iconic physical keyboard is ex- and identify any to 2019 according to 433 Adobe Analytics. hand to be recognised by the system. sequences. This payment method will be pected on the market in 2021, produced male member of The Seattle group already announced difficult to implement in Europe where by Onwardmobility and Foxconn. the same family BB that it plans to offer this service to laws are much more restrictive. AMZN (New York Times). Source : Newzoo
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SCANS lockdown THE PANDEMIC AND VAPING BOOST THE CANNABIS MARKET KICKSTARTER
“The restructuring of Volkswagen has +12.7% not been slowed down by corona, The increase in PC sales in Q3 compared but accelerated” to the previous year. Herbert Diess, This is the highest CEO of Volkswagen, during the growth in 10 years, group’s annual shareholder mee- according to research ting in September. VW is planning 110 M firm Canalys. to invest €33 billion into electric mobility by 2024, and €14 billion The number of in digital development ISTOCK Chinese residents and autonomous vehicles. DR who already have After a difficult start to the year, the demand has led to stock shortages for a 5G subscription, cannabis market is finishing the year several suppliers. The German group making China the on a high note. The top companies Storz & Bickle, which produces the COCKTAIL CARDS largest market for (Curaleaf, Cresco Labs, Green Thumb famous Volcano for Canopy Growth, 52 COCKTAIL IDEAS this technology in Industries and Truelieve) saw their had to hire more than 30 employees to energy RIGHT AT HAND terms of number revenue increase by more than 80% keep up with demand. This growth is SOLAR, MORE PROFITABLE THAN EVER of users. on average during lockdown. But even expected to continue, as many analysts though cannabis sales are increasing, are predicting a wave of legalisation The time is right for indoor ac- it is particularly vape device purchas- in the United States as states seek tivities, and this card game has es that are driving the industry up, as new sources of revenue to counter the everything you need to liven up consumers are spending more and more effects of the pandemic. your winter evenings at home. It is money on high-end products. The high CURA CL GTII TRUL WEED a standard 52-card deck, with the added bonus of being a very useful guide to cocktail recipes. Each card corresponds to a particular drink, detailing every ingredient, how to prepare it, and the type of glass to autonomous vehicles use. Designed by London creator AUTONOMOUS PARKING COMES TO DETROIT Rob Hallifax, who is no stranger to Ford and Bosch are launching a fully automated parking Kickstarter, with the help of a child- hood friend who is both a graphic demonstration project in a Detroit parking lot. The test uses ISTOCK Ford vehicles operating autonomously via Bosch sensors designer and gin lover, the cards placed in the building. These locate the vehicles to guide them According to the latest report by the International Energy are elegantly designed, and even throughout the parking manoeuvre. The driver is therefore Agency (IEA), solar energy has become the least expensive the back artwork and the box they happy to drop off their vehicle at the car park’s entrance and source of electricity of all time. Its cost price has come down come in are beautiful. The cards are collect it at the exit. This increases a car park’s capacity by to just 2 cents per kilowatt hour at its lowest, which is much printed in England by a specialist 20%, as vehicles are parked closer together. The project is cheaper than coal or gas. The numbers vary depending on lo- manufacturer. part of a larger trend in which experiences with autonomous cation and exposure. The price in a sun-filled country like Por- vehicles are increasing. Alphabet’s Waymo has opened up its tugal is actually below 2 cents, while in Switzerland the cost self-driving vehicle service to the public in the Phoenix area, price is between 12 and 18 cents per kWh for a villa roof. With and Italy’s Transport Ministry has just given the green light to the drop in solar panel prices, many European manufacturers testing fully autonomous vehicles on public roads. had to close up shop, but a few Swiss companies remain. F GOOGL BOSCHLTD Meyer Burger launched a new production facility in Germany, renouncing the Chinese market due to patent infringement (see our previous issue). After raising 5 million Swiss francs in FUNDS RAISED AVAILABLE July, the EPFL start-up Insolight is also doing quite well, with $45,000 DECEMBER 2020
BEDROCK / BOSCH FORD new solar panels that have an improved yield. MBTN
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SCANS
food NESTLÉ GOBBLES UP FRESHLY, THE TOP HEALTHY MEAL DELIVERY SERVICE
“No vaccine will be available before the end of winter of 2021. That means the third wave is set to happen... FRESHLY This is not The Vevey-based group acquired Freshly for $950 million, plus potential over yet” earn-outs of up to $550 million based on the company’s future growth. The New York meal delivery company specialises in healthy food, with a weekly Albert Baehny, Committed subscription service for meals prepared by chefs that are refrigerated and chairman of the board ready to be reheated at home. Freshly, which has been profitable since of directors of Lonza, 2019, delivers more than one million meals per week to customers in 48 US in an interview with states, and its sales forecast for 2020 is approximately $430 million. the Swiss newspaper Nestlé already held a minority stake in the company since 2017, and this Le Temps on 12 November. acquisition is part of the restructuring of its US portfolio. In this market, to renewable the Swiss company let go of low-profit business for 8 billion Swiss francs and acquired high-growth opportunities for 4 billion Swiss francs. NESN energy. THE IPO
KEEP TRUCKING
German firm Knaus Tabbert, camping, according to motor- Europe’s third-largest caravan home inventor Erwin Hymer. maker, decided to use the time But the recreational vehicle smartenergy.net during the pandemic to go market remains a niche seg- public. Camping and leisure ment, and Knaus Tabbert had vehicles have been wildly pop- to lower its sights for its IPO. ular this year, as plane travel Moreover, after being lauded -70% has been restricted. Between by investors in September, May and July, registrations the share fell in November on The drop in global climbed more than a quarter. the back of Pfizer’s announce- tourism between And 20% more Europeans ment about the efficacy of its January and August. spent their summer holidays vaccine. KTA
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SCANS e-commerce RICHEMONT INVESTS HEAVILY IN E-COMMERCE IN CHINA
“Amazon cannot be the big winner of this crisis to the detriment José Neves, founder and CEO of local of the online retail platform businesses Farfetch, courted We break new ground or even large by Richemont. retailers” DR Two years after buying the online plat- Farfetch, $500 million will go to cre- with renewable energy Bruno Le Maire, form Yoox Net-a-Porter for €2.8 billion, ating the subsidiary Farfetch China, of French Minister of the Richemont is once again reaching which Alibaba and Richemont will hold Economy and Finance, into its wallet to boost its position in 25% and retain the option of eventually investments. on BFM TV. e-commerce. The Geneva-based luxury acquiring up to 49%. The fact that three group announced in early November that luxury e-commerce rivals would form it would invest $550 million in the UK’s such a partnership indicates how the Green Hydrogen Solar PV Wind Power online fashion marketplace Farfetch, pandemic has accelerated digitisation alongside Alibaba – the Chinese Amazon in the industry, with its centre of gravity – which is investing an equal amount. shifting towards Asia. Out of the $1.1 billion pocketed by CFR FTCH 9988
BUST Quibi: a $1.75 billion flop
Quibi wanted to become the Launched in April of this year leader in mobile video stream- in the middle of a pandemic, it ing, with short-format 10-minute also suffered from the launch- videos designed to be watched on es of Disney+, Apple TV+ and public transport. The Californian HBO Max. The combination of start-up was ambitious and had unfortunate events ended up partnerships with several pres- being fatal for the company, even tigious names such as Steven though it raised $1.75 billion 80% Spielberg and Jennifer Lopez, as in financing and attracted top well as programmes that paid up investors such as The Walt The percentage of to $100,000 per minute, rivalling Disney Company, Time Warner Americans who believe those of Netflix. But this new and Alibaba Group. they can manage their VOD service did not succeed. DIS 9988 AAPL finances without a smartenergy.net physical bank, according to firm Plaid Consulting.
12 SWISSQUOTE DECEMBER 2020 TRENDS SWISSQUOTE DECEMBER 2020 TRENDS DR
In the early 1960s, when the first version of the legendary Porsche 911 was released, the environment was not a topic for the German automaker. Times have since changed.
country ZAMBIA A country in bankruptcy
Many African countries Population are suffering from the 17,861,030 effects of the pandemic. (2019) Among them, Zambia was the figure the first to experience a SEAN DOYLE GDP per capita semi-bankruptcy situa the innovation Manufacturers $1,291 (2019) tion. The government E-FUEL Porsche A controversial leader in asked its creditors to and Audi Growth in 2020 accept delays for the Launch charge of British Airways -0.8% (estimate) payment of $120 mil- Porsche believes in synthetic fuel Not shared lion in interest on bonds Main economic With the airline industry in crisis, issued between 2014 and Like all the other car manufacturers, for electric models. To reduce their im- convinced that sectors Price British Airways, owned by 2016 totalling $3 billion. Porsche has made a decisive turn pact on the environment, the German by producing CO Position agriculture 2 Not disclosed CEO International Airlines Group (IAG), (corn, cotton, Increased public health towards electric engines and this brand decided to invest in research and hydrogen via decided to profoundly restructure soy, tobacco) spending wasn’t the only strategy was brilliantly success- in synthetic fuel (or e-fuel). E-fuel renewable ener- Age its management team. The biggest and farming, factor: as the world’s ful with its saloon car Taycan. But produced from CO2 and hydrogen has gies, synthetic fuels could become 49 change was the departure of its mining (copper second largest copper Porsche is also the only manufac- been explored for years, particular- a sustainable alternative to elec- CEO Alex Cruz, who was deadlocked and emerald), exporter, the country turer for which 70% of its vehicles ly in aeronautics, as well as Audi’s tric propulsion. This announcement Nationality in conflicts with unions and manufacturing suffered significantly sold are still in service today and their e-diesel and e-gas models, but e-fuels also indicates that combustion Irish employees after the termination (textiles, leather, from the mineral’s price owners aren’t ready to exchange them remain very expensive. Porsche is engines are still in the running. of 13,000 employees. Some were drinks) drop due to decreased rehired for lesser roles. Sean Doyle global demand. The took Cruz’s place in October, leaving his role as CEO of national currency also Aer Lingus (also an IAG subsidiary). After attending uni- saw a sharp devaluation. In Novem- versity in Cork, the Irishman began working at Aer Lingus ber, the exchange rate was $1 to at the age of 27 in various roles before joining the man- more than 20 kwacha, compared agement team in 2016. In September, he was the subject to 13 kwacha one year earlier. The of controversy when an Irish MP criticised him in an foreign companies active in Zambia, open letter for his “open contempt” towards Aer Lingus including Swiss groups Glencore employees. Furthermore, in June, watchdogs leaked an and Trafigura which benefit from internal document on radical changes to working con- the country’s natural resourc- ditions before talks with the union were even finished. es, have barely been affected.
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SWISSQUOTE DECEMBER 2020 ANALYSIS SWISSQUOTE DECEMBER 2020 ANALYSIS SPECIALISTS’ VIEWPOINT
FOCUS How the virus has transformed stock market indices As share prices tumble, some listed companies no longer meet the eligibility criteria to be included in flagship indices such as the S&P 500 in the United States, the CAC40 in France or the UK’s FTSE 100. ISTOCK A reshuffle is under way. BY BERTRAND BEAUTÉ
On the actual day Tesla joins the they need to predict a company’s previous 12 months. Then all the t worked the second time For example in the United Kingdom, Adecco, after being hit hard by the S&P 500, S&P Dow Jones esti- eligibility. As a result, prices no stocks up to the 35th place in the around. After initially failing the airline easyJet, the cruise oper- coronavirus health crisis, bid fare- mates share trades worth over longer jump the way they used to, ranking are almost automatically in- to make the cut in September ator Carnival, energy supplier Centrica well to the SMI on 21 September, $51 billion. The figure is so large and the market gradually adjusts troduced on the CAC40, while those I2020, Tesla will finally be included and aerospace equipment manufac- to be supplanted by asset manager that S&P Dow Jones is consulting to new additions. In the specific beyond the 45th spot are excluded, in the S&P 500. The new addition turer Meggitt were ejected in June Partners Group. investors to look into the option case of Tesla, the S&P Dow Jones if they had been part of the index. to America’s leading index com- from the FTSE 100, the star index of of introducing the share in two first rejected the company in Sep- “The buffer zone between the two prised of the 500 largest companies the London Stock Exchange, after tranches, the first on December tember, even though it met all the helps limit turnover within the index,” listed on US stock markets was seeing their share prices collapse 14 and the second on December selection criteria. But that decision Rahmouni says. “Not taking into announced by the S&P Dow Jones due to the pandemic. As a sign of the Being included in 21. In anticipation of the event, was reversed two months later, account capitalisation alone also on 16 November. times, the four firms were replaced the stock jumped 8% on November which surprised investors. And that means that we can avoid excessively by “lockdown-compatible” stocks: or removed from 17, the day it was announced that explains the sudden rise in the reshuffling the CAC40 during tem- At the time of writing, we do not yet computer security group Avast, online an index is no small Elon Musk’s company would be share price. porary crises, such as the current know which company will be ousted betting company GVC, home repair affair for a company added to the S&P 500, and 13% on pandemic.” Before the Committee from the basket of stocks to leave service provider Homeserve and the following two days. The danger Quarterly reviews meets next on 10 December, three room for the electric automobile home improvement group Kingfisher. for passive managers is that they in ranking companies will have joined the Paris manufacturer. But this coming and Several adjustments also took place will be forced to buy Tesla shares Although no international standard index in 2020, compared to two each going reflects the reshuffle currently on the CAC40 in Paris. A couple of Being included in or removed from on the day of inclusion, regardless exists for index composition (each year between 2015 and 2019. in progress across the world’s main prime examples are hotel group Accor, an index is no small affair for a of the price. stock exchange defines its own indices. “The pandemic has severely which left its spot to rail transport company. “The success of pas- conditions for inclusion), they have Being removed from a leading shaken the capitalisation of some equipment manufacturer Alstom, sive investing and ETFs, financial However, the California-based firm all adopted specific criteria. For index is not necessarily a disas- companies,” says Fabrice Rahmouni, and Téléperformance, world leader in products that faithfully replicate is not exactly a textbook case, example, the composition of the ter for the company in question. head of Euronext Index Business. call centres, which replaced Sodexo, an index, means that very large as Fabrice Rahmouni from Euro CAC40 is reviewed every quarter “Leaving an index allows the com- “We have seen a dramatic shift in France’s catering giant. movements of capital take place next points out. “Joining an index (the third Friday in March, June, pany to be a bit less visible, with sector allocation, especially towards when one company is replaced by doesn’t always boost the com- September and December) by an less coverage from analysts and tech stocks.” That means that the Less accustomed to major change, another,” Rahmouni says. “ETF issu- pany’s value, especially because Index Steering Committee. Its eight the media,” says a sector expert. capitalisation of companies heavily the Swiss Market Index (SMI), the ers have to change their composi- the market anticipates that.” The independent experts rank compa- “Operating far from the spotlight impacted by the health crisis has Swiss Stock Exchange’s top index, tion of companies in real time when criteria for inclusion in an index are nies based on two equally weighted can give them the opportunity to eroded so badly that they were rele- also made a switch in 2020. The one exits the replicated index and now very specific and objective, criteria: market capitalisation at bounce back, without the constant gated to a lesser status. temporary employment company another enters. giving investors the information time T and trade volumes over the pressure.”
16 17 ANALYSIS SWISSQUOTE DECEMBER 2020
FOCUS 3 DAYS, 19 HOURS, 14 MINUTES Cryptocurrencies: That is how long it took for Howard Hughes to circumnavigate the world and become the fastest man in the air in 1938. He trusted his Longines astronavigation chronometer to determine the position the second wave of his airplane at night or over the ocean. Riding on a new rally, digital currencies have re-enacted the same scene as in late 2017. But this time around, the story could play out differently.
BY LUDOVIC CHAPPEX
e’ll take the same charac- dresses holding more than 1 bitcoin without a change in regulations to ters and start over. At the has risen from just over 500,000 to adapt to the new crypto economy. Wtime of writing, bitcoin was more than 800,000 in the space of yo-yoing again, after narrowly ex- three years. And that increase has On top of that, fears of massive Howard Hughes ceeding its all-time high (ATH) when been very linear, despite the high hacking are fading as major ex- it broke $19,800 on 30 November. price volatility over the period. changes reinforce their security For cryptocurrency fans who were systems, especially with cold stor- around for the bull run in November– “Never a dull moment in crypto! age, and conduct regular external December 2017, it feels like déjà-vu. Institutional investor interest is audits. And even if hackers managed skyrocketing,” Ripple CEO Brad to exploit a loophole, we have every One may recall that, at the time, Garlinghouse tweeted on 19 reason to believe that industry the buying frenzy was followed by a November, as its in-house leaders are robust enough to take THE PIONEER severe correction and never-ending currency XRP began to soar. the blow and compensate their bear market. Will history repeat customers. SPIRIT LIVES ON. itself? Objective facts suggest it Statistics also show fewer traders won’t. Experts say that today’s and more investors. Additionally, Coin There is of course no guarantee climate is very different from the Metrics reports that the number of that the good times will continue, market in 2017, and cryptocurren- bitcoin billionaires (i.e., addresses as the world of cryptocurrencies cies could continue to fly high. holding at least BTC 1,000) has remains highly volatile and specu- LONGINES SPIRIT grown over the last two years to lative... But to keep our spirits up, COLLECTION In an in-depth article published more than 18,000 today, despite we should reflect on the reassuring on 22 November, research ana- massive sales after the peak in 2017. words of the illustrious American lyst Galen Moore from CoinDesk bitcoin billionaire Cameron Research explains how institutional In fact, the current tendency to- Winklevoss, known for his keen investors have been flocking to the wards inflationary monetary policy market sense. On 29 July, he tweet- market. This newfound interest is supports certain cryptocurrencies ed: “The next Bitcoin bull run will driven by the fact that exchanges as a sort of digital gold, or store be dramatically different. Today, and benchmark funds have grown of value (see our previous issue, there’s exponentially more capital, more reliable and more profession- p. 18). The number of bitcoins is human capital, infrastructure, and al. Overall, the sector is attracting fixed and restricted by blockchain high-quality projects than in 2017. more long-term investors, both in- technology, which is what sets it Not to mention the very real spec- stitutional and individual. According apart from traditional currencies. tre of inflation that all fiat regimes to Coin Metrics, the number of ad- Plus, no longer does a day go by face going forward. Buckle up!”
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Longines_HQ • Visual: HH1_SP1 • Magazine: Swissquote_ENG octobre (CH) • Issue: 01/10/2020 Doc size: 200 x 260 mm • Calitho #: 09-20-142531 • AOS #: LON_22560 • HN 16/09/2020 PORTRAIT SWISSQUOTE DECEMBER 2020 PORTRAIT SWISSQUOTE DECEMBER 2020
he story begins with cy,” said Marta Bruska, who moni- receives excellence awards for the a bottleneck. Or, more tors the company for German bank quality of its products, services and precisely, with the bot- Berenberg. “With 40% of total energy management. One of its most recent tleneck-focused strategy consumption, buildings are the prima- accolades was given to Lars van der T(Engpasskonzentrierte Strategie, ry contributors to climate change. If Haegen, who has led the company in German), a school of managerial they become more energy efficient, it since 2015 and was named CEO of Belimo, thought in which companies that could potentially reduce CO emis- 2020 for Belimo’s operational and 2 specialise have greater success than sions significantly. Energy efficiency financial performance by research their diversified competitors, and tend is exactly what Belimo products do,” firm Obermatt (mid-caps category). to become leaders in their market. said the analyst. In 2017, the company was named a gem on the In 1975, six engineer-entrepreneurs the fourth-best mid-size employer in armed with this doctrine co-founded Switzerland, according to an annual Belimo in Gossau (Zurich), with the ranking by Bilanz magazine. “Belimo goal of improving the efficiency of has a strong company culture, with Swiss exchange heating, ventilation and air-condition- The company a spirit that is very practical yet ing systems – hence the HVAC sector. continually focused on innovation. It’s also a very This specialist in heating and air- client-oriented company,” said Bruska. conditioning system optimisation is Forty-five years later, their vision is a receives excellence benefiting from two strong trends: success. Around the world, corporate awards for the In terms of profits, the company’s urbanisation and the fight against energy headquarters, hospitals, university quality of its vibrancy could be considered cheeky waste. Its share price is soaring campuses, administrative buildings if it wasn’t for its serious image. Last and apartments are equipped with products, services year, Belimo’s profits were up 17.5%, BY ANGÉLIQUE MOUNIER-KUHN products designed and sold by Belimo: and management to 121 million Swiss francs, generat- actuators (devices used to control the ing 692.7 million Swiss francs in reve- system), control valves and sensors. nue. These numbers astound analysts, It is a market that is, in theory, closed with a dividend that increased from to common mortals and yet it is full THE INNOVATION CHAMPION 100 to 150 Swiss francs, while the of challenges in the era of climate With locations in more than 80 coun- consensus was at most 112 francs. change and the fight against energy tries, Belimo moved its headquarters This performance also helped fan the waste. “Belimo is part of an indus- to Hinwil (Zurich) in 2002 and now flames of the relationship between try whose development is driven by has more than 1,900 employees. Its the company and its shareholders several big structural trends such overall market share exceeds 20% since it went public in 1995. Since its as urbanisation, an ageing popula- in its traditional product lines. The IPO on the Zurich exchange, the share tion, automation, digitisation, stricter company, which this year produced price has gone from 221 to nearly health standards and energy efficien- its 100 millionth actuator, continually 7,000 Swiss francs.
IN NUMBERS
1,900 24 97% 20% Number The company The percentage of Belimo’s market share of employees estimates that its revenue generated in its traditional products can save internationally products globally 24 times more energy than was used in production
Two Belimo employees install
BELIMO a control valve. BELIMO
20 21 PORTRAIT SWISSQUOTE DECEMBER 2020
Belimo’s super-size warehouse at its US headquarters in Danbury, Connecticut. BELIMO
For a long time, Belimo belonged to a the magic over for Belimo? Actually whereas the SPI, Switzerland’s over- very exclusive group of hidden gems no, according to investors who con- all stock market index, is still under on the Swiss exchange. All the con- sider it a windfall: in a survey con- 5%. “Even if the company traded at ditions were right for it to fly under ducted by Geneva-based consulting a premium because it is a leader in analysts’ radar: a discreet image, firm WS Partners, Belimo emerged as expanding markets and because its activity that was little-known to the one of the only two Swiss companies finances are very good, no argument general public, revenue generated out of about a hundred international justifies the share price reaching almost entirely internationally and stocks that were purchased by fund such heights. Unless my valua- a small capitalisation. But even the managers during the crash. And since tion model is to blame,” concluded best kept secrets come out eventual- then, the share price has improved Emminger, perplexed. It’s almost as ly and the most promising companies so much that it is far ahead of the if, in the end, the gem of the Swiss always gain exposure at some point. competition: over one year, it has ris- exchange still has some mysteries en 21% to nearly 7,900 Swiss francs, yet to reveal. In a way, this is what worries TRADE YOUR WATCH Urs Emminger of Research Partners in Zurich, and led him to change his recommendation from hold to sell ANALYST’S VIEW FOR ONE OF OURS in August. He is almost apologetic about it. “Belimo is one of the best A VERY CURRENT STOCK Sell or trade the watches you no longer wear to WatchBox. companies I’ve seen in my entire Our advisors have the knowledge and expertise to help career. It is well-managed, its prod- While Belimo’s solid performance is universally recognised, the you navigate the process as your trusted pre-owned guide. ucts are excellent. Each year, taking valuation level reflected by its share price has received mixed opin- into account fluctuating exchange ions from analysts, a majority of whom now recommend reducing rates, it grows 5% to 10%. Given the positions or selling shares. But according to Marta Bruska, an an- SWITZERLAND | UNITED STATES | HONG KONG | SINGAPORE | MIDDLE EAST alyst at Berenberg, even though the company’s sales were moder- products it has in its pipeline, there ately affected by the economic downturn in some of its markets in are clear indications that this trend H1 (-1.4% at constant exchange rates), it is expected to benefit from will continue over the long term. stricter health measures that will likely result in building owners Frankly, this company has it all,” said and public authorities purchasing more products due to the pan- the analyst. demic. “Scientific studies tend to demonstrate that temperature and humidity control, as well as fresh air intake, can significantly reduce virus transmission in indoor spaces (...). Belimo’s products During the market crisis this spring, do all of those things,” she said. Bruska recommends purchasing however, its share price dropped shares, with a price target of 8,000 Swiss francs. BEAN Rue Promenade Noire 5 | 2000 Neuchâtel | +41 32 722 12 80 nearly 35% in just a few weeks. Is THEWATCHBOX.COM
22 ENVIRONMENT SWISSQUOTE DECEMBER 2020 ENVIRONMENT SWISSQUOTE DECEMBER 2020
Wheeling and dealing among car manufacturers By playing with loopholes in the regulations, most car manufacturers are expected to
meet their CO2 emissions objectives and avoid billions in fines. We take a closer look.
BY BERTRAND BEAUTÉ
t was just over a year ago. doom predicted they would? The not alone in its prediction – make Consulting firm Jato Dynamics, short answer is no. According to a a mistake? This question makes which specialises in the study published in October by the Bernard Jullien, an economist who car industry, reported that NGO Transport & Environment (T&E) specialises in the automotive market, Imanufacturers would not be able – the most exhaustive report to date, smile: “The figures published a year to meet their environmental objec- since it covers 98% of cars sold in ago were not made up. They were a tives and therefore have to pay a the EU as of mid-2020 – most manu- real threat in the industry in terms €34-billion fine unless changes were facturers are now either in line with of meeting the European regulations. made. The European Union passed a EU standards or actively working But there was also some lobbying
law stating that CO2 emissions from towards them. and manipulation. Consulting firms, new cars sold in Europe in 2020 which are paid by car manufacturers, may not exceed an average of 95 g/ Four companies have already met their pressured governments to obtain
km. Anything higher than 95 g would CO2 targets (PSA, Volvo, Fiat-Chrysler a more flexible application of the trigger a fine: €95 per each addition- Tesla, and BMW) and three are close regulation, as well as assistance in al gramme, multiplied by the total (Renault-Nissan, Toyota-Mazda, and increasing electric vehicle sales.” number of cars sold by that compa- Ford). Only Kia, Volkswagen, Hyundai, ny! According to calculations from Daimler, and Jaguar Land Rover (JLR) For Louis-Antoine Calvy, a consult- Jato, Fiat-Chrysler was expected to must hang their heads in defeat, for ant specialising in mobility at Bartle, be on the hook for €3.24 billion in not meeting the EU standards (see consulting firms did not make a fines, Renault would hit €3.6 billion, infographic on p. 27). But in total, mistake: “There’s no way they could and Volkswagen would be responsi- companies will only pay a few hundred have predicted that 2020 would be ble for €9 billion. million euros in fines, which is quite a such a unique year.” In a European bit less than the €34 billion predicted car market that is down 28.8% Now, a year later, the numbers are by Jato. overall in the first nine months of in. It‘s time to do the maths. Will the year, sales of electric vehicles car manufacturers actually pay the So, what happened? Did myriads (100% electric and rechargeable colossal fines that the prophets of of consulting firms – as Jato was hybrid) have gone up. As a result,
24 25 ENVIRONMENT SWISSQUOTE DECEMBER 2020 ENVIRONMENT SWISSQUOTE DECEMBER 2020
the market share of electric vehicles increased 211.6% and rechargeable One of the devastating conclusions could reach 10% of total new vehicle hybrids increased 368.1% compared of the T&E report regarding manu- CAR MANUFACTURERS: sales in Europe by the end of the to the same period in 2019! “The facturers is that in order to reach HOW THEY MEASURE UP year, compared to 3.6% in 2019. This current context is very favourable for the 2020 targets, for many, the gap increase automatically lowers global electric vehicles,” said Flavien Neuvy, will be closed through regulatory At the end of July, the entire Euro- pean automotive industry was on PSA CO2 emissions. “Most experts did not head of L’Observatoire Cetelem for flexibilities. In other words, all the big average only two grammes of CO Volvo predict such fast growth,” said Jullien. the automotive market. “The market names will use a series of strategic 2 “They underestimated how quickly is really starting to take off. Now the legal arrangements to sneak under away from the target set by the BMW households would switch to electric challenge for manufacturers is to turn the threshold this year. “Manufac- European Commission. Tesla - FCA vehicles.” a profit with electric vehicles, because turers benefit from exemptions that thus far the margins have been low, allow them to seem greener than 5 That said, manufacturers received and even sometimes non-existent.” they really are,” said Neuvy. quite a bit of help from national Renault governments. “Due to the pandem- MANY EXCEPTIONS TO THE RULE First, upon request from Germany,
ic, European countries established However, despite the boom in electric the target amount of emissions Nissan recovery plans for the automotive vehicle sales, traditional manufac- was adapted to each manufacturer Mazda - Toyota Ford sector,” said Jullien. “But they could turers still have quite a bit of work based on the average mass of the 0 only support the industry if it was to do to meet the new environmental vehicles it sells: if a carmaker sells Kia
environmentally responsible. So standards. According to the Transport more heavy vehicles, its target CO2 the entirety of government assis- & Environment study, as of mid-2020, amounts are higher, so it’s easier tance went towards electric models.” new vehicles sold this year emitted an to meet the objective. Logically, the
Established just after the first wave, average of 111 grammes of CO2 per weight of new cars has been increas- these recovery measures had an kilometre. While that is a 9% decrease ing in Europe, going from 1.37 tonnes 5
immediate impact on sales. Between compared to 2019, it is still a far cry in 2014 to 1.42 tonnes in 2019. Volkswagen July and September 2020, sales of from the 95-gramme objective as Hyundai battery-powered electric vehicles stated in the regulations. But the primary crutch for the auto- /km motive industry is the super credits 2 system: a mechanism that doubles the statistical impact of electric vehi- 10 cles (including rechargeable hybrids) Daimler compared to non-electric models. targets, in grams of CO In other words, if a company sells one zero-emissions electric car and FALSE PROMISES FROM RECHARGEABLE HYBRIDS Deviation by manufacturers from their respective European one combustion vehicle that emits 15 120 g/km of CO2, the average amount of CO that the EU calculates for While sales have skyrocketed is up to four times higher than 2 those two vehicles would be 40 g/km, (+145% over the first seven months advertised. How is that possible? Jaguar - Land Rover Source: Transport & Environment (T&E) of 2020), rechargeable hybrid vehi- “In order for these vehicles to not 60 g/km. According to T&E, super cles are facing criticism. According be competitive from an emis- credits make up two-thirds of all reg- to information provided by man- sions standpoint, they need to ulatory flexibilities. With this system ufacturers, a rechargeable hybrid be used for short distances and in place, Renault saves 15 grammes from sales do not meet the target, targets. But software problems found companies that have already met emits between 30 to 50 grammes of the battery needs to be charged on its emissions average with just companies can register electric in the vehicle postponed the launch, their target. This forms a pool, and CO2 per kilometre, i.e. three times similar to an electric model,” said less than an equivalent combustion Bernard Jullien, an economist one electric model – the Zoe – whose vehicles that are on display or owned placing the German giant in a very the average emissions for that pool vehicle. This allows manufacturers specialising in the automotive sales increased 50% in the first half by employees,” said Neuvy. “This arti- precarious position. For Ford, a defect will be taken into account by the such as Volvo to avoid EU fines, and industry. “But most users drive of 2020, making it the best-selling ficially lowers their emissions so that in the assembly line of the Kuga EU. Quite far behind in making its purchasing incentives are available long distances and never recharge electric vehicle in Europe. they do not exceed the objectives.” Plug-In hybrid SUV led the American models electric, Fiat Chrysler (FCA), in several countries. the batteries. So the rechargea- At the end of August, the PSA Group manufacturer to recall thousands of which just launched the electric ble hybrid becomes a traditional THE RISE OF CO2 POOLING was thus able to boast about having vehicles and suspend deliveries. Fiat 500 in October, was the first The only problem: after compil- combustion engine that has to At PSA, a CO steering committee lowered its average emissions below group to pull out its chequebook to ing data from more than 100,000 carry a huge battery.” Transport 2 vehicles, the Fraunhofer Insti- & Environment agrees, warning was established in 2019 to calculate its target. To overcome these setbacks, both purchase a right to pollute in 2019, tute for Systems and Innovation that: “Today, half of all electric weekly CO2 emissions from Peugeot, companies decided to employ forming a pool with Tesla. This cost Research (ISI) in Karlsruhe and vehicle sales are “fake electric” Citroën, Opel, and Vauxhall. Accord- But even with super credits, it doesn’t another option allowed by the EU the Italian-American manufacturer the International Council on Clean rechargeable hybrids that are ing to our sources, that data led take much for companies to fall regulation: “CO2 pooling”. Rather than $1.8 billion over three years (see Transportation (ICCT) demon- rarely recharged and emit 2 to 4 PSA – and other manufacturers – to behind. The Volkswagen group, for ex- pay fines to Brussels, manufacturers inset on p. 28). “This type of alliance strated that the real consumption times more CO in real conditions 2 begin strategic vehicle registration ample, bet heavily on the launch of its that are at risk of not meeting their costs a third to a half of what a fine of rechargeable hybrid vehicles than when tested in laboratories.” tactics. “When emissions numbers compact electric ID.3 to meet its CO2 goals can purchase CO2 credits from would be,” estimated Louis-Antoine
26 27 ENVIRONMENT SWISSQUOTE DECEMBER 2020
Calvy from the firm Bartle. As the
year comes to a close and the threat TESLA: SUPERSELLER OF... CO2 CREDITS of fines grows near, many manu- Elon Musk can thank coercive regulations on CO emis- facturers are joining together in CO2 2 pools. In September, Volkswagen sions adopted in Europe and a dozen US states such as announced that it had formed a pool California. On both sides of the Atlantic, manufacturers can purchase “rights to pollute” from more environ- with Chinese group SAIC, which sells mentally friendly companies. As an electric pure player, the MG ZS EV electric SUV in Europe. Tesla has lots of credit to sell. Starting in 2012, the US
In early November, Ford began group cashed in $40.5 million thanks to CO2 credits. a partnership with Volvo, which The numbers haven’t stopped going up since, reach- leads sales of rechargeable hybrid ing $594 million in 2019, then $1.18 billion in the first vehicles in Europe with its XC40 nine months of 2020. Compare this figure to Tesla’s net profit, which was only $450 million over the same peri- and XC60 models (52,300 vehicles od, and it all makes sense. In other words, without its sold over nine months). Meanwhile, CO2 side business, Tesla would be in the red with a net Honda has partnered with Tesla, loss of more than $3,000 per vehicle delivered in 2020. which still had credits to sell due to higher than predicted sales in Europe. And environmentally friendly Japanese group Toyota decided to pair up with its more pollution-heavy compatriot Mazda. overall emissions. Daimler, for exam- to pay European sanctions. And Which will be next? Most analysts are ple, decided to focus heavily on this other brands simply abandoned the expecting Daimler and Jaguar Land type of technological improvement.” pursuit altogether. Both Infiniti, the Rover, which are both very behind. According to T&E, technologies to signature high-end line from Nissan, On the other end of the spectrum, modify combustion engines reduced and Chevrolet (General Motors Renault, which is well-positioned emissions by up to 2.5 grammes for group) decided to leave Europe in thanks to high sales of the Zoe, put Daimler and Jaguar Land Rover. 2019 because it could not comply out a call in mid-October for compa- with the new regulation. In 2020, nies to join the pool it was creating However, despite all of these loop- Japanese company Mitsubishi an- with Nissan and Mitsubishi. If this call holes, certain manufacturers will still nounced it had decided “to freeze the is answered by Daimler or Jaguar, it likely pay fines. Jaguar Land Rover, introduction of new models to the would result in some nice extra funds whose sales of the 100% electric European market”. That’s because for Renault. Jaguar I-Pace were disappointing, there will be fewer regulatory flexi-
has already stated that it has set bilities in 2021: while CO2 pools will And if pooling wasn’t enough, there aside £90 million (€100 million) to still be permitted, the 95% rule will are even more exemptions that can pay EU fines. “We are not happy that no longer apply and super credits, be applied. The 95% rule, for exam- we will not be compliant in 2020, but which provide an enormous advan- ple, does not include each manu- a lot of that has been taken out of tage to electric vehicles, will be facturer‘s 5% highest emitting cars, our hands,” said Adrian Mardell on limited to a factor of 1.6 compared most often niche models (high-end 27 October. Mardell, chief financial to 2 currently. sports cars, very large or very ex- officer of Jaguar Land Rover, blamed pensive cars, or vehicles with lots of the delayed deliveries of recharge- So, does that mean the colossal
CO2 emissions). Daimler is the main able hybrid versions of the Range fines will just get pushed back a beneficiary of this exemption. Another Rover Evoque and Discovery Sport for year? “It‘s difficult to predict,” said strategy is eco-innovation credits, non-compliance with the regulations. Neuvy, “since electric vehicle sales which can be granted for theoretical will continue to increase. They could
reductions in CO2 emissions which Interviewed by the Financial Times make up 15% of all new vehicle sales cannot be proven during vehicle type in early November, Volkswagen CEO in 2021. The war for electric cars has approval tests. “For example, WLTP Herbert Diess declared that VW was begun and it will result in billions tests don‘t include Stop & Go sys- now “within a gramme or so” of its spent on research and development. tems, even though they are already EU target. “We haven’t given up yet, For the time being, Tesla is ahead of an old technology,” said Calvy. “If a but it will be very tight to achieve the game as a first mover. But the big We create life-changing wishes for children manufacturer equips its models the fleet targets,” said Diess. The manufacturers have an advantage in with these innovative systems, it group said that it had allocated that they can invest massive amounts with critical illnesses
can deduct grammes of CO2 from its several hundreds of millions of euros of money.” IBAN CH26 0027 9279 2794 5940Y 28 Donate today: makeawish.ch 30
CANA ATELIER GRAPHIQUE DIVIDENDS SWISSQUOTE DECEMBER2020 SWISSQUOTE DOSSIER government decisions. to remainsbeholden thebankingindustry But in2021. toincrease shareholders areexpected year,After adisappointing to dividendpay-outs recovery time for Dividends: BY BERTRANDBEAUTÉ DIVIDENDS champions exception strategy commandments 40. 38. 36. 35.
Dividends, Dividends, Infographic:
The dividend The Swiss The Swiss of a good dividend of agooddividend The 5 gone wrong a gesture
SWISSQUOTE DECEMBER2020 SWISSQUOTE
31 DIVIDENDS SWISSQUOTE DECEMBER 2020 DIVIDENDS SWISSQUOTE DECEMBER 2020
hareholders are on a diet. While there was a wide range of pared to $1.430 trillion in 2019, During 2020, investors reductions depending on the country according to estimates by the Janus received limited divi- (dividends dropped 70% in Spain, Henderson Global Dividend Index. dends. According to the compared to only 19% in Germany), “2020 will be the worst year for Janus Henderson Global there was one outlier: Switzerland dividends since at least the Global Dividend Index report, pay-outs from was the only country in Europe where Financial Crisis,” wrote the authors publicly listed companies fell 45% dividends remained stable between of the report. “With the pandemic, in Europe (excluding the UK) in Q2 2019 and 2020 (see also p. 35). In the 2020 was a truly difficult year,” 2020 – the most important period United States, where shareholder said Nicolas Simar, senior portfolio in Europe for dividends, since most dividends are usually paid out manager of Euro and European High Scompanies pay out once between several times throughout the year, Dividend strategies for the Dutch April and June. The total amount paid the situation is just as dire. Between asset management company NN out was $83.4 billion, compared to September 2019 and September 2020, Investment Partners (NNIP). “Like “Cutting dividends $150.3 billion a year earlier. Faced dividends paid by companies on the in any recession, company profits sends a bad with the coronavirus crisis, Europe- S&P 500 decreased by $39.7 billion shrunk significantly, leading to a an companies decided – sometimes compared to the same period one year 25% to 30% decrease in dividends message. Few under pressure from their govern- earlier, according to S&P Dow Jones. across Europe.” companies will ment – to reduce the amount of dividends paid to shareholders: 54% In a best-case scenario overall for As the second wave of the corona- resort to that unless of companies reduced or eliminated 2020, dividends paid around the virus unfurls across the world, will Eleanorthey Taylor are Jolidon forced, co-head of Swissto” & dividends paid in 2020 for the 2019 world are expected to decrease by 2021 be even more catastrophic, Global Equity Portfolio Management at UBP financial year. 17% to reach $1.180 trillion com- given that dividends are based on a company’s 2020 profits, i.e. busi- ness during the pandemic? “Dividend amounts will not plummet,” predicts Jérôme Schupp, analyst at Prime implications. These plans should Partners. “Stability is very important enable the economy, and therefore in this situation, because lowering dividends, to recover more quickly. dividends is perceived very negatively Especially because the positive news by shareholders. It gives the impres- from vaccine candidates provide a sion that the company doesn’t have bit of hope that the health crisis will confidence in the future. During the soon improve. 2008 crisis, for example, companies generally maintained their dividends, “Many companies that were finan- and some even paid out more than cially able to pay out dividends in their annual profit.” Eleanor Taylor 2020 chose to not pay them out of Jolidon agrees: “Cutting dividends caution or necessity,” said Simar. sends a bad message”, said the “Dividends should be back in 2021.” UBP fund manager. “Few companies In France, for example, telecoms will resort to that unless they are operator Orange already decided to forced to.” raise its dividends to pre-pandemic levels, or 70 cents per share, for According to experts, dividends 2021. It reduced dividends by about “Many companies allocated to shareholders in 2021 one-third in the spring. Another ex- that were financially are expected to increase in Europe by ample is Italian insurer Generali: on able to pay out nearly 15% compared to 2020. “We’re Thursday 12 November, it announced living through a profound crisis and it would pay shareholders in 2021 dividends in 2020 it will probably be two years before “pending a favourable position from chose to not pay dividends return to their pre-pandemic the regulator”. It had to suspend all levels,” said Simar. “But I do see dividends this year, under pressure them out of caution several promising factors.” Unlike from the European Insurance and Nicolas Simaror, seniornecessity” portfolio manager of Euro the 2008-2009 crisis during which Occupational Pensions Authority, and European High Dividend strategies for NN governments implemented austerity which was concerned about the Investment Partners measures, this time governments im- impact of coronavirus on the in- plemented very coordinated recovery dustry. The situation was a similar plans with both tax and monetary for AXA. “According to the group’s
32 33 DIVIDENDS SWISSQUOTE DECEMBER 2020 DIVIDENDS SWISSQUOTE DECEMBER 2020
The exception Swiss companies differed from their European neighbours in 2020 with their generous dividends.
he only country in Europe ics manufacturer Sonova, media than those in Europe, particular- where shareholder div- group TX Group (formerly Tamedia), ly towards the banking industry. idends remained sta- luxury hotel and clinic specialist Credit Suisse and UBS were able to “Dividend ble from 2019 to 2020, Aevis Victoria, logistics specialist pay the entire expected dividends to “Switzerland was the hero of Kühne+Nagel, duty-free shop group shareholders, whereas the majority amounts dividends in Europe,” wrote the au- Dufry, kiosk operator Valora and out- of European banks were unable to will not thors of the Janus Henderson Global door advert agency APG/SGA. While do so. Dividend Index. Why was Switzerland that list may seem long, it’s actually Jérôme Schupp, profitability, solvency and liquidity, While it was not a formal requirement, plummet” Tthe exception? “Swiss companies a lot shorter than in other Europe- Another notable difference be- analyst at Prime Partners it should have no problem paying divi- “it was difficult, if not impossible, are financially healthy,” said Jérôme an countries, where approximately tween Switzerland and its European dends next year,” declared Etienne for big companies in the industry to Schupp, analyst at Prime Partners. one-fourth of companies listed on neighbours: the Swiss market, par- Bouas-Laurent in early November. contradict the regulator,” said Martin “Very few had to reduce their divi- the Euro Stoxx index did not pay div- ticularly the SMI, does not include Bouas-Laurent is CFO of the French Moeller, co-head of the Swiss & Global dends to survive the crisis.” Eleanor idends for the 2019 financial year. many companies that are active in insurer, which halved its dividends Equity Portfolio Management at Union Taylor Jolidon agrees: “Dividend pay- industries that were hardest hit by this year. Bancaire Privée (UBP). “In fact, the big outs are quite simply a reflection the pandemic: “Giants such as the banks that were traditionally gener- of the quality of Swiss companies,” airline Lufthansa, which received But the industry under the most scru- ous with dividends, such as Deutsche said the co-head of Swiss & Global millions from the German govern- tiny will most certainly be banking. Bank in Germany, had to stop paying But an increasing number of Europe- Equity Portfolio Management at Credit Suisse and ment to survive, do not legally have In March 2020, the European Central out to shareholders.” Two-thirds an banks, such as HSBC, Santander Union Bancaire Privée (UBP). Of the the right to pay dividends due to the Bank (ECB), which supervises the of European banks, including BNP and BNP Paribas, want to bring back 20 companies on the Swiss Market UBS were able aid received,” said Schupp. “That’s sector, strongly recommended that Paribas, Natixis and Societe Generale, dividends in 2021. While their fate Index (SMI), the benchmark index to pay the entire also the case here; companies financial institutions in the eurozone suspended their dividends in line with rests in the hands of the ECB, which for the Swiss markets, only three receiving COVID loans guaranteed freeze dividend pay-outs and share ECB recommendations, and withheld will decide in December whether or – Swatch, Alcon and Richemont – expected dividends by the Swiss government are not buyback programmes until 1 October €27.5 billion in pay-outs for the 2019 not to continue its recommendations, decided to reduce dividend pay-outs to shareholders authorised to pay shareholders 2020 – which has since been pushed financial year. According to the Janus Nicolas Simar believes banks will to shareholders. until the loans are paid back in full. back to 1 January 2021. The goal is to Henderson Global Dividend Index, half likely see a case-by-case approach: But in Switzerland, that primarily “preserve banks’ capacity to absorb of the dividend reductions in Europe “Banks with the most solid balance Of the 214 companies on the Swiss In addition to the quality of Swiss applies to private companies that losses and support the economy (excluding the UK) in 2020 were the sheets and significant equity will Performance Index (SPI), only one- companies, there are other factors aren’t publicly listed, not giants like in this environment of exceptional result of restrictions imposed on the likely be able to pay out dividends tenth decided to eliminate dividends. that explain Swiss resilience, such as IAG (owner of British Airways) or Air uncertainty”. banking industry. starting in 2021.” Among them are hearing prosthet- authorities that were less coercive France, in terms of airlines.”
34 35 DIVIDENDS SWISSQUOTE DECEMBER 2020 DIVIDENDS SWISSQUOTE DECEMBER 2020
2020 ended the uninterrupted dividend growth worldwide over UNITEDThe 10 countries STATES where companies ON TOP paid theOF most THE dividends WORLD in 2019 the past 10 years. But through $490.8 BN the crisis, Swiss companies United States THE DIVIDEND have held up well.
$105.8 BN CHAMPIONS United Kingdom
$63.9 BN $36.7 BN Experts forecast 12% dividend growth between 2020 and 2021 China 2021: THE YEAR OF RECOVERY $1,425 BN $43.8 BN France Canada $85.7 BN $1,378 BN $43.8 BN Japan $1,255 BN $1,344 BN* Germany $1,182 BN $1,161 BN $1,200 BN* $1,159 BN $1,048 BN $55.5 BN $1,014 BN Australia $946 BN
$778 BN $46.6 BN $717 BN Hong Kong
$39.3 BN Switzerland
A CLOSER LOOK AT SMI COMPANIES SMI company ranking based on yield of dividends paid in 2020 (yield calculated on the day of dividend payment) 2017 2018 2019 2020 2021 2009 2010 2011 2012 2013 2014 2015 2016 8.5% * Estimated 6.6% 6.3% 6.2% 6% 5.3% 4.8% 4.2% 3.6% 3.5% 3.4% THE TOP 10 PAYERS FINANCE,The banking and energyTHE sectors KING are OF reputed ALL for SECTORStheir generous dividends 2.9% 2.8% 2.6% 2.3% 2.1% WORLDWIDEThe 10 companies that paid the most 1.5% 1.4% 0.6% dividends in 2019 (in absolute value) 7% 5% 0% Communications Utilities and media 27% UBS ABB SGS Sika Alcon Finance Roche Geberit Nestlé Lonza 1. Royal Dutch Shell 7% Swiss Re Adecco* Novartis Givaudan Swiss Life Swisscom Richemont Raw materials LafargeHolcim Credit Suisse Swatch Group Zurich Insurance 2. AT&T Changes between 2019 and 2020 7% 3. Exxon Mobil Consumer 21% discretionary 12.2% 10.2% 5.7% 5.3% 5% 4.6% 4.3% 3.5% 3.4% 3.3% 2.5% 4. Microsoft 0% 0% 0% 0% 0% Swatch GroupRichemontAlcon 5. Apple 8% 6. BHP Sika UBS SGS ABB Health and Nestlé Geberit Roche Lonza 7. Rio Tinto Swiss Re Novartis Givaudan Adecco* pharmaceuticals 11% Swiss Life Swisscom Removed 8. China Construction Bank Corp Petrol. gas Credit Suisse LafargeHolcim and energy Zurich Insurance -30% 9. JPMorgan Chase & Co 8% 9% 9% Industry 10. HSBC Technology Basic consumer goods *Adecco was removed from the SMI on 21 September, 2020. Sources: Janus Henderson Global Dividend Index, business activity reports, Swissquote Magazine -50%
36 37 DIVIDENDS SWISSQUOTE DECEMBER 2020 DIVIDENDS SWISSQUOTE DECEMBER 2020
air warning: this is a sensitive ler and Volkswagen placed 200,000 targeted include (but are not limited topic. As waves of lay-offs employees on short-time work during to): ABB, Adecco, Implenia, Swatch, spread across the world and the first-wave lockdown, while simul- LafargeHolcim and Sunrise, which the number of government taneously paying out nearly €7.5 billion paid out dividends this year based recovery plans increases, the issue to shareholders based on 2019 profits. on 2019 while using short-time work of dividends has become unavoid- allowances. “The goal of short-time able. Can a company pay its share- work is to save jobs during the crisis. holders while it receives subsidies, It is not logical for it to be misap- Fimplements short-time working propriated in order to pay dividends,” arrangements or has laid off many argued Marina Carobbio, Swiss employees to overcome the corona- Councillor of States (PS/TI). It’s virus crisis? “All the big companies “Those who rely on quite difficult to justify to taxpayers, should suspend their dividends state aid cannot who finance unemployment benefits, during this time of extreme stress, simultaneously that their taxes can be used to pay and this applies not just to banks,” shareholders. said Paul Dembinski, director of the distribute profits Observatoire de la Finance, in a col- toCarsten shareholders” Schneider, member of And yet, contrary to the Swiss National umn for the Swiss daily Le Temps on the German Bundestag Council, which narrowly approved 5 April. “It’s a precautionary measure the motion with 93 voting for and 88 that strengthens the capital structure.” against, the Council of States denied the motion, 31 to 10, with their main But that’s not what happened. “In argument being: “It would be coun- Switzerland and more broadly in This did not go over well with German ter-productive to force companies to Europe, companies that accept- political leaders. “The short-time work choose between short-time work and DIVIDENDS ed state-backed loans or direct allowance is state aid. Those who rely paying dividends,” said Federal Coun- subsidies are not legally allowed on state aid cannot simultaneously cillor Guy Parmelin. “It would create to pay their shareholders,” said distribute profits to shareholders,” more uncertainty during this time of A GESTURE Jérôme Schupp, analyst at Prime insisted Carsten Schneider, leader of crisis.” In other words, the primary risk Partners. Companies such as the Social Democratic Party (SPD) in of banning dividend pay-outs is that Lufthansa, whose total assistance the Bundestag (the lower chamber of companies would choose to lay off em- GONEBY BERTRANDWRONG BEAUTÉ plan equals €9 billion, Air France the German parliament), in an article ployees rather than not pay dividends. (€7 billion) and Renault (€5 billion) in the Financial Times. “It’s the ugly had to suspend their dividends face of capitalism. I am in favour of On that front, nothing has changed. During the pandemic, the eternal debate over dividends in 2020. a moratorium on dividend payments Companies have always had the right paid by listed companies resurfaced yet again. when that is the case.” to reduce their workforce while con- But this time, the outcry is legitimate. However, short-time work is not tinuing to pay their shareholders. But legally considered a subsidy. In other This issue has rocked Swiss politics the numbers are particularly shocking words, companies can implement as well. In April 2020, the Swiss in this crisis. Exxon Mobil, for example, short-time working arrangements and National Council submitted a motion will lay off 14,000 employees – about still pay dividends to their sharehold- to make dividend pay-outs illegal 15% of its workforce – in order to ers. And they do not hesitate to do so: for a company with short-time maintain its dividend of approximately in Germany, for example, BMW, Daim- work arrangements. The companies $15 billion.
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1 Assess the dividend’s long-term sustainability To attract investors during its IPO in December 2019, Saudi Aramco pledged to pay its shareholders $75 billion per THE FIVE year. But since the pandemic hit and its revenue has plum- meted, the oil giant lacks adequate cash to keep its promis- es. Now Aramco plans to scale back capital expenditure by 20% to 30% and… issue bonds to raise the funds necessary COMMANDMENTS to cover the dividend payout. “It’s a very bad sign if a com- pany borrows money to pay dividends,” Nicolas Simar says. “Generally speaking, investors should be careful with the sector analysis to make sure that the company’s business OF A GOOD model is viable over the long term before they invest.” Martin Moeller agrees: “The dividend’s sustainability is a key factor. For example, companies such as Shell and BP pay huge dividends. But that may not be the case over the next few DIVIDEND years, as the oil industry currently faces major challenges. And its future is uncertain.”
STRATEGYOver the last 10 years or so, the shares of companies offering high dividend yields have underperformed the market. But by building a selective value portfolio, investors can still come out ahead. We take a closer look.
BY BERTRAND BEAUTÉ 2 Don’t get caught up on yield “Focusing excessively on yield leads to bad investment decisions. You should beware of dividends that are high only in appearance,” Nicolas Simar says. “Returns of more than 6% or 7% should be viewed as a red flag, as the risk of cut-off is extremely high.”
Of course, theoretically, companies that pay higher returns have a more attractive dividend policy. But if a company is strug- gling and its share price drops, yield automatically rises. Due to its unsustainable situation, the company will probably have to hese days, savings on dividends,” says Martin Moeller, strategy work at all? “Yes,” says reduce its dividend in the years to come. accounts bear next co-head of Swiss & Global Equity Nicolas Simar, senior portfolio to no interest, and Portfolio Management at Union Ban- manager of Euro and European High “Those are what we call ‘value traps’, i.e. companies priced traditional bonds offer caire Privée (UBP). Dividend strategies for the Dutch as- below value that are believed to be good investment oppor- uninspiring yields. set management company NN Invest- tunities if we only take into consideration share price and So investing in high Why are investors so wary? Because ment Partners (NNIP). “We can still dividend,” Nicolas Simar says. “But the share is not actu- dividend stocks, boasting returns the tendency over the past decade beat the market with a ‘value-orient- ally under-valued and the price will continue to fall. If the as high as 10%, has understanda- has been that companies with the ed’ portfolio, i.e. under-priced securi- dividends don’t at least cover the loss in share value, you ble appeal. But those shiny returns most generous payouts to share- ties that offer better returns in terms lose money.” could be an illusion. “An investment holders underperform the market. of dividends.” Below are a few golden strategy should never focus solely On that basis, can a dividend-driven rules to follow in order to do that.
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3 Don’t overlook growth 4 Diversify your BACK TO “VALUE” STOCKS? “Companies that pay very high dividends may not have growth plans” says Eleanor Taylor Jolidon, co-head of Swiss and Manyportfolio industries, such as banking, oil and What do Tesla, Amazon, Google Global Equities at UBP. “For example, a car builder that prefers insurance, have a reputation for paying and Facebook have in common? to pay cash to its shareholders rather than build factories out juicy dividends. As a result, dividend These stars of the US stock ex- will not grow. Personally, I always prefer growth companies, portfolios often have a significant sector change may drive up quotations, but they pay no dividends to which create value and whose assets will increase in value.” bias. But lack of diversification can be their shareholders. Instead, they Telecommunications is another industry that is saturated, with costly. “In 2008, dividend strategies pour their profits back into their relatively low growth forecasts. Moreover, operators have to were overexposed to the financial sec- development. In stock market jar- overcome a wall of investments with the deployment of 5G. tor,” Nicolas Simar says. “You’re better gon, these companies are called off taking a diversified approach and “growth stocks”. At the opposite “A fundamental analysis of companies is essential to avoid adapting your performance targets to end of the spectrum are “value stocks”, securities priced lower dividend traps,” continues Nicolas Simar. “You have to be very each sector. That way you can combine than the company’s intrinsic selective and choose companies with healthy balance sheets, cyclical stocks, such as Siemens and value which generally offer more offering stable, steady growth in cash flow. This reduces the Schneider Electric, with more defensive attractive dividends. For some risk profile compared to traditional value strategies, which sectors like healthcare (in particular 10 years, investors have clearly are not growth-oriented.” Sanofi and Novartis), food retail (Ahold migrated towards growth stocks, Delhaize and Tesco) and insurance with the tech sector being the fa- vourite, abandoning value stocks. (Zurich Insurance and Munich Re).” This movement has been accentu- ated further with the pandemic. And dividend strategies have felt the squeeze.
But things could change over the next few months. Bank of America for one expects val- ue stocks to recover in 2021. Nicolas Simar agrees: “The valuation difference between growth and value stocks on the market has not been this wide since the tech bubble of the late 1990s,” says the senior portfolio 5 Apply dynamic management manager of Euro and European Dividend strategies have long been perceived as defensive, High Dividend strategies for unchanging investments, i.e. grandpa-style investments that NNIP. “I think the current differ- contribute a little to the nest egg every year. But times have ence is excessive and expect a DIVIDENDS: A USER GUIDE changed. “We have to be more dynamic now than we used to correction towards value stocks. be,” says Simar. “We generally keep companies in our portfolio Quantitative and fiscal easing policies implemented during the WHAT IS A DIVIDEND? WHO CAN BE PAID DIVIDENDS? HOW ARE DIVIDENDS TAXED? for two to three years, to weather structural and technologi- health crisis could support this It is a share of a company’s Any shareholder of a company Swiss investors must declare cal changes. These days, for example, we like stocks such as shift.” But experts still do not value, which is paid out to all will receive dividends paid by dividends paid by companies Deutsche Post (big winner in the development of e-commerce agree about the impact on mar- shareholders. When a dividend the company. Shareholders must listed on the stock exchange as kets, and many investment man- is paid (in cash or in shares), have at least one share on the income, which is added to other with its DHL division) and Smurfit Kappa (a leading provider of agers do not expect value stocks the company’s stock market day before the dividend is paid. forms of income. Note: dividends paper-based packaging highly active in e-commerce). These to rebound any time soon. value decreases accordingly. Payment is made a few days after paid by a Swiss company are companies will take advantage of society’s shift towards the ex-dividend date. subject to a 35% withholding digital technology to grow, while paying attractive dividends.” tax, which is refunded once the Other stocks, such as materials manufacturing giant Saint- WHAT IS YIELD? dividends are duly declared. Gobain and cement producer CRH, are poised to benefit from Yield is a financial indicator WHEN ARE DIVIDENDS PAID? Foreign securities are exempt, post-COVID stimulus packages, with high exposure to the used to estimate the relative In Europe, “dividend season” is as dividends are taxed in the importance of a dividend. It in the second quarter, a period home country. However, stark American stimulus programme, especially infrastructure is calculated as a percentage when most companies pay taxation differences exist. For spending. by dividing the amount of their dividends in a lump sum. example, dividends are taxed the dividend per share by the However, in the United States, at 30% in the United States and share price. dividends are most often paid 26.375% in Germany. To avoid quarterly. double taxation, some of the tax withdrawn abroad can be deducted (generally 15%) from taxes filed in Switzerland.
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Based on George Lucas’s DR Star Wars saga, The Mandalorian series is boosting Disney+ streaming service subscriptions. Video streaming: a lifeline for Disney
The Californian company took quite a hit during the pandemic. But the number of subscribers to its Disney+ platform skyrocketed, thanks to a clever strategy of making original Disney content available online. BY JULIE ZAUGG
n 30 October 2020 at the company’s main sources of reve- exactly midnight, season nue, were decimated by the COVID-19 2 of The Mandalorian pandemic,” said Jason Squire, a film was made available industry expert at the University of Oon the streaming service Disney+. Southern California. Parks in Paris, Just like for the release of the first Shanghai, Florida and Tokyo remained season of this meticulous spin-off closed for four months. Hong Kong of the Star Wars universe, critiques was closed for seven months. And of the season were soon drowned Disneyland in California is still closed. out by enthusiastic praise and fans began tweeting and sharing memes And even when the parks reopened, celebrating Baby Yoda, one of the often temporarily, they did not series’ cult characters. attract large crowds. A foot traffic analysis in Disney parks conducted It was one of the rare bright spots for by Deutsche Bank showed that the Disney in a year filled with hardship. number of visitors was down 80% “The theme parks, which are one of compared to 2019. DISNEY
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DISNEYLAND DURING COVID-19
At the entrance to Disneyland Hong Kong, an employee takes the temper- ature of all visitors — including the author of this article — and asks them to keep their masks on despite the stifling heat. This rule also applies to children over two years of age. In the deserted streets of Fantasyland and Tomorrowland, there’s no chance of meeting Mickey Mouse. Interactions with Disney characters have been suspended for health reasons, along with the daily parade that winds through the park. In front of It’s a Small World, an attraction with singing dolls, an employee hidden behind a mask and visor disinfects the seats and handrails of the small boats after each group
MIGUEL CANDELA POBLACION / ANADOLU AGENCY VIA AFP finishes the ride. But there is one upside: since the number of visitors is limited to just 30% capacity, there are none of the legendary queues in sight!
– including Switzerland – and India, said Peter Newman of NYU. “It was a Disney+ saw its number of sub- rousing success that brought in sever- scribers skyrocket since the start al million new subscribers.” of the pandemic. In November, it had 73.3 million paying subscribers Disney repeated this tactic in against 57.5 million three months September with the live version of earlier. Including subscribers from the animated film Mulan, available streaming services Hulu and ESPN+, to Disney+ users for a one-time fee which are also owned by the Walt of $35. The latest Pixar production, Disney Company, Disney has more Soul, will also debut on Disney+ on than 120 million subscribers on its 25 December. video-on-demand platforms. On 25 September, a visitor and But it is certainly not the only her daughter walk through the streaming service on the market. deserted paths of Hong Kong’s Disneyland Resort, which has “Currently Netflix is the uncontested just reopened after months of global leader with approximately mandatory closure due to the The pandemic 190 million paid subscribers,” said pandemic. Newman. Other competitors include simply accele- HBO Max, Peacock, Amazon Prime rated an evolution Video and Apple TV+. But Disney+ has a considerable advantage over that began a its competitors: intellectual proper- few years ago ty. “Its catalogue includes all the ar- As a result, revenue from the divi- of the Disney empire, also suffered Television channels such as FX, well as cinema ticket sales. Overall, chives of Disney, Fox and Pixar,” said sion that includes parks and cruise under COVID-19. “In many countries, ABC, ESPN and Disney Channel had Disney’s revenue fell 6% in its 2020 Peter Csathy, founder and chairman ships (which are also suspended) cinemas are closed, which meant similar problems. “These channels fiscal year, which closed in November, of consulting firm CREATV Media. “It fell 85% in Q3 that closed at the all the 2020 blockbusters had to don’t have any more content to air at $65.3 billion. This resulted in a also has a repertoire of original fran- end of June, leading to a $3.5 billion be postponed,” said Squire. “And because most sporting events have loss of $2.8 billion – the first in near- These numbers are thanks to high- chises, such as the Marvel universe deficit. Last year, this segment cinemas that stayed open have been cancelled and they have very ly two decades – against a profit of quality original content, such as The and Star Wars.” brought in $26.2 billion for Disney, almost no films to show because few new films and series,” said $10.4 billion in 2019. But despite this Mandalorian, specifically designed for or 38% of its revenue. In September, most filming production has been Peter Newman, who is head of a outpouring of bad news, the Mickey these channels. The California group Csathy believes that Disney+ will Disney announced it would terminate paused.” Disney studios had to joint MBA/MFA film programme at Mouse house does have a new asset: also made the difficult decision to pull eventually surpass Netflix and 28,000 park employment contracts, postpone a series of films about New York University (NYU). the Disney+ streaming service. several film blockbusters from cine- become the most-watched stream- which is 13% of its total workforce. the heroes of the Marvel universe Launched in November 2019 in the mas and instead made them available ing service in the world. Especially and cancel filming on a prequel of The unprecedented COVID-19 United States, Netherlands, Australia directly on Disney+. “This summer, the because its price is competitive: ac- Divisions focused on films and tel- Rogue One, a production from the situation caused a sharp decline in and New Zealand, and then expanded filmed musical comedy Hamilton was cess to Disney+ costs $7 per month evision channels, two other pillars Star Wars universe. subscriptions to cable channels as in spring 2020 to western Europe released on the streaming service,” (9.90 Swiss francs in Switzerland).
46 47 200 x 260 mm Swissquote, en
ENTERTAINMENT SWISSQUOTE DECEMBER 2020
The live-action Comparatively, Netflix subscriptions remake of the 1998 cost between $9 and $16 per month cartoon Mulan was (11.90 to 21.90 Swiss francs in due out in cinemas in March 2020. Switzerland). However, due to the pandemic, Disney Essentially, the pandemic simply decided to release it accelerated an evolution that began only on its streaming platform, bypassing a few years ago under the direction cinemas. making of CEO Bob Iger, who stepped down in February. “Disney is evolving to- wards a streaming first model, which prioritises online release channels places over cinemas and television chan- nels,” explained Csathy. “This strat- egy has the advantage of ensuring a stable and recurring source of collaborative revenue from paid subscribers.”
In September, Disney announced it would terminate 28,000 park
employment DISNEY contracts
In early October, activist investor allocated to producing and acquiring “Our creative teams will do what Dan Loeb – whose investment fund content for its streaming platforms, they do best – produce quality Third Point more than tripled its as he believes this is the most prom- franchise content – while our new position in Disney in Q2 2020 to ising division in terms of growth. centralised distribution team will reach $613 million in stock (price as focus on monetisation of this con- of 30 June 2020) – called on Disney A few days later, Disney announced tent on our various platforms,” said to permanently suspend dividend an internal reorganisation that Bob Chapek, the new CEO of Disney. payments to its shareholders. Loeb focuses heavily on streaming, requested that these funds, totalling separating the divisions in charge In the medium term, analysts still approximately $3 billion per year, be of production and distribution. believe that the California group will remain a global conglomerate. “Parks will reopen, audiences will ANALYST ADVICE return to cinemas and cruise ships will sail again,” said Csathy. A SAFE BET To return to growth, Disney will need At the start of the pandemic, Disney’s share price lost 45.5% of its to fire on all cylinders at the same value, dropping from $148.2 to $85.76 between January and March. time. “This is the real strength of a But it has since come back up, hovering around $145. Peter Csathy, 360-degree group like Disney,” said head of the consulting firm CREATV Media, believes it is a good in- Newman. “It acquires a franchise Configure your vestment, particularly in the medium to long term. “The stock is still like Star Wars, then uses it to create slightly undervalued and the company will find its growth avenue as individual piece of it emerges from the pandemic,” he said. “Streaming revenue has just attractions in its parks, branded USM online! started to take off and revenue from other divisions of the group is products, films released in cinemas expected to eventually reach pre-COVID levels.” Among analysts that and series launched on streaming usm.com cover the firm, a majority recommended purchasing shares. DIS platforms.” Visit our authorized sales partners or our USM Showrooms in Bern, Hamburg, London, Munich, New York, Paris, Tokyo. 48 FOOD SWISSQUOTE DECEMBER 2020 FOOD SWISSQUOTE DECEMBER 2020
in March before settling back down, but sales are still 18% higher than in August 2019. Simultaneously, several COMPANIES TO WATCH home appliance chains have reported that this boom has led to a shortage ÉCOMIAM BLOOMBERG / GETTYIMAGES of freezers in the country. A small brand on the rise Founded in 2009 in Brest, France, Écomiam has grown from nine shops to 28 today, primarily in Brittany. In early October, it went public on the Euronext in order to finance its expansion into the rest of France. It plans to open “Frozen foods have 20 shops per year and expects also jumped on 40% annualised revenue growth in order to reach €110 million the healthy food by 2025. bandwagon” FOUNDED: 2009 HEADQUARTERS: QUIMPER (FR) EMPLOYEES: 90 REVENUE: €14.7 MILLION ALECO
Nestlé, the biggest stakeholder in the NOMAD FOODS market, which owns ubiquitous brands Hoping to conquer the world Frozen food such as Stouffer’s, Hot Pockets and Led by Belgian native Stefan DiGiorno pizzas, confirmed that frozen Descheemaeker, Nomad Foods foods were one of its sales drivers was founded in 2015 after the in the United States during the first acquisition of the brand Iglo and is nine months of the year. While the now publicly listed in New York. Its makes a share price has increased 4% over multinational group doesn’t share one year and it has a market capi- its numbers, it says the same trend talisation of $4.5 billion. Present is happening in Switzerland. “We in 13 European countries, Nomad comeback have seen increased demand for our Foods generated €2.3 billion in products since the beginning of the revenue last year. Determined to crisis. Demand has remained high conquer markets beyond Europe, it since,” says Patricia Wirth, a spokes- is doggedly pursuing opportunities person for Froneri, the joint venture for strategic acquisitions. formed in 2016 between Nestlé and FOUNDED: 2015 UK ice cream brand R&R. Froneri sells HEADQUARTERS: FELTHAM (UK) frozen foods under the brands Findus, EMPLOYEES: 4,775 REVENUE: €2.3 BILLION Mövenpick and Buitoni in Switzerland. NOMD In an unexpected turn of events, the COVID crisis has paved the way for As the coronavirus crisis n the phone, Daniel Sauva- “Sales started picking up a few days winners in the scramble for food frozen foods. “People spent money on continues, frozen products get sounds like a busy man. ago. During the first lockdown, in provisions, triggered by lockdown frozen food that they would normally Europe is now experiencing March, April and May, our revenue announcements and new consump- spend in cafeterias or restaurants, return to consumers’ plates. Othe second wave of the COVID-19 skyrocketed by 87%,” he says. It’s tion habits that have set in during which have seen a big drop in reve- This trend seems to be here epidemic and country after country is a welcome boost for the company, COVID-19. According to data analy nue,” says Mike Watkins, head of retail to stay, as the quality of going back into lockdown. The day be- which went public on the Euronext tics firm Nielsen, this spring, sales commerce at Nielsen. Remote working frozen food has improved fore my conversation with Sauvaget, exchange on 6 October, with a sig- increased sharply, spiking between and being forced to stay at home led on 28 October, France announced a nificantly over-subscribed offer that 40% and 110% in European markets. to increased consumption, especially considerably. new lockdown for at least four weeks. valued it at nearly €40 million. In the United States, too, the frozen since frozen options are available for BY ANGÉLIQUE MOUNIER-KUHN For the CEO of Écomiam, a frozen food food aisles were completely emptied. every meal and include all types of chain founded in Brittany in 2009, the Écomiam is not alone: the frozen According to the American Frozen foods: proteins, carbohydrates, fruits news means a new rush in his shops. food segment is one of the biggest Food Institute, sales jumped 94% and vegetables.
50 51 FOOD SWISSQUOTE DECEMBER 2020 FOOD SWISSQUOTE DECEMBER 2020
“Consumers have also got into the the era of organic and home- NESTLÉ STOOD FIRM habit of going to the shops less made food in which traceability “For a long time, the Nestlé group frequently, but their total spending was essential. was pressured by investors to sell CONAGRA BRANDS when they do go is significantly at least some of its frozen food The North American giant higher,” adds Watkins. “People are activities in the United States. The Based in Chicago, the hundred- stocking up on items they can store biggest sceptics went so far as to year-old company finalised its for a long time, and the advantage believe that these products had no acquisition of Pinnacle Foods in of frozen food is that it is very well future,” says Jean-Philippe Bertschy, 2018, strengthening its position suited to online ordering and home “Frozen foods are consumer goods analyst at Vontobel. in the frozen food segment. It has delivery.” “But the company stood firm and a brand portfolio worth $5 billion very popular with in North America and Mexico: invested heavily in innovation to millennials” Birds Eye, Healthy Choice, Marie It is a surprising change for this indus- Jean-Philippe Bertschy, analyst at reposition its offering into a higher Callender’s, Hungry-Man, Banquet, try, which is based on hundred-year old Vontobel quality niche with a host of new Alexia and Evol. The company, technology, and which, since the late products.” which is listed in New York, has a 2000s, experts had usually described market capitalisation of almost as a “mature” segment – a nice way of In fact, while the coronavirus crisis $17 billion and its share price has saying that it no longer had growth po- seems to have accelerated the return increased nearly 20% over one tential. In 2013, the horse meat scan- As a result, frozen food sales slum- of frozen foods to consumers’ plates, year. Its revenue was up 16% last dal, in which horse meat was labelled ped and the market shape-shifted the shift to adapt the frozen offer- year, reaching $11.1 billion. FOUNDED: 1919 as beef in frozen ready meals, even considerably as agri-food giants ing to meet new expectations from Daniel Sauvaget, suggested a sudden decline for the competed with each other over their consumers and restore its appeal founder and CEO HEADQUARTERS: CHICAGO (US) EMPLOYEES: 16,500 industry. It was the last straw for this hefty portfolios of various brands had already begun. “Frozen foods are of Écomiam, a brand specialising REVENUE: $11.1 BILLION food industry that had little innovation and SMEs – the ideal scenario for in- very popular with millennials, for two in the distribution CAG and a reputation among the general vestment capital firms to take action reasons: practicality and price, since of frozen food public for being an unhealthy option in in the industry. they are less expensive than takea- products that went public in October way food,” says Bertschy. And that’s this year. FROSTA not all. They also have lower levels of A family business
salt, artificial colourings and artificial DR Founded in 1961 by Dirk Ahlers in preservatives. To attract new consum- Bremerhaven in northern Germany, er segments, the frozen food aisle has saw the end of lockdown and the re- most efficient method of food pres- the company now has more than also joined the healthy food move- opening of restaurants. This is proof, ervation. It preserves both the taste 1,800 employees and is led by ment. It’s goodbye to pasta drowning according to its CEO, that consumers and nutritional value of the food,” says Ahlers’s son, Felix. The leader in questionable sauces and rubbery, who discovered frozen food during the Sauvaget. His company works directly in frozen meals in its market, Frosta sells products under its tasteless mozzarella pizza, and hello first wave of the pandemic are now with its suppliers and publishes own brand in several countries in to vegetarian, low-carb, high protein back for more. transparent margins. It only sells Europe, including Switzerland. It and gluten-free options, such as vegetables, fruits and unprocessed also specialises in manufacturing the variety of dishes available under “Manufacturers’ efforts to step up meats exclusively from France. for retailer brands and operates Nestlé’s Life Cuisine brand, launched their products’ quality in recent years in the mass catering segment. In last winter in the United States. have removed many of the barriers Whatever their credo, frozen food 2019, its revenue was up 2.7%, that prevented households from buy- manufacturers and distributors reaching €523 million. The com- The rebound precipitated by the ing frozen items, and could revitalise alike have got behind an approach pany is worth €462 million on COVID-19 crisis “is a long-term trend,” the frozen food aisle in the long designed to resonate with custom- the Frankfurt exchange. said Stefan Descheemaeker, CEO of term,” said the French market re- ers who are increasingly concerned FOUNDED: 1961 Nomad Foods, in a recent conference search firm Xerfi in a note published about the future of the planet. Be- HEADQUARTERS: BREMERHAVEN (DE) EMPLOYEES: 1,852 with analysts. Created out of a wide- in September. Nomad Foods there- cause frozen food brands don’t have REVENUE: € 523 MILLION spread wave of industry restructuring, fore has a lot of hope for its latest to deal with unsold items, unlike NLM Nomad Foods, based in the UK but brand, Green Cuisine, an assortment fresh products, and because food publicly listed in New York, owns the of steaks and meatballs made from can be stored in our freezers for Birds Eye, Iglo and Findus brands and plant protein, designed specifically years, frozen foods are expected to According to experts, the is the frozen food leader in Western to cater to millennial taste buds. be a leader in reducing food waste. rebound in the Europe with a 14% market share. According to Mike Watkins from frozen food market In early November, Nomad Foods Écomiam, on the other hand, is Nielsen, “this environmental consid- caused by the pandemic is a recorded a one-year 6.7% increase focusing on unprocessed products eration, which had already started long-term trend. in revenue to reach €576 million, of to support the development of its to take hold before the coronavirus, which 5.4% is organic growth, despite network in France: “Deep-freezing has will remain important after the
ISTOCK the fact that the quarter under review become a cliché, but it’s actually the pandemic.”
52 53 PORTRAIT SWISSQUOTE DECEMBER 2020 PORTRAIT SWISSQUOTE DECEMBER 2020
Cathie Wood: a star is born on Wall Street
The investor everyone is talking about in the United States predicted the staggering rise in Tesla’s share price. The ETFs that she manages in full transparency are some of the highest performing on the market. BY ANGÉLIQUE MOUNIER-KUHN
merican finance funds invested in US stocks that are pioneering disruptive technol- has a new are chosen based on benchmark ogies. Wood, a fan of US President legend. Highly indices. For Wood, a benchmark is Donald Trump’s tax policy, takes any skilled inves- nothing more than a rear-view mirror: opportunity to support her claims tors – such as a reflection of the past economy. using her favourite stock. An analyst John Paulson, “Passive and benchmark-sensitive that follows Tesla, says Wood, who made a name for himself during investing is contributing to the most should be an expert in energy stor- Athe subprime crisis, or Michael Milken, massive misallocation of capital in age, robotics or artificial intelligence. who became a star in the savings history,” she tweeted recently to her But most analysts following Tesla and loan crisis – divide Wall Street 135,000 followers. are focused on combustion engines into two camps: either ardent fans and as a result are unaware of the or suspicious observers, but no one current electric vehicle revolution. is ever indifferent. The new Oracle of Delphi has made a name for herself After spending 12 years at in 2020 as the investor who knew “Innovation gains AllianceBernstein as CIO of Global better than anyone how to predict traction during Thematic Strategies, the analyst – and profit from the stratospheric tumultuous times” whose smiles temper her serious rise in Tesla’s share price. Her name: Cathie Wood, ARK Invest’s CEO look – founded her own management Cathie Wood. Her mantra: innovation. company, ARK Invest, in 2014 in New York. Dedicated exclusively to According to the sixty-something investments in public technology Wood, who has a long career as an companies, the firm has approx- economist and financial analyst, Wood is convinced that the ability of imately 30 employees. There are most investment professionals are certain types of innovations to revo- many young analysts, chosen more CATHIE making mistakes and don’t even lutionise the economy is still highly for their scientific knowledge or WOOD realise it. In particular, she critiques under-estimated – and with it, the experience in start-ups than for their passive managers who administer growth potential of companies that time spent as financial analysts.
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those who believe that the company Cathie Wood at the Sooner Than You is meteorically overvalued and are Think Technology predicting a sharp correction. To conference, this criticism, the CEO responded, October 2018. “If we’re right, then the rewards will be pretty enormous,” as quoted in a feature by Forbes Magazine.
As for the other ETFs managed by Wood, they were all in the green as of 30 September, with increases ranging from 54% to 90%. According to the ETF.com database, four of the ETFs are among the top 20 highest performing ETFs of the year in the United States. This kind of perfor- mance attracts attention: in 2020, ARKK alone brought in nearly $5 bil- lion in new money growth and was worth $9 billion on 30 September. In total, the assets under management by ARK Invest – worth $300 million in 2016 – are now around $30 billion. GETTYIMAGES / BLOOMBERG CONTRIBUTEUR ARK Invest is clearly in the spotlight. But its fame is also due to the fact that the firm itself has introduced some disruption into the industry. By ARK Invest has defined five “innova- The ETF, which covers several of choosing to structure the funds as tion platforms” that it believes will the investment themes identified ETFs, Wood is now required to pub- create billions of dollars in value in by the company with a long-term lish the transactions daily, which is a the coming decade: DNA sequencing, outlook (five to 10 years), generated departure from the secretive nature Deep Learning, energy storage, robot- as of 30 September a performance of of positioning that is traditionally ics and blockchain technology. This 83.7% since the start of the year, and cultivated by asset managers. More- evaluation grid has led to five ETFs, an annualised return of 31% since it over, analyst research, market com- which are all actively managed by was created. In comparison, the S&P mentary, webinars on the macroeco- Cathie Wood. Two other index ETFs 500 grew by 5.57% between January nomic environment and a library of complete the family (3D printing and and September and has risen 11.46% podcasts are freely available to the Israeli tech companies). on average annually since 2014. public on the ARK Invest website, as well as a “Bad Ideas Report”, which The unique stock market condi- lists the industries to avoid at all tions in 2020 – with the rise of tech costs. This transparency is designed stocks against a global economic as the cornerstone of “collaborative” crisis – created a favourable context “If we’re right, research, open to ideas and contribu- for the strategies employed by ARK then the rewards tions from the outside. Invest, which struggled to make a name for itself until then. That’s no will be pretty It remains to be seen whether surprise for Cathie Wood: “Innovation enormous” this iconoclastic approach will be gains traction during tumultuous Cathie Wood, ARK Invest’s CEO sustainable or if it is simply a flash times (…) because it offers solu- in the pan. Financial history is full tions to the problems at hand,” she of ephemeral glory. After inventing said on her site. The performance junk bonds, Michael Milken went to of the ETF ARKK (ARK Disruptive The main holding? Tesla, which prison for insider trading. And as for Innovation), the firm’s top fund, is makes up more than 10% of the John Paulson, he’s now known for his widely discussed on social media, ETF’s total weight. The positioning disastrous performances after the in the press and on the internet. has resulted in harsh criticism from subprime mortgage crisis.
56 FITNESS SWISSQUOTE DECEMBER 2020 FITNESS SWISSQUOTE DECEMBER 2020
alanced precariously treadmill — sold for between $2,495 There are also a growing number of on the edge of the sofa, and $4,295 — with a similar sub- apps offering livestream or pre-re- you try to do abs exer- scription model. Currently, Peloton corded classes for a fee of between cises while craning your equipment is available in the United $10 and $20 per month, such as Bneck to watch the instructor from States, Canada, United Kingdom and Glo, Aaptiv and Les Mills. Apple an- your laptop that’s on the floor. All Germany. nounced in September that it would of a sudden, your cat steps on the launch an online fitness service keyboard, stopping the video and your Since the initial buzz, a series of less called Fitness+. It equipped its Apple children call you for help because expensive competitors have entered Watch with a sensor capable of they can’t follow their online maths the market, such as the AmazFit measuring blood oxygen levels. class. This scenario is quite familiar Home Studio treadmill, a collabora- to anyone trying to exercise at home tion between Chinese group Huami “These new offers are different from during the COVID-19 pandemic. and US start-up Studio, NordicTrack the traditional home exercise bike bikes with online iFit courses, and that you buy on a whim and it ends As gyms in many countries have been the Echelon Smart Connect bike, up in the garage. These apps are closed since March, more and more which can be purchased for only interactive and provide high-quality people are turning to virtual exer- $999. content,” said Ray Algar, an expert cising. “At-home workouts started in the fitness industry and head of becoming popular around two years UK-based consulting firm Oxygen ago, with the emergence of a new generation of smart fitness equip- “The pandemic ment,” said David Swartz, analyst at really caused At-home Morningstar who follows the sport industry. “But the pandemic really this industry PROFILES caused this industry to skyrocket.” to skyrocket” David Swartz, analyst at Morningstar fitness is Previously, home fitness was popular PELOTON primarily among women and young The pioneer of smart bikes people. But now everyone’s doing The pandemic caused the number it. “People are working at home and Several other sports are also making of Peloton smart bike users to sky- have more free time to exercise,” said home equipment, though the ma- rocket. In late June, the company now part of had 1.09 million paid subscribers, the analyst. “During a public health chines are usually only available crisis, they are also more focused in North America. For example, the an annual increase of 113%. In Q3, on their health and well-being.” It is start-up Hydrow has created an its revenue was up 172% to reach $607 million, becoming profitable also a way to combat boredom after intelligent rowing machine linked to our daily life for the first time. In October, the months in lockdown. a screen so rowers can follow a live company announced less expensive course. The resistance of the device versions of its bikes and treadmills, The pandemic has forced millions of people to exercise in To prevent this aforementioned ennui, changes to imitate real conditions of significantly expanding its client their living rooms. A new generation of smart apps has made home fitness enthusiasts have a boat in water. base. “Peloton’s monthly subscrip- invested in cutting-edge technolo- tion model ensures that it has a at-home fitness an interactive, personalised experience. gies. The smart home exercise bike California-based company Fightcamp captive user base, which should BY JULIE ZAUGG Peloton, which went public in 2014, offers boxing classes with sen- increase its margins in the medium was the pioneer. After the initial sor-equipped gloves that automat- term,” said Laura Martin, who cov- purchase of the bike — between ically calculate the intensity of the ers the company at Needham. $1,895 and $2,945 — riders pay $39 effort — and grant a score — thanks FOUNDED: 2012 per month for unlimited access to to an algorithm measuring speed, HEADQUARTERS: NEW YORK (US) EMPLOYEES: 1.800 livestream spin classes. The New force of the hit and the degree of REVENUE: $1.8 BILLION York-based company also makes a technical precision in each hit. PTON KARI-SHEA
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A camera on the mirror transmits The next step, which many compa- your reflection to the instructors and nies are already working on, is incor- you get feedback in real time on how porating elements of virtual reality. LULULEMON to improve your posture or modify a “You could row down a river in China, A smart mirror movement to reduce the impact on jog through the streets of Paris or The yoga and athleisure appar- an injured knee, for example. exercise in a group with avatars el company already saw sales of other users, all from your living increase during the pandemic, as room,” said Karmitz. people were working from home and no longer had to follow office dress But it remains to be seen whether codes. But in July, it acquired start- “We now have up Mirror for $500 million, taking this trend will continue after the access to top-notch a first step into the home fitness pandemic. “Even when gyms reopen, market. “Just this year, Lululemon fitness instructors people aren’t going to want to spend hopes to make $150 million in reve- without having to time in crowds of other people any nue,” said David Swartz, who covers time soon,” predicted Karmitz. Espe- the company for Morningstar. In leave the house” cially if you have to wear a mask at time, the group hopes to sell Mirror Ray Algar, expert in the fitness industry all times and disinfect each machine devices in its shops and sell apparel and head of UK-based consulting firm once you’ve finished using it. Many to Mirror users, generating growth Oxygen Consulting fitness chains were forced to close, on both fronts. which results in limited in-person FOUNDED: 1998 fitness options. HEADQUARTERS: VANCOUVER (CA) EMPLOYEES: 19,000 REVENUE: $3,98 BILLION Similarly, the start-up Tonal designed Habits that began during the LULU a screen with two handles on either pandemic could very well persist side. Use the handles to complete over the long term. “After spending various strength training exercises a year exercising at home and NAUTILUS Boosted by the pan- while being guided by a coach. The saving time and money, people The traditional exercise bike demic, Peloton now software continuously changes the aren’t going to return to the gym,” It’s not only smart devices that has more than one benefited from the home fitness million subscribers weight and pulling force of the han- said Laura Martin, an analyst at trend. Traditional fitness machine PELOTON worldwide. dles based on performance and user Needham. Especially if they spent goals. It also tracks progress. close to $2,000 to buy a smart manufacturers, such as Nautilus, exercise bike. also saw their revenue shoot up Consulting. “We now have access to runner Robin Arzon and influencer But now you can join a group, which since the start of the pandemic. In GAMIFICATION Q2 2020, Nautilus sales were up top-notch fitness instructors without and former dancer Jess King. increases motivation and more or “This personalised interaction with For the industry to really take off, 94% to reach $114 million. Nautilus having to leave the house.” Some The group aspect of streaming less provides the same experience clients, who receive feedback on the price of smart fitness equipment shares also increased significantly, Peloton spin teachers have become courses is also appealing. “Exercising as a class in an actual gym,” said their performance and custom plans needs to drop drastically, believes going from approximately $1,4 in real stars, such as ultra-marathon at home used to be a solitary activity. Kim Karmitz, an expert in the sport based on their goals, is a significant Swartz. “Otherwise, it will remain a autumn 2019 to more than $22 a industry for New York-based consult- advantage of smart fitness,” said niche market,” he said. year later. Demand was particu- ing firm Triangle Capital. Interactions Lauren Ryan, an expert in the fitness larly strong for the Max Trainer with other class attendees continue industry at Mintel, a London market Competition between the various models, which offers personalised WHAT’S AVAILABLE IN SWITZERLAND? on the internet, where virtual fitness research firm. “The experience is very services will also be fierce. “Many sessions and virtual coaching. communities are created. close to what you would get with a of these companies will not survive FOUNDED: 1986 While the majority of smart home fitness devices are personal trainer.” Mirror even goes in the medium term, particularly HEADQUARTERS: PORTLAND (US) currently only available in the United States (with the EMPLOYEES: 434 The growing popularity of at-home so far as to provide its clients with those whose subscription fees are REVENUE: $309 MILLION notable exception of Peloton and Echelon Smart Connect fitness has led to completely new sensors to record their heart rate too low or who offer lots of free bikes), some models can be delivered to Switzerland via NLS a delivery intermediary, which receives the shipment in and clever business models. Mirror, and other physiological data. content,” said Karmitz, who says the United States and then sends it to Switzerland. The a New York start-up acquired by that producing high-quality classes Peloton app is available in all countries. NordicTrack yoga apparel giant Lululemon for By turning user performance into is expensive. smart bikes and treadmills can be ordered and deliv- $500 million in July, has one of numbers, these services offer a ered directly to Switzerland. Several apps offering lives- these models. For $1.495 and a fun way for clients to work on their And while there is much progress be- tream fitness classes are also available in Switzerland, monthly subscription of $39, you physical fitness. “Several of these ing made in interactive experiences such as Glo and Aaptiv. Apple’s new Fitness+ service, which is expected to launch at the end of this year, receive a smart mirror screen that companies grant scores, which can for home fitness services, they can will initially be available in the United States, Canada, you can use to take a multitude be shared online or used to sign up never replace the human relation- United Kingdom, Ireland and New Zealand, but is ex- of classes (cardio, pilates, barre, for challenges with other users,” ships forged in a gym class or the joy pected to expand to other countries later. boxing) streamed live from a studio said Ryan. This gamification aspect of breathing fresh air during a jog in in New York. increases user motivation. the park.
60 61 FASHION SWISSQUOTE DECEMBER 2020 FASHION SWISSQUOTE DECEMBER 2020
DR In June 1984, the very first Uniqlo store opened in Hiroshima, Japan. Uniqlo: a Japanese brand expands IN FIGURES its reach around 2,009 BN The revenue in yen of the world the Japanese group Fast Retailing, owner The Japanese brand, which decided to ignore of Uniqlo. It is the fashion trends, is weathering COVID-19 better equivalent of 17.6 than its competition. It aims to be the global billion Swiss francs leader in apparel.
BY ANGÉLIQUE MOUNIER-KUHN 82% The percentage of the group’s revenue that is generated by Uniqlo
uite a symbol. In early built. Thirty-five years after the “Uniqlo’s strategy Even though this objective as Yanai saw its sales drop 37% in the first October, as residents very first store opened in Hiroshima, had first envisioned it was not half of the year. H&M recorded a loss of Hamburg lamented under the name Unique Clothing has been to ignore reached in 2020, the economic crisis of 21%. The stock market reflects the economic downturn Warehouse – Uniqlo is the contrac- changing fashions and caused by the pandemic seems to this mixed perspective: in mid-Octo- 57,727 and the closure of several shops in tion – and less than 20 years after not chase trends as its have given him wings. It is true that ber, shares of Fast Retailing were up The number of Q employees the city centre due to coronavirus, setting off to conquer an interna- competitors do” store closures during lockdown and 12% over the year, compared to the including Kaufhof and Karstadt tional clientele, Fast Retailing now Martin Roll, consumer frugality have caused the lacklustre performance of the Nikkei Sports, Uniqlo was opening a giant has 2,252 Uniqlo stores in approxi- independent consultant group’s growth to plummet. During 225 where the company is a heavy- store close to city hall in the large mately 20 countries, including 813 the financial year that ended on weight. Inditex shares fell 24% and German city. Located in a prestigious in Japan. In terms of revenue, the 31 August, Fast Retailing saw sales H&M shares fell 19%. 2,252 building of a former German central group that also owns the brands of Fast Retailing, who is still presi- drop 12.3% to 2,000 billion yen, or The number of Uniqlo bank subsidiary, this new complex Princess Tam-Tam, Theory, J Brand dent of the group at 71. “My passion 17.5 billion Swiss francs (the next And the news gets worse: Brooks stores around is 1,750 m2 and has about 100 em- and Comptoir des Cotonniers is for business remains as strong as half results have not yet been pub- Brothers and J Crew have filed for the world ployees. It is the tenth Uniqlo store now competing with Swedish group ever,” confirmed the Japanese self- lished). But the Japanese retailer is bankruptcy in the United States, in Germany and the 60th in western Hennes and Mauritz (H&M) for made businessman in a communica- doing better than its main competi- and Gap announced it is leaving Europe. second place behind the top global tion published by the company this tors: it is proportionally more present the European market. All of these apparel brand: Spanish group Inditex, spring. The son of a provincial tailor in China and south-east Asia (46% of downturns could mechanically prop But it’s just one more store within which owns Zara. who became one of the richest men its stores are located there), where up Fast Retailing’s market share. 49% the grand scale of the global empire in Japan, Tadashi Yanai has openly the repercussions of the pandemic The percentage of that Japanese group Fast Retailing, This competition appeals to the am- aspired for the past decade to be were less severe than elsewhere in “The pandemic is a global crisis, revenue that Uniqlo which owns the Uniqlo brand, has bitions of Tadashi Yanai, the founder the top global apparel brand. the world. The global leader Inditex but for us, it has become a turning generates in Japan
62 63 FASHION SWISSQUOTE DECEMBER 2020 FASHION SWISSQUOTE DECEMBER 2020
On 19 June, 2020, Another unique aspect of the Japa- It is true that Uniqlo invites cus- Uniqlo opened its nese group is that it has a penchant tomers to bring clothes that they largest store in the world in Tokyo’s for innovative textiles. Heattech no longer want back to their stores Ginza district. thermal clothing and Dry-Ex breatha- to be recycled or donated to the UN ble fabrics, both designed in partner- Refugee Agency (UNHCR). Uniqlo ship with Japanese chemical group has partnered with the agency since Toray, as well as AIRism products 2006. Starting this autumn, it will that absorb humidity, have largely recycle its famous down jackets contributed to Uniqlo’s brand aware- to create new ones. But that’s not ness. This summer, Uniqlo launched a enough: in the Fashion Transparency washable mask from its AIRism line Index, a benchmark that evalu- to bring customers back to its stores, ates the social and environmental first in Japan and then in the rest of commitments of apparel companies, the world. And to highlight the advan- “The pandemic is a Uniqlo is ranked 51st, far behind the tages of these various technologies, global crisis, but for top leaders H&M, C&A, and Adidas who better to have as an ambassador and Reebok (which are tied for third). than Roger Federer, who has been us, it has become a under contract with the brand since turning point” According to data analysis platform 2018: “I need to rely on my clothes, Tadashi Yanai, Retviews, apparel labelled as sus- and my equipment and the material. Uniqlo’s CEO tainable or environmentally-friendly (…). Dry-Ex is smooth, feels good, and still makes up only 2% of Uniqlo’s
TAKEHIKO SUZUKI / YOMIURI THE SHIMBUN VIA AFP TAKEHIKO I really feel good in it so it’s comfort- total offering, compared to 9% for able,” said the global tennis star in a H&M and 14% at Zara. Currently, commercial video. the COVID-19 crisis seems to have which consumers are increasingly caused social and environmental con- THE CHALLENGE OF scrupulous. “Uniqlo is not fast fash- cerns to become secondary amongst SUSTAINABLE FASHION ion,” said Yanai last year in London, consumers, noted analysts from While relentless on the surface, the during an exhibition dedicated to Morgan Stanley MUFG in a recent Japanese brand’s rise to power has “LifeWear”. The concept behind the study on Uniqlo. “But as soon as the point,” said Yanai as the latest Fast luxury and consumer goods. In this petitors do,” said consultant Martin been fraught with pitfalls. Uniqlo campaign was to promote comfort end of the pandemic is in sight,” they Retailing results were published in domain, the Japanese brand is lag- Roll in a study published last year. had to revise its expectations above all, but also sustainability. warned, “a new wave of disdain for mid-October. So there’s no chance ging behind its competitors. “In the While Inditex is able to produce the for the United States downwards, “We don’t make disposable clothes,” mass production and consumption that Uniqlo would stop its interna- 2019 financial year, Uniqlo generated very latest fashion trends and have which is a market that is both vital insisted the CEO in a quote reported could emerge and force companies tional expansion. At a time when 11% of its sales online, compared them in stores in just two weeks, and ultra-competitive. The chain by Nikkei Asia. back towards sustainable fashion.” Inditex and H&M have announced the to 16% for H&M and 14% for Inditex. Uniqlo plans its production months in only has about 50 stores in the US: definitive closure of several hundred And these percentages have doubled advance and only produces a limited the Japanese minimalism and the stores, the Japanese brand contin- in Q2 due to the COVID-19 crisis,” number of urban collections, focusing disconnect between Asian sizes and ues to believe in physical commerce: said Rossi. In order to remain com- more on fundamentals: pieces that North American silhouettes have “E-commerce is a virtual world petitive, Fast Retailing accelerated can be worn at any age, made from hindered Uniqlo’s efforts to generate (...). There is nothing that tops the its digital transformation by launch- quality materials and sold at a low more brand awareness. ANALYST OPINIONS original,” Yanai said recently. Uniqlo ing a new application in Japan and price. “On average, Uniqlo collections now has approximately 60 more significantly increasing its online have 2,000 pieces, compared to There was a big misstep in 2015, A HIGH VALUATION retail locations than it had one year marketing offers. This trend is 6,300 for H&M and 17,000 for Zara,” when the brand raised the price of ago. The chain has started to break expected to continue: in time, Fast said Rossi. Uniqlo decided to liven certain clothes by 10% to counter In a study published in September, Morgan Stanley MUFG Securi- into the market in India, Vietnam and Retailing hopes to conduct 30% of up its collections through long-term the unfavourable effects of the fall ties reiterated its “Equal Weight” ranking for Fast Retailing, while continues to expand in China, where it its sales online. partnerships with stylists such as of the yen. This initiative caused revising its price target slightly upwards to 62,000 yen. While the broker congratulates the group on its success compared to its pri- hopes to triple the number of stores Christophe Lemaire and Inès de la sales to drop and the brand had to mary competitors, particularly its larger presence in Asia, it believes (767 in late August). A LIMITED NUMBER OF PIECES Fressange, or one-time collaborations back-pedal. that the current valuation is high. Many analysts believe that the In the meantime, the primary advan- such as the collections designed stock price increase in the spring already reflected the anticipation But not all experts share Yanai’s tage that the Japanese giant has this year with Marimekko, Jil Sander Furthermore, even though Fast of a less severe pandemic impact on Fast Retailing’s business than euphoria for brick-and-mortar retail. over its competitors is its position- and JW Anderson. “These special Retailing rejects the association, for other international groups. Furthermore, the stock benefited in For Cédric Rossi of Bryan, Garnier ing, which is more aligned with cur- collections can pique the interest of the Uniqlo brand remains, among recent months from the overall favourable sentiment towards Japa- customers who like Uniqlo but also many consumers, inevitably tied to nese stocks, due to a new prime minister in Japan’s government and & Co, the future is decidedly digital: rent events. “The business strategy investments made by Warren Buffett in the country’s general trading “An integrated approach combining that has worked for Uniqlo thus far appreciate a bit of style in their ward- the fast fashion industry and its companies. “We doubt that the valuation can still increase, unless physical stores and online shopping has been to ignore changing fashions robe,” said Aldo Liguori, the brand’s disastrous image. This dimension there is stronger growth in Asia than we predicted,” said analysts has become vital,” said the expert in and not chase trends as its com- spokesperson. has become critical in an era in from Morgan Stanley MUFG Securities. IDIA
64 65 SWISSQUOTE SWISSQUOTE DECEMBER 2020
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66 SWISSQUOTE SWISSQUOTE DECEMBER 2020 SWISSQUOTE SWISSQUOTE DECEMBER 2020 SWISSQUOTE LAUNCHES ITS BAR AND RESTAURANT
Insider – a restaurant, cocktail bar and aperitif lounge depending on the time of day and your mood – is an original concept inspired by the stock markets and located just steps away from Zurich’s central train station. Interview with Giuseppe Tafuro, director of the Zurich branch of Swissquote.
What does a typical day at Insider look like? At lunchtime, it’s a restaurant that serves meals à la carte. Starting at 4.30 pm, you can order a small- er Aperitivo or a larger Apericena, depending on your appetite. Around 9 pm, it slowly transforms into a cocktail bar. We wanted Insider to be reminis- cent of the stock market: the drink prices fluctuate based on demand, just like company share prices. We use a software we call “Drink-Exchange”, Off the starting which automatically calculates drink blocks, the Insider team is cheerful prices based on how many are ordered. and motivated.
Throughout the day, a ticker also dis- DR plays major share prices so that those interested in the markets can follow them in real time. and the barman can spend more time taking care of customers. OPENING HOURS What type of food is served? Monday to Friday Mainly Mediterranean-inspired dishes. How has the pandemic 11.30 am – 11 pm Originally from Rome, chef Francesco affected the opening? Raponi is very creative. For lunch, we The current capacity is limited to have about 15 dishes on the menu – all 24 people, compared to 49 normally. ADDRESS at reasonable prices. For the Aperitivo And of course we’re taking every pos- Insider Restaurant & Bar and the Apericena, we offer both hot sible health and safety precaution. We Löwenstrasse 64 and cold options. We have two chefs wanted to open the restaurant in spite 8001 Zürich in the kitchen and four people serving of the second wave of COVID. It’s our guests. Behind the cocktail bar, we way of saying that one way or another, CONTACT INFO even have a robot helping us out – life will soon return to normal. I want +41 44 210 20 30 another nod to Swissquote’s techno- to clarify that everyone is welcome; [email protected] logical investment universe. It’s brand it’s open to all, not just Swissquote new and quite the “eye-catcher”. We clients. You can also reserve the are the only restaurant in Switzerland space for private parties. to have this kind of robot. But we’re not trying to remove the human element
from the experience. Our team actually GIUSEPPE TAFURO came up with new cocktail recipes and BRANCH MANAGER ZURICH programmed the robot. The machine will handle the more mundane work
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advantage. Company fundamentals drive In his latest publication, the famous DATING FOR GAMERS stock prices, yet are often mis-priced billionaire investor Ray Dialo chroni- We’ve seen dating apps for rich people because the market systematically cles the forces and economic cycles Google Play, and celebrities. Now an app targets a underestimates the sustainability of that have contributed to the success- App Store, new niche audience: gamers. Rather than Free, returns from high-quality companies. es and failures of major world powers “match” users based on aesthetic or so- China – good time for a stand-alone allocation in-app purchases These businesses have stronger balance Avid Reader Press/ throughout history. Comparing nine cio-cultural criteria, Kippo brings gamers Simon & Schuster, Why investors should care about The A-share market, key drivers and sheets, higher margins and higher return economic empires over the last five together based on their favourite games. 2020 China’s A-share market improved access on assets and return on equity, meaning centuries, The Changing World Order CHF 40.- their earnings are more resilient. Our also offers practical advice for politi- China has the world’s second-largest The market is deep and liquid with track record indicates that investing in cal and economic decision-makers. AMONG US economy and second-largest stock more than 3,800 A-shares, including quality works. CLUEDO IN SPACE market, with a market cap above US$10 companies in fast-growing new-economy Among Us is the surprise of the year for trillion. Yet A-shares account for just sectors not readily accessible offshore. Nicholas Yeo Google Play, the mobile video game market. Launched 0.6% of the MSCI All Countries World It offers the most diverse way to access Head of China/Hong Kong Equities, App Store, in 2018 with a lukewarm reception, this Index. The reasons are well known. China’s growth. Stock Connect created Aberdeen Standard Investments Free, game with minimalist graphics has be- in-app purchases China’s onshore market was inaccessible a trading loop linking the exchanges of come incredibly popular during lockdown. to global investors for years. However, Hong Kong with Shanghai and Shenzhen. For Qualified Investors only. Capital at risk. The premise is similar to a game of Cluedo today index providers are adding Broadly this addressed foreign investor The fund is a Luxembourg-domiciled UCITS fund. in space. In Among Us, astronauts need to A-shares incrementally to their global concerns about lack of direct market The information contained in this marketing solve all sorts of tasks in a space station, benchmarks. access. The admission of A-shares into document is intended to be of general interest MONEY FOR NOTHING mainstream benchmarks will accelerate only and should not be considered as an offer, THE SCIENTISTS, FRAUDSTERS, and must fight to eliminate imposters in Why invest in China? The answer is capital flows from foreign institutions. investment recommendation nor solicitation, to AND CORRUPT POLITICIANS the team. Laughter is guaranteed. deal in the shares of any securities or financial growth. China’s economy is increasingly We see this as a good thing. A-share WHO REINVENTED MONEY, instruments. It is not intended for distribution self-reliant, its fortunes driven by trading remains driven by retail investors PANICKED A NATION, AND or use by any person or entity who is a citizen or domestic factors – namely Chinese influenced more by news headlines MADE THE WORLD RICH WATCH ESSENTIALS resident of or located in any jurisdiction where consumers. First in and first out of the than company fundamentals. It creates By Thomas Levenson A WATCH ENCYCLOPEDIA such distribution, publication or use would be Covid-19 pandemic, the A-share market fertile ground for active stock-pickers This app, created by the Fondation de prohibited. Before investing, investors should is one of the few with consensus year-on- as mis-pricings are common. Domestic consider carefully the investment objective, At the dawn of the 18th century, la Haute Horlogerie, is a wealth of infor- year forecast earnings growth for 2020. consumption and a rising middle-class risks, charges, and expenses of a fund. This England, short on funds following yet Random House, 2020 Google Play, mation about watches and watchmaking. That may lie behind its world-leading will drive China’s long-term growth. and other important information is contained CHF 30.- another war with France, desperately App Store, Terminology, gears, complexities and rally this year, driven by both domestic The key to unlocking shareholder value in the prospectus, which can be obtained from needed more money. After selling na- Free industry leaders are all presented in an and foreign investors. Since Stock is identifying companies in line to a financial advisor and are also available on tional debt to citizens, which was quite aberdeenstandard.com. Prospective investors educational way, suited for all levels of Connect launched in 2014, A-shares have benefit. We believe higher disposable an innovative approach at the time, the should also read the Key Investor Information understanding. attracted US$170 billion in net inflows incomes will spur demand for healthcare English Parliament turned to the stock Document (KIID) and fund reports carefully from overseas. Yet foreign participation products, wealth management services, market, where new financial instru- before investing. Switzerland: Issued by Aberdeen remains at less than 5% of the free float. insurance and luxury goods and services. ments were being created. In Money for Standard Investments (Switzerland) AG. China’s capital markets have continued Structural growth drivers such as the Nothing, the writer and director Thomas Registered in Switzerland (CHE-114.943.983) at to function well this year despite adoption of renewable energy, cloud Schweizergasse 14, 8001 Zürich. Levenson brilliantly describes the emer- Covid-19 and geopolitical tensions. applications, 5G, e-commerce and gence of modern capitalism due to rai- Increasing foreign participation, allied to artificial intelligence also remain intact. son d’état, greed, and Newton formulas structural growth connected to a rising Renewable energy has never been applied to the new world of finance. middle-class, highlights that investors cheaper, and China dominates the global not exposed to China risk missing out on renewable and battery supply chains. We its strong growth potential. think the industry has a bright future.
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and Infiniti in the 1990s. It’s a shame paddles on the steering wheel. headlights, rear cross-traffic alert that there are only a few small stor- In terms of weight, the MX-30 tops and driving assistance in traffic age spaces to leave room for a bulky the scales at 1,645 kg empty, a jams. The only optional features central gear lever, which doesn’t reasonable amount for an electric are the sunroof and metallic paint. make sense in an electric vehicle vehicle of this size, which results The driver assistance system is not without a gearbox or transmission from its small 35.5 kWh battery. To too intrusive and the infotainment tunnel. The boot, which ranges in put things into perspective, the new system is very user-friendly, proof size from 366 L to 1,171 L with the ID.3 1st Edition from Volkswagen has of accomplished craftsmanship. back seats folded down, is large a 58 kWh battery and weighs 150 kg enough to transport an e-bike if you more, but offers double the driving The MX-30 transforms every drive remove the front wheel and saddle. range. The Mazda is clearly limited in into a moment of peace, and a sense terms of range, but on the bright side of worry only emerges when the “low High on its wheels with an entirely this does drastically reduce the price. battery” message appears – when the streamlined underbody, the MX-30 battery only has 25% energy left. The has no fear of rough roads. However, advertised range of 200 km (WLTP) its front-wheel drive transmission is a bit optimistic, and it might be does limit the vehicle primarily to good to keep a charging cable in the on-road use, where it scores well, The MX-30 boot (fast CCS or slow Type 2). On particularly in terms of ride comfort. transforms a variety of roads without blasting Aerodynamic noise is discreet, sus- every drive the heat, and driving smoothly with pension is muted and acceleration help from the powerful engine brake, is steady. What’s more, the 145 hp into a moment it’s quite easy to reach the average and 271 Nm of torque gives this of peace factory consumption of 19 kWh per Japanese electric model quite the 100 km. But if you want to push kick, and the battery, located under the limits while driving, it’s better the floor, provides a lot of power. to assume you’ll use a few more The front end provides excellent kilowatt-hours, with a driving range AUTO traction and carves out clean lines, In terms of equipment, the MX-30 of no more than 150 km. The MX-30 making driving a pleasure. Everything draws on proven solutions, which is far better suited to short trips – A seamless shift feels very natural, including the leave nothing to be desired. The which it handles with enthusiasm variation in the regenerative brak- top-of-the-range Revolution – rather than long family escapades. ing, which can be amplified via the (42,900 Swiss franc) has LED matrix You just need to bear that in mind. In typical Mazda fashion, the MX-30 electric crossover has strong identifying characteristics and a few original design features, including a small battery, which limits it to shorter trips.
BY RAPHAËL LEUBA
pon first glance, it’s difficult to five people. However, despite the U see the turbo-charged meta lack of central pillars, access to the MAZDA MX-30 bolism that powers this model and its back seats is a tricky business. MOTOR: true-blue crossover silhouette. The FRONT ELECTRIC MOTOR, MX-30 is not all smooth edges like In comparison, the driver has lots 35.5 KWH LI-ION BATTERY most electric models, instead bearing of space and will immediately feel POWER: a family resemblance to the CX-30 right at home, surrounded by a VW ID.3 PRO PERFORMANCE DS 3 CROSSBACK E-TENSE 107 KW (145 HP), 271 NM combustion-powered model. Its sporty yet chic ambiance in which ACCELERATION: voracious radiator grille doesn’t even the controls seem totally familiar – Multipurpose 5-door, 5-seater saloon (4.36 m). Op- 5-door, 5-seater high-end electric crossover. Unique 0–100 KM/H IN 9.7 S look like it belongs on an electric car. except perhaps the climate controls tional extras, economical finish. Respectable interior presentation, moderate size (4.12 m long). Large 50 kWh ALTERNATIVES DRIVING RANGE: Besides its silver roof arches, there’s touchpad, which is a new feature for cabin and boot size (385 L). Front-wheel drive, 204 hp battery. Driving range of 320 km (WLTP). 260 Nm, 100 kW and 310 Nm (less powerful models coming soon). (136 hp), front-wheel drive. 350 L boot, 0–100 km/h in 200 KM (WLTP) only one oddity: small rear-hinged Mazda. Felt and cork inserts provide Driving range of 425 km in WLTP cycle (with 58 kWh 8.7 s, max speed 150 km/h (compared to 140 km/h for PRICE: back doors cleverly tucked into the an environmentally-friendly feel and side of the vehicle. Less compact the premium interior would have battery), 0-100 km/h in 7.3 s, max speed of 160 km/h. the Mazda MX-30). STARTING AT CHF 36,990.- CHF 39,450.– CHF 45,790.– (FIRST EDITION) than it appears, this attractive model been worthy of the return of Mazda’s measures 4.39 m long and can seat Xedos range, the equivalent of Lexus
72 73 74 VAL-DE-TRAVERS LA BRÉVINE SWITZERLAND traditions andwintrymornings,thispartoftheJurais a perfectdestinationfortravellers wholovenature, With itssnowyNorthernclimate,deliciousculinary Switzerland’s hidden gem La Brévine: La NEUCHÂTEL LE LOCLE silence andfrost. LA CHAUX-DE-FONDS BY SALOMÉKINER TRAVEL NEUCHÂTEL SWISSQUOTE DECEMBER2020 SWISSQUOTE
GUILLAUME PERRET / TOURISME NEUCHÂTELOIS “ heat up quite a bit, the tourism of the heat upquitea bit,thetourismof is causingmany partsoftheworldto change hasbecomeconcerning and curiosity. Inatimewhereclimate Péquignot —hasbecomeanational La Chaux-du-MilieuandCerneux- and threemunicipalitiesofLa Brévine, — whichincludestheLacdes Taillères meteorological history,thiswildvalley the coldesttemperatureinSwiss truth: eversinceLaBrévinerecorded Jean-Maurice Gasserspeaksthe the villageof630residents,mayor -41.8 degrees.” Whenhetalksabout temperature dropped to temperature droppedto 12 January1987,the La Brévineholdsone!On love records,and People TRAVEL
preparing foryour trip. to readduring lockdown orwhile published in1919.It’sagreat story Pastorale [ThePastoral Symphony], backdrop ofhisnovelLaSymphonie ment. Heusedhisexperience as the months herein1894foratreat French writerAndréGidespent two Lake NeuchâtelandtheFrenchborder. tude of1,050m,sandwichedbetween tucked deepintoavalleyatanalti Little Siberia,isasnowyparadise wintry plains:LaBrévine,nicknamed side Norway’sfjordsandCanada’s Switzerland canholditsownalong or evenquitechilly,locations. future isfocusedmoreontemperate, SWISSQUOTE DECEMBER2020 SWISSQUOTE - - - 75 76 nature. enjoying pristine Brévinewhile La todiscover you allow rides sled Dog served withbacon andshallotsin the cindersofa largefire,orfondue newspaper thatcooksslowly over a sausagewrappedincabbage and nary specialitiestotaste:“torrée”, There’s alsoplentyoflocal culi and cross-countryskilessons. or horses,icyswims,snowshoeing crafts, tobogganridespulledbydogs Taillères, offeringregionalhandi kiosks isbuiltnexttotheLacdes village” madeupofsmallwooden specialities. Every12January,a“cold val], adayfocusedentirelyonlocal famous “FêteduFroid”[Coldfesti year,Each thegrouporganises association in2012. the LaBrévineValley SwissSiberia a touristattraction,Gassercreated lot offog.” To turntheweatherinto whereas ontheplateau,theygeta weather isgood,wegetalotofsun, ed byhills,notmountains.Whenthe magnificent days:“We aresurround the regiondoesboastsomequite valley. Butdespitethisphenomenon, air comesdownandstagnatesinthe river passesthrough.Atnight,cold location ofthis20kmvalleythatno residents —isduetothegeographic is quitetheoppositeofitsfriendly This harshmicroclimate—which - - - - safety measures. safety measures. visitors incompliancewithhealthand Brévine, whichispreparedtowelcome But that’snoreasonnottovisitLa celled duetotheCOVID-19 pandemic. The 2021FêteduFroidfestivaliscan candle! meal, theonlythingleftwillbe drenched incheese.Attheendof The ediblefonduepotisdeliciously a largeloafofhollowed-outbread.
KEYSTONE/LAURENT GILLIERON into agianticerink. Taillèresdes turns Lac enough, is good theicequality When TRAVEL
KEYSTONE/STEFAN MEYER - per night. Price: startingat320Swissfrancs Brévine. La from 25 minutes isonly Chaux-de-Fonds in La located establishment luxurious to endtheday inaspa,this travellersFor who wish sporty Endroits Les Hôtel Grand per nightfortwopeople. Price: startingat140Swissfrancs takeaway. for the kitchenremainsopen but lockdown, during partial isclosed restaurant The Siberia. ofLittle intheheart comforts building offers all ofthemodern welcome, thiscommunal visitors withawarm,hearty toprovide restored Recently L’hôtel-de-ville Brévine La PLACES TO STAY per night. Price: startingat290Swissfrancs getaways. forromantic setting beautiful onstilts.private terraces It’s a cabinsonthelakeand 24 luxury with hotel is anidyllic five-star Palafittethe Hôtel in Neuchâtel andnaturalbeauty,comforts modern For ofboth aweekend PalafitteHôtel SWISSQUOTE DECEMBER2020 SWISSQUOTE nature and living things.nature andliving with onrelationships a focus more walkingand version with contemplativemore peaceful, on howtolead thedogs, ora acourse to active mushingwith two anintroduction types oftrips: thereare basis, but case-by-case areadapted ona programmes tothepandemic,Due the or visitjura-escapades.ch. Anouk Duflonat0797716358 For moreinformation,contact onthetrip.depending person per 175 Swissfrancs 90to rangefrom Prices or collars. leads the Inuittradition,without in ontheproperty 40 dogsraised Switzerland, withapproximately in isoneofthelargest huskies dogtrips. packof sled Their Brévine, organises ofLa north 40minutes district Montagnes intheFranches- located acompany Escapades, Jura digs Sled romandieskidefond.ch. conditions, weather local visit and trail openings, itineraries For moreinformationabout visit siberiasport.sitew.ch. contact 0329351324or For moreinformation, lamp. andahead clothing shoes, gloves, hats, warm ownwalkingaperitif. Bringyour and including snowshoes, poles for10people, 400 Swissfrancs outing: forasnowshoe Price person. per hour per 50Swissfrancs lessons: ski forcross-country Price atdusk. forest inthe withanaperitif trips snowshoeing andgroup lessons ski individual cross-country offers theshop in lockdown, skiing.or Nordic notWhen forsnowshoeing you’ll need Brévine rentsall theequipment inLa Sports Siberia shop The skiing cross-country and Snowshoes PLAN YOUR TRIP Berges d’Estaillères, a blue and white Berges d’Estaillères, ablueandwhite route, anexcellent restaurantisAux des Taillères trail.Ifyoutakethat Another optionistotakethe Lac a loopthatrunsalongtheborder. related measures).Thereturn tripis are openbasedoncantonalCOVID- tively (pleaseconfirmthatthese the AubergeduVieux-Puitsrespec the Hotel-RestaurantduMoulinor turers couldstopforlunchateither or LaChaux-du-Milieu,whereadven heading towardsCerneux-Péquignot valley, startingatLaBrévineand and snowypasturesrunthroughthe sion. Trails dottedwithlarge farms athletic pursuitsorafamilyexcur trails thatareperfectforeither of perfectlymarkedandmaintained country skifanswilllovethe100km In winter, snowshoeandcross-
KEYSTONE/LAURENT GILLIERON TRAVEL
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Like manyinhisgeneration,Jean- within ajourney. sketches ofboats...it’sajourney decorations: lighthouses,rudders, to bottominmaritimeandlakeside its entrance.Itiscoveredfromtop building withashipprotrudingfrom from alloverthe region. natural 2kmlong rinkattractsskaters but whentheconditionsareright, the are makingiceskatingmoreinfrequent, getting warmerandweatherconditions Switzerland’s LittleSiberia,winters are quite theadventure!”Today, evenin from LeLocleinapostbus,it was the icewasgood.We camedown day. Ourfriendscalledustosaythat between ChristmasandNewYear’s ice skatingonthelake:“Itwasusually ories ofchildhoodafternoonsspent Maurice Gasserhaswonderfulmem SWISSQUOTE DECEMBER2020 SWISSQUOTE the courage tojumpinto the courage degree, you have you degree, tohave like these people during people like these temperature isonlyone temperature the Lac des Taillères des the Lac the Fête in du froid February thisyear.February When thewater When
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77 SWISSQUOTE DECEMBER 2020 BOUTIQUE SWISSQUOTE DECEMBER 2020
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MUSICAL NOSTALGIA
To celebrate its 95th anniversary, Bang & Olufsen has unveiled a re-imagined version of its Beogram 4000c, an iconic piece of Hi-Fi history first launched in 1972. The limited edition was sourced from 95 original units that the Danish brand collect- SCENTED DISINFECTANT ed and then fully restored and modernised. A chic, sought-after Gel hand sanitiser is the most revival. popular item of the moment. As bang-olufsen.com part of his Mizensir brand, the CHF 11,000.- famous Geneva-based perfumer Alberto Morillas revisited the for- A SPICY SAMPLER mula, created by Dr Didier Pittet and shared with the World Health Switzerland is a country of chocolate and cheese... But also spicy seasonings, Organization, and developed such as the famous handmade Tsüri barbecue sauces invented by chef several lightly scented versions. Christian Heusser. For the holiday season, the Zurich brand has created a We particularly like the invigora- gift box that includes their three best sellers: the classic, fruit-flavoured ting Ginger scent with extracts with hints of coffee, as well as a chilli flavour and a wild pepper flavour. of ginger, neroli and petitgrain. tsurisauce.ch mizensir.ch CHF 33.- From CHF 15.- (60ml)
FOR THE MOUNTAIN
Bally is committed to preserv- ing mountains through its Bally Peak Outlook Foundation and has created an outdoor collec- tion from which profits will be GAMING FOR SERIOUS PLAYERS A SMART SKI COACH allocated to various ongoing projects. Highlights include the GRIND COFFEE AT HOME Are the new Playstation 5 and Xbox Series X too low-key Speed, turns, endurance, style, body position, inten- Gadey, a women’s shoe inspired for you? Gamers who love the ultra-fluid 4k experience sity: all of this information is captured by the three by the sport of curling. Created Buying coffee beans and grinding them at home is the holy grail for coffee can now go a step further with the compact PCs made Snowcookie sensors that skiers place on each ski and in partnership with Italian manu aficionados. With its futuristic design straight out of a science fiction film, by Alienware. Available in either black or white, the their chest. By analysing the way skiers move while facturer Vibram, they are made the Onyx EG-1 from US company Weber Workshops is a professional-grade new Aurora model, which is configurable online, can be on the pistes, the smart coach can help skiers closely with Arctic Grip soles that are grinder that is equipped with two burrs to provide different types of grinds. equipped with the RTX 3080 graphics card, the flagship monitor their skills and win virtual points when they renowned for their traction on Speed and output are both customisable. The grinder comes with a blind product from Nvidia. Everything you need to spend the hit new levels. For both beginner skiers and seasoned icy surfaces. tumbler and an elegant tamping mat made from vegan leather. winter gaming. slope veterans, it’s a fun way to improve performance. bally.com weberworkshops.com dell.com/fr-fr/gaming snowcookiesports.com CHF 510.- CHF 3,810.- (+ delivery fees) From CHF 2,649.- (model with Geforce RTX 3080) From CHF 349.-
78 79 TRIED AND TESTED SWISSQUOTE DECEMBER 2020 READ
TRIED AND TESTED MARIO KART IN BETWEEN THE REAL WORLD BY GÉRARD DUCLOS
Just in time for Christmas, our reporter tested augmented reality Mario Kart. THE CURVES hile Sony and the kart’s movements in the real degrades without ample lighting.
Microsoft have re- environment. For example, grabbing NINTENDO Get in-depth analyses of the markets and fresh insights cently come out with a mushroom powers up the kart, Once the circuit is marked out, it’s with Swissquote's blog. Now on Medium. W new versions of their while throwing banana peels – the time to start the engines. On both game consoles, which are all about classic Mario tactic – slows down the screen and in real life, the kart graphics and sound performance, as both human and virtual opponents. crosses the start line and zips usual, Nintendo has veered off on its across the living room floor, sla- own track with this 2020 release. To loming between obstacles, bonuses secure a spot under Christmas trees The kart crosses and opponents. Hitting a virtual kart this year, the Japanese giant once will immobilise the physical car for again goes all-in on family enter- the start line and a split second. A mushroom gives tainment with its portable Switch zips across the the car a sudden boost to catch up console. And this time, Nintendo’s living room floor to competitors caught in a virtual art of going against the grain is obstacle... Real and virtual worlds captured in an unexpected version of are seamlessly intertwined. And the Mario Kart using augmented reality. As to be expected from Nintendo, camera’s point of view and position setting the game up is child’s close to the ground pull off a brilliant For 100 Swiss francs, Nintendo’s play. After downloading the (free) sensation of speed, while in actual Mario Kart Live: Home Circuit game game onto the console, pairing fact the kart is moving pretty slowly. comes with either a 20 cm Mario kart the car with the game, and set- or Luigi kart, depending on the set. ting out the cardboard gates, one Drawing on the entire canon that has The kart is remote-controlled with lap around the track lets players made the franchise so successful the Switch and features a small, design an entirely new circuit. over the past nearly 30 years, the on-board camera. The pack also game offers various modes (Grand contains four numbered cardboard We quickly realise that simple Prix, Against the clock, etc.) and gates and two arrow signboards. set-ups work best, especially if environments, as well as ways to they are not too spread out, as customise the experience. Fans will Using augmented reality, the player the camera’s range is limited. The love it, even if Nintendo is mainly steers the vehicle through a real floor must be flat, as the slight- targeting families and very young environment using the Switch. est obstacle brings the kart to a players. But they will be sure to The screen displays the images halt. The room must also be well lit. ask for extra karts, at 100 Swiss filmed from the kart, enhanced Unfortunately the car does not have francs apiece, to see how they with virtual animation that impacts headlamps, and image quality rapidly measure up against one another. swissquote.com/blog
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