Economy Swiss government slashes growth outlook as Trump tariffs put ‘heavy burden’ on economy

Switzerland has sharply revised downward its GDP forecasts for 2025 and 2026 as supply chain pressures, export declines, and U.S. tariffs weigh heavily on the economy. The State Secretariat for Economic Affairs (SECO) now projects growth of about 1.3% in 2025 (down from earlier estimates) and 0.9–1.2% for 2026, citing that additional U.S. tariffs are placing a heavy burden on export-oriented sectors and are expected to ripple across the broader economy. Swiss exporters, especially in industries like luxury goods, machinery, and precision manufacturing, are seeing reduced demand, higher costs, and increased uncertainty. Analysts warn that continued trade tensions could push parts of the Swiss economy into recession if global demand weakens further.

https://www.cnbc.com/2025/10/16/switzerland-slashes-gdp-forecast-as-trumps-tariffs-weigh-on-economy-.html

Market crash as Tariff remarks affects investors Confidence

Yesterday's market crash was brutal. The Dow plunged 1,200 points, down 3.2% in a single session, while the S&P 500 fell 3.8% and the Nasdaq dropped a staggering 4.5%. Trading volume surged to over 12 billion shares as panicked investors rushed to exit positions after renewed concerns about the administration's tariff policy. When key officials made remarks suggesting more aggressive trade measures could be coming, traders hit the sell button fast.The uncertainty around tariffs is creating real damage. According to recent reports from CNBC, the administration's tariff threats have sent markets into turmoil. The volatility index VIX spiked 45% to reach levels not seen since early 2024. Every time there's talk of escalating trade tensions, the market reacts negatively. Companies can't plan, investors get nervous, and we all pay the price. This isn't sustainable economic policy it's chaos that's eroding confidence and wealth.We've seen this pattern before with tariff announcements causing volatility, but yesterday felt different. The speed and severity of the selloff shows how fragile investor sentiment has become. With over $1.8 trillion in market value wiped out in a single day, the message is clear: investors want stability, not trade war escalation. If policymakers don't provide clarity soon, we could be looking at a prolonged downturn

https://www.cnbctv18.com/market/us-market-crash-dow-jones-snp-500-nasdaq-trump-tariffs-china-shutdown-hostilities-19712027.htm  

The New Luxury

 The Ultra-Rich have stopped shopping - sounds silly, right? 

According to a Moody's survey, the richest 0.1% of Americans now control about 14% of the nation's wealth. Yet, they are no longer spending on luxury watches, sports cars, or gaudy mansions. There are now over 3,000 billionaires in America, up 2,800 from last year. With the sudden influx of wealth, you'd expect more trips to the Rolex store, but the opposite is happening. 

In the traditional sense, spending on art, private jets, and multi-million-dollar mansions is actually slowing down. Knight Frank's luxury investment index (which tracks how the ultra-rich spend their money) climbed more than 70% from 2015 to 2023. In 2024, that same index saw a decrease of 6%. What changed, you ask? To understand that we need to know what makes these "luxury" goods luxurious to begin with. The multi-million-dollar price tag for fine art stems from the scarcity of the good. If Rembrandts were common, no one would be willing to pay top dollar for them. Enter the "rarity premium" or the idea "that I have what others can't." The rarity premium has long defined what luxury goods are. 

The New Era: 

Instead of buying assets, the ultra-wealthy are paying for access. The Economist built an "Ultra-Luxury Services index" to illustrate this paradigm shift, which tracks things like Super-Bowl Tickets, Wimbledon seats, and dining at three-star Michelin restaurants. Since 2019, the index has risen by over 90%. With the new age of social media, it's no longer about who owns the most expensive bottle of wine, but rather who can post pictures from the hardest-to-get-to get to places. For the new era of wealth, it's no longer about possessions; it's about presence. Instead of changing watches, the new wealth is changing the status quo of what it means to be rich in America.