Senate Passes Bipartisan Budget Deal Rolling Back $63 Billion in Cuts
Swatch Slides on Report CEO Says Franc Makes ‘Life Difficult’
Swatch Group AG (UHR), the biggest maker of Swiss watches, slid in Zurich trading after the company’s chief executive officer was reported to have said the strengthening Swiss franc is making “life difficult.”
The shares were down 1.1 percent at 362.90 euros as of 12:43 p.m., after falling as much as 3.8 percent.
The Biel, Switzerland-based company still aims to generate 7 billion francs ($7.8 billion) in revenue this year, Reuters reported CEO Nick Hayek as saying today. Beatrice Howald, a company spokeswoman, said she couldn’t immediately comment.
The Swiss Employers’ Association said today that the franc is “clearly overvalued” even after the Swiss central bank imposed a cap of 1.20 francs versus the euro Sept. 6 after the currency surged, threatening exports from the country and increasing the risk of deflation.
The franc reached an all-time high of 1.0075 versus the euro on Aug. 9, trading near parity. Since the introduction of the cap, it has remained between 1.20 and 1.25.
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