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Tag: Switzerland government

  • Shout-out for yodeling? Swiss seek recognition from UN cultural agency as tradition turns modern

    LUCERNE, Switzerland (AP) — Yodel-ay-hee … what?! Those famed yodeling calls that for centuries have echoed through the Alps, and more recently have morphed into popular song and folk music, could soon reap a response — from faraway Paris.

    Switzerland’s government is looking for a shout-out from U.N. cultural agency UNESCO, based in the French capital, to include the tradition of yodeling on its list of intangible cultural heritage. A decision is expected by year-end.

    Modern-day promoters emphasize that the yodel is far more than the mountain cries of yesteryear by falsetto-bellowing male herders in suspenders who intone alongside giant alphorn instruments atop verdant hillsides. It’s now a popular form of singing.

    Over the last century, yodeling clubs sprouted up in Switzerland, building upon the tradition and broadening its appeal — with its tones, techniques and tremolos finding their way deeper into the musical lexicon internationally in classical, jazz and folk. U.S. country crooners prominently blended yodels into their songs in the late 1920s and 30s.

    About seven years ago, the Lucerne University of Applied Sciences and Arts became the first Swiss university to teach yodeling.

    “For me, actually, in Switzerland we have four languages but I think really we have five languages. We have a fifth: The yodel,” said Nadja Räss, a professor at the university, alluding to the official German, French, Italian and Romansh languages in Switzerland. Yodeling exists in neighboring Austria, Germany and Italy, but Swiss yodeling is distinctive because of its vocal technique, she said.

    In its early days, yodeling involved chants of wordless vowel sounds, or “natural yodeling,” with melodies but no lyrics. More recently, “yodeling song” has included verses and a refrain.

    The Swiss government says at least 12,000 yodelers take part through about 780 groups of the Swiss Yodeling Association.

    In Switzerland, Räss said, yodeling is built on the “sound colors of the voice” and features two types: one centering on the head — with a “u” sound — and one emanating from deeper down in the chest — with an “o” sound.

    And even within Switzerland, styles vary: Yodeling in the northern region near Appenzell is more “melancholic, slower,” while in the country’s central regions, the sounds are “more intense and shorter,” she said.

    What began as mostly a male activity is now drawing more women in a country that adopted universal suffrage in 1971. The Appenzell-Innerrhoden region only gave equal voting rights to women in local elections in 1990, following a high court ruling.

    Julien Vuilleumier, a scientific adviser for the Federal Office of Culture who is spearheading the Swiss request, said it’s tough to trace the origins of yodeling, which factors into the imagery of the Swiss Alps.

    “Some say it’s a means of communication between valleys, using these very distinctive sounds that can carry a long way. Others believe it’s a form of singing,” he said. “What we know is that … yodeling has always been transformed and updated.”

    UNESCO’s government-level committee for Intangible Heritage will decide in mid-December in New Delhi. The classification aims to raise public awareness of arts, craftsmanship, rituals, knowledge and traditions that are passed down over generations.

    Also among the 68 total nominations this year are traditions like Thanakha face powder in Myanmar; Ghanaian highlife music; the fermented Kyrgyz beverage Maksym; and the El Joropo music and dance tradition in Venezuela.

    The list is different from the UNESCO World Heritage List, which enshrines protections for physical sites that are considered important to humanity, like the Pyramids of Giza in Egypt.

    Last year, Japan’s famed sake — the smooth rice wine — was one of more than 60 honorees in the intangible heritage list, alongside things like the Nowruz spring festival in parts of central Asia, and the skills and knowledge of zinc roofers in Paris.

    Räss of the Lucerne university says that candidates for the intangible heritage list are asked to specify the future prospects of cultural traditions.

    “We figured out some projects to bring it to the future. And one of those is that we bring the yodel to the primary school,” said Räss, alluding to work along with the Swiss Yodeling Association and a folk music center known as the Roothus Gonten. She said 20 Swiss school teachers know how to yodel and are trying it with their classes.

    “One of my life goals is that when I will die, in Switzerland every school child will be in contact with yodeling during their primary school time,” she said. “I think it’s a very good chance for the future of the yodel to be on that (UNESCO) list.”

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  • Trump’s new tariffs go into effect as US economy shows signs of strain

    WASHINGTON (AP) — President Donald Trump began imposing higher import taxes on dozens of countries Thursday just as the economic fallout of his monthslong tariff threats has begun to cause visible damage to the U.S. economy.

    Just after midnight, goods from more than 60 countries and the European Union became subject to tariff rates of 10% or higher. Products from the EU, Japan and South Korea are taxed at 15%, while imports from Taiwan, Vietnam and Bangladesh are taxed at 20%. Trump also expects the EU, Japan and South Korea to invest hundreds of billions of dollars in the United States.

    “I think the growth is going to be unprecedented,” Trump said Wednesday. He said the U.S. was “taking in hundreds of billions of dollars in tariffs,” but did not provide a specific figure for revenues because “we don’t even know what the final number is” regarding the rates.

    Despite the uncertainty, the White House is confident that the onset of his tariffs will provide clarity about the path for the world’s largest economy. Now that companies understand the direction the U.S. is headed, the Republican administration believes it can ramp up new investments and jump-start hiring in ways that can rebalance America as a manufacturing power.

    So far, however, there are signs of self-inflicted wounds to the U.S. as companies and consumers brace for the impact of the new taxes.

    Risk of economic erosion

    Hiring began to stall, inflationary pressures crept upward and home values in key markets started to decline after the initial tariff rollout in April, said John Silvia, CEO of Dynamic Economic Strategy.

    “A less productive economy requires fewer workers,” Silvia said. “But there is more, the higher tariff prices lower workers’ real wages. The economy has become less productive, and firms cannot pay the same real wages as before. Actions have consequences.”

    Many economists say the risk is that the American economy is steadily eroded.

    “It’s going to be fine sand in the gears and slow things down,” said Brad Jensen, a professor at Georgetown University.

    Trump has promoted the tariffs as a way to reduce America’s persistent trade deficit. But importers tried to avoid the taxes by bringing in more goods before the tariffs took effect. As a result, the $582.7 billion trade imbalance for the first half of the year was 38% higher than in 2024. Total construction spending has dropped 2.9% over the past year.

    The economic pain is not confined to the U.S.

    Germany, which sends 10% of its exports to the U.S. market, saw industrial production sag 1.9% in June as Trump’s earlier rounds of tariffs took hold. “The new tariffs will clearly weigh on economic growth,” said Carsten Brzeski, global chief of macro for ING bank.

    Dismay in India and Switzerland

    The lead-up to Thursday fit the slapdash nature of Trump’s tariffs, which have been rolled out, walked back, delayed, increased, imposed by letter and renegotiated.

    Trump on Wednesday announced additional 25% tariffs to be imposed on India because of its purchases of Russian oil, bringing its total import taxes to 50%.

    A leading group of Indian exporters said that will affect nearly 55% of the country’s outbound shipments to America and force exporters to lose long-standing clients.

    “Absorbing this sudden cost escalation is simply not viable. Margins are already thin,” S.C. Ralhan, president of the Federation of Indian Export Organizations, said in a statement.

    The Swiss executive branch, the Federal Council, was expected to meet Thursday after President Karin Keller-Sutter and other Swiss officials returned from a hastily arranged trip to Washington in a failed bid to avert a 39% U.S. tariffs on Swiss goods.

    Import taxes are still coming on pharmaceutical drugs, and Trump announced 100% tariffs on computer chips. That could leave the U.S. economy in a place of suspended animation as it awaits the impact.

    Stock market remains solid

    The president’s use of a 1977 law to declare an economic emergency to impose the tariffs is under a legal challenge. Even people who worked with Trump during his first term are skeptical, such as Paul Ryan, the Wisconsin Republican who was House speaker.

    “There’s no sort of rationale for this other than the president wanting to raise tariffs based upon his whims, his opinions,” Ryan told CNBC on Wednesday.

    Trump is aware of the risk that courts could overturn his tariffs. In a Truth Social tweet, he said, “THE ONLY THING THAT CAN STOP AMERICA’S GREATNESS WOULD BE A RADICAL LEFT COURT THAT WANTS TO SEE OUR COUNTRY FAIL!”

    The stock market has been solid during the tariff drama, with the S&P 500 index climbing more than 25% from its April low. The market’s rebound and the income tax cuts in Trump’s tax and spending measure signed into law on July 4 have given the White House confidence that economic growth is bound to accelerate in the coming months.

    On the global financial markets, indexes rose across much of Europe and Asia, while stocks were slipping on Wall Street.

    But ING’s Brzeski warned: “While financial markets seem to have grown numb to tariff announcements, let’s not forget that their adverse effects on economies will gradually unfold over time.”

    Trump foresees an economic boom. American voters and the rest of the world wait, nervously.

    “There’s one person who can afford to be cavalier about the uncertainty that he’s creating, and that’s Donald Trump,” said Rachel West, a senior fellow at The Century Foundation who worked in the Biden White House on labor policy. “The rest of Americans are already paying the price for that uncertainty.”

    ___

    Follow the AP’s coverage of President Donald Trump at https://apnews.com/hub/donald-trump.

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  • Credit Suisse bondholders sue Switzerland in the U.S. over $17 billion writedown of AT1 debt

    Credit Suisse bondholders sue Switzerland in the U.S. over $17 billion writedown of AT1 debt

    The Credit Suisse Group AG headquarters in Zurich, Switzerland, on Thursday, Aug. 31, 2023.

    Bloomberg | Bloomberg | Getty Images

    A group of Credit Suisse bondholders filed a lawsuit against the Swiss government, seeking full compensation over the contentious decision to write down the failed bank’s Additional Tier 1 (AT1) debt.

    As part of Credit Suisse’s emergency sale to UBS last year, which was orchestrated by the Swiss government, Swiss regulator Finma wiped out roughly $17 billion of the bank’s AT1s, writing them down to to zero.

    The bank’s common shareholders received payouts when the sale was completed.

    The move angered bondholders and was seen to have upended the usual European hierarchy of restitution in the event of a bank failure under the post-financial crisis Basel III framework, which typically places AT1 bondholders above stock investors.

    Law firm Quinn Emanuel Urquhart & Sullivan, which represents the plaintiffs, said Thursday that it had filed a lawsuit in the U.S. District Court for the Southern District of New York. It described Switzerland’s decision to write down the plaintiffs’ AT1 value to zero as “an unlawful encroachment on the property rights of the AT1 Bondholders.”

    A spokesperson for the Swiss Finance Ministry declined to comment.

    Finma previously defended its decision to instruct Credit Suisse to write down its AT1 bonds in March last year as a “viability event.”

    “Through its actions, Switzerland needlessly wiped out $17 billion in AT1 instruments, unjustly violating the property rights of the holders of those instruments,” Dennis Hranitzky, partner and head of Quinn Emanuel’s Sovereign Litigation practice, said in a statement.

    The face value of the AT1 bonds held by the plaintiffs in the suit was over $82 million, Reuters reported, citing the filing.

    This photograph taken on March 24, 2023 in Geneva, shows a sign of Credit Suisse bank.

    Fabrice Coffrini | AFP | Getty Images

    AT1s are bank bonds that are considered a relatively risky form of junior debt. They date back to the aftermath of the 2008 global financial crisis, when regulators tried to shift risk away from taxpayers and increase the capital held by financial institutions to protect them against future crises.

    One of the key attributes of AT1 bonds is that they are designed to absorb losses. This happens automatically when the capital ratio falls below the previously agreed threshold, and AT1s are converted into equity.

    — CNBC’s Sophie Kiderlin contributed to this report.

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  • UBS brings back Ermotti as CEO with Credit Suisse deal ahead

    UBS brings back Ermotti as CEO with Credit Suisse deal ahead

    GENEVA (AP) — UBS said Wednesday that it’s bringing back former CEO Sergio Ermotti to lead the Swiss bank as it executes a government-orchestrated plan to take over struggling rival Credit Suisse.

    Ermotti, who was the bank’s top executive for nine years and led a turnaround following the 2008 global financial crisis, will take over next Wednesday from CEO Ralph Hamers.

    Hamers took up the job in November 2020 and will remain at UBS during a transition period “to ensure a successful closure of the transaction and a smooth handover,” the bank said in a statement.

    “Whilst Ralph was capable of doing the job, we felt that Sergio was better suited to navigating these things,” Chairman Colm Kelleher said on a conference call, alluding to the UBS board decision. “I cannot reemphasize how big this deal is in terms of financial history and financial engineering that’s required.”

    UBS credited Ermotti, who is now chairman of insurer Swiss Re, for having “cut its footprint” and changing the culture of the bank — and it pointed to his experience in bringing big financial institutions together.

    Ermotti, who hails from the southern, mostly Italian-speaking Swiss region of Ticino, acknowledged that “coming back to manage this situation is a challenge” but felt “a sense of call-of-duty aspect” to return.

    Plus, he said he had contemplated a tie-up like the one with Credit Suisse while previously in the top job, and it would be a bit of a ”contradiction” for him not to accept the post “to basically execute on what I believe was the right next move for UBS.”

    Kelleher said he called Ermotti “to explore the possibility of this” a day after the emergency takeover deal was settled on March 19, which involved Swiss regulators, the federal government and top executives at both banks.

    “This is is the biggest single financial transaction since 2008. That brings significant execution risk,” Kelleher said.

    The hastily arranged, $3.25 billion deal for Credit Suisse aimed to stem the upheaval in the global financial system after the collapse of two U.S. banks and jitters about long-running troubles at Credit Suisse led shares of Switzerland’s second-largest bank to tank and customers to pull out their money.

    Swiss authorities urged UBS to take over its smaller rival after the central bank’s plan for Credit Suisse to borrow up to 50 billion francs ($54 billion) failed to reassure investors and customers. The Swiss executive branch passed emergency measures to bypass shareholder approval.

    Uncertainties still lie ahead, including a U.S. Senate committee report released Wednesday that says Credit Suisse violated a plea agreement with U.S. authorities by failing to report secret offshore accounts that wealthy Americans used to avoid paying taxes.

    UBS said it assessed outstanding lawsuits and investigations as part of the Credit Suisse acquisition and expects the deal to be beneficial for shareholders. It says it’s working to close the sale and get approval from regulators in the coming weeks or months.

    Hamers, the outgoing CEO, said UBS executives want to ensure “a digestible transaction” in terms of risk. He said there were plans to “manage down the investment bank” at Credit Suisse because many of the activities were not central for UBS.

    UBS leaders announced no immediate plan about job cuts linked to the deal.

    Swiss lawmakers and academics have raised concerns that the deal could create an unwieldy Swiss banking behemoth, while UBS executives said regulatory issues loom internationally before the deal can close.

    Ermotti suggested he didn’t view “too big too fail” concerns as a problem.

    “I do think that scale and size is not a problem if it is focused and well-managed,” he said. “For me, the debate nowadays is not ‘too big to fail’ but ‘too small to survive’ — and we want to be a winner.”

    Many Credit Suisse customers have expressed regret at the looming disappearance of a 167-year-old bank that has been a pillar of Switzerland’s renowned banking and financial industry.

    Shares of UBS and Credit Suisse closed up 3.7% and 4%, respectively, on the Swiss stock exchange — though European bank stocks overall ended higher.

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