Swiss Blue-chip Index Closes Week Downbeat; VZ Group Jumps
The blue-chip Swiss Market Index concluded the trading week in negative territory, down 0.58% on Friday's close, as investors assessed the latest economic data prints and company updates, alongside geopolitical developments in the Middle East.Switzerland's seasonally and sport event-adjusted gross domestic product expanded by 1.5% in the second quarter, supported by growth in both the industrial and services sectors, provisional government data showed. In the first quarter, GDP adjusted for sporting events grew 0.4%.On the defense front, the government said the production of the Swiss F-35A combat aircraft is proceeding as planned, with the first fuselage section and wing assembled in Cameri, Italy, which is part of the international production network of the F-35 program. Assembly of the aircraft's structural elements and other components will take place in the Lockheed Martin plant in Texas, US.Meanwhile, US President Donald Trump signed a proclamation imposing ad valorem tariffs of up to 100% on imports of drones and their components. Switzerland, Liechtenstein and the European Union were among countries facing a 25% tariff, whereas a 10% rate will be imposed on drones from the UK. "The tariffs will take effect 21 days after signing. For components of drones that are not particularly sensitive, the tariffs will take effect 180 days after signing," the White House said.On the corporate side, VZ Group (VZN.SW) added 7.74% at closing as it booked a year-over-year increase in first-half total revenue to 316.5 million francs from 277.9 million francs, bolstered by higher revenue from assets under management, while the financial advisory services group's net profit jumped 17.7% to 131.9 million francs."Demand for first-class financial advice continues to rise and is set to underpin the growth of our business in the coming years. Provided that the financial markets remain stable, we expect growth rates in the second half of the year to be similar to those in the first half. Shareholders can expect the dividend to rise once again in line with profit growth," Chief Executive Officer Giulio Vitarelli said.Swiss telecommunications company Mobilezone (MOZN.SW), which also reported first-half results, announced that Chief Operating Officer Lars Keller will leave the company by Nov. 30. The stock closed the session 0.58% higher.In geopolitical news, US officials said the country is capable of continuing its naval blockade of Iran "indefinitely" and intends to step up its economic pressure on Tehran.
