AGP Executive Report

US Drone Tariffs: The White House has signed Section 232 duties on unmanned aircraft systems, with 25% tariffs on drones under 25kg (including consumer models) and 100% on heavier and thermal-equipped drones, starting Sept. 3, 2026—plus 25% on key components from Feb. 9, 2027. Swiss Defence Budget: Switzerland is seeking a major boost to its air-defence spending, with reports pointing to an extra CHF970m and a wider push for higher interceptor capacity. Cyber & Tech Ops: A major GitHub outage hit GitHub Actions, API services and authentication, disrupting deployments for hours; the post-mortem blamed network saturation. Markets & Rates: Europe closed slightly lower as US Treasury yields surged again after the Treasury announced bigger long-dated bond buybacks, lifting risk sentiment in some FX markets. Swiss Business & Finance: Switzerland’s regulator is warning banks and insurers about rising cyberattacks and AI-related risks, while Swiss firms keep pushing AI adoption and deal activity. Tourism & Luxury: Switzerland Tourism is shifting luxury marketing toward authenticity and privacy-led storytelling, targeting affluent travellers—especially from India. Film & Culture: Swiss Films previewed six feature projects for Locarno’s industry showcase, including a Swissair Flight 111-related drama and a Ticino social drama.

Swiss Politics: A poll for 20 Minuten and Tamedia suggests Swiss voters are set to reject a constitutional initiative tightening neutrality, with nearly two-thirds opposed; the proposal would limit sanctions and NATO cooperation and enshrine neutrality as “perpetual and armed.” Corporate Restructuring: Burckhardt Compression plans up to 220 job cuts, including 150 in Switzerland, as it simplifies its structure and consolidates functions while strengthening operations in India. Telecoms Earnings: Sunrise says Q2 core earnings met expectations and it reaffirmed its 2026 outlook, citing cost discipline and noting subscriber trends. Markets & FX: Reuters links the yen’s US-Japan intervention to a possible shift toward the Swiss franc in carry trades, potentially easing pressure on Swiss exporters and the SNB. Business & Industry: ABB won a contract from Statkraft to modernize three Norwegian hydropower plants, upgrading control, electrical and excitation systems. Tech & Privacy: OpenAI’s new “Computer History” feature for ChatGPT can summarize Mac activity, raising privacy and security questions. Energy/Climate: AIGCC analysis highlights investors’ push to deploy capital into climate infrastructure, but notes capital structure can still block scaling in emerging markets.

Swiss Pharma Dealmaking: Shanghai Henlius and Sandoz struck a strategic biosimilars collaboration covering up to 10 assets, with Sandoz paying up to $322m for global commercialization rights outside China and Henlius leading development and manufacturing. Swiss Finance Watch: UBS boosted its stake in eDreams Odigeo to 6.029% (about €37.5m), as the travel-tech group’s shares remain volatile. Markets & Rates: Long-term bond yields surged across the US, Japan and Europe to multi-decade highs, reviving inflation and fiscal worries and pressuring risk assets. Crypto & Trading Sentiment: Bitcoin hovered around the mid-$60,000s as analysts pointed to $62,000 support and $70,000 upside scenarios, while Moonberg’s presale demand kept momentum. Global Food Risk: EU producers warn heatwave-driven yield drops will likely push grocery bills higher, with vegetable and grain losses already being flagged. Business & Society: Shakira pledged to rebuild at least 10 schools and restore a technological university in Colombia’s quake-hit Chocó region, backed by major partners. Corporate Governance: Chelsea’s boardroom future looks uncertain, with reports that Todd Boehly and Mark Walter may consider selling stakes to Clearlake.

FIFA Power Struggle: Kevin Lamour has been sacked as FIFA COO after weeks of fallout from Gianni Infantino’s plan to sell stakes in World Cup commercial rights to private investors, a move that triggered UEFA threats and Infantino losing support from the Scottish FA. Swiss Markets & Finance: The Swiss franc edged stronger as the dollar slid on softer US rate-hike expectations, while Swiss-focused business coverage also highlights Basilea’s solid H1 results and raised guidance, plus Swiss Water’s TSX approval for a share buyback. Swiss Business Deals: SoftBank backed ETH Zurich spin-out Gravis Robotics with $200m to retrofit construction equipment with autonomous AI, and Sonic Healthcare expanded diagnostics with a stake in microbiome testing firm Microba. AI Funding Mood: Big investors are shifting from “spend now” to “pick winners” in AI, with hyperscalers drawing more attention as capacity constraints ease. Tourism & Pricing: RoomPriceGenie is pushing Thailand with Ultsch Consult as hotel demand cools and room supply rises. Swiss Risk & Society: A landslide threat near Kandersteg is linked to thawing permafrost and glacier dynamics.

Swiss Economy & Policy: Switzerland’s GDP growth surprised on the upside, with reports pointing to a faster pace in Q2 and renewed momentum for the broader economy. Swiss Finance & Regulation: The Swiss financial regulator is warning banks and insurers about rising cyberattacks and AI-related risks, pushing institutions to tighten controls. Swiss Aviation: SWISS will swap two Airbus A220-300s for larger A320neos on the Geneva–London Heathrow route in summer 2027, adding seats without increasing frequencies. Swiss Business & Investment: Partners Group secured a $1bn Asia private credit mandate, while Swiss impact investor bets continue to surface, including a fund backing Tenet Diagnostics. Climate & Industry: ETH Zurich research suggests cement kilns could become far less carbon-intensive if paired with direct air capture and electric kiln operation. Tech & Startups (Switzerland-linked): Zurich spinout Aisot Technologies raised CHF 2m to bring agentic AI to portfolio management, and Gravis Robotics (ETH Zurich) landed a €172m/ $200m SoftBank Series A to retrofit excavators with AI autonomy. Global Markets (relevant to Swiss investors): Tokenised gold is booming on exchanges, with Tether Gold perpetuals hitting around $2bn daily volume—fueling fresh interest from gold traders.

Swisscom Retail Push: Swisscom has started selling its products in MediaMarkt branches, rolling out in 10 strategic locations including Zurich Sihlcity and Basel, to strengthen its brick-and-mortar footprint. Heatwave Insurance Gap: Europe’s heat is hitting business cashflows and exposing weak coverage: Moody’s estimates last summer’s heatwaves cost €43bn in lost output but triggered only ~€500m in insured payouts, with hospitality in Padua reporting ~20% turnover drops. Drought Hits Trade: At Rotterdam, Rhine water levels are forcing ships to run at about 30% capacity and pay for extra barges, underscoring how climate shocks are becoming economic shocks for logistics. Commodities & AI Supply Chains: Korea Eximbank will lend $1bn to Glencore for copper supply to Korean firms, aiming to secure raw materials for AI-driven demand. Nestlé’s GLP-1 Pivot: Nestlé says it’s using AI and nutrition science to develop products for GLP-1 users as weight-loss drugs reshape food demand. Zurich Leadership Moves: Zurich confirmed departures at Cover-More and Freely, while former AMP CEO Alexis George joined Zurich’s board. Cyber & AI Risk: Swiss regulator warnings highlight rising cyberattacks and AI risks for banks and insurers.

Swiss Energy & Power Security: Economiesuisse says preventing future electricity shortages will cost Swiss consumers about CHF4bn over the next two decades, blaming insufficient winter capacity expansion; a plan for four fossil backup plants is estimated at CHF2.3bn but faces criticism from parliament and an upcoming Federal Audit Office review. Cyber & AI Risk for Finance: Switzerland’s financial regulator warns banks and insurers about rising cyberattacks and AI-related risks, pushing tighter controls. OpenAI Privacy/Compliance Watch: OpenAI’s new ChatGPT “Computer History” on macOS logs clicks, keystrokes and app switches, stores them as unencrypted plain text locally, and is not available in the EEA, Switzerland or the UK. Shipping & Trade Routes: A Chinese container vessel is set to sail to Europe via the Arctic’s Northern Sea Route, cutting transit times but raising environmental concerns as traffic grows. Ukraine Restoration Support: Switzerland pledges CHF730,000 to prepare restoration work for Kyiv-Pechersk Lavra after damage from a June strike. Global Markets Backdrop: Markets were broadly steady with a weaker USD, lower implied volatility, and oil near $90 amid US-Iran tensions. Telecom Benchmark: Kearney’s Global Telecom Health Index 2026 crowns the UAE first, with Switzerland in the top five.

UBS Crypto Bet: UBS disclosed a more than 24-fold jump in quarterly call-option exposure tied to BlackRock’s iShares Bitcoin Trust (IBIT), as its outright IBIT holdings rose about 12%—a sign Swiss banks are still leaning into crypto despite volatility. Swiss Financial Security: Switzerland’s financial regulator warned banks and insurers about rising cyberattacks and AI-related risks, pushing firms to tighten controls. Swiss Wealth Under Pressure: Geneva’s ultra-rich are being targeted in a “homejacking” spree, with authorities using video footage, number-plate recognition and tougher border policing. Banking Policy Watch: Switzerland is debating stricter rules on bankers’ bonuses, including proposals for mandatory deferral, as lawmakers weigh how to strengthen oversight. Trade & Tariffs: The US moved to impose new tariffs on drones and components, with Switzerland mentioned among affected partners—raising compliance and supply-chain questions for Swiss exporters. Climate Risk for Business: Europe’s heatwaves are exposing an insurance gap, with hospitality and other firms reporting sharp revenue hits when extreme heat falls outside standard coverage. Arctic Shipping Shift: A Chinese container vessel launched a faster Europe route via the Arctic’s Northern Sea Route, cutting transit times but drawing environmental criticism. Energy Trading Angle: A report highlights SOCAR’s growing reliance on Switzerland-linked trading revenue, underscoring how Swiss commodity infrastructure keeps shaping global energy flows.

FINMA Cyber & AI Warning: Switzerland’s financial regulator FINMA says cyberattacks are rising sharply across banks and insurers, with AI risks spreading across the whole sector—not just one firm—and urges tighter control of operational risk, including from third-party providers, while it also ramps up its own AI use and international cooperation. Swiss Aviation & Manufacturing: Pilatus opened a CHF 100m composite manufacturing center in Nidwalden to scale lighter-weight aircraft production, bringing composite development and production under one roof. Swiss Security for the Ultra-Rich: Geneva faces a spike in “home-jacking” robberies targeting wealthy residents, with gangs reportedly studying victims via social media and fleeing into France with valuables. Swiss Business & Markets: Swissquote cut its revenue target as crypto income fell 66.2%, highlighting how volatile digital assets are feeding into Swiss brokerage earnings. Global Trade Shock Hitting Tech Supply Chains: Trump’s new up-to-100% drone tariffs (with higher rates for thermal and heavier drones) are set to raise costs and pressure drone supply chains, with the US still reliant on China-made key components. Swiss Economy Watch: Coverage also points to Switzerland’s fastest growth since 2021, alongside ongoing debate over stricter bank bonus rules and the Swiss-EU relationship.

Defence Supply Crunch: Europe’s push to boost ammunition output is running into a nitrocellulose shortage, with Eurenco restarting production in France and Rheinmetall converting a German plant—while Switzerland’s Nitrochemie at Wimmis supports propellant expansion, highlighting how tightly the continent’s defence supply chains are now linked. Drone Tariffs Shock: The US is set to impose tariffs on imported drones and components—100% on “sensitive” models, 25% on smaller drones, and 15% for the EU, Japan, Liechtenstein and Switzerland—aimed at reducing reliance on foreign suppliers and accelerating domestic manufacturing. Swiss Finance & Security: Liechtenstein says it won’t pay ransom after a major cyberattack on its foundations and trusts registry, underscoring the growing risk for financial centres. Luxury Trade Demand: Coastal Timepieces reports a 20% jump in pre-owned watch trade-ins, reflecting a shift toward watches as tangible, portfolio-style investments. Diplomacy Appointment: Switzerland names Dr Thomas Oertle as ambassador-designate to Ghana, Benin and Togo, with a background spanning Africa and development cooperation. Markets & Policy: Switzerland’s economy is reported to be growing at its fastest pace since 2021, while Swiss Re warns Europe’s heat risk is underestimated. Business Expansion: Cencosud is expanding Argentina’s Unicenter with a Swiss Medical centre planned to serve 20,000+ patients per month.

Drone Tariffs Hit Allies Including Switzerland: The US has imposed new import duties on drones and components under Section 232: 100% on “sensitive” drones over 25kg and thermal-imaging systems (plus some docking stations and key parts), 25% on smaller models, and lower rates for allies—15% for the EU, Japan, South Korea, Liechtenstein and Switzerland (and Taiwan), and 10% for the UK if origin rules are met. The tariffs start in 21 days, with some component timelines extending into 2027, alongside onshoring incentives. Swiss Business Angle: The move is already reshaping expectations for drone supply chains and costs for European and Swiss-linked hardware. Tech & Privacy: OpenAI’s ChatGPT for Mac adds an opt-in “Computer History” timeline feature, with access rolling out to Switzerland/EEA. Industry & Automation: Vale and ABB (Zurich) expand AI-driven automation for iron-ore processing in Brazil. Swiss Health & Policy: Swiss drug discounts not passed on are called “organised theft,” while Swiss Re warns Europe’s heat risk is underestimated. Safety Watch: Gunvor Energy’s Rotterdam facility accident killed one and injured six during maintenance.

US Tariffs on Drones: President Trump signed a proclamation imposing duties up to 100% on certain imported drones and components, with a 25% rate for smaller models and a 15% cap for shipments from Switzerland and the EU (10% for the UK), citing national security; the main changes start Sept. 3. Swiss Startup Funding: ETH Zurich spin-off Aisot Technologies (Zurich) raised €2.13m (CHF 2m) to bring agentic AI and portfolio intelligence to wealth managers and family offices. AI Infrastructure as an Asset Class: Nvidia’s reported $500bn private capital push highlights how AI data-centre buildouts are becoming financeable for mainstream investors, including Swiss wealth managers. Swiss Banking Watch: Swissquote cut full-year guidance after 1H crypto income fell 66%, while UBS awaits Swiss lawmakers’ decision on capital reforms and Swiss authorities consult on tighter “too-big-to-fail” rules. Zurich Incident: Swimmers found a live hand grenade in the Limmat; army explosive specialists removed it with no injuries reported. Business Aviation: Swiss platform PeakJet launched its first semi-private flight between Zurich and Palma de Mallorca, using VistaJet capacity.

Swissquote Crypto Shock: Swissquote cut full-year guidance after 1H crypto net income fell 66% to CHF 14.6m, with crypto trading volume down 63.5% and shares sliding. Gold Outlook: UBS says gold could challenge $5,000/oz in H1 2027 as real rates fall, the USD softens and sovereign demand stays strong. Swiss Markets: The SMI edged higher while Swiss producer prices fell again, keeping the macro tone mixed. Banking & Crypto Flows: UBS tripled its iShares Bitcoin Trust stake to about $90m (2.5m shares), signaling growing institutional appetite. Energy Security: Energocom says it has contracted 76% of gas needs for 2026–27 and fully bought the Oct–Mar volume, with pricing linked to TTF. Swiss Pharma Access: Interpharma warns MFN rules are worsening medicines access. Regulation Watch: Swiss Re and SAS partner on AI-driven risk intelligence for insurers. Immigration Rules: Switzerland set out conditions for extending residency permits after divorce/separation or a partner’s death. Corporate Compliance: BAE Systems faces a $36m penalty after 104 US arms export rule violations. Health Trials: ADC Therapeutics says the FDA has “substantial concerns” over a lymphoma trial, complicating its approval path. Workplace Incident: Gunvor Energy’s Rotterdam site explosion killed one and injured six during tank maintenance. Culture & Economy: Switzerland selected Nicolas Wadimoff’s Gaza-focused documentary “Who Is Still Alive” for the Oscars.

FIFA Power Struggle: PSG president Nasser Al-Khelaifi says he is not a candidate to succeed Gianni Infantino as FIFA chief, dousing speculation after UEFA Super Cup talks. Swiss Finance & Regulation: Switzerland moves to tighten rules on bankers’ bonuses and strengthen FINMA, as policymakers push for more oversight after the Credit Suisse era. Swiss Business in Global Markets: Julius Baer leases 74,037 sq ft of office space in Mumbai’s Andheri East for a five-year commitment; Kuehne+Nagel expands its Phnom Penh Container Freight Station with a new 20,000 sqm facility due in 2027; ABB and Vale deepen AI and automation for iron ore processing across Vale sites in Brazil. Climate & Risk: Ski resorts in the Alps are turning to snow cannons to cope with wildfire pressure and unreliable snow. AI Skills Pay: A Manpower Switzerland survey finds 56% of employers are willing to pay more for AI-skilled staff, with critical thinking still top of mind. Energy & Shipping: An oil slick reaches Oman as Iran signals a long confrontation, keeping Strait of Hormuz traffic low and oil markets tense. Corporate Results: Kuros Biosciences reports 45% H1 2026 sales growth and improved profitability.

Banking Reform: Switzerland has launched consultations on stricter rules for bankers’ bonuses, aiming to curb risk-taking after the Credit Suisse collapse, with bonus withholding or recovery for top managers at systemically important banks; the process runs from late August to November. AI & Tech Diplomacy: Switzerland’s foreign minister met the Swiss ambassador in Bulgaria to push closer economic and technology ties, including high-tech, AI and innovative medicine, citing the INSAIT model with ETH Zurich and EPFL. Swiss AI Push: A Swiss-backed “AI Hub Switzerland” platform was launched in Hyderabad to help firms and researchers navigate AI tools and governance frameworks, including the EU AI Act. Corporate Restructuring: Just Eat Takeaway plans to stop delivery services in Bulgaria from September 15, affecting about 220 employees and 480 couriers. Markets & Brands: Zurich sportswear On shares slid after weaker-than-expected Q2 Americas sales, while Roger Federer’s billionaire status reportedly fell with the stock drop. Energy & Water: Low Rhine water levels are again disrupting European shipping, raising pressure on supply chains.

Sanctions Watch: Switzerland expanded its Russia sanctions, adding 45 entities and 9 individuals tied to defence-linked activity and the “shadow fleet,” effective Aug. 11. Climate & Risk: Swiss Re says global economic losses from natural disasters fell to $100bn in H1 2026, but warns the second half can spike; Europe’s wildfire risk is rising fast. Energy Transition: Holcim UAE, with 44.01, started a continuous carbon capture and underground mineralisation pilot at its Fujairah cement plant, targeting about 4–4.5 tonnes of CO₂ per day. Regulation & Finance: FINMA’s role in Switzerland’s financial sector is highlighted, with the sector generating CHF 74bn in 2024 and supporting about 222,800 jobs. Travel & Borders: Europe’s new border system is already doubling airport arrival queues, with some waits projected up to six hours. Business & Markets: Radiant World’s creditor count in Singapore has more than doubled since 2025 amid trading and document concerns. Sports Business: Roger Federer reportedly slipped out of billionaire status after On Holding’s share price fell sharply.