Financial

Developed economies are generally holding up despite a European recession caused by efforts to reduce government deficits. In the US, the property market purge is close to ending and US growth in 2010 should be more robust.

Confidence seems to have returned to markets since the beginning of 2012. Risky assets have generally benefited from this recovery, none more so than emerging country bonds. Even so, their appeal is not only due to a revival in risk appetites: for both fundamental and technical reasons, emerging debt is increasingly considered as a core portfolio holding even if it is still essential to remain selective.

2011 featured a tough economic and stockmarket environment. It also brought continuing pressure on banking secrecy and heavier regulation of wealth management that drove up operating costs. The weakness of the dollar and euro against the Swiss franc weighed heavily on revenues, the bulk of which are denominated in the former currencies whereas overheads are mainly in francs.

Christophe de Backer, Chairman of the Executive Committee of Banque Privée Edmond de Rothschild S.A. in Geneva (as of 26 April 2012) has been appointed Director and General Manager of Compagnie Financière Saint-Honoré in Paris (as of 23 May 2012). Marc Samuel is appointed Chairman of the Executive Board of La Compagnie Financière Edmond de Rothschild Banque in Paris (as of 23 May 2012).

After a bleak 2011, markets have been enjoying an energetic rally over the last 3 months. Markets are closing higher, Italian and Spanish yields are back to bearable levels and the Dow Jones has now moved above the symbolic 13,000 level for the first time since May 20 2008. But does this mean that the crisis is over?