Geneva- The Swiss National Bank reported Friday a 8.5 billion franc (8.71 billion dollars) loss in the first nine months of 2010, citing exchange rate loss as the main reasons.
However, according to SNB, earnings on foreign currency investments and valuation gains on gold and the UBS stabilization fund "all had a positive impact on the result," a statement said.
It mentioned that risks from the stabilization fund, set up to support banking giants UBS in 2008 when the crisis -hit bank needed a bailout, were declining in the first three quarters this year.
The appreciation of Switzerland's currency this year, owing to its status as a safe haven and the impact of monetary policy decisions in other countries, led to exchange rate losses that totaled 21.2 billion frances, data showed.
Central bankers have warned as recently as last week that they were ready to act if the rising franc would cause deflationary risks. They are already predictions that Swiss inflation could turn negative for a brief period next year.
The SNB earlier this year made market interventions to weaken the franc versus the euro, but in June stopped purchasing foreign currencies, saying deflation risks have "largely disappeared," though economic conditions have since changed once again.
Regarding its gold, the bank said it holds 1.040 tonnes of the precious metal in the form of currency reserves and made 4.6 billion frances in valuation gains this year, as the price of gold has skyrocketed.
Another story is below, and it looks like Hollywood and Bollywood going to be creating films together:
Hollywood, Bollywood ink deal on films
New Delhi- The worlds two leading film industries have announced an agreement to strengthen joint productions and commercial cooperation, a press release said Thursday.
Between the two, the US and Indian film industries (Hollywood and Bollywood) produce most of the world's commercial films.
The pact between the city of Los Angeles-home to Hollywood- and the Indian film industry represented by the Film and Television Producers Guild of India and Film Federation of India was signed at the Paramount Pictures Studios, a statement issued by the Motion Picture Association of America said.
Hollywood and Bollywood, "agree to develop and strengthen motion picture production, distribution, technology, content protection and commercial cooperation between the two film-making communities."
The two sides also aim at creating a joint film council to encourage Indian film production in Los Angeles.
India has always held fascination for Hollywood and this agreement pulls us closer together with the aim of sharing ideas and best practices on domestic and international film production," said producer Bobby Bedi, who represented the Indian delegation.
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