20/03/2026

BIZ & FINANCE FRIDAY | MAR 20, 2026

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Swatch CEO concerned about surge in value of Swiss franc ZURICH: Swatch Group CEO Nick Hayek has expressed concern about the strength of the Swiss franc, Swiss broadcaster SRF reported, saying the safe-haven currency’s appreciation was putting domestic industry at risk. The franc has recently risen to 11-year highs against the euro, and has also continued to appreciate against the dollar, making Swiss products more expensive abroad and squeezing manufacturers’ profit margins. Hayek, whose company owns watch brands including Longines, Omega and Tissot, accused the Swiss National Bank of not responding to the appreciation for fear of being branded a currency manipulator by Washington. “We have nothing against a strong Swiss franc,“ Hayek told SRF. “But its current strength against all currencies is so excessive that it’s becoming impossible to continue manufacturing industrial products in this country. “My concern is that the Swiss National Bank isn’t recognising the problem,“ he added. “It’s remaining silent, fearing that Donald Trump might see it as a currency manipulator and punish it with higher tariffs.” The SNB declined to comment. Earlier this month, the central bank said it was more willing to intervene in foreign currency markets to check a rapid and excessive appreciation of the franc. Hayek warned that smaller manufacturers could be forced to move production abroad or shut down. “When industry struggles, the whole country suffers. “It’s about the social fabric: apprentices, factories, the know-how to manufacture a product in Switzerland. “I don’t want to do without that,“ he said. Swatch Group was also seeking reimbursement for American customs duties paid under tariffs imposed by President Donald Trump, with potential refunds amounting to tens of millions, Hayek said. “Everyone wants to get back unjustly paid customs duties. Our branches in America are already working on it, together with our lawyers,“ Hayek said. “In the end, we’re talking about refunds in the tens of millions, and the chances are good that we’ll get it back.” – Reuters

Global music market grows, driven by online streaming

John had branded the plans “criminal” and more than 1,000 musicians including Kate Bush and Damon Albarn released a silent album last year in protest. “We have listened,” Technology Minister Liz Kendall said in a written statement to parliament on Wednesday, confirming the government had dropped its stance. She added, however, that the government “no longer has a preferred option” for what to do instead. The development comes as countries grapple with how to take advantage of artificial intelligence without endangering the creative industries. Prime Minister Keir Starmer has previously said the UK government needs to “get the balance right” with copyright and AI while noting that the technology represented “a huge opportunity”. Musicians had argued the planned changes would have upended copyright laws and threaten the livelihoods of artists. – AFP Lamborghini’s 2025 profit dented by US tariffs, EV U-turn MILAN: Italian sports carmaker Lamborghini yesterday reported weaker 2025 earnings despite record revenue, after US tariffs, currency moves and charges related to scrapping its announced first fully electric vehicle weighed on the results. Revenue at the luxury brand owned by Volkswagen rose 3.3% to €3.2 billion (RM14.6 billion) as deliveries hit a record 10,747 units. But operating income slipped to €768 million from €835 million in 2024. US tariffs hit both sales and margins in Lamborghini’s biggest market. The carmaker raised its prices last year, but not enough to offset the tariff rates, CEO Stephan Winkelmann told reporters. Lamborghini does not plan further price increases this year“as we do not think this is something helping the market at this time“, Winkelmann said. Lamborghini cushioned external pressures through cost control and increasing sales of pricier vehicles, supported by its €515,000 Revuelto sports car and by greater client requests for high-margin vehicle customisation, it said. Earlier this year, it cancelled plans for an EV sports car in 2030, citing weak demand and concerns over returns on hefty investments. “Resistance to EVs has increased significantly worldwide in our segment,”Winkelmann said. “Many customers have tried EVs, but let’s say their experience didn’t quite live up to their expectations”. – Reuters

creators,” the group said. Suno reached an agreement with record label Warner Music Group in November to compensate artists whose work is used to create AI-generated tracks. Revenues from physical formats were up, including from vinyl which grew 13.7%. Asia drove the rise in vinyls and CDs, while these formats were almost non-existent in the North Africa and Middle East market, where streaming accounts for 97.5% of revenue. Taylor Swift was the biggest-selling global artist of 2025, followed by Korean group Stray kids and Canadian rapper Drake. Meanwhile, Britain’s government on Wednesday backtracked on planned changes regarding copyright and AI after an outcry from musicians including pop legend Elton John. The Labour administration had intended to allow firms developing AI models to use creators’ content freely unless the rights holders opted out.

o Industry body calls for AI compensation and copyright protection

LONDON: The global music industry generated US$31.7 billion last year, driven by online streaming, industry body IFPI said on Wednesday, as it called on the sector to ensure AI-generated content compensates musicians. Music revenues rose 6.4%, marking the eleventh consecutive year of expansion, according to the International Federation of the Phonographic Industry, which represents more than 8,000 global record labels. Streaming accounted for nearly 70% of annual revenue, with paid streaming subscriptions reaching 837 million subscribers worldwide. But the IFPI warned against the increasing threat of AI-generated streams of fake content. “Streaming fraud is theft, plain and simple,” the group said in its annual report, calling instead

for technology to “support and enhance creativity, not replace it”. AI-generated tracks regularly go viral, such as the runaway success of an AI cover of Belgian musician Stromae’s Papaoutai at the end of January. According to the report, Deezer revealed that it receives more than 60,000 AI-generated tracks every day. AI music generation platforms – such as US based Suno and Udio – argue their work is covered by the American copyright loophole of “fair use”, which does not require rights holders’ consent. The IFPI urged policymakers to uphold copyright protections. “Music is embracing the future, demonstrated by record company partnerships with generative AI developers who respect the rights of

A billboard advertises Taylor Swift’s new album ‘The Life of a Showgirl’ in Times Square in New York City. – REUTERSPIC

Germany vows to double data centre capacity by 2030 BERLIN: Germany on Wednesday pledged to double its data centre capacity by 2030 as Europe’s top economy looks on nervously at the power of American tech giants. “Every new data centre in Germany strengthens our digital sovereignty,“ he added. Harald Wehnes, professor of computer science at the University of Wuerzburg, praised the government’s strategy but told AFP that building out capacity did not by itself guarantee digital sovereignty. “Real sovereignty only comes once operators are fully subject to European law.”

Speaking alongside Wildberger, Economy and Energy Minister Katherina Reiche said the government would speed up approval procedures and try and provide cheap energy as part of the strategy. “This strategy is based on the belief that data centres are about more than just digital policy,“ she said. “It is industrial policy. It is energy policy. It is infrastructure policy.” – AFP

Spooked by a lack of big European tech champions to compete with US giants, EU leaders have scrambled to build out digital infrastructure and pushed “digital sovereignty” as an alternative to reliance on US technology. The worries have only grown as US President Donald Trump’s administration has taken a more confrontational tone with EU leaders on issues from trade to defence.

“By 2030, we aim to at least double our data centre capacity and quadruple our capacity for artificial intelligence and high-performance computing,“ said Digital Minister Karsten Wildberger. “Without a massive increase in capacity, we will not be able to keep pace in the global race for AI,“ he told a press conference.

“Computing power is the raw material of the digital age. Those who lack their own will inevitably outsource innovation and control over their data abroad, running the risk of becoming a digital colony.“ “But a Google or Amazon Web Services data centre in Frankfurt is still subject to US law,“ he added.