The Swiss decide to rock the markets

The Swiss central bank has removed the peg to euro today, which instantly resulted in a market tumble, as the franc jumped almost 30% in value.

As Swatch CEO told Reuters:

Swatch Group chief executive Nick Hayek called the Swiss National Bank’s decision to discontinue the minimum exchange rate on the Swiss franc a “tsunami” for the Alpine country and its economy.

So far the Swatch Group is down by 10%, Richemont by 11%.
What does it mean for the luxury goods industry? Will the franc stabilise quickly? If not, we will definitely see price increases across the board. Will this also result in a great year for non-swiss watch brands, like Bremont? Time will tell.

The twittersphere reacted with the usual diligence: