Norwegian Economy | This is what the newspapers wrote about the economy on Tuesday, April 11th

Norwegian Economy |  This is what the newspapers wrote about the economy on Tuesday, April 11th

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Simply put, we do not have a Norwegian economy of our own (by Harald Magnus Andreassen, Chief Economist, Sparebank 1 Markets) (DN)
Policy mistakes must be significant before they have visible consequences for the economy. And we don’t really have a Norwegian economy of our own, based on what we can read from market movements. When Norway fluctuates closely with the global economy, it is not primarily because we trade so much with others, but rather that we act very much like others. Fluctuations in demand for Norwegian homes and businesses are the driver, not exports. The fact that we are connected to the rest of the world through the prices of many goods and services also contributes. Politics is not unimportant, but we don’t find the implications again, because politics was not usually any different from what we see in other countries either. Halo metrics and rising interest rates are good examples. Simply put, we do not have a Norwegian economy of our own. Read more

– He understands very well that people are moving to Switzerland (finansavicin)
“Earning half a percent after taxes is completely ridiculous,” Per Brandvold says of his rental property in Oslo. He believes that the level of taxation now makes investing uninteresting. With today’s interest and tax levels, Brandvold has calculated that the monthly rent for a two-bedroom apartment should rise to NOK 25,000 to defend what he calls the normal rate of return. – 3 percent direct return after tax is not unreasonable, he believes, and indicates that no bank will provide financing to a private investor as the account is now. – There is simply no place for interest and installments when the rent is NOK 14-15,000 per month. Read more

The Norwegian in Zurich had 50-60 migrants at stake: – Less than ten percent want to go home (DN)
ZURICH: Per Utnegaard was at the helm of the business world in Switzerland, helping a group of Norwegian families fleeing taxes. DNB and Credit Suisse also want a piece of the pie. Read more

Torvik’s commission doesn’t go far enough (by Øystein Dørum, NHO Chief Economist) (DN)
Torvik’s commission recommends a lower wealth and dividend tax, but it doesn’t go far enough. After a fall with large business tax increases, partly retroactive, and two years of significant tightening of owner taxes, the NHO and our member companies are concerned about the way forward. We hope that the Commission’s follow-up will lead to a more stable and predictable tax regime, with significantly better framework conditions for Norwegian private equity. Read more

Startup vs. Tax Increase – Thinking of leaving Norway (H24)
Fintech company Ztl has to pay the employer additional tax for almost all employees, even if they are far from profitable. This means the top manager is considering whether he should build a team in Sweden instead. Read more

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Tax tightening of the times, taxpayers are coping (By Jon Gunnar Pedersen and Tore Grobuck-Famrak, former Undersecretaries of the Department of Finance (H) (DN)
The Støre government implemented tax tightening at the time, exceeding even Rødt’s pre-election demands. It also tightened taxes on wealth to a higher level than under Stoltenberg in 2013. Read more

I think the new rules can lead to more temps – not fewer (finansavicin)
The ban on hiring for work of a temporary nature from 1 April means the oil industry must now get rid of permanent staff at staffing firms, and hire temporary staff themselves. – The government admitted in the preparatory work that it did not want this to lead to an increase in the use of temporary workers. But many could indicate that there will be an increase in temporary hiring as a result of the new rules, says employment law attorney Trine Fabo at Thommessen’s Stavanger’s office. This is also indicated by numbers from the Finn.no job portal. Here, there are 1,303 jobs under the project category, and half of these jobs, a total of 641 jobs, are in the oil and gas industry. 215 vacancies in the project on and offshore. Read more

We can’t have low interest rates and a strong krone (by Terje Erikstad, DN)
Nobody knows what the “correct” exchange rate is for the krone. But what we do know is that in order for the krone to strengthen, the interest rate must be raised. Read more

Norges Bank’s role as Ghostbuster (Written by Tom Eric Steervold-Varmin, Nordken Asset Management) (Capital)
Are central banks able to kill the specter of inflation? Given that nothing else unexpected emerges, it looks like the interest rate peak will be higher and push away in time than the market expects. Norway is likely to be affected by higher energy prices, but otherwise things look bleak, especially for high-yield sectors and sectors with companies with a high debt ratio. Not least because Norges Bank has left a weapon that isn’t as effective as it was the last time they fought the specter of inflation, so the stage is probably ripe for overruns. Read more

Chief Economist on interest rate forecasts: – We are entering some crucial weeks (DN)
This week delivers new inflation numbers from many of the world’s most important economies – numbers that will influence how far central banks raise interest rates. The chief economist believes that the next few weeks could mean a lot for the global financial markets. Read more

The miner market is in a scramble that opens the door for foreign investors (finansavicin)
While in the record year 2021, commercial real estate traded nearly NOK 170 billion in Norway, volume fell to around NOK 93 billion last year, according to DNB Næringsmegling statistics. The current year continues in the same downward trajectory. It is true that the first quarter always tends to be slow, but in the first three months of the year only about 8 billion were traded – compared to 19 in the same period in 2022. Higher interest rates and more restricted banks are the main natural explanation. Increased yield means lower property values, even if the rental market remains strong. The question many people ask themselves is whether the writedowns are strong enough. Read more

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Multi-billion dollar growing family business: – Will never sell (H24)
She is the top manager of the third generation family-owned electrical appliance wholesaler. Hege Amundsen Elvstad believes that Norwegian tax policy is now facilitating more foreign owners, but rejects all advances himself. Read more

More expensive and harder for the business (finansavicin)
The new rules from April 1 have made everyday life both more expensive and more difficult for an already stressed business community, write Ane Bergo and Live Sjøli at DLA Piper. – Animal time has become more expensive since April 1st. From this date, new and stricter rules apply to recruitment from headhunters (temp agencies). Now the affected companies must find alternative ways to cover their temporary labor needs. It won’t be easy. Read more

Looking at international companies in the cards. One figure reveals that many Norwegians are struggling. (H24)
Bankruptcy figures have caused quite a stir in many countries in recent months. – But other characters should worry more, the Norwegian CEO of Creditsafe believes. Read more

Towards industrial peaks: – No state dictatorship (H24)
Oil and Energy Minister Terje Aasland (AP) believes the state’s onshore wind plan is not the right way to go, but that municipalities should be given safer conditions if wind farms open up. Read more

Strikes should be avoided this year (Director, D.N.)
At the end of this week, we’ll know if this year’s wage settlement ends in a strike. Both parties should go to great lengths to avoid this in turbulent economic times. Read more

The state could lose the wage race (by Torbjørn Røe Isaksen)
Top managers in business have very high wages. It will be a problem if state-controlled companies cannot compete in the long run. Read more

Senior managers’ salaries may end this year (H24)
Many state-owned companies are out of touch with Industry Minister Jan-Christian Pfister’s demands for wages. Last year may have been the last year of high pay increases for senior managers. Read more

Acquisitions lead to price disputes (DN)
The new rules for home sales should lead to less fuss about status reports. Now, the acquisition of Norway’s largest valuation firm is sparking struggles over independence. Read more

Cabin Sale Ended: – Buyer and seller got the same aircraft (DN)
Cabin sales rose sharply for real estate agent Christian Hatoft last month: – The sellers realized something had to be done, he says. Read more

High Pressure Among First Time Buyers: – You can see it on offer (H24)
A real estate agent in Oslo warns of growing competition for the smallest homes. – We looked at a one-room apartment worth NOK 500,000 more than the appraised value, says the last homeowner. Read more

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Lawyers believe the FSA should step in after the Credit Suisse drama: – It would have boosted confidence (DN)
Norwegian banks have already noticed an increase in rates as a result of the write-down of Credit Suisse’s AT1 bonds. Bahar’s lawyers are seeking confirmation from the Norwegian Financial Supervisory Authority. Read more

Work for billions of offshore winds (finansavicin)
Projects are on their way. The competition is on. In Kristiansand, several local players have formed Southwind to secure the city as a base of operations for offshore wind. Read more

New wind farms could be stifled by increased costs (capital)
The giant Hornsea 3 project on England’s east coast is under threat from rising costs, and wind energy giant Oersted threatens to stunt growth. Costs in the wind energy industry are rising. Who picks up the bill? Read more

ChatGPT is a major content disruption (finansavicin)
ChatGPT will not replace companies, but companies that do not embrace the technology will be threatened by those who do, wrote NHH professor Tor W. Andreassen. Read more

Bubble Warnings – AI Stocks Collapse (finansavicin)
After rising rapidly in the past six months, many artificial intelligence stocks on Chinese stock exchanges fell on Monday. Economic Daily believes there are signs of a “valuation bubble”, because many companies have made little progress in developing the technology. Chinese artificial intelligence stocks fell after the state media Economic Daily called on the authorities to step up supervision of companies ahead of the weekend. This is what Bloomberg wrote. Read more

The World Bank expects further growth (NTB)
The World Bank projects that the global economy will likely grow by 2 percent this year, not by the 1.7 percent estimated in January. Read more

Strangling oil production – exceptions for some countries (finansavicin)
Saudi Aramco will export oil as before to countries in North Asia, despite significant production cuts. There are different opinions about how the demand for oil in Asia will develop in the future. Many large refineries are now cutting capacity, while investors expect increased demand, particularly from China, Reuters writes. A barrel of Brent oil is trading at just over $85 a barrel on Monday, while a barrel of WTI is trading at $80.80 a barrel. barrel. Read more

US unemployment fell in March – managers believe the recession will be delayed further (DN)
Olaf Chen and Harald Magnus Andreessen bet on America’s unemployment rate. There is a better dinner in pot: – It wouldn’t be Maaemo, says Andreassen. Read more

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Also read: This is what the newspapers wrote about politics on Tuesday, April 11th

Also read: This is what the newspapers wrote about the stock exchange on Tuesday, April 11th

You can find previous versions here (Policy), here (economy) f here (share trading)

Dalila Awolowo

Dalila Awolowo

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