Norwegian Economy | This is what the newspapers wrote about the economy on Tuesday, June 20

Norwegian Economy |  This is what the newspapers wrote about the economy on Tuesday, June 20

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New report: animal season hits harder – 153,000 households ‘in bad shape’ (NTB)
A new report from Sifo finds that the wildlife crisis is getting wider and deeper. Nearly two in ten families now have financial challenges. – We see that we have clearer differences. On the one hand, we have up to three-quarters of those who manage well or very well, but on the other we have up to 18 percent who suffer greatly, says researcher Christian Pope at NTB’s SIFO consumer research institute. Read more

– The Bank of Norway must have ice in its stomach (finansavicin)
Kyrre M. Knudsen, SR-Bank, believes Norges Bank will settle at 25 basis points on Thursday. He believes that the market will win if the Norwegian bank tries to defend the kroner exchange rate level. Not all Norwegian macroeconomists are convinced that the Norges Bank will make a double digit increase on Thursday. SR-Bank’s chief economist Kerry M. Knudsen expects a 25 basis point rate hike but, like most others, believes Norges Bank won’t give up until the interest rate is 4.00 percent, likely in September. – Norges Bank’s mandate dictates that they will be flexible, and furthermore they must take into account that Norwegians have a lot of debt at variable rates, says Knudsen. Knudsen has a message for the central bank regarding the krone: – If I, as a speculator, had thought that the Norges Bank would defend an exchange rate of, say, 11.50 against the euro, it would be a strategy that central banks rarely win. We saw how the krone was driven by speculators when we still had a fixed exchange rate, and Switzerland has seen the same thing recently. The Bank of Norway should not have exchange rate targets. He believes that the Bank of Norway should look at how to implement the daily sale of kroner. Perhaps the central bank should not be so open. Players now know each month how much Norges Bank will sell, and can use that as a basis in their models. Knudsen compares with an oil fund, which receives the currency that Norges Bank buys: – They will never announce that they will buy Coca-Cola shares every day for the next month. If the goal is to limit fluctuations in the krone exchange rate, Norges Bank should not be so predictable. It is rarely a good sign of increased volatility, and it can also affect the direction of the krone exchange rate. Read more

Doubt to a quarter (finansavicin)
It’s almost completely open, Frank Jullum admits, but he thinks Norges Bank will settle for a quarter on Thursday. It’s almost a dead end, but Danske Bank landed Norges Bank and raised interest rates by 25 basis points on Thursday, not 50, as many of its rivals believe. After this week’s increase, a quarter is likely to come in both August and September, but Danske Bank believes there is also a 40 percent chance of a third increase in the fall. In this case, the prime interest rate is 4.25 percent. Read more

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Concerns curb construction: – Future generations are in a bad place (DN)
The sudden slowdown in new home construction means that the construction industry is getting fewer projects. Housing developers think it could bypass the wallets of future homebuyers pretty badly. Read more

Fear and Faith in the Housing Market (Kari Due Andersen, Chief Economist, Akershus Eiendom) (DN)
Extremely high construction costs and weak demand are slowing the start-up of new homes. However, plots for housing development are selling at good prices in a slow market. Read more

Criticizes the Norwegian Competition Authority’s message: – devoid of facts (H24)
According to the Norwegian Competition Authority, there are now smaller purchase price differences for grocery chains. Lobbyist Rima 1000 believes there is still an urgent need for regulation. – They didn’t say anything about the size of the reduction or the size of the differences now. So we just have to guess. But what we do know is that the Norwegian Competition Authority has previously said that even small differences, between 3 and 5 percent, are major barriers to incorporation. Therefore, proposed government regulations still need to be put in place, says Kårstein Eidem Løvaas, authority contact for Reitan 1000 owner Reitan Retail. Read more

The government’s solar cell targets require developing areas equivalent to 8,700 football fields (class struggle)
The government-planned solar development corresponds to areas totaling 8,700 football fields. Renewed Norway believes that this is possible without paralyzing conflicts. Read more

Agreement between the associations of the Union of June and Ferk (NTB)
Unio consortia reached an agreement on Monday evening for members working in the health, education and culture (HUK) businesses. – The settlement in Firke ensures wages and working conditions for our members are at the same level as in the public sector, says Erik Rikardsen of the Norwegian Nurses Association, who led negotiations for the unions. Read more

The government will introduce the world’s first demand for equality in the councils: – I think this will go well (DN)
Norwegian companies have to look for 8,000 new board members next year, and most of them must be women. Read more

SMB Norway with harsh criticism of the new quota rules (finansavicin)
The government has proposed new guidelines for gender quotas on boards. On the contrary, SMB Norway does not agree with the proposal. – The government should stay away, says Managing Director Jorond Reitmann. Read more

Negative for women’s demands: – Incredible perversion (DN)
Civita leader Christine Klimt describes the quota proposal as token politics. She believes that the government should instead engage with its own institutions to improve gender equality. We have a very gender-divided labor market. Among other things, we have an increasingly higher percentage of women in school. If we get a development where children only meet women in the classroom, it will have more serious consequences than if there are very few women on boards. This is something that is hard to do anything about. But rather than doing something about its enterprises, the government chooses to shift the responsibility onto others by increasing the proportion of women in limited companies, Klimt says. Read more

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Woman – Get to know your driving seat (Anita Hoemsnes, DN)
Over the next four years, 13,000 women will find themselves in a boardroom at a company they hopefully know a little bit about. The NHO paved the way for a landmark quota law. Read more

Lawyers warn women of the councils (finansavicin)
Jan-Christian Pfister, LO and NHO celebrate “historic agreement” on investing widely in women on boards. Lawyers warn of bad pay, a lot of work, and great personal financial risk. Read more

Hedge fund king moves to Sweden (finansavicin)
Hedge fund manager Svein Rune Høgset has built up a fortune of over NOK 300 million. Now he is moving from Oslo to Stockholm. There is no wealth tax in Sweden, but the Supreme Court has to settle the issue of paying wealth tax to Norway for three years. Corporate tax is only 20.6 percent, which is close to the lowest level in Europe. “When it comes to dividends, you pay a dividend of 20 percent if you withdraw moderate amounts, not large amounts. The starting point is the wage base of the group. If you have many employees, you can take big profits with a 20 percent tax.” says billionaire Kjetil Holta, who has lived in Gothenburg since 2016, says, “It’s a big difference from the 37.84 percent dividend tax in Norway.” Read more

Telenor with a new company: it will build data centers (finansavicin)
Telenor and Hafslund will collaborate to build three data centers. The new company aspires to build three data centers, with a total capacity of 40 megawatts, in the capital region. Development of the first data center in Oslo will begin at the end of 2023. Read more

The country is flying high on private equity investments (finansavicin)
Despite the uncertainty in the financial markets and major changes in management, private equity continues to do well for Argentum. Last year, the profit ended at NOK 1.2 billion. Read more

EU ministers argued about energy market reform (NTB)
European Union countries have not been able to agree on reforming the electricity market in the union, says Swedish Energy Minister Ebba Bosch. But the meeting ended without result because ministers disagreed sharply when it came to extending coal subsidies. Read more

There is no “quick fix” for China (finansavicin)
Experts believe that it will take a long time before the Chinese economy reaches previous levels. Read more

Bygdøy’s new mansion in Spitalen could set a price record (finansavicin)
The plan was to build three apartments. Now Øystein Stray Spetalens wants to convert the impressive building into a detached house, and many can indicate that the investor has a buyer on the hook. The estate agents previously indicated to Avisa Oslo that the apartment would end up priced at around NOK 100 million each. It’s difficult to estimate how much a potential buyer would have to put on the table to secure the pearl of a detached home, but estate agent Nils M Noordwijk thinks it will be expensive. – Probably no less than NOK 300 million. Maybe more, says Noordwijk. Read more

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Bought a private island for £43m last year – sold for £35 this year (finansavicin)
Last year, two eager bidders sent the price of a private island in the Oslofjord from 30 to 43 million. This year the island is up for sale again – with a sharp price cut. Read more

Mona Høiness lowered the price from 125 million to 79.8 million for the luxury villa in Frogner (DN)
After nearly three years without a sale, attorney Mona Hoenes has lowered the price of Villa Frogner by NOK 45.2 million. – We are going through a re-pricing of the most expensive segment, says real estate agent Hans Hoyland. Read more

He believes that the Nordic region will become a “NATO hub”: require a joint security clearance from the Nordic countries (DN)
Telenor CEO Sigve Brekke wants security personnel to be able to operate across the Nordic countries because of the growing threat profile. The security authorities have a different opinion. Read more

Helseforening is doing a loan review for its general secretary (DN)
A loan of NOK three million to the General Secretary of the National Heart and Lung Society will be legally reviewed by the Monitoring Committee. Read more

The world has fallen into a luxury trap (Sindre Heyerdahl, E24)
Many countries are mired in debt, while interest rates are rising. The past year witnessed several severe crises. More is coming. Read more

Rolf Asif: – We need more rock stars among the founders (H24)
He’s been a birthing assistant for hundreds of Norwegian start-ups and knows what can go wrong. Here are Rolf Asif’s three tips for those who want to start their own business. Read more

Powell is wrong about inflation (finansavicin)
Stig Rognstad believes that inflation in the United States will reach 2.5 percent by the new year, and that a decrease will lead to lower interest rates, a weaker dollar and a higher cost of oil. Read more


Also read: This is what the newspapers wrote about politics on Tuesday, June 20

Also read: This is what the newspapers wrote about the stock exchange on Tuesday, June 20

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

Dalila Awolowo

Dalila Awolowo

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