Norwegian Economy | This is what the newspapers wrote about the economy on Friday, June 16th

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Climate goals will cost Norway dearly (finansavicin)
We will not be one of the richest countries in the world if we want to achieve climate goals. So it’s the currency that takes the hit, says Ivar Strombedal, and it does what Spitalen does: blame the politicians. An experienced financier already in 2014 reported that the euro would cost 12 NOK. Short-term fluctuations can come like lightning out of the blue, but longer movements are not “acts of God,” they are about politics and the political establishment. Since we do not take low prosperity in the form of lower wages and pensions, the market will arrange for us through low exchange rates until we lose a great deal of international purchasing power. Since 2013, we have spent more than NOK 150 billion on going green, almost all of which has gone into battery electric vehicles. This resulted in minimal improvement in emissions, and was not “messing” with the climate. Climate goals will cost Norway dearly, and we who live here will only get poorer. Read more

Waiting for two rate hikes (finansavicin)
Chief Economist Marius Gunsholt-Hof at Handelsbanken expects two interest rate hikes next week. Good news for the Norwegian economy, bad news for mortgage customers. On Thursday, the Bank of Norway presented a survey of more than 400 companies and institutions in the bank’s regional network. Almost immediately, Nordea and Handelsbanken both concluded that there would be a double rate hike next week of 0.5 percentage points. – Our first immediate conclusion is that there will be a double rate hike from Norges Bank, says chief economist Marius Gönsholt-Hof at Handelsbanken. Read more

Will we get new huge withdrawals from the Bank of Norway? (H24)
Within a week, the way was cleared for the Bank of Norway to raise interest rates again. Interest rate jumps are starting to show, but could hot inflation open the door to a big rate hike this time around? How will the Bank of Norway react to the krone shock? With Chief Economist Sarah Middegaard at Handelsbanken and Chief Economist Harald Magnus Andreassen at Sparebank 1 Markets. Program Director Asger Agha Nielsen and Producer Christine Aden. Read more

Where did the hard times go? (Magnus Vie Sundal, portfolio manager at Borea Asset Management) (DN)
Increased installment amounts are much less than the interest of the loan. Is it the simple explanation that so far we are mostly looking at hard times in the media, and not in the main characters? In September, it will be two years since zero interest rates have been history in Norway. Around the same time, we were reading that there were going to be hard times. It used to be a good Norwegian, especially in terms of the measure of household debt with variable interest. In regular conversations with bank directors across the country the topic often comes up: Banks have so far reported a somewhat different reality better than what I often read in the papers and believe we live in. It just got more expensive. For loans, however, less than the interest rate increase might intuitively suggest. Read more

The housing market is on its way to a major crisis (Director Trygve Hegnar, Finansavisen)
Many claim that a series of interest rate increases the Bank of Norway has already implemented from scratch does not work. In the dream. The housing market and the construction industry have come to a complete halt. When new apartment starts drop 89 percent from May 2022 to May 2023, it just comes to a halt. calamity. If we include all types of housing, the decline is 67 percent. Interest rate increases are paying off, and besides, most people have realized that there will be no real wage growth this year (with the exception of farmers). Our view: Things are really going to get worse next week. After all, (we think) Norges Bank will raise its key rate next week and into the fall. Read more

New rules stifle the industry (finansavicin)
Half of companies in Western Norway say they will lose work assignments after a ban on hiring from headhunters for temporary positions was imposed on 1 April. These numbers should ring all alarm bells, says Monica Meyland, managing director of the Bergen Business Council. It’s about a recent survey by business associations in Rogaland, Westland and More og Romsdal, which showed that 48 per cent of companies think the new employment rules will lead to job losses. Read more

This is what the regional network says about the activity in the Norwegian economy (finansavicin)
In the second report of the year from the regional network, companies reported that overall activity would increase somewhat in the second quarter and that it would continue into the third quarter. According to the companies in the regional network, activity growth has increased throughout the spring. In most industries, development is better than companies expected in the previous round, but there is still a wide divergence between industries, according to a report from the Bank of Norway on Tuesday. Read more

Survey by the Bank of Norway: The exchange rate of the krone increases the competitiveness of Norway (H24)
At the same time, it helps keep prices high. Now companies are envisioning wage growth of 5.4 percent, according to the regional network. Read more

The Danish pilot went to Bergen to buy a boat: – Lots of money to save (H24)
The weak Norwegian krone makes Danes look for boat dealers in Bergen. – We’ve never seen this before, says used boat seller Ståle Daae Børnes. Read more

Oslo housing rush ahead of the summer holidays – over 1,000 views at the weekend (finansavicin)
This winter, there were few homes for sale in Oslo and prices skyrocketed. Now the supply side has nearly doubled since Easter – to the highest level since before the pandemic. The number sold after the regular viewing round is also much lower than it was earlier this year. Read more

This is how Mike earned his tax-free rental income: – It is possible to make ATMs (E24 / your money back)
When Mike McMillan invested in his first rental property outside of Oslo, he used a little-known method to avoid paying taxes. At the same time, the house saw a significant increase in value. – With good deals and smart moves, it is actually possible to make money on machines that produce an average Norwegian salary every year. Plus, the tenants and the neighborhood get a home with better standards – a win-win for everyone! McMillan’s move is to buy a rental property, renovate it to an “original highest standard” and then rent it out. You can deduct costs related to maintenance from the tax on your rental income. Read more

The Norwegian Labor Inspectorate detected 1,900 violations – dropping fines for all but seven (DN)
After a year in which thousands of illegal wages and working conditions were exposed in Norwegian nightlife, almost no one has been fined – despite government promises. Now the Minister of Labor announces changes. Read more

The Oil Fund invested in 13 of the 28 companies included in Ukraine’s blacklist (H24)
At the turn of the year, the oil fund had assets worth NOK 62.9 billion in blacklisted companies, but had no plans to sell them. Read more

support rate (Sigrun Gjerløw Aasland, President, Environment Zero Foundation) (DN)
We must be careful with subsidies. This does not mean that they are not needed. Read more

Industry expert: – Electric vehicle customers are very disappointed (finansavicin)
– I’m skeptical about how fast it will go, says auto industry expert Trygve Larsen about the entry of the Chinese into Norway. Larsen, who began his journalistic career at Dagens Næringsliv in 1989, describes Chinese electric car parks where it is almost impossible to get spare parts. – People are distraught and car rental companies are so distraught that they can’t get spare parts. Cars are left in workshops or in car parks for months. Larsen says it’s not good. Read more

Bankruptcy of one of the largest brewing companies in the North: – It’s absolutely horrible (DN)
Craftco couldn’t keep up with sales and went into the millions after the pandemic trend came to a complete halt. Read more

Norway increased LNG exports by 2,500 percent (finansavicin)
Norwegian LNG exports to Europe increased by more than 2,500 percent after production from Snøhvit resumed. Read more

Lost against Oil Fund – $3.4 million in court costs to be paid (DN)
Elizabeth Paul Daei was unsuccessful in her accusations of harassment, gender discrimination, wages, and unlawful dismissal. Bull Daae thus loses his job at the oil fund and has to pay a total of NOK 3.4 million in court costs. The court had no doubts about the outcome, the ruling stated. “NBIM has successfully sought her acquittal of all charges and is therefore entitled to full reimbursement of her legal costs from Bull Daae,” she says. Read more

Very interesting and clear provision (Eva Grind, DN)
If the ruling is upheld, it will be absolutely crushing and Elizabeth Paul Day. Read more

Billionaire on Swiss Rules: – He can keep all the money himself (finansavicin)
Billionaire investor Jens Rogseth has moved to Switzerland. Here he offers his views on moving and investing from the Alpine country. Read more

A billionaire businessman moves to Switzerland: – What am I going to do with the land there? (DN)
Billionaire businessman Olaf Stangeland snorts those who are now traveling to Switzerland. He can’t think of anything more boring. Read more

Stordalen’s professional advice: – Leave more often (H24)
– Stop often. The advice comes from hotel owner and investor Petter Stordalen, 60, in a LinkedIn post earlier this year, where he shares his best career advice. For E24, he makes his advice clear. If you don’t enjoy your job for various reasons, you’d better find something else. It indicates the number of hours we spend working during the week, and therefore it is important that we can start the week with the desire to go to work. This is where his well-known catchphrase “Finally Monday!” comes from. Read more

Aylar gave a million in monstrous winnings (finansavicin)
Aylar Lie bought an apartment in Tjuvholmen for 34 million and sold it for 40, but ended up with himself. – Glad to be rid of him, she says, after many expenses and a large gift. Read more

He will buy Manchester United for $6 billion (finansavicin)
Qatar’s Sheikh Jassim bin Hamad Al Thani wants to buy Manchester United for $6 billion. Read more

– The risk has increased for an additional increase (finansavicin)
The European Central Bank decided to raise the deposit rate from 3.25 percent to 3.50 on Thursday. Meanwhile, the marginal lending rate was revised upward from 4.00 to 4.25 percent, and the prime interest rate was set at 4 percent. Today’s figures from the ECB were as expected, but at the same time the risks of an interest rate hike have increased, says Ingeveld Borgen, chief economist at DNB Markets. Read more

“Doctor. Doom “: – There will definitely be a recession (H24)
The man who predicted the financial crisis believes in a real downturn in the United States. The only question is how bad things are. Read more

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Also read: This is what the newspapers wrote about politics on Thursday, June 15th

Also read: This is what the newspapers wrote about the stock exchange on Friday, June 16th

You can find previous versions here (Policy), here (economy) f here (Stock market)