Swedens finance directors seems to think that the economy is even worse than in September. Most of them seem to think the only way to cut cost and keep profits up are through employment cutbacks, according to SEB finance director index.
SEB's directors questionaire which is answered by Swedens 50 largest stock listed companies, shoed that November was a record low on market confidence. One question asked was which is the best solution to increase the companies profitability and 60% answered to decrease the employment force.
The previous times the answer would have been increase in volume and price increase to better profitablility, but now they only talk about costs. This is a trend which has not been seen before and this showes that cutbacks will probably continue, accroding to analysts at SEB.
The investigation showed that the reason for the anxiety by the finance directors is the recession. It was the recession signs rather that the financial signs like the banks willingness to lend and the companies financial position that gave the directors its gloomy outlook.
The investigation showed one positive improvement. The future positive outlook for the credit market. The directors believed that because of the recent huge deteriation of the credit market it could only be a small matter of time before it would start to go up again.
Wednesday, November 26, 2008
Wednesday, November 19, 2008
It is time for a rise
There were 53 registered insider trades this week, 47 of these were to buy and 6 to sell. With tecnical support and considering the force of the stock exchange fall, these signs signals that the bottom might be near, according to Investtech.
The report from Investtech shows that 89% of all registered insiders trades were to buy. That many people with insider knowledge are buying in this turbulent period can be seen from a longer perspective. During the recent quarter 82% of the insider trades were for to buy.
Investtech's trading report shows that when the stock exchange turns after a significant fall, interesting investment possibilities arise with large returns.
One of the companies that Investtech mentiones is Volvo. Volvo has lost more than 70% of its share price this year to 32 kr per share. This seems to be a good time for insider people to invest. The CEO both 10m shares, the head of finance, head of communication increased their share volume substaintially. This makes the share look very positive.
The It-consultant Know-it seems to have had an interseting change as the CEO bought 8000 more shares, after the share has lost 62% this year.
The CEO of Getinge belives that the share has fallen too much. 170kr in the beginning of the year to bellow 100kr this week. CEo bought shares for close to a million kronors.
The report from Investtech shows that 89% of all registered insiders trades were to buy. That many people with insider knowledge are buying in this turbulent period can be seen from a longer perspective. During the recent quarter 82% of the insider trades were for to buy.
Investtech's trading report shows that when the stock exchange turns after a significant fall, interesting investment possibilities arise with large returns.
One of the companies that Investtech mentiones is Volvo. Volvo has lost more than 70% of its share price this year to 32 kr per share. This seems to be a good time for insider people to invest. The CEO both 10m shares, the head of finance, head of communication increased their share volume substaintially. This makes the share look very positive.
The It-consultant Know-it seems to have had an interseting change as the CEO bought 8000 more shares, after the share has lost 62% this year.
The CEO of Getinge belives that the share has fallen too much. 170kr in the beginning of the year to bellow 100kr this week. CEo bought shares for close to a million kronors.
Friday, November 14, 2008
Another Danish Fall
The Danish bank EBH was the 8th victim of the financial turmoil. The bank was forced to surrender.
EBH Bank gave a statement that it had serious economical problems on Thursday. The bank is not up to the standards of Danish regulations which has sparked the involvment of finanstilsynet. However the bank will continue its business for the time being.
According to TT the bank has a week to gather enough capital. If the demands of the regulators is not made EBH will loose its licence. The banks CEO Jens Nielsen said that it is very unlikely that he will gather enough capital in sych a short period of time.
"In the current Danish environment it is very difficult to get a hold of half a billion danish kronor" EBH, Jens Nielsen
The Danish newsagency Ritzau have made a list on all crises banks during 2008. The mess started in January when Bank Trelleborg due to several years of huge increases in ledning, the bank was taken over by Sydbank.
Roskilde Bank was the next victim. In July the bank showed insolvency and the month after the National Bank took over responsobility and operations. During fall Roskilde bank will be divided among three other banks.
In September, Nykredit took over the smaller competitor Forstaedernas Bank and Svenska Handelsbanken took charge in Lokalbanken.
The Danish government put in place a rescue package for the banks after seeing the possibility of even more bankrupcies. Several banks used this package to survive.
EBH Bank gave a statement that it had serious economical problems on Thursday. The bank is not up to the standards of Danish regulations which has sparked the involvment of finanstilsynet. However the bank will continue its business for the time being.
According to TT the bank has a week to gather enough capital. If the demands of the regulators is not made EBH will loose its licence. The banks CEO Jens Nielsen said that it is very unlikely that he will gather enough capital in sych a short period of time.
"In the current Danish environment it is very difficult to get a hold of half a billion danish kronor" EBH, Jens Nielsen
The Danish newsagency Ritzau have made a list on all crises banks during 2008. The mess started in January when Bank Trelleborg due to several years of huge increases in ledning, the bank was taken over by Sydbank.
Roskilde Bank was the next victim. In July the bank showed insolvency and the month after the National Bank took over responsobility and operations. During fall Roskilde bank will be divided among three other banks.
In September, Nykredit took over the smaller competitor Forstaedernas Bank and Svenska Handelsbanken took charge in Lokalbanken.
The Danish government put in place a rescue package for the banks after seeing the possibility of even more bankrupcies. Several banks used this package to survive.
Thursday, November 6, 2008
The next step for ECB
The European Central Bank (ECB) meeting accepted a 50 point lowering of the interest rate, they were deciding whether to lower by 75 or 50 points told by the ECB head Jean-Claude Trichet.
Jean-Claude Trichet also said the future outlook for price stability have been improved even though the risk is not comletely gone. Inflation will go down to 2% during th year 2009, as commodity prices, salaries and other prices will normalise.
He also said that the uncertainty from the finance sector is extremely high and the ECB will continue to supervise all changes very detailed. The economy in the EURO area has been weakened and that certain risks has been materilised. It is important that the ECB avoids policy mistakes and the "second hand effect".
The measures taken by the ECB must encourage confidence in the financial systems and prevent credit restrictions. There are several signs that the economic growth could be restricted due to the financial turmoil, protectionism and higher commodity prices. The inflation is high because of direct and indirect effects from the high commodity prices, which are now expected to fall and ECB thinks that the CPI will fall even more in the middle of 2009 as and effect of these changes.
There is a slower rate of lending to the households but companies can still get financing for long periods of time. It is important for governments to use the financial turmoil as a catalyst for continues structural changes.
Jean-Claude Trichet also said the future outlook for price stability have been improved even though the risk is not comletely gone. Inflation will go down to 2% during th year 2009, as commodity prices, salaries and other prices will normalise.
He also said that the uncertainty from the finance sector is extremely high and the ECB will continue to supervise all changes very detailed. The economy in the EURO area has been weakened and that certain risks has been materilised. It is important that the ECB avoids policy mistakes and the "second hand effect".
The measures taken by the ECB must encourage confidence in the financial systems and prevent credit restrictions. There are several signs that the economic growth could be restricted due to the financial turmoil, protectionism and higher commodity prices. The inflation is high because of direct and indirect effects from the high commodity prices, which are now expected to fall and ECB thinks that the CPI will fall even more in the middle of 2009 as and effect of these changes.
There is a slower rate of lending to the households but companies can still get financing for long periods of time. It is important for governments to use the financial turmoil as a catalyst for continues structural changes.
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