Cecilia Skingsley, Head of FX and Fixed Income Research at Swedbank is commenting on the Riksbank's decision to cut the repo rate in Sweden by 0.25 percentage points.
Weak economy continues to pressure commodity prices
The Executive Board of the Riksbank has decided to cut the repo rate by 0.25 percentage points to 1.0 per cent, to support the Swedish economy so that inflation rises towards the target of 2 per cent.
Investors and issuers that are active in the Swedish bond market have a strong interest in bonds, but the appetite has somewhat decreased in the last quarter. Furthermore, investors are unhappy with the current yield levels and expect an increase, while issuers are optimistic and expect a decrease. This is all according to the latest Credit Market Barometer conducted by Swedbank. Read the full survey in the document attached.
Swedbank in Estonia has granted 29,438.80 Euros to seven different projects in the twelfth young entrepreneurs’ competition Shining Stars. Before presenting the ideas for an audience, the finalists had to present their ideas for a jury.
The Shining Stars Projects
Fluctuations in manufacturing continues
The stockmarket is deemed to have done well so far, as we look back on 2012. The global index has risen by about 10 per cent; Europe - with its weak demand, weak currency and poor government finances in several countries - has risen 13 percent; Sweden - with its strong currency and sound government finances - has risen by no less than 14 percent.
The housing affordability index (HAI) strengthened in Riga and Vilnius, but weakened in Tallinn although from a high level
Growth rebounded on domestic demand in 3Q
The global economy developed more strongly than expected at the start of the year. Quantitative easing by central banks, including stimuli via the European Central Bank's fixed-rate loans, gave rise to greater confidence and a stronger performance by both the financial markets and the real economy.
Moderate consumer price growth to continue
Exports lead the growth, concerns about slowing investment activity
Falling fuel prices slow price growth in November
November was a mixed month for equities. A number of weak quarterly reports and concerns about the so-called fiscal cliff has affected the US negatively. Europe has done better, thanks to a continued easing of the debt crisis. In Asia, China's stockmarket lost further ground, while the Japanese stockmarket has risen.
Services PMI drops to 46.4 in November – sharpening downward trend in service economy
Swedbank Debt Capital Markets (DCM), part of Large Corporates & Institutions (LC&I), has recently increased its focus on EUR new issues by establishing a EUR syndicate function headed by Per-Åke Nyberg. This year, Swedbank has acted as Lead Manager for a number of EUR issues such as Volvo, BNP Paribas Autonoria and Stockmann.
PMI inches up to 43.2 in November – continued contraction of the industrial economy
Why does the Latvian economy keep expanding so fast?
Swedbank will restructure its Swedish operations as of January 1st 2013 in order to offer better customer experience, sharpen focus on developing digital banking services, and clarify branch offices´ role and responsibilities.
Wages continue to grow at moderate speed