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It’s rumbling at the top in DNB (Karl Johan Molnes, Finansavisen)
Mergers and acquisitions always lead to changes in top management. That this time it is happening in DNB after an acquisition shows that the bank is struggling with the integration of Sbanken.
Sbanken’s customers are independent types who have previously run away from other banks because they were dissatisfied. Now the customers have been bought and delivered back to DNB as in a prisoner exchange. Then DNB shuts down Sbanken’s popular online bank. Is it possible? It could not have been planned. Sbanken’s customers are then sorted into two boxes. Either to a new mobile bank or to the old DNB. It’s like a scene from the Monty Python movie Life of Brian where people are asked if they want to be crucified or free.
DNB is applying, so perhaps DNB should not have acquired Sbanken to give customers an inferior product. Although the acquisition of Sbanken increases DNB’s market share in the short term, it will cement DNB at the bottom of the customer barometer in the coming years. The bank’s market share means everything. Customer satisfaction means nothing. read more
The central bank’s weakest point (Terje Erikstad, DN)
The new monetary policy strategy shows that Norges Bank has given up trust in the currency market. Norges Bank’s most difficult challenge is without a doubt the risk that the krone exchange rate will continue to weaken. Norges Bank may have to choose to raise interest rates further to defend the krone, and thus accept higher unemployment. The central bank may be forced to set the interest rate even higher if the currency market does not have confidence in the central bank.
It is a game between the “players in the foreign exchange market” and Norges Bank. They must trust that Ida Wolden Bache and her four colleagues in the interest rate committee are willing to inflict enough financial pain on us to defend the krone exchange rate. The krone has weakened from 11.20 against the euro at the start of the year. It is by no means certain that currency speculators are satisfied with Norges Bank’s interest rate level. read more
– Limited gains, significant costs of mortgage regulation (Finansavisen)
The benefits of mortgage regulation are limited in size, while there are significant costs. This has probably been reinforced in recent times, six researchers write about the lending regulations. The article “How does the lending regulation work? A summary of the research literature” is published in the latest issue of Samfunnsøkonomen.
“The findings we have presented in this article suggest that the benefits of mortgage regulation are limited in size, while at the same time there are significant costs. This has probably been reinforced in recent times, in line with higher inflation and interest rates,” the authors conclude.
On Wednesday, there will be a hearing on the Financial Markets Report at the Storting, including the Lending Regulations. read more
Building and construction still have to take the interest rate shock (Nejra Macic, chief economist at the Forecast Center) (DN)
The completion of new homes is slowing, and the bottom for the supply of new homes will probably be reached in 2026. The danger of strong house price growth is increasing. The longer the interest rate is kept at the current level, the more the danger increases of a major setback in construction, which can quickly spread to the rest of the economy and become the cause of financial instability in the longer term. read more
Media: Bankruptcy and bus collapse in Oslo is no longer likely (NTB)
Unibuss, Oslo’s largest bus operator, is struggling financially, but after long negotiations it is now unlikely that the crisis will end in bankruptcy, several media write. Ruter and Sporveien are approaching agreement on how the crisis in Unibus will be resolved. This is according to sources for both Aftenposten and Avisa Oslo on Monday.
The homes that are not built cost society billions (Anne-Kari Bratten, managing director of the Employers’ Association Spekter and Bård Folke Fredriksen, managing director of NBBL) (DN)
Today’s housing policy weakens the line of work and imposes billions in costs on society. For several years to come, there will probably be a crisis in housing supply in several central housing and labor market regions. This happens to a large extent because the municipalities do not regulate plots quickly enough, so that it is possible to build homes at prices more households can afford.
If housing construction in Oslo is temporarily delayed by one year, it costs society NOK 1.2 billion. If the situation with a year’s delay in housing construction in Oslo becomes permanent, it will cost society NOK 23 billion. This is shown by a new report Samfunnskonkonik Analyze has prepared on behalf of Spekter and NBBL.
The costs are distributed among a number of parties. Developers receive increased planning and financing costs. Employees receive increased costs for commuting. The distance between employers and employees causes a financial loss for both parties, and lost productivity for society. read more
April surprises – reports of “strong” housing price growth (DN)
The Norwegian house price trend continues to surprise on the upside in 2024. House prices in Norway rose 1.2 per cent in April, new brokerage figures show. Thus, this year’s surprisingly healthy house price growth continues for the fourth month in a row. Adjusted for seasonal variations, prices rose 0.7 per cent, according to the new statistics from Eiendom Norge.
– There is a sharp increase in the nominal house prices in the first four months of the year, says the director of the brokerage association Henning Lauridsen. read more
The housing market: – Extra sensitive to bad interest rate news (Finansavisen)
House prices continue to show strength, but the supply side is increasing. – This makes the drop greater and means that the market becomes extra sensitive to bad interest rate news, warns the chief economist. When turnover figures are higher than last year, despite interest rate jumps, it shows a housing market that is holding up well, says chief economist Kyrre M. Knudsen at SpareBank 1 SR-Bank.
– The prices are roughly the same as 12 months ago, although there is a lot of focus on the fact that prices have increased so far this year, and it is in reality house prices falling, he emphasizes further. At the same time, he points out that the market is extra sensitive to bad interest rate news and pessimism when there are many homes for sale. read more
Strong housing figures: – Gives Norges Bank good cards in hand (E24)
The rise in house prices may make it easier for Norges Bank to postpone interest rate cuts, according to a senior economist. read more
Senior economist after another month of strong housing figures: – It’s full speed ahead (DN)
Sara Midtgaard at Handelsbanken says the rise in prices in the housing market will not be an obstacle to postponed interest rate cuts. She that housing prices rose more than the central bank assumed in April.
– Seen in light of the fact that house prices in March also rose more than Norges Bank assumed in its forecasts, the second-hand housing market is no obstacle to postponing interest rate cuts, she says. read more
Sold mini flat – got over 147,000 per square meter (E24)
Real estate agents believe sky-high square meter prices show a serious deficit in small apartments in Oslo. Now she is asking the city council to follow through on its own election promises. read more
A lesson from the oil tax package that the climate minister has not learned (manager, DN)
Even jobs in oil are not worth tens of billions of kroner. read more
Sick Norwegians cost 20 billion more after the pandemic (P4)
After the pandemic, more people report struggling with laxity and mental disorders. Last year, Nav paid out NOK 61 billion in sickness benefits. That is 20 billion more than in 2019, the year before the pandemic occurred. The sum was then NOK 41.7 billion. – This is a development we are simply not satisfied with. This is cause for concern, says Nav director Hans Christian Holte. read more
Nav: Employers less optimistic than in many years (NTB)
Not since oil prices plummeted eight years ago have employers had lower expectations for future prospects, Nav’s company survey shows. Fewer expect that there will be more employees this year. Net, only one in ten companies expects increased employment.
– We have to go back to 2016 to find lower optimism, and it is only three times in the last 20 years that it has been as low as now, says director of employment and welfare Hans Christian Holte.
Risk of a strike in aviation after a breakdown in negotiations (NTB)
LO Stat and Spekter have broken off negotiations in the wage settlement for 900 employees in Avinor. As a result, there may be a strike if the mediation does not lead to success.
– We have come a long way, but now the Riksmekleren will be next. The distance is too great and the willingness to negotiate too little. We have experienced attacks on acquired rights, and that agreements entered into are not followed up, says deputy chairwoman Lise Olsen in LO Stat in a press release on Monday evening.
Agreement in the central salary settlement for nurses (NTB)
In the central salary settlement, nurses at hospitals are guaranteed a salary increase of at least NOK 22,000. Local negotiations are now pending at the individual hospitals. All members of the nurses’ association will receive a salary supplement of 3.7 per cent from 1 July or a minimum of NOK 22,000.
Received a salary increase of 6.1 per cent last year (NTB)
Wage earners between the ages of 17 and 24 saw a wage increase of 6.1 per cent last year. It was above the annual growth in the consumer price index in the same period, of 5.5 per cent.
The average receipt of salary and fees was NOK 540,200, which gave an increase of 5 per cent from the previous year, but was 0.5 percentage points below the consumer price index. Only residents under the age of 35 had an average increase that was higher than the price increase in the same period. Wage earners between the ages of 45-54 and 67 and over had the weakest growth of 4.7 per cent.
The youngest wage earners still earn the least, with an average salary of NOK 196,000. The 45-55 age group had the highest average salary paid throughout the year, corresponding to NOK 700,000. There are 3.1 million wage earners over the age of 17 in Norway, preliminary figures from Statistics Norway (SSB) show. read more
The state offers NOK 2.62 billion in the agricultural settlement – far below the farmers’ demands (NTB)
The state offers NOK 2.62 billion in the agricultural settlement, corresponding to an increase in income of around NOK 70,000 per man-year. The farmers demand 3.9 billion. read more
Car owner regretted service – dropped the bill (Finansavisen)
Trøndelag District Court has recently ruled that a car owner does not have to pay for service performed, because he booked the appointment online and Bertel O. Steen did not inform him of the right of withdrawal. The right of withdrawal is extended from 14 days to up to 12 months when the seller does not inform about this at the time of ordering. read more
Achievements and uncool personality traits – and intelligence (Rudi Myrvang, psychologist specialist in work and organizational psychology) (DN)
What gives good academic performance is not necessarily the most appropriate in working life. But good grades are the ticket to prestigious studies and top jobs. The research shows that there are criteria other than grade level that have the greatest significance for the quality of future professional practice, such as general ability level, personality, integrity, professional preferences and motivation. read more
The Sbanken customers pass a merciless judgement: Record drop in prestige rating (DN)
Never has anyone fallen more than Sbanken does in this year’s edition of the Norwegian Customer Barometer. New app led to Solveig Jacobsen breaking up 24 years of happy marriage: – It was like going back to the Stone Age. read more
“Unknown” fund cuts tax bill: – Alluring for investors (E24 / Your Money)
The fund provides full exposure to the stock market and broad diversification. If you are a private person, on the other hand, the tax on the gain in the fund is almost half that of a normal share fund. read more
The left has misunderstood cryptocurrency (Sophia Adampour, founder of technology hub Verse) (E24)
They should embrace this innovation, not push it away. read more
Tags: Consumer Economy newspapers write Norwegian economy Tuesday
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