Oil fund continues to suffer

Norway’s sovereign wealth fund, known officially as the “Government Pension Fund – Global” and unofficially as the “oil fund,” continues to lose value in the current international financial climate, with second quarter figures released on Friday suggesting that the outlook for the fund has not been particularly positive for much of the year. The fund [...]

Interest rates unchanged as stocks fall

The Norwegian central bank, Norges Bank, has decided to hold interest rates at 2.25 percent in light of continuing global economic uncertainty, despite having originally planned further rises this autumn. Interests rates were raised to 2.25 percent on 12 May and the bank’s plans had predicted further rises at the end of 2011. Meanwhile, the [...]

Stock Exchange rallies despite fears

Norwegians have begun predicting the possible consequences of the unfolding drama in international markets for the country, as the Oslo Stock Exchange itself put days of successive falls behind it to close trading up 1.06 points to 348.05 on Tuesday. The index fell dramatically at the start of trading but rallied quickly, boosted by a [...]

Oslo Stock Exchange continues fall

The Oslo Stock Exchange’s main index fell by 5.65 percent to 344.39 by the end of trading on Monday, as turbulence in the international financial markets continued and predictions that a new financial crisis was on the way gathered pace. In step with other European indexes, the Oslo Stock Exchange rallied during the morning after [...]

Stocks and oil fund take further hit

The Oslo Stock Exchange (OSE) fell to a new low for the year on Friday despite promising unemployment figures from the USA, while the country’s sovereign wealth fund (often referred to as the “oil fund”) also suffered from the difficult international financial environment. The OSE ended Friday’s trading down 2.75 percent on 365.03 points, meaning [...]

Economy prospers despite EU crises

UPDATED: Revised forecasts suggest that the Norwegian economy will do better than originally expected this year, giving many consumers more money than they may otherwise have had. Nonetheless, Norway is not immune to the destabilizing forces in the world economy as the Oslo Stock Exchange fell for the seventh day in a row on Thursday [...]

Norway ‘world champion’ for credit

Norway is benefitting from the debt crises affecting the USA and the Eurozone as money continues to flow in Norwegian government bonds. Financial newspaper Dagens Næringsliv has revealed that the rate of interest on government bonds has fallen to a record low. Figures from bank DnB Nor show that interest on bonds with a 10 [...]

What's ahead for Norway in 2010

Higher unemployment, rising interest rates, more criticism of the social welfare system and debate over steadily increasing sick leave: That’s what authorities expect in the year ahead, but a new public opinion poll suggests most Norwegians remain optimistic and haven’t been scared by the finance crisis. The president of the national employers’ association NHO doesn’t [...]

Industrial firms step on the brakes

Investment in Norwegian industry has all but screeched to a halt in recent months. State statistics bureau SSB predicts investment next year will be even lower than it’s been this year. Venerable industrial concern Norsk Hydro is among those planning more cost cuts and layoffs. Hydro held its Capital Markets Days this week, to tell [...]

Suddenly, some signs of pessimism

Norway has so far seemed relatively unscathed by the global finance crisis but a new report throws cold water on the country’s economic outlook. Suddenly one in three industrial firms is planning to cut staffing after New Year, and Norwegian business leaders are much more pessimistic than they were last summer. More than 2,200 companies [...]

Tougher times hurt 'julebord' season

The traditional Norwegian julebord , a lavish pre-Christmas party often hosted by companies for their employees, seems to be dying out this year. Layoffs and tight budgets are putting a damper on holiday cheer, with several companies cancelling their parties altogether. ICA, the large grocery store chain, announced late last week that it was cancelling [...]

More signs of business upturn

The Norwegian government believes the global financial crisis is not over, and intends to spend its way out of it. Norway’s business community, however, is growing increasingly optimistic and thinks the economy is turning around. A new business cycle barometer set off plenty of good signals this week. Finance Minister Kristin Halvorsen proposed a budget [...]

Losses cut deeply into ‘Oil Fund’

Norway’s so-called “Oil Fund,” fueled for years by windfall oil profits and booming stock markets, has reported huge losses that cut its total value by a whopping NOK 633 billion (around USD 90 billion). The losses have set off a storm of criticism against the fund’s managers. No one complained when the fund’s managers raked [...]

Business hopes dive as prospects worsen

Norway’s oil-fuelled economy has been holding up better than most countries’, but some top executives are getting increasingly worried. “Prospects have grown dramatically worse in the last quarter,” says the outgoing CEO of Norsk Hydro, one of Norway’s biggest companies. Eivind Reiten, who announced Monday that he was resigning after eight years at the helm [...]

State hands over crisis package to banking industry

The Norwegian government has forked up NOK 100 billion (about USD 14 billion) to boost the liquidity of local banks and stimulate crisis-hit credit markets. Finance Minister Kristin Halvorsen, however, has made it clear that the fresh funds have some strings attached. “It’s entirely reasonable to make some demands regarding executive salaries and dividend payments,” [...]