• Sweden edition
 

Swedish krona the new 'safe haven': prediction

Published: 18 Dec 2011 12:51 GMT+01:00
Updated: 18 Dec 2011 12:51 GMT+01:00

The Danish investment bank has been reading the cards and gazing into their crystal ball, and have now released their 10 outrageous predictions for 2012.

Among probable and improbable suggestions such as a doubled price on wheat, an unknown outsider taking the White House and Apple stocks crashing, the bank predicts that the Norwegian and Swedish currencies will replace the Swiss franc as a safe haven in a debt-riddled Europe, thereby strengthening the Swedish krona.

"This is one of the predictions I really think could happen. It's built on Switzerland's probable success in defending itself and achieving a weaker Swiss franc," said the bank's head economist Steen Jacobsen to financial newspaper Dagens Industri.

"This means that the capital which has previously been flooding into Switzerland will be looking for new safe havens."

Saxo Bank's other sombre predictions include an Australian recession and a deepened European bank crisis, forcing banks to close for an extended holiday.

The bank's crystal ball also reveals that Apple may be in for a nasty shock during 2012, predicting that the tech company's stocks will plummet by 50 percent.

"Historically it's clear that no company has succeeded in retaining a market share like the one Apple has today," said Steen Jakobsen.

Clara Guibourg (clarabara@hotmail.com)

Your comments about this article

20:20 December 18, 2011 by Abe L
That would be excellent news!
21:29 December 18, 2011 by canuk
its good and bad..good if you live and work here...bad if you are a tourist and tourism is a huge industry for sweden.
21:40 December 18, 2011 by cattie
Danish investment bank? Aren't investment banks the one's with the 6 pages of small print "disclosure" statements that they are not responsible if their predictions are wrong. So, that is a prediction. Some people are also predicting a decline in housing prices in Stockholm and a rising unemployment rate. Predictions are the easiest way to write a press release.
01:29 December 19, 2011 by swenrika
That menas -

1. Stranger Krona

2. Weaker Euro

= cheaper beer imports :)
02:32 December 19, 2011 by MikeSar
Like the old, well-paid, sage said once, or twice, and is still saying "Where's the news in THAT?" If the question is safety, the Swiss have it but, if you want both Safety and Profits, that's whole different matter, a whole different color cattle!

It is not because the long hard winters, year after year, made people learn how to get along, work and survive together without the idea of screw'em! That was turned into a religious principle in Wall Street, preached by Reverend Ayn Rand and followed for 40 years by the most financially powerful man in US Gov't,

The secret is simple and known in Scandinavia and Switzerland, all with very long and cold winters. Can you imagine how they survived without electricity or oil? Yes, they had to go out and cut wood, and plan on the next day, week, month, etc. They had to learn to be trustworthy and trust over centuries.

People want Swiss Security and Celtic reliability. Next: Scandinavian ingenuity.
05:43 December 19, 2011 by crunchy2k
I would stay with the Swiss franc. A nation is only as strong as its courts. The Swedish judiciary has shown it is easily corrupted by outside influences...like the pirates bay fiasco and the Julian Assange charges. America's MPAA and Riaa wined and dined the Swedish judiciary under the cover of education seminars before attacking the pirates bay people. And Poor Julian was seen as innocent by the police and one prosecutor, but the American CIA found an errant female Swedish prosecutor to press charges.
08:02 December 19, 2011 by viennacalling
the swiss central bank is trying to reduce the value of the swiss franc by buying huge amounts of US Dollars, but over the last 2 years the currency most converted to the swiss franc is the Euro

I know that the swiss central bank have made a mistake by not correcting with the euro sooner, I don't think the Swedish central bank will make the same mistake as the Swiss
09:39 December 19, 2011 by byke
I spoke to a swede about this story yesterday and the proudly announced this article which appeared in one of the large daily newspapers the other day. I hadn't read the article at the time so I could comment, but having listened to a secondhand rendition of. The story I had my doubts.

Now after reading the story, my doubts are even stronger.

Anyone who wants to bet a better idea about this story should google saxo bank and see what it brings up ;) lol
11:57 December 19, 2011 by blik
Well its now quite clear SELL SAXO.

The lunatics have moved from the back rooms to the board room.
12:39 December 19, 2011 by bourgeoisieboheme
Means the Kroner will increase in value, eroding your export industry so don't think it's good news. With 8 million people, Sweden does not have the internal demand to keep the economy healthy so it has to export. Look at your main industries, all export. Pray your currency does not become the reserve currency for the EU.
13:22 December 19, 2011 by Liefje
what stronger crown? in last year SEK dropped by 10% regarding to euro, wouöld be nice to recover at least to that level. Now with Saab bancrupt I wonder if it can be true... though I would not mind, not at all, I have bills to pay in euros.
14:49 December 19, 2011 by bjorkon
Hogwash. Safer than the Euro, yes. But actually Krone is a leveraged play on the Euro. So watch it drop in tandem..
15:19 December 19, 2011 by bourgeoisieboheme
There is a strong correlation to the euro but should the euro plunge, only through the central bank will sweden be able to follow the euro down. From an economist's point of view, it will be too costly for the government to do that thus capital flight into the Kronor will raise the exchange rate... same with the NOK, GBP, etc.
19:59 December 29, 2011 by viennacalling
take a look at the Swiss Tourist industry , they are in heaps of trouble because of the rise in value of the Swiss Franc. just this morning there is a report on Bloomberg .com
23:30 January 3, 2012 by javalava
A stronger Krona will be bad for Swedish export ....How are we gonna explain this to Swedish product buyers?
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