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Persson rules out steep rate hikes

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09:53 CEST+02:00
Prime Minister Göran Persson expects a calm interest rate trend for the rest of 2004 and doesn't see any risk either of the key repo rate rising sharply in the longer term, reported Dagens Industri.

"There is no inflationary pressure in the Swedish economy. Internationally, the inflationary pressure is also quite low. The weak US jobs data show that the demand isn't that high. This is why I don't think we will witness any major international rate movements. I don't think the US presidential election will alter this either," the Prime Minister told DI.

On the other hand, Persson sees the dollar coming under severe pressure ahead.

"The dollar's development will be more dramatic that the interest rate trend," he said.

Finland cuts TeliaSonera's prices

Finland's supreme administrative court has ordered TeliaSonera to cut its interconnection fees in a decision expected to cost the Swedish-Finnish operator up to "a couple of ten million Euro" per year.

According to DI sources, this could be read as a couple of hundred million crowns, but not as much as half a billion crowns. The Finnish court ruled that the interconnection fees, just like in Sweden, have to be cost-based.

Volvo freezes stock buybacks

AB Volvo has decided to delay its stock repurchase programme until the crisis with bankruptcy-threatened UK bus company Henlys is resolved. Volvo has set aside 4.3 billion crowns for stock buybacks and originally planned to carry this out mid-August this year.

At its capital markets day on Thursday, Volvo's construction equipment division (VCE) revealed that the Chinese market for construction machinery would be weaker for the rest of 2004.

The market has ground to a halt, following a decision by the Beijing government to stop construction activities.

MTG invests in Russian TV

STS-Media, owned to 39 per cent by Modern Times Group (MTG), is investing 750 million crowns in a new Russian TV channel.

Ryanair adds three new routes from Skavsta

Budget airline Ryanair is adding three more routes from Skavsta airport outside Stockholm while also investing 450 million crowns in a new plane that will be based in Skavsta, to cope with tougher competition.

Sources: Dagens Industri

Supplied by BECK TRANSLATIONS.

With an experienced team of in-house translators, Beck specialises in translating from Swedish into English in such areas as finance and economics, marketing and advertising, biotechnology, the environment, quality, and personnel & administration.

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