Unilever finds new ways to banish grubbiness 16 Aug 2016 The consumer goods giant is buying Blueair, a posh Swedish air purifier that is big in China and Japan. It follows a $1 billion purchase of subscription service Dollar Shave Club. On one hand, both are strategic shifts; on the other, they’re just creative takes on cleanliness.
Handelsbanken harsh streak hints at racier future 16 Aug 2016 The Swedish lender fired boss Frank Vang-Jensen after just 18 months following an alleged power grab. Handelsbanken has sector-topping returns and was teacher's pet in Europe's stress tests. A new plan to grow abroad implies over-centralisation wasn't the ex-CEO's sole failing.
SAF-Holland lacks firepower in truck bidding war 4 Aug 2016 The truck parts maker’s $490 million offer for Swedish peer Haldex was trumped by Germany’s ZF Friedrichshafen, which offered just 6 percent more. SAF is already stretching itself and will struggle to outbid a much bigger rival that has the target’s support.
Swedish solvency scuffle ominous for EU bank peers 23 Jun 2016 Sweden’s regulator has played down a report that Nordea faces a $9.8 bln capital hole. But fears of solvency standardisation still riled investors, who had assumed watchdogs were rolling over. With global standard-setters mulling “capital floors”, expect more discombobulation.
Eurovision puts Ukraine in helpful spotlight 16 May 2016 Kiev’s pride in winning Saturday’s annual croon-fest has a downside: it has to pay to host next year’s. Russia has pointed out Ukraine has a ropey economy and a war in the east. The experience of former hosts, though, suggests there could be a return on the investment.
Ericsson’s Nokia-Alcatel fear rings in new changes 21 Apr 2016 The $30 bln Swedish mobile equipment maker is tinkering with its restructuring after a bad first-quarter miss. Ericsson promises no new savings, just higher costs for reorganisation this year. It looks desperate, but may help Ericsson square up to the newly merged Nokia-Alcatel.
Nordic bank low-rate survival kit is hard to copy 18 Feb 2016 Swedish and Danish banks have been dealing with negative policy rates for a while. But they have fee-driven business, low costs and strong capital ratios. They offer only a partial guide for European or Japanese peers for whom sub-zero interest rates are more novel.
Overdue Mylan deal is not the one investors wanted 11 Feb 2016 Three months after rival Perrigo refused its $26 bln offer, the drugmaker has agreed to buy Sweden’s Meda AB. Though the $7.2 bln transaction makes strategic sense, the 92 pct premium is hard to justify. Mylan might have been better served by trying to sell, rather than buy.
New Alfa Laval boss can sweeten sour news 2 Feb 2016 The high-flying $7 bln Swedish engineer is being hit hard by collapsing orders in the marine as well as oil-and-gas sectors. Shares dropped 13 pct after a bleak outlook. Incoming boss Tom Erixon needs quick wins. As costs are under control, a share buyback could be his best bet.
H&M suffers from rare wardrobe malfunction 28 Jan 2016 The Swedish fast-fashion retailer said discounts on a glut of winter wear would weigh on sales. H&M is a little less efficient than chief rival Inditex, and the strong dollar isn’t helping either. Still, both are in a different league from most peers.
Sweden can be trailblazer for global rate-setters 19 Jan 2016 Small countries sometimes lead the way in monetary policy. Sweden can begin to challenge the global obsession with inflation-targeting by pursuing central bank reforms outlined in a new report co-authored by former Bank of England chief Mervyn King. This shift is overdue.
Sweden ignores Swiss lesson on FX intervention 5 Jan 2016 The Swedish central bank is talking about intervening to curb the inflation-dampening strength of the crown. Its own history and the experience of Switzerland, which spectacularly abandoned attempts to cap its currency almost exactly a year ago, augur failure.
Electrolux’s GE failure leaves only faint stains 7 Dec 2015 The Swedish group will be deprived of extra growth after a U.S. acquisition was scotched by trustbusters, who felt that owning GE’s appliance unit would give Electrolux overmighty pricing power. The $1 bln fall in Electrolux’s value suggests investors never held such hopes.
Short-sellers threaten to tie TeliaSonera in knots 19 Oct 2015 The Swedish telecoms group has rejected a claim by short-seller Muddy Waters that alleged graft could lead to big writedowns. Even if that analysis is flawed, the distraction comes just as TeliaSonera’s management is mired in a desperate strategic rethink.
Ericsson miss could give investors deal envy 23 Apr 2015 Shares in the Swedish telecoms kit maker fell 8 pct after margins in its networks arm missed expectations. Ericsson’s issues, including sluggish North American growth, aren’t surprising. But rival Nokia’s tie-up with Alcatel should focus minds on whether it also needs a deal.
Sweden shows ultra-easy policy is contagious 12 Feb 2015 The Swedish central bank has cut repo rates below zero. It’s also buying $1 bln-plus of sovereign debt. With plentiful stimulus in the euro zone, U.S. and UK financial systems, states that don’t take a tough anti-deflation stance risk seeing their currencies spiral.
Sweden’s bold zero rate won’t fix deflation 28 Oct 2014 While other countries mess with tiny numbers, the Swedish central bank has set its policy rate at an unequivocal zero. The boldness is striking, but the Riksbank hasn’t resolved the global mystery of inflation falling when growth is reasonable. Nor will zero reverse the trend.
Most of the heavy lifting lies ahead for Volvo 24 Oct 2014 An unexpected earnings jump propelled shares in the Swedish truck maker up 10 pct. But Volvo is facing an uphill struggle. The outlook for its core European market is weak, and its new cost cutting targets are ambitious.
Electrolux on better side of $3.5 bln GE deal 8 Sep 2014 The Swedish firm is buying GE’s U.S.-focused appliances unit in an all-cash purchase part-funded by a rights issue. It’s a win for Electrolux. The U.S. market for ovens, fridges and dishwashers is more attractive than Europe’s, and scale helps offset raw material cost pressures.
South Korea repeats Sweden’s monetary mistake 5 Sep 2014 Finance Minister Choi Kyung-hwan warns the country is entering “an early stage of deflation”. That’s a swipe at the Bank of Korea, which has kept borrowing costs unsuitably high. The central bank’s strategy, similar to the Swedish Riksbank’s now-abandoned approach, has backfired.