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SBB’s involvement collapsed the week after the arrest of CEO and founder Ilija Batljan, suspected of internal crime. On the macro front, there was an ominous trend gap in the Swedish labor market, at the same time that Norway is lowering its interest rates to mitigate the crisis. They will guide you through the most important news of the week.
EBM creates wild SBB trade
SBB Samhällsbyggnadsbolaget has been one of the most heavily traded stocks this week on the Stockholm Stock Exchange, despite the market capitalization being only SEK 17 billion. The turnout fell to 40 percent on Tuesday after CEO and founder Ilija Batljan was arrested by the Swedish Crime Agency, EBM. The stock recovered part of the case after Ilija Batljan was released on Wednesday, but fell again on Friday when S&P put the credit rating under surveillance for a possible downgrade.
This week, they were able to reveal that EBM’s suspicions were related to internal crimes related to SBB’s offer for Hemfosa late last year, where acquaintances reportedly served in the offer.
One who went ahead of the SBB stock career was Erik Paulsson’s management company Backahill, which as late as last week sold all of its shares in the company of which it was a member.
The Norwegian central bank surprisingly with a weekly interest rate cut and is now part of the growing zero interest club. This is the lowest policy rate that Norges Bank has had and the signal is that it will remain there for a reasonable period.
The interest rate announcement was unusually momentous after last week’s trio, the Riksbank, the Federal Reserve and the ECB, as well as the Bank of England this week, decided to wait for major action.
Although both have zero interest rates, however, Sweden and Norway appear to be relatively high interest countries and the United States. In the US futures market. In the US, investors have begun to set a slightly negative interest rate for 2021.
Pressured airlines are compatible
Airlines are experiencing their worst crisis and most are now fighting for their survival. Europe’s largest airline, Germany’s Lufthansa, now only operates at 1 (!) Percent of capacity. This week, the state bailout package of the equivalent of more than SEK 100 billion found a patrol when a dispute arose over how much influence the state should have over the company. For SAS, the Swedish and Danish state guaranteed a new SEK 3.3 billion loan this week. Norwegian came one step closer to survival as the company received SEK 400 million in a new share issue. Previously, bonds had been converted into stocks, and the pressured airline should now be able to take advantage of government emergency loans. Even Warren Buffett doesn’t believe in airlines. At last weekend’s AGM, it emerged that he had sold all of his shares in the sector.
After the shock of the last week of March, when nearly 19,000 people were notified of the layoff, alert rates fell week-to-week throughout most of April. But on Monday, the Employment Service announced that this trend had been broken. The number of notifications in the previous week more than doubled to almost 6,300. It is within reach to believe that these are employers who hoped to deal with the crisis with only short-term permits who have now given up on that idea. In that case, it is ominous. There are around 350,000 people in this group of latent unemployed.
