The Swedes digs gold overseas -Is there a Turning point in sight for the SEK?

source: usagold.com

SEK's rise versus EUR has been driven by expected short-term interest rate differentials (EUR-SEK) as much as it has been driven by the escalation of Europe's sovereign debt crisis in 2010 and solid economic fundamentals in Sweden. Although Sweden has an independently strong recovery - driven predominantly by goods exports - much of the pick-up in demand for Swedish goods has been a result of strong growth in Germany, Sweden's largest trading partner. Goods exports have been growing and resulted in strong gains in domestic consumption.

However, the future outlook for Sweden is maybe less certain as monetary tightening in the euro area in combination with signs of a moderation in emerging market growth (particularly China) could increase downside risks to Sweden during the aforementioned period. Further more ECB tightening and a moderation in German growth later in 2011 and not to mention rising inflation pressures which could act as a tax on growth across the globe. To summarize the yield advantage in favour of SEK (relative to EUR) may diminish somewhat as 2011 progresses.

If euro area sovereign debt distress intensifies in the near-term, forcing the ECB to remain on hold with rates a while longer, there is a risk that EUR/SEK could breach previous cyclical lows in the SEK 8.70 area. Still in my point of view the more likely scenario is that SEK sees a period of consolidation versus EUR.

Source: ecb.int/stats/exchange/eurofxref/html/eurofxref-graph-sek.en.html

Source: Monthly, FXshneider Report

The panic is near

source: connectchurchabbotsford.wordpress.com

The four injured reactors in Fukushima continue to leak radioactivity. There is still disagreement about the severity of the catastrophe and the Japanese authorities are being criticized.

But remember that there is not nuclear power in general that is suffering in Fukushima, it is a nuclear power plant that has been built in one of the world's most earthquake-threatened areas that now has foundered.

Similarly, it was not "Nuclear power" who suffered in Chernobyl 25 years ago, but a nuclear plant run by lousy engineering, minimal safety culture in a society with absolutely nothing of public debate and critical scrutiny.

European nuclear power is the bedrock of an open society. It gives no reason to worry too much about security and do not output free from any risk, but so does the risk assessment will be another nuclear power, which is needed in the real world, however, never entirely risk-free options available to us.

The nation of Japan is in a critical time of need, so let us pray for the peace and safety of Japan !

Looking into the FUTURE

The economy will continue to improve at a slow pace, especially in Europe and in the US.

Greatest threat in the short term is the unrest in Libya and its vicinity. This is in the short-term driving up oil prices and in case this will be permanent, it will threaten growth. My opinion is that the mad Gaddafi will not be able to keep himself on the power for much longer. Therefore, I believe in a falling oil price and will not invest in any companies that produce oil.

The imbalances between the different countries in Europe, where Portugal, Spain,Greece and Ireland have deficits in state budgets will continue and probably increase in future years. However, I believe that this can be managed and above all I do not think this will scare the investors during the coming period. In particular, a benefit for the banks that lent large sums of money to these countries.

Investment proposals

Bank Shares

Bank Shares- RBS (Royal Bank of Scotland) because I think they have a good management team and will be the winner of the banks in the UK. Price £ 44.00.

Oil Stocks

Because I believe that the crisis will dissolve in Libya blanks (selling short, ie selling something you do not have to buy it back cheaper at a later date). BP is one of the major oil companies which will see its share price decline as oil prices fall.

Swedish shares in the engineering industry

Sweden's krona will likely continue to evaluate in the coming months, this mean that several Swedish engineering shares have fallen this year, although they have come up with good gains. I believe in the truck manufacturer Volvo. Course 106.50 SEK

Retail

Think that the rate of H&M went down way too much and giving shares currently has a yield of nearly 5%. H&M is growing by almost a store a day. Price 210 SEK.

Something to spice your investment portfolio up

Paradox Entertainment, owns the right to all the stories written by author Robert E. One of the most famous characters is Conan the Barbarian. There were two Conan movies in the 80s, and it was in these movies that Arnold Schwarzenegger broke through. Now, finally a third movie will be out on 19th of August 2011 in the U.S. and in the UK. This movie will surely be a great success. The advertising for the film will start soon which will increase the interest in shares that are quoted on the Swedish stock market for a price of 2.70 SEK

The importance of investing in women

CEO Kraft Irene Rosenfeld

March 8 is International Womsen’s Day, a global day whose purpose is to celebrate women’s achievements and contributions to society and most important to remind us that no country in the world yet achieved full gender parity. The unequal issues are numerous, so while tackling all the obstacles to a women’s full participation in business, the issue seems minor, as women protesters are being raped and killed in Libya.

New figures from the 2011 Grant Thornton’s International Business Report (IBR), which surveys more than 11,000 businesses each year across 39 economies, reveals there may be little to celebrate this year as the proportion of women in senior management globally is back down to 2004 levels.

The main question is why it is better to be called Adam, Bryan, Tony, Tim or Steven then to be a woman if you are competing for a management position. Is there anyone out there that honestly believes that all those men are better qualified and suited to senior management than of all those women that there was to choose from? The choice of not introducing diversity in senior management is much likely contributing to that unilaterally firms are created without ability the to utilize all the skills that exist within the company and on the labor market. Pointing out this is not just about gender equality, but about improving performance and ultimately productivity too.

Industry representatives often complain about politicians tardiness and reluctance when it comes to influencing the conditions for business to grow and to compete in a global market. Meanwhile, the enterprises own ability to take advantage of the diversity and expertise is being well as sluggish as the politicians inability.

A broad set of social and economic forces pushed women into the work force and in the 1960's onward, women flooded into higher education across the board. These measures have however proven to play a minor role as the well-educated women are competing for a management position. Several generations of ambitious women have turned to business, but encountered obstacles when they tried to advance to a higher position.

Recently the European Union threatened to implement mandatory quotas to ensure women can reach the top of the corporate ladder. Quotas have proven to be successful in countries such as Spain and France. To the opposite it is being discussed weather quotas actually do hinder women's progress in business and consequently I am not convinced that quotas are the right method…

In my point of view a company has the right and duty to appoint the board they believe to be best for the company, regardless gender.To realize that a board that consists of a group of only men of similar age and with similar experience probably is not the best should be a minimum requirement for those taking part in the election. The second requirement should be to realize that no one has the right to be a board member and that there is no discrimination to not get elected. Discrimination, however, will take place inside firms. But if companies learn to recruit and develop their staff at all levels this create a wider choice to the important operational records.

Everything is connected, who's CEO is relevant to the management team is formed and the career opportunities in business development for women. In my point of view quotas is not a solution, quotas are more often the problem. Men quote in men, often so similar to themselves as possible.

Welcoming My Readers

Dear Newcomers,

This is my first step into the future in the digital world. I do not (yet) have a plan on how to convince You to become a dedicated follower of my blog "Business This Day and Age", and I am not yet sure of how to shape the coming posts. Certain is that this blog is a starting point in how to contribute with interesting resources and news within the field of Business.

The readership of this blog is anyone with an interest for business, not necessarily but very possible you are a business student like myself as this blog was set up as part of the module "Financial Media and Communications" at The European Business School, London, UK.

Please do not hesitate to leave your comment on any of my postings! Your point of view is important and can possibly open thread discussion that will awakening the blog!