Nordea’s Lippo Suominen praises strong results season

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Summary:
According to Nordea’s weekly report, the many interim reports published last week gave a positive overall image of the performance of Finnish listed companies during the beginning of the year. Chief Investment Strategist Lippo Suominen states that results have, for the most part, met expectations and revenues have finally started to grow noticeably. More than half of the companies monitored by Nordea Markets have published their results, and up to 90% have met revenue expectations and had a positive result performance.

Media:  Arvopaperi
Date: 2.5.2017
Journalist: Ahti Terhemaa
Main source: Nordea’s Chief Investment Strategist Lippo Suominen

Recent review reveals bleak trend: Household debt bomb ticking

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Summary:
Finns are becoming increasingly indebted as their savings rate continues to be negative, the recent economic review by the Ministry of Finance indicates. High household indebtedness reflects on the national economy. Nordea’s Private Economist Olli Kärkkäinen says he is concerned if the negative savings rates continue in the long term and notes that some forecasts indicate that private consumption is growing faster than purchasing power. This means that the growth in consumption is based on debt, which is not sustainable in the long term. He is, however, glad that the rate of indebtedness has slowed down.

Government: Hiding of Finnish holdings cannot be prevented – Parliament’s Commerce Committee supports proposal on nominee register law

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Summary:
The Finnish Parliament today discussed a contentious report by the Parliament’s Commerce Committee on the registration of shares in central securities depositories, reports Helsingin Sanomat. The report supports the Government’s proposal according to which shares by Finnish companies can be included in foreign book entry systems. The law allows the anonymous ownership of shares abroad through a nominee register. The law will amend the Finnish legislation to comply with the EU’s central securities depositories regulation. Banning nominee registration abroad has been interpreted as not possible as Finland cannot interfere in another EU country’s legislation, noted many MPs during the discussion.

Coalition partners on Terho’s appointment as minister: No change in EU policy

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Summary:
Centre Party and National Coalition Party representatives say the Government’s EU policies will not change with the appointment of Finns Party MP Sampo Terho as Minister for European Affairs. Mr Terho has previously brought up the idea of an EU referendum in Finland. Prime Minister Juha Sipilä and Minister of Finance Petteri Orpo say the Government is committed to the government programme which states that Finland is an active member of the EU.

Media:  Iltalehti
Date: 29.4.2017
Journalist: STT
Main source: Prime Minister Juha Sipilä and Minister of Finance Petteri Orpo

EU Foreign Ministers not threatening to cut off membership negotiations with Turkey – Soini says that the problems will not be resolved by cutting ties

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Summary:
EU decision-makers disagree about how to handle the EU membership application of Turkey, which is becoming more and more authoritarian. Finnish Minister for Foreign Affairs Timo Soini says the majority of member states are critical but believe that dialogue with Turkey should be continued and notes that the negotiations should not be ceased since they are not progressing anyway.

Media:  Helsingin Sanomat
Date: 28.4.2017
Journalist: Pekka Mykkänen
Main source: Finnish Minister for Foreign Affairs Timo Soini

Finnish export companies already hesitant about US market because of Trump’s trade policies

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Summary:
Finnish companies are hesitant about entering the North American market because of US President Donald Trump’s protectionist trade policies. According to Manu Virtamo, Consul General of Finland in New York, especially smaller businesses may be putting off investment decisions because of the general uncertainty. Columbia University professor Anu Bradford estimates that it would be easier for Trump to advocate import duties for all countries, instead of just China and Mexico, which means that they could also affect Finnish businesses. The Consulate General still encourages Finnish businesses to attempt conquering America and not to give up.

« An increase in recycling requires radical means »

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Summary:
Lassila & Tikanoja (L&T) is the biggest waste management and recycling company. According to Jorma Mikkonen, Director for Corporate Relations and Responsibility at L&T, at current volumes, recycling is a profitable business, but the Government should act to make recycled materials financially attractive. In Finland, only about 40 per cent of mixed waste is recycled, and the country will not meet the EU’s 50 per cent recycling target by 2020. The EU is tightening its recycling target to 70 per cent. Jorma Mikkonen says that « radical policies » will be required to meet this target.

”Does a party advocating for an EU exit belong in the Government?” – Coalition veteran gives harsh assessment

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Summary:
MP Pertti Salolainen, Vice-chair of the Finnish Parliament’s Foreign Affairs Committee, urges Prime Minister Juha Sipilä to interfere in the Finns Party’s demands of an EU referendum in Finland. The collapse of the Finns Party in the municipal elections has started a discussion of an EU exit that endangers Finnish foreign policy and security and hurts Finland’s international image. Mr Salolainen says a party advocating for an EU exit has no place in the Government. He thinks it is clear that there will be no referendum and the discussion only serves the purposes of the next parliamentary elections.