The Network—a newsletter from the BSCC
Spring Edition 2009 www.bscc.info bscc@chamber.se Editor: Martin Friis
Ambassador visits Gothenburg
In addition to giving a speach at the School of Economics and
Law at Gothenburg University, where many interested stu-
dents had taken a seat to listen to HE Ambassador Andrew
Mitchell speaking on international policy and politics, HE Am-
bassador Mitchell also was keynote speaker at a lunch function
held by the BSCC in co-operation with the British Embassy.
Focusing on the financial crisis and a subject dear to him, the
environment, the topic of his speech was ” economic crisis —
greening the recovery”. Many members and friends in Gothen-
burg attended this lunch at the Royal Bachelors’ Club.
FULL STORY— PAGE 6
Secretary’s Word Hans Källenius on his Russian experience
Secretary General Ingrid Berggren gives an update on Mr Hans Källenius, lawyer and private investor with a past in
the work of the Chamber. some of Sweden’s most notorious companies spoke most passio-
nately on his experience of Russia and the Russians at a lunch
FULL STORY— PAGE 2
hosted and kindly sponsored by BSCC Patron Linklaters
Lord Mayor of London visits Stockholm FULL STORY—PAGE 3
Alderman Ian Luder, Lord Mayor of London spoke to
members at a breakfast meeting
FULL STORY— PAGE 7
New market project Burgundy
A new player explains how to compete with traditional
players when it comes to buying financial producs.
FULL STORY— PAGE 4
Lunch with chief economist of Nordea
BSCC members attended a lunch kindly hosted and
sponsored by Nordea.
FULL STORY— PAGE 3
BSCC Christmas drinks
Members gathered at the Residence for the annual
Christmas drink.
FULL STORY— PAGE 6
BSCC celebrating 55 years
A brief overview of our history
FULL STORY— PAGE 11
Secretary’s Word
Page 2
Dear Members,
For those of you who are not aware .... time flies! BSCC started operations 55 years ago
– Marcus Wallenberg was the main driving force behind the birth of BSCC.
The world was certainly different then from now . Looking into our files one understands
that networking was made differently then compared to today. Communication went
slower and took also considerably more time to produce. Our members have always been
very strong Swedish export based companies with incoming major British financial insti-
tutions and companies. Sweden has welcomed our British business partners and we have
opened our network to our newcomers. Networking will always be an important part of
doing business. Who is here, who is working with whom and on what? Key questions to
understand your business – you may have the answers through the BSCC network. This
may help you grow your business and your people!
This spring we have had focus on our events. I am proud over our list of speakers, HE
Ambassador Andrew Mitchell, Mr Hans Källenius former CEO of PLM, Minister of Trade
Mrs Eva Björling, Lord Mayor of London, Mr Ian Luder with Mr Stuart Frazier also from
the City of London and from yesterday Mr Jacob Palmstierna former CEO of SEB and for-
mer chairman of Nordea. Please read more about these events in this issue of The Net-
work.
New Members
During this spring our themes have focused on the current difficulties in the financial
markets and the global downturn in the economy. The storm is not yet over and our Andrew Baqone
agenda will certainly cover the future developments as well. Going forward, we have our
lunch with HE Ambassador Andrew Mitchell and Mr Jacob Wallenberg, chairman of Inves- Anna Petersson
tor AB and our AGM with a speech by Annika Winsth, chief economist at Nordea. We also
have the climate conference in Copenhagen during the 13 and 14 May organized together Brunswick Group
with Cobcoe and the British Danish Chamber of Commerce.
Erik Penser Bankaktiebolag
Our website is being developed close to daily. Use it and find out about our community.
Our newsletter is there to highlight your own industries to other members and to inform Gummeson Gruppen
about our events. This issue is bigger than usually due to the number of events we have
had recently. Read it! Our events are there for your networking.
I have one final wish, please inform us of at least one new contact person at your com-
pany to whom we could send our invitations etc.
All the best and kind regards,
Upcoming events Recent News on www.bscc.info
May 20 Penser joins as Patron
J. Wallenberg and HE Ambas- COBCOE environment conference in Denmark
sador Mitchell in discussion.
Private members welcome
Event to be held at Grand Ho-
tel BSCC @ Nordea lunch
May 25
BSCC AGM
Sept 1 Reminder
Annual BSCC Golf Tournament. Please contact martin.friis@chamber.se if
Location to be confirmed you have not received your login for the
website. This will allow you to sign up for
events and access the business information
available for members logged in.
For more events—look at event
calendar at www.bscc.info
The Network—Newsletter of the BSCC Spring Edition 2009
Event Reports
Page 3
Russia from Chrustjev to Putin
Hans Källenius on the Wild West of the East
Many members joined the BSCC and Linklaters on 19 Febru-
ary in welcoming Hans Källenius as speaker at this lunch
event sponsored by Linklaters. Hans spoke of his experiences
of doing business since 1972, with a focus on the Russian
people. It was clear he had many years of experience of this
vast country to the East and also much affection for the
country and its people.
Lunch guests listened to stories of his days as a lawyer at
Vinge, mediating between an American company and its Rus-
sian customer, where every so often a few drinks were in-
volved. Furthermore Hans graciously shared his experiences
from IKEA where he was given the task of purchasing a fac-
tory, that would produce the (in)famous book shelf “Billy”, in
a country where no one knew how to sell and he did not
know how to buy. It was certainly a much educational, enter-
taining and inspiring speech.
Many thanks to Hans Källenius for speaking to us during the
lunch and to board member Peter Högström of Linklaters for
helping in organizing this event.
Chief Economist of Nordea speaks at lunch
Weak global outlook! was the theme of the presentation on October 22nd by Jörgen Appelgren, Chief economist of
Nordea at the time. Members of BSCC were invited to a lunch at the head offices of Nordea together with the presen-
tation by Jörgen. The sun was shining over Kungsträdgården being the view from the dining room. This nearly made
us forget the difficult and harsh market conditions outside. The presentation was extremely relevant in timing, inter-
esting, frightening and the lunch was superb.
This lunch event was decided upon in June. No one would then believe the financial crisis would have taken the speed and size it
did over the months of September and October. Now we are heading for November and today (Oct 24th 2008) the Swedish stock
market is having its worst day ever. Having participated actively during the last financial crisis in the 1990ths, I would never have
guessed this could happen again. Here it is, a crisis worst than before and with more global spread than ever.
The Financial crisis and the market downturn goes hand in hand, first the financial crisis and then now the lower profit forecasts
delivered by the industry, which in turn will have a negative impact on the financial institutions, banks etc. What also is a fact is
that the financial worries continues despite the huge and strong government actions taken during the last weeks.
Interest spreads have gone up as a consequence of higher borrowing costs for banks. The Swedish Riksbank has during the last
two weeks reduced interest rates by 1 %. The total effect for private mortgage holder is however less. The high interest rates will
increase households drive to amortize which in turn will have further negative effects on the growth rates of the economies as con-
sumption is going down. Unemployment rate will increase. The cost for borrowing today is increasing for everyone and is depend-
ent upon you credit rating much clearer today than during the previous low interest rate period. Margins for a High yield bonds are
at 1600 basis points, BBB rated corporate bonds are today at levels of 600 to 650 bp companred to AA rated at some 300 to 400.
The price of money has clearly gone up from an average in 1997 of 500 for the high yield bonds.
For Sweden, Volvo is increasing redundancies and their subcontractors are following. Other business areas are also showing higher
unemployment growth. For Sweden the major risk is the strong dependence on the car industry.
The situation in the UK is worse so far and prices for private homes are falling sharply since 2006/2007 and construction of new
houses is dropping by some 20% since 2007. Comparing to the US, house prices have been falling since 2006 but construction of
new has increased slightly since beginning 2008. One piece of good news.
The UK government package, very important and constructive, took the lead to stop the financial crisis but today the run is on
again. The uncertainty and signs of a risk of a global recession over more than a year, are clear. The Downside risks for the UK
according to Jörgen Appelgren is the Large financial sector, the risk for large fall in house prices, households savings at zero and a
small scope for fiscal policy.
- Ingrid Berggren
Sponsored by:
The Network—Newsletter of the BSCC Spring Edition 2009
Page 4
New Market project Burgundy
A new player that promises reduced transaction costs in the market
21 November was the day when CEO of new Burgundy project gave a lunch presentation to BSCC members at Grand Hotel. Olof
Neiglich spoke about this new trading platform that will reduce trading costs for participats. Burgundy is owned by major banks and
securities trading firms in the Nordic region. This is a new platform where banks and institutional investors can make trades at
much lower cost than previously and the first day of trading took place 8 May 2009 and according to Burgundy’s website, it was
quite a success. Mr. Neiglich hopes to capture a big part of the trading volumes in the Nordic region and will gradually increase the
number of securities possible to trade through Burgundy. By 12 June Burgundy plans to have a complete list of Nordic blue-chips
and ETF’s on the platform which represents 85% of the Nordic trading volume. Mr Neiglich spoke of similar initiatives for example
in the UK where these trading platforms have been very successful and Burgundy plans on making the same happen in the Nordic
region. It remains to be seen though if these reduced transaction costs will lower transaction costs for private investors trading
through the banks and securities firms connected to the Burgundy platform.
New Member
Brunswick Group
Brunswick is a corporate communications partnership. We pro-
vide informed advice at a senior level to businesses and other
organizations around the world, helping them to address criti-
cal communications challenges that may affect their valuation,
reputation or ability to achieve their ambitions.
Worldwide, we are one firm, a private partnership that has
grown organically, person-by-person, from three Partners in
London in 1987 to approximately 80 Partners and 40 Directors
in 15 offices around the world today. In total, we are more
than 480 people. Our predominance of senior professionals
from a range of industry backgrounds gives us a major com-
petitive advantage and our clients a significant benefit. As a
result, we are ranked in first position in the league tables for
M&A communications advisers in both Europe and North Amer-
ica.
Our clients often face demanding issues and audiences. They
look to us for a team of highly experienced and dedicated
communications specialists working together as one firm. We
advise more than 180 retained clients, including large multina-
tionals, small private firms and voluntary bodies. Half our cli-
ents have been with us for more than five years; a fifth for
more than ten years. We aim to deliver a result that is visible,
valuable and earns the respect of our clients and their subse-
quent recommendation.
Please visit www.brunswickgroup.com for further information.
The Network—Newsletter of the BSCC Spring Edition 2009
New Members presentation
Page 5
Kyllenius & Garmer AB Alexander Hughes
Kyllenius & Garmer offers consultancy services to foreign With a tradition of excellence since 1957, the Alexander Hughes
companies interested in establishing business in Sweden and Group is an executive search organization dedicated to helping
Scandinavia. The company was founded in 2002. We are our clients acquire and retain the vital human capital they need
based in Stockholm where the head office is located but we to achieve their strategic business goals. The Group has a truly
also have offices at several other locations in Sweden. international presence in 31 countries with 40 wholly owned
We target small to medium-sized companies looking to es- offices in the EMEA region, and is the founding member of the
tablish local Presence in the Scandinavian market for sales global executive search network, AEA International Search, with
and/or representation. leading firms Nosal Partners LLC in the Americas and Strategic
Executive Search in Asia. This alliance ranks among the 15 larg-
Kyllenius & Garmer provides services in the following areas: est executive search organizations in the world.
company registration, accounting, tax advice and applica-
tions. Kyllenius & Garmer can also assist in market analysis,
Alexander Hughes focuses on finding the individuals who repre-
the development of a detailed marketing plan, the process of
sent crucial strategic investments for the development and fu-
selecting the optimal location and in providing contacts to
ture of our client companies: executive and non-executive di-
potential customers and business partners.
rectors, senior managers and recognized experts in their spe-
cialist fields.
Please visit: www.kylleniusgarmer.com for more informa-
tion.
Managers by Alexander Hughes, a recent addition to the Group,
helps our clients in the recruitment of uniquely qualified indivi-
duals such as future top-managers (high-potential individuals
with proven talent), rare specialists, and other confirmed mana-
gers.
Our consultants are former operational leaders, understanding
the issues and possibilities of the client requirements. This en-
ables us to tailor-make the approach for each client; to recog-
nize the importance and needs of each individual client and can-
Ernströmgruppen AB
didate.
Ernströmgruppen is a family-owned investment group
founded in 1918 and currently in the 4th generation of owners
and managers. For many years the main business of the
group was within the building materials industry. Today Ern-
strömgruppen has long term ownership commitment in the
following business areas: Technical Trading (Ernström Handel
& Industri); Commercial and Residential Real Estate (Platzer
Fastigheter and Sverigehuset) and Other Investments
(Ernström Invest).
The group has its headquarters in Gothenburg, Sweden and
Welcome New Patrons
is represented in Denmark, Norway and Finland. Turnover in
2007 amounted to 1,662 MSEK and the number of employ-
ees approximately 200.
Ernströmgruppen’s investment philosophy differs from most www.ernstrom.se
investment companies in its long term approach to its hold-
ings. The group has no exit strategy for its investments in
wholly or partly owned subsidiaries and, in principle, see
itself as an owner for generations.
www.penser.se
The Network—Newsletter of the BSCC Spring Edition 2009
Page 6
Event reports
Christmas drinks at the Residence
On 2 December members gathered at the Residence kindly in-
vited by HE Ambassador Andrew Mitchell and wife Helen
Mitchell to the British Residence for the annual Christmas drink.
Both familiar and new faces were seen at the event and many
members attended in what is a popular event each year. The
meeting took place after an ordinary board meeting of BSCC.
The meeting covered topics normal of the season but also as-
pects looking to the future. The base for development is today
stronger with a new website and our in-house production of this
newsletter as well as the annual Business Directory.
Discussions at the reception related to matters as the financial
crisis and interest rate levels as many banks participated. The
event was sponsored by Svensk Tenn that had donated a tray
for the BSCC Christmas Lottery.
Members and guests enjoyed the evening and especially when
HE Ambassador Andrew Mitchell spoke of an anecdote about US
realtors saying that “in terms of estimating sales over a period
of time, the most accurate realtors were those with very pru-
dent estimates, but the ones that sold the most were those with
the highest estimates” ( and who were way off ). This really
speaks of the importance of keeping a positive attitude in an
economic downturn. There is still business out there. It may
require more work to find it, but it is certainly out there.
We look forward to this event this year aa well and hope that
the general topic of discussion will be a more positive one with
good and strong outlooks for the future.
Welcome to London seminar Ambassador in Gothenburg
The Swedish Chamber of Commerce to the UK ( SCC ) organ- The Ambassador visit to Gothenburg attracted many
ised this welcoming event at Berns Salonger this year. It is an members and friends to the lunch at the Royal Bachelor’s
event for companies interested in taking the step into the UK club and it was a successful event. The lunch was followed
market. HE Ambassador Andrew Mitchell was present and took by a visit to Gothenburg University where the Ambassador
part by giving a speech on “Greening the recovery” and spoke spoke to interested students and the room was packed
of investments in renewable energy and related products, a way in advance and in the Q&A part following the speech,
field where Sweden holds a strong position. discussions at times got heated but one thing was clear.
The students were very impressed with the level of de-
UKTI, the UK Trade and Invest, a unit located at the British tailed knowledge the Ambassador had on so many various
Embassy in Stockholm also took part and informed the execu- issues.
tives who were present. Ingrid Berggren, Secretary General of
the BSCC was also participating on a panel debate as well as
Paul Stone, head of Bain & Co Nordic as well as board member
of the BSCC.
The Network—Newsletter of the BSCC Spring Edition 2009
Event reports
Page 7
Lord Mayor of London visits Stockholm
In the early morning of 17 April, Alderman Ian Luder, Lord Mayor of London gave a presentation to BSCC members as well as
members invited from the American Chamber of Commerce and the French Chamber of Commerce. Björn Savén, Chairman of the
BSCC opened the meeting and welcomed all members and guests. There was great interest in this breakfast meeting with the rep-
resentative of the City of London, who also advices the UK Government on regulatory issues for the financial services industry and
there was ample opportunity to ask questions.
Alderman Ian Luder was in Stockholm along with Stuart Frasier, another representative of the City of London, to meet with repre-
sentatives of the Swedish Government, Riksgälden and Finansinspektionen before the Swedish EU presidency to discuss issues
such as co-operation on regulating the financial markets.
In his remarks, the Lord Mayor of London noted that regulation is a good thing if imposed and enforced properly. Free trade is of
the utmost importance for the City of London, since so many of the businesses located there are owned by foreign entities. Hence,
the Lord Mayor of London is a strong advocate against protectionism and feels that every effort must be made to work against such
measures especially in the midst of the financial crisis. From a regulatory standpoint it is vital that we do have the proper regula-
tions in place, but we must work carefully and gradually adapt regulations to the current financial instruments. As Alderman Ian
Luder noted, the financial instruments evolve and new are constructed, and in the light of this, it is vital to have a core of regula-
tions e.g. concerning risk measures that is applicable to many situations and instruments, and then the more specific regulations
will be adapted over time. It is important that the regulatory work proceeds without making premature and hasty decisions such
that this important industry can continue to prosper in the City of London.
HE Ambassador Andrew Mitchell further discussed the situation in the global financial industry and also the environmental invest-
ments that need to be made in the emerging economies despite the difficult situation.
Photos by Rob Nelson
The Network—Newsletter of the BSCC Spring Edition 2009
Event reports
Page 8
Lunch with Jacob Palmstierna
On 20 April, Jacob Palmstierna spoke to BSCC members at Diplomat Hotel in Stockholm. Mr Palmstierna, among other things for-
mer Chief Executive of SEB and Chairman of Nordbanken. Being at the centre of the bank crisis in Sweden in the 90’s, Mr
Palmstierna spoke on the financial crisis of today and what we can learn from this moving forward. Some 30 members joined this
event where issues such as when a recovery can be expected, how we can avoid future bubbles etc. were discussed. Mr
Palmstierna noted that if he could know when a recovery would come – he would certainly not share that piece of information!
Jacob Palmstierna spoke about the fact that the far most dangerous bubbles according to him, are those of the housing market,
because it affects such a wide audience and has far-reaching effects on consumer spending and corporate results. He remarked
that although it is easy to discuss afterwards what went wrong, it is of the utmost importance to do so to learn from the past.
Jacob focused on four questions discussing the recession; 1. Globalization with Chinas new position as the third major economy in
the world. This has of coursed changed old systems and structures. 2. House price bubble starting in the United states and spread-
ing over the world. The structured financing for house loans and its movement of risk from market players, especially from the
bankers who arranged the original financing for the house transactions, to the "market". This lead to a lack of "ownership" of risks.
High lending rates on house values is also one reason. 3. When are we out of the crisis? and finally 4. Who’s fault was it?
Jacob summed up with comments on the future; The situation will probably lead to higher capital cost. Lending capacity will most
likely be lower. Lower profitability and more inspection are trends for the finance industry to look forward to.
Mr Palmstierna noted also with regard to his recent book that there are those who have red it and those who will and with that said
we want to thank Jacob Palmstierna for signing his book for those who took the chance of purchasing one after the lunch.
The Network—Newsletter of the BSCC Spring Edition 2009
Event reports
Page 9
KSSS Fashion Show 2009
Members of the BSCC are invited to this event every year. The reason is simple—the Secretary General of the BSCC, Ingrid
Berggren is also on the board of KSSS and responsible for organizing this event which is a way of raising funds for the youth pro-
grams of KSSS. Join next year!
This year there were some 700 guests attending the event. 400 were sitting down for a wonderful dinner and 300 joined for drinks
and the opportunity to mingle and watch the fashion show. New this year were also some 20 exhibitors showing everything from
clothes to cheese.
Twelve brands showed their spring collection on the catwalk from Designers, Dressingroom, Götrich, Look Boutique, Maruschka,
Milagro de Nahrin, Nautiska Magasinet, NK Sport & Fritid, Pure and simple, Scaasi, Thalia, and Twink.
KSSS has organized this event for the past 30 years and it has become an annual event to reckon with. The event this year was
sponsored by Audi Stockholm, Face Stockholm, Bollinger Champagne, Redken, Two Brands and Stureplanskliniken.
Jacob Wallenberg, Chairman of KSSS were together with Therese Ahlström in charge of the lottery.
We hope that many of you will have a chance to attend next year and thank those of you who attended this year.
The Network—Newsletter of the BSCC Spring Edition 2009
Event report
Page 10
Ewa Björling breakfast meeting
On one of the first really bright and sunny days in Stockholm this spring,
members were invited to a breakfast meeting at Strandvägen 7A for a pres-
entation with Ewa Björling, Minister for trade. Also participating were mem-
bers from AmCham.
Ewa Björling is worried about the serous development of the global economy.
She says it seems clear that global GDP will decline this year for the first time
since World War II with growth at least 5 % below potential according to the
World Bank. One major step to help things change for the better according to
Ewa Björling is that trade could boost as a result from a co-operation between
the EU and the US to promote deregulation and liberalization of international
trade. This is needed in this period of crisis.
The first, the second and the third step according to Ewa Björling on the inter-
national trade agenda is to get the Doha round in place. This would entail the
most important liberalization of global trade in history. It involves deeply re-
structuring farm, support in the developed world and opening markets in agri-
culture, manufacturing and services. An agreement would also mean an im-
portant opportunity to better integrate emerging economies such as China,
India and Brazil into the multilateral system.
During the weekend following her speech the G20 finance ministers met in
England to prepare for the major summit at the beginning of April on how to
tackle the economic downturn. A statement was made about protection-
ism "We ...are prepared to take whatever action is necessary until growth is
restored. We commit to fight all forms of protectionism and maintain open
trade and investment" the statement said. Ewa Björling thinks this is very
important. Watching out for protectionism in the bailout programs and differ-
ent sorts of stimulus packages is not only a trade challenge, but one of the
most urgent and important to fulfill " Ewa Björling says.
Another threat today is the climate issue of course being used to promote
protectionism.
She also highlights more threats and opportunities to the global trade pattern
and development.
The speech was followed by questions from the guests lead by Ingrid
Berggren and Berit Salheim of AmCham. Members who attended found the
speech interesting
Thank you very much for coming Ewa Björling, Minister for Trade.
Photos by Rob Nelson
The Network—Newsletter of the BSCC Spring Edition 2009
BSCC 55 Years!
Page 11
1954-2009
The BSCC is celebrating 55 years of developing business, network and trade
between our countries
Our history over the last 55 years is what can be found in our files but more importantly in the development of trade
between UK and Sweden.
We know a little about the starting point of BSCC. We know it was founded in 1954 and we know that Marcus
Wallenberg was the Chamber’s First Chairman.
We have learned that the actual Inauguration Day was on September 7th. We also have learned that a Statutory
Meeting was held in April at Stockholms Handelskammare and that a big banquet was held at Grand Hôtel on the
evening of the 7th of September 1954 to celebrate the creation of the Chamber. To enlarge, and further strengthen,
Anglo-Swedish Trade relations were the main aims at the inauguration in 1954.
If it was a coincidence that in 1954 is was the anniversary of another important milestone in British-Swedish rela-
tions , the treaty between Sweden and Britain that was signed in 1654 - 300 years before this Chamber was founded
we do not know.
This means we have a solid foundation , upon which the excellent relations between Britain and Sweden rest , dat-
ing back to the mid 17th century. That treaty was signed by Sweden’s Queen Christina and the Cromwell regime.
The chamber has seen may more chairmen over the years, Going backward from todays Björn Savén, Jan Carlsson,
Håkan Mogren, Lotta Treschow, Tom Wachtmeister etc the chamber is fortunate to have and have had so many dis-
tinguished people represent the chamber.
We look forward to the next 55 years to come and hope that you, our members, will keep participating in such an
excellent way to continue to promote trade and business relations between Britain and Sweden.
We hope you enjoy the summer and look forward to presenting a number of interesting networking events during
the fall and look forward to seeing many of you there.
The Network—Newsletter of the BSCC Spring Edition 2009