WEEKLY E-NEWS 27 June 2008 Interest rates rise yet again Norway's central bank raised interest rates on Wednesday, ignoring calls that the bank foregoes yet another hike. The decision by Norges Bank (The Bank of Norway) puts the country's current key lending rate at 5.75 percent. Home borrowers have seen rates rise from 1.75 percent in the past three years, nearly tripling and adding thousands of more kroner onto the average monthly mortgage payment. Economists had been urging the central bank to keep rates steady, arguing that Norway's hot economy already has shown signs of cooling off, and consumer spending was already falling. It's now taking much longer, for example, for homesellers to unload their properties than it did last year. New data also came out earlier on Wednesday that showed a rise in the country's unemployment rate. But the central bank (Norges Bank) went ahead and raised rates anyway, thereby wiping out some of the pay gains won by this past spring's labor settlements. The bank claimed price growth "has been a little higher than expected, and there are signs that inflation will rise." Jan Qvigstad, second-in-command to bank chief Svein Gjedrem, said it was "therefore important that we raise rates now." He noted that Norway has had low inflation and strong growth for a long time. "Now it looks like we'll be getting higher inflation and lower growth," he said. Aftenposten English Web Desk
Art auction raised millions The late Norwegian art collector Haaken A Christensen has enabled Doctors Without Borders to receive its largest single donation ever, following an auction Wednesday of some of Christensen's art. Five paintings – including four by Picasso – that were in Christensen's personal collection were sold at auction in London for more than NOK 114 million (about USD 22 million). The proceeds will go to aid organization Medecins sans Frontieres (MSF, Doctors Without Borders). Christensen willed his entire collection, worth about NOK 200 million, to MSF and now the organization is seeing the results of the donation. Christensen's decision to will his collection to MSF was revealed after his death in April. The auction at Sotheby's in London represented just a small portion of Christensen's collection, albeit the most valuable. In addition to the four Picasso paintings was one by Léger, and nearly 60 works of art remain to be sold. They include Picasso prints and paintings by Jens Johannessen, Johs Rian and Ludvig Eikaas. Christensen earlier had intended to leave his collection to the Henie-Onstad art museum just west of Oslo, having already contributed an entire new wing for the museum, but later came into conflict with museum management. He then decided to donate his collection to MSF. It is an independent humanitarian medical aid agency committed to providing medical services where needed and boosting awareness of the plight of the people served. It won the Nobel Peace Prize in 1999. http://www.aftenposten.no/english/local/article2506411.ece
(Canada) Heritage Fund is no Norway
Deborah Yedlin, Calgary Herald Published: Thursday, June 26, 2008
Last week, a financial brain trust descended on Calgary and Banff for what really was a four-day seminar on economics, finance and the impact of resource wealth on public policy. The timing of the event, hosted by the Haskayne School of Business, was more than a bit prescient as one of the panels involved the Norwegian central bank governor, Svein Gjedrem, who spoke primarily about the Norwegian Oil Fund. Given Tuesday's announcement about Alberta's budget surplus being $4.6 billion, along with the fact the Organization for Economic Co-operation and Development
recently issued a report recommending Alberta and Canada as a whole look at the Norwegian model, it's worth revisiting some of Gjedrem's remarks last Friday. Read more at WorldNews / Calgary Herald
Wind Power: Go-ahead for offshore windpark The Norwegian Water Resources and Energy Directorate (NVE) has issued a license for the Havsul I windpark to be built off the coast of Moere og Romsdal county. The project consists of 78 windmills and has a planned production capacity of around 1TWh annually, or the consumption of 50,000 homes. NVE has at the same time turned down the applications for the building of two other wind parks in the same area, mainly for environmental reasons. NRK/Norway Post
StatoilHydro submits $2 bln Troll oil/gas plan StatoilHydro and partners plan to invest about $2 billion for further development of the big Troll oil and gas field, aiming to boost oil recovery and maintain gas exports, StatoilHydro said on Friday. "The new development plan is an overall description of our plans for the oil production at Troll and provides for profitable oil production through 2030," StatoilHydro said in a statement. "The Troll partners' new plan has an investment limit of almost 10 billion Norwegian crowns ($1.98 billion)," StatoilHydro said. StatoilHydro is the operator and has a 30.58 percent stake. Its partners in Troll are Norway's state-owned Petoro with 56 percent, Shell with 8.1 percent, France's Total with 3.69 percent and ConocoPhillips with 1.62 percent. The plan will also result in increased production opportunities at neighboring fields, as Troll processing capacity available for a longer period than earlier expected, Hege Marie Norheim, head of StatiolHydro's reserve and business development on the Norwegian shelf, said in the statement. Troll, which came on stream in 1996 and holds 60 percent of the gas reserves on the Norwegian shelf, is the biggest gas field in the North Sea. It is also one of Norway's biggest oilfields. The plan includes a new gas injection plant for improved oil recovery at Troll B, a new gas pipeline from the Troll A platform to the Kollsnes gas-processing plant, and replacement of production pipes in gas wells running to Troll A. "Gas injection in Troll West will increase the oil reserves at Troll by 17 million barrels," Statoil Hydro said. The offshore modifications are scheduled to start this year and the gas injection plant will be in place by the turn of the year 2011-12, the company said. The new rich gas pipeline designed to maintain the daily gas production capacity will come on stream in 2011, it said. OSLO, June 27 Reuters
SAS EuroBonus in Alliance with Hilton HHonors® Scandinavian Airlines’ (SAS) frequent flyer program EuroBonus and Hilton HHonors® have announced a new alliance that allows members to earn points in both programs during the same stay at Hilton Family hotels worldwide. SAS and HHonors also have a special launch offer, which rewards SAS EuroBonus members with double SAS EuroBonus points when they book online and stay at participating Hilton Family hotels in Denmark, Finland, Iceland and Sweden between June 15 and August 15. The participating hotels include: Hilton Copenhagen Airport, Hilton Stockholm Slussen, Hilton Malmo City, Hilton Helsinki Airport, Hilton Helsinki Strand, Hilton Helsinki Kalastajatorppa and Hilton Reykjavik Nordica. Since June 1, EuroBonus members have been able to earn 500 EuroBonus points per stay when they stay at Hilton, Conrad Hotels & Resorts, Doubletree, Embassy Suites Hotels, Hilton Garden Inn, Hilton Grand Vacations Club and The Waldorf Astoria = Astoria Collection. SAS VP the Americas Sveneric Persson said, ―Now SAS EuroBonus members as well as HHonors members have more opportunities to earn more points when they stay at Hilton Family hotels.‖ Businesswire SAS
Renewable Energy Corporation secures NOK 1.5 billion wafer sales contract REC has entered into a significant long-term agreement for supply of mono-crystalline silicon wafers to Suniva, Inc. Under the agreement, REC will until 2013 deliver wafers worth more than
USD 300 million (~NOK 1.5 billion). REC Wafer, currently significantly expanding its monocrystalline silicon wafer capacity, has signed a long-term agreement with Suniva in Georgia, USA for the supply of monocrystaline wafers. The agreement, which runs until 2013, is structured as a take-or-pay contract with pre-determined prices and volumes for the entire contract period. The contract has an approximate value of more than USD 300 million (~NOK 1.5 billion). Contracts signed since 2006 now total more than NOK 30 billion for the period until 2015. "This contract is aligned with our increasing presence in the high efficiency monocrystalline cell segment and comes in addition to the significant contract portfolio signed to date", says Erik Thorsen, President & CEO. The deliveries will start in 2009 and increase over the contract period. Prices and other commercial terms are in line with contracts signed since 2006 and include the security of a bank guarantee covering a significant part of the contract volume. Prices are predetermined to go down over time and will be depending on reduced wafer thickness. "We look forward to working with the technical team of Dr Ajeet Rohatgi to further improve the performance of monocrystalline silicon cells.", says Ingelise Arntsen EVP of REC Wafer. REC release /Nortrade
Holland & Knight's National Aviation and Shipping Transportation Practice Receives a No. 1 Ranking by Chambers USA Holland & Knight's national aviation and shipping transportation practice has once again received a No. 1 ranking in New York and the nation from Chambers and Partners for the 2008 Chambers USA – America’s Leading Business Lawyers guide. Building on over 150 years of transportation experience, Holland & Knight has the largest and most geographically diverse maritime practice of any law firm in the United States. Holland & Knight received a No. 1 ranking by Chambers USA in transportation in the following categories: • shipping: litigation; • aviation: litigation; • aviation: regulatory. Holland & Knight
Chambers USA 2008—Higher Rankings for More Blank Rome Teams and Attorneys Blank Rome’s practice groups and attorneys increased their rankings—yet again—in the 2008 edition of Chambers USA: America’s Leading Lawyers for Business. Chambers USA recognized practice groups in 16 categories this year, and also ranked more than 27 attorneys as ―leaders in their fields.‖ The firm received five national practice rankings (including three #1 rankings) in Government Relations and in four categories of Transportation (Shipping). In addition, the firm was recognized in both Pennsylvania and Delaware in Bankruptcy/Restructuring. In Pennsylvania, it achieved six practice rankings (including four #1 rankings), including Banking & Finance, Corporate/M&A & Private Equity, Labor & Employment, Litigation, and Real Estate. Blank Rome
Stolt-Nielsen S.A. Presentation and Conference Call Second Quarter 2008 Results A presentation and a conference call to discuss the Company's results for the second quarter of 2008 will be held on Thursday, July 3, 2008 at 3:00pm CET (9:00am ET, 2:00pm GMT) at Hotel Continental, Stortingsgaten 24/26, in Oslo, Norway. The presentation will be hosted by: Niels G. Stolt-Nielsen - Chief Executive Officer, Stolt-Nielsen S.A. Jan Chr. Engelhardtsen - Chief Financial Officer, Stolt-Nielsen S.A. Those who wish to participate may dial 0800 028 1277 (in UK), +1 888 935 4577 (in US & Canada), 800 19640 (Norway) or +1 718 354 1388 (International). Phone lines will open 10 minutes before the call. A recording of the conference call will be made available following the call on Thursday, July 3, 2008 until Thursday, July 9, 2008 at 11:59pm CET (5:59pm ET, 10:59pm GMT). For access dial +1 866 239 0765 (US & Canada), +1 718 354 1112 (International) and quote the passcode: 3305734#. A live webcast of the conference call may be accessed at Stolt-Nielsen's website, www.stoltnielsen.com commencing on Thursday, July 3, 2008 at 3:00pm CET (9:00am ET, 2:00pm GMT).
A playback of the webcast will be available on Thursday, July 3, 2008 after 7:00pm CET (1:00 pm ET, 6:00pm GMT). Stolt-Nielsen Press Announcement
The Think City. In Norway, they’re building your first electric car … and it’s solid and safe, with charisma to boot. Read another great press report from Worldnews / (NY) Newsday / Los Angeles Times
Norway's Yara says to build Dutch urea plant Norwegian fertilizer group Yara will invest about 400 million euros ($626.8 million) to build a new world-scale urea plant in the Netherlands, Yara said on Thursday. The plant at Yara's Sluiskil site will produce 1.3 million tonnes of urea per year from 2011, Yara International ASA said in a statement. "This expansion takes advantage of urea upgrading margins on excess ammonia capacity in Sluiskil, in addition to improving energy efficiency, environmental performance and maintenance cost," Yara said. Reuters
Save&Save - Glitnir launches a new international deposit product Nobel Peace Prize laureate Dr. Rajendra Pachauri joins the Board of Glitnir's Sustainable Future Fund. Glitnir Bank has announced the launch of "Save&Save", a unique deposit product which the Bank will offer to customers in its two main markets of Iceland and Norway. In due course, Glitnir Bank will extend the product's reach into other international territories. The Save & Save concept will give customers a favorable interest rate while simultaneously allocating funds to a new global environmental fund whose objective is to support environmental projects, focused on sustainable energy and a sustainable seafood industry. Glitnir will add a minimum of 0.1% annually of total funds in Save&Save customer accounts, as a contribution to the development of the Glitnir Globe Sustainable Future Fund. The Fund is expected to accumulate up to EUR 4 million within a few years, thus becoming one of the largest private funds supporting research into sustainable development. The Fund's Board of Directors will include Nobel Peace Prize laureate Dr. Rajendra Pachauri, Johann Olav Koss, CEO of Right To Play and Kristín Ingólfsdóttir, Dean of the University of Iceland together with Grete Waitz and Jack Waitz, the renowned Norwegian philanthropists. The Board will be chaired by Mr. Árni Magnusson, Managing Director of Glitnir's Sustainable Energy Team. The Board will be extended as the Save&Save concept grows into new markets. Reykjavik / Oslo Marketwire 27 June 08
European Purchasing Power Survey, GDP per capita, price level adjusted, preliminary results 2007 High Norwegian material prosperity. In 2007 Norway had the second highest GDP per capita in Europe, according to figures recently released by Eurostat. GDP per capita is often used as an estimate of the material prosperity of a country. In 2007 GDP per capita in Norway was 84 per cent above the average of the 27 EU countries (EU27). Luxembourg comes out on top in the comparison. Other countries standing out with a high GDP per capita are Ireland, Switzerland, Netherlands, Iceland, Austria, Sweden and Denmark. Report with table at Statistics Norway
World’s Most Wired Countries Norway now ranks #8 … up from #15 last year. To rank high on the list--one of 12 included in the WEF's annual Global Competitiveness Report--countries need to have tech-friendly government policies as well as high tech usage. In the ranking, the WEF focuses on information and communication technologies (ICT), such as cellular connectivity and broadband Internet, noting that "ICT has evolved into the 'general-purpose technology' of our time … responsible for a large part of productivity increases." Read the report at Forbes
Calendar
Thru 7/30/2008 ~ NEW YORK ~ Scandinavia House ~ New Nordic Jazz / Jazz House
8/19/2008 ~ NEW YORK ~ Rune Bjerke, CEO of DNB NOR will give a briefing followed by reception to NACC members at the Penn Club, 30 W. 44th St., New York, starting at 5:30. Further details to be announced.
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9/10/2008 ~ NEW YORK / NEW JERSEY ~ Nordic Open Golf & Tennis Tournament
9/17/2008 ~ CONNECTICUT ~ NACC Members & Friends dinner in Connecticut; details to be announced.
Transatlantic Science Week 2008: Health - Energy - Global Impact Ottawa, Washington, D.C. 19-23 October 2008 The Royal Norwegian Embassies in Ottawa and Washington, D.C. are pleased to invite you to Science Week 2008 -- an event arranged in collaboration with US and Canadian institutions, The Research Council of Norway, Innovation Norway, and The Carnegie Institution for Science. Please click here to read more about this important event.
For news and happenings at Norwegian Seamen`s Church http://www.kjerka.com/
Cultural news and events throughout the United States, provided by the Norwegian Embassy and the Consulates General, offers information on Norway and facilitates cultural and educational exchange between the USA and Norway. To view the full program of Norwegian music, art, lecture, film and theatre: http://www.norway.org/ and select your local area. New York Highlights
Norwegian events in the USA, compiled by Norwegian Embassy, Washington, D.C Norwegian events in the USA.
The Norwegian American Foundation For news and more
News and programs at Scandinavia House
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DISCLAIMER The above news bulletin contains excerpts from sources noted in the attribution at the end of each excerpt. The Norwegian American Chamber of Commerce, Inc. has not verified the accuracy of such content and disclaims any and all liability (including attorneys' fees) arising as a result of such excerpts.