The election in 2014 may be risky business
Sunday, Sept. 14 is election day in Sweden — and some analysts predict that for the first time in many years, the historically stable, democratic socialist country may be at political risk. So say traders and investors, who worry that the new government will be weak and ineffective, rendering the Swedish krona weak. Trends show that the Social Democrats may return to power with their plan to increase taxes and strive to decrease the unemployment rate at an often high long term cost. This, after the threat of deflation already forced the central bank to lower lending rates to nearly zero. There are concerns for disagreements and ineffectiveness no matter which party is voted in to office. “The immediate election outcome and the period after could evolve into a political thriller that would justify a political risk premium being factored into the krona,” said Henrik Unell, a Stockholm-based senior analyst at Nordea Bank AB, the Nordic region’s biggest lender. Read the full article in the Bloomberg Report's "Currency Traders Gird for Krona Risk in Sweden Vote Thriller" at Currency Traders Gird for Krona Risk More from Nordstjernan on the election: Historic election on Sept. 14