Denmark: Low inflation - a threat to retirement funds

Article Abstract:

Low inflation results in low interest rates which in turn can undermine savings institution's retirement funds. In its quarterly report, the Danish National Bank argues that the Danish pension system isn't set up to work in a market situation with low inflation and low interest rates. With long-term investments in interest bearing securities, savings institutions are vulnerable to extended periods with low inflation. When the institutions promised its customers guaranteed returns on their investments, no one foresaw the current low market rates. According to the bank's report, some institutions have safeguarded themselves against prolonged periods of low market rates by leveraging their portfolios with investments on the options market.

Government Short-Term Rates, Exchange Rates, Public affairs, Abstract

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Denmark: FLS Aerospace is planning for staff reductions

Article Abstract:

FLS Aerospace, which is part of the Danish group FLS, might reduce staffing levels by 25%. The company has started negotiations about reducing the number of employees by 900 persons. The result for 2002 is expected to reach break-even, but the company has been affected by the international recession in the last few months.

New capacity, new plant construction, Airports, flying fields, & services, Other Support Activities for Air Transportation, Aircraft Service & Repair, FLS Aerospace

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