Business Round Up: Coastal floods and property damage may disrupt entire Danish financial system
The National Bank is concerned that rising waters and land erosion around Danish shores will render coastal properties – which many use as collateral against bank loans – worthless.
Flood risks already threaten around 41 billion kroner in loans and the National Bank predicts that figure could rise to 198 billion korner by the end of the century – equal to about 7 percent of all real estate exposures.
It’s not just a problem for homeowners – or even for individual credit institutions. “Flood-related damage could hurt the entire financial system,” the bank said.
“Lenders should incorporate climate-related exposure in risk management for their real estate loans. Geographical concentrations should also be addressed.”
Detailed climate and flooding data from the Technical University of Denmark (DTU) has allowed researchers to identify particularly vulnerable areas – information which the bank argues should be used to inform lending policy.
Currently, Danish banks have about 2.8 trillion kroner in real estate exposures.
Though property owners will be the first to suffer, banks are likely to see losses as property values fall.
Crowds are growing at CPH Airport
The number of daily passengers at Copenhagen Airport has grown for the first time in 2021, from 6,000 in April to 8,300 in May – an increase of almost 40 percent. It’s still 90.3 percent fewer than in May 2019, when there were 83,000 daily passengers. Every Friday, new travel routes are approved and opened for bookings. Currently Copenhagen Airport services 60 destinations and by July there will be up to 130 to choose from.
Danes stung by rising consumer prices
Figures from Danmarks Statistik indicate that inflation rose by 1.7 percent in May compared to last year – the largest increase since 2012. The rise has particularly affected consumer prices for tobacco, petrol and diesel, and rent. For a normal Danish family the change in inflation is equal to 2,500 kroner per year, with products costing more and currency being worth less.
Nemlig.com introduces minimum wage after bad press
After courier service Intervare, which owns Nemlig.com, was caught underpaying several of its drivers, the online supermarket has introduced new requirements for its delivery partners. Nemlig itself has previously been accused of having poor working conditions. Their new requirements include providing minimum wage, holiday pay, maternity leave, pension contributions and a system for more accurate and reasonable delivery route calculations.
Salling supermarkets go cruelty-free on fresh chicken
In 2022, turbo chickens will be cut from the fresh meat section of Salling group supermarkets Netto, Føtex and Bilka. Turbo chickens – so-named as they are bred to grow from 50 grams to two kilos in five weeks – suffer immense biological strain from accelerated growth and the practice is considered cruel by welfare groups. Salling is not the first supermarket chain in Denmark to take the step – last year Aldi and Lidl also dropped turbo chickens from their refrigerated counters.
Vestas secures huge order from Indian wind energy client
Vestas has secured an order of wind turbines totalling 101 megawatts in an extension of their agreement with ReNew – one of India’s leading renewable Independent Power Producers. Vestas previously supplied ReNew with 250MW worth of turbines for a project in Gujarat, and 100MW in Karnataka. Deliveries are expected to begin in the last quarter of 2021, while commissioning will take place between December 2021 and first quarter of 2022.
Danish companies pay record dividends despite pandemic turmoil
In the first quarter, Danish companies have paid out 38 billion kroner in dividends. According to the National Bank, it’s the largest total payout ever. Companies like Novo Nordisk and Ørsted have increased their dividends and Maersk – thanks to record profits – more than doubled its payout. As well as dividends, companies can pay shareholders through a buyback program, in which the company buys its own shares and ‘deletes’ them, distributing the company value between fewer hands than before.
‘Miracle’ Danish obesity drug hits US shelves
Novo Nordisk has received approval from the US market for a new prescription slimming medicine. The drug, called Wegovy, is administered as an injection. Currently it’s used as treatment for type 2 diabetes in Denmark. It contains the active substance semaglutide, which mimics the body’s natural appetite regulating hormones, and studies have so far shown around a 12 percent reduction in users’ bodyweight. The EU and the Danish Medicines Agency will have to approve it before it can be obtained in Denmark.
Wolt delivers team colours with your takeout
Euro 2020 is well underway and for the next few weeks Copenhagen will be clad in red and white. But don’t despair if you’re not dressed in team colours for kickoff: Wolt and Sportsmaster have teamed up to offer 30 minute door-to-door delivery of the Danish national team jersey during the tournament. The shirts are available via the Wolt app for 499 kroner in Copenhagen, Lyngby, Roskilde, Odense, Kolding, Horsens, Esbjerg, Aarhus, Randers and Aalborg.