Weekly economics overview
Cheaper electricity from December 1 for customers in Copenhagen and surroundings. One million customers that receive electricity via the grid company Radius will get a 15% reduction in the electricity transport tariffs.
Dental care subsidies for people in treatment with psychopharmaceuticals or psychotropic drugs. The Ministry of Health announced that the dental care subsidy scheme will be expanded to include people with severe mental illness. Why? The psycho-drugs cause dental problems as they inhibit the production of saliva in the mouth.
The Trump victory negatively impacted the Danish stock market. The shares of two large Danish companies, Vestas and Ørsted, fell by 12%, while the shares of Mærsk fell by 6%. Why? Trump wants to stop wind turbines in the USA, and Vestas sells 30% of its production there. For Ørsted, the USA is one of the most important markets, while Mærsk stands to lose as shipping between Europe and the USA will slowdown in the aftermath of a tariff war.
If Trump follows through with the promise to raise customs tariffs by 10%, then hundreds of small and medium companies in Denmark that export to the USA will be affected. Many companies have already started to search for alternative markets, as a 10% tariff will make exporting to the USA unsustainable. 30,000 jobs are at risk.
Focus
A wave of people in Denmark have started to convert their 6% fixed-rate interest mortgage loans to 4% fixed-rate interest. Even more people are expected to convert their mortgage loans once a lower fixed-rate interest appears as an option.
- Unfortunately, a lower fixed-rate mortgage loan might not become a reality if Trump manages to implement all the promised reforms. One of his reforms is to implement a massive tax cut for everyone, which will result in a higher inflation level, which will delay further cuts to the interest rates. Globally, we are connected to the US economy, and we depend on its wellbeing.
