The Riksbank kept its repo rate unchanged at 1.25% and expects future rate cuts over rate hikes. Producer price inflation fell and retail sales rose above expectations in September. Retail sales increased 1.7% month-over-month and 4.6% year-over-year driven by gains in consumables and durables.

1. Valance Co., Inc. Weekly Economic Report: Sweden October 31, 2012
Valance Co., Inc.
Valance Economic Report: Sweden
Evelyn L. Richards October 31, 2012
(340) 692-7710
erichards@valance.us
The Riksbank kept its repo rate unchanged at 1.25% and expects the rate to be “cut rather
than being raised during the winter.” In September, PPI fell and Retail Sales rose above
expectations.
Weekly Highlights
Riksbank Interest Rate – remained unchanged at 1.25%. (SW 1)
PPI – fell 0.7% M/M and 1.9% Y/Y in September. (SW 2)
Retail Sales – rose 1.7% M/M and 4.6% Y/Y in September. (SW 3)
Weekly Releases & News
Chart(s) of the Week: Riksbank Interest Rate
This document is for information purposes only and should not be regarded as an offer to sell or as a solicitation of an offer to buy the products mentioned in it. No representation is made that any returns will be achieved. Past performance is not necessarily indicative of future
results; any information derived herein is not intended to predict future results. This information has been obtained from various sources, including where applicable, entered by the user; we do not represent it as complete or accurate. Users of these calculators are hereby advised
that Valance Co., Inc. takes no responsibility for improper, inaccurate or other erroneous assumptions to the extent such data is entered by the user hereof. Opinions expressed herein are subject to change without notice. The securities mentioned in this document may not be
eligible for sale in some states or countries, nor suitable for all types of investors
SW 1
As expected, the Riksbank kept its repo rate unchanged at 1.25% - its lowest level since early
2011. The Bank remarked, “It’s now more probable that the repo rate will be cut rather than being
raised during the winter. Compared with the assessment in September, the repo rate is expected to
be raised at a later stage and at a slower pace.” Deputy Governors Karolina Ekholm and Lars E.O.
Svensson, argued for a rate cut at 1.0% and 0.75%, respectively. The Bank expects its repo rate to
reach 1.2% in Q4 (from an earlier forecast of 1.3

2. Valance Co., Inc. Weekly Economic Report: Sweden October 31, 2012
Trade Data & PPI
Trade Data
PPI
This document is for information purposes only and should not be regarded as an offer to sell or as a solicitation of an offer to buy the products mentioned in it. No representation is made that any returns will be achieved. Past performance is not necessarily indicative of future
results; any information derived herein is not intended to predict future results. This information has been obtained from various sources, including where applicable, entered by the user; we do not represent it as complete or accurate. Users of these calculators are hereby advised
that Valance Co., Inc. takes no responsibility for improper, inaccurate or other erroneous assumptions to the extent such data is entered by the user hereof. Opinions expressed herein are subject to change without notice. The securities mentioned in this document may not be
eligible for sale in some states or countries, nor suitable for all types of investors
SW 2
As expected, Sweden’s trade surplus widened
from SEK 5.0 bln in August to SEK 7.5 bln in
September; down from a surplus of SEK 9.5 bln a
year earlier. On a 3-mth. mov. avg. basis, the
trade surplus narrowed from a surplus of SEK 6.0
bln to SEK 5.4 bln.
Exports decreased by 13.2% Y/Y, following a
-2.6% Y/Y loss the previous month.
Imports fell 11.9% Y/Y, compared with a 2.5%
Y/Y loss the month before.
September’s Producer Price Index decreased
0.7% M/M and 1.9% Y/Y, compared with -0.5%
M/M and -1.9% Y/Y posted the previous month.

3. Valance Co., Inc. Weekly Economic Report: Sweden October 31, 2012
Retail Sales, Trade Weighted Exchange Rate & Data
Retail Sales
Trade Weighted Exchange Rate
Data
October 25th
- Household Borrowing Growth – fell 4.5% Y/Y in September, following 4.6%
Y/Y growth the previous month.
This document is for information purposes only and should not be regarded as an offer to sell or as a solicitation of an offer to buy the products mentioned in it. No representation is made that any returns will be achieved. Past performance is not necessarily indicative of future
results; any information derived herein is not intended to predict future results. This information has been obtained from various sources, including where applicable, entered by the user; we do not represent it as complete or accurate. Users of these calculators are hereby advised
that Valance Co., Inc. takes no responsibility for improper, inaccurate or other erroneous assumptions to the extent such data is entered by the user hereof. Opinions expressed herein are subject to change without notice. The securities mentioned in this document may not be
eligible for sale in some states or countries, nor suitable for all types of investors
SW 3
Retail Sales rose 1.7% M/M and 4.6% Y/Y in
September, compared with -0.4% M/M and 1.6%
Y/Y the previous month. Sales were forecast to
gain 0.4% M/M and 2.5% Y/Y. Additionally,
Retail Sales for consumables increased 1.4% Y/Y,
while sales for durables rose 7.0% Y/Y.

4. Valance Co., Inc. Weekly Economic Report: Sweden October 31, 2012
News & Upcoming Dates
News
October 25th
(Bloomberg) - Sweden Needs Measures to Tame Consumer Debt – Riksbank
Governor Stefan Ingves remarked:
We have seen no changes to regulator frameworks at all, so it’s very important. They should
have been in place a long time ago.
We of course think that’s good, so indebtedness plays a role, but it’s very, very hard, so to speak,
to put any numbers on it. From a pure technical point of view, when it comes to model-building
and things like that, we have a long way to go.
Since we are six people, we still need to have an orderly process in which to conduct our
conversations and then this is a well-functioning technique. It’s not an issue that’s on the
agenda, but as far as I can judge everyone at the board is happy with the way things work.
Key Dates This Week
This document is for information purposes only and should not be regarded as an offer to sell or as a solicitation of an offer to buy the products mentioned in it. No representation is made that any returns will be achieved. Past performance is not necessarily indicative of future
results; any information derived herein is not intended to predict future results. This information has been obtained from various sources, including where applicable, entered by the user; we do not represent it as complete or accurate. Users of these calculators are hereby advised
that Valance Co., Inc. takes no responsibility for improper, inaccurate or other erroneous assumptions to the extent such data is entered by the user hereof. Opinions expressed herein are subject to change without notice. The securities mentioned in this document may not be
eligible for sale in some states or countries, nor suitable for all types of investors
Date Indicator Month Expectation Previous
11/01 Swedbank PMI Survey OCT 45.0 44.7
11/05 PMI Services OCT -- --
11/06 Service Production SEP -- 0.3% / 1.2%
11/07 Riksbank Minutes from Rate Meeting Released
11/07 Budget Balance OCT -- 2.8B
SW 4