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Credit crisis threatens stability of Nordic banks 

While the banking systems of Norway and Sweden have managed to withstand the global economic downturn, reports from the countries’ central banks indicate that the situation is about to change. “The turmoil has … spread to new assets, markets and participants. The uncertainty … will probably persist for a long time to come. It cannot be ruled out that problems will get worse,” said Stefan Ingves, governor of Sweden’s central bank.

Oil dips below $124 on concern over US economy

Oil prices dropped below $124 a barrel Wednesday and after Federal Reserve Chairman Ben Bernanke signaled that inflation had become a more prominent concern.

By midday in Europe, light, sweet crude for July delivery was down 52 cents at $123.79 a barrel in electronic trade on the New York Mercantile Exchange. The contract fell $3.45 to settle at $124.31 a barrel in the previous session.

Smucker to acquire Folgers from Procter & Gamble for 3 billion

J.M. Smucker Co (stock ticker: SJM) on Wednesday said it would acquire the Folgers coffee business from Procter & Gamble Co (stock quote: PG) for stock valued at $2.95 billion plus the assumption of $350 million in debt.

The deal would give P&G shareholders a 53.5 percent stake in Smucker, which is known for its namesake jellies and jams and also makes Jif peanut butter and Crisco shortening — brands it previously acquired from Cincinnati-based neighbor P&G.

Surge in credit card use could bring more woes

As the prices of gas and food increase, the disposable income of U.S. consumers is being squeezed, leading more people to use their credit and debit cards to make up the difference. Analysts warned that the situation likely will lead to long-term problems for the consumers, banks and the overall economy. The problem is exasperated by the fact that many Americans, as well as Europeans, are already delinquent on their credit card bills.

US companies´earnings outperform those in Europe

Contrary to growth indicators such as GDP, European companies suffered a bigger fall in first-quarter profits than their U.S. counterparts. Net earnings fell 23.4% at European companies, while U.S. companies saw a 13.4% drop. The reasons include a strong euro hurting exports, as well as the fact that the struggling banking industry’s share of the European economy is almost three times larger than that of the U.S. “U.S. companies have gained from the dollar’s weakness, and European ones have suffered,” said Nick Nelson, head of European equity strategy at UBS.

Bernanke: FED does not want dollar any weaker

Oil and gold prices fell sharply as Federal Reserve Chairman Ben Bernanke seemed to draw a line under the U.S. dollar’s weakness. Bernanke said in a speech in Barcelona, Spain, that the Fed does not want the dollar to weaken further because of the threat that it will worsen inflation. The Fed would “formulate policy to guard against risks to both parts of our dual mandate, including the risk of an erosion in longer-term inflation expectations,” he said. The dollar is down 10% in the past year.

Goldman Sachs boosts forecast on yuan

Goldman Sachs raised its forecast on the Chinese currency, predicting the yuan will rise 10% in 12 months to 6.3 per U.S. dollar. The upgrade comes amid expectations that China will buy fewer U.S. dollars for its record-high reserves of foreign exchange.