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OIL FUND

Norway oil fund loses 18 billion euros in first half of 2020

Norway's huge sovereign wealth fund, the world's biggest, lost 188 billion kroner (18 billion euros, $21 billion) in the first half of the year as the global economy reels from the Covid-19 pandemic, the central bank said Tuesday.

Norway oil fund loses 18 billion euros in first half of 2020
Unusually empty slopes and ski lifts in Hemsedal in April. Photo: AFP

The fund, in which the Norwegian state's oil revenues are invested, was hit by plummeting share prices, with stocks accounting for 69.6 percent of its investments.

Its share portfolio posted a negative return of 6.8 percent in the first six months of the year.

At the end of June, the fund was valued at 10.4 trillion kroner (989 billion euros), up from the 9.98 trillion kroner seen at the end of the first quarter.

“The year started with optimism, but the outlook of the equity market quickly turned when the coronavirus started to spread globally,” the fund's deputy chief executive, Trond Grande, said in a statement.

“However, the sharp stock market decline of the first quarter was limited by a massive monetary and financial policy response,” he added.

Real estate investments, which represent 2.8 percent of the portfolio, also posted a negative return, of 1.6 percent, while bond investments, which account for 27.6 percent of assets, posted a gain of 5.1 percent.

“Even though markets recovered well in the second quarter, we are still witnessing considerable uncertainty,” Grande said.

The fund is meanwhile still mired in controversy over the appointment of a new chief executive.

Nicolai Tangen, a billionaire who founded the AKO Capital hedge fund in London, is due to take over the fund on September 1st, replacing Yngve Slyngstad who is retiring.

But critics have complained about Tangen's possible conflicts of interest, as well as his use of tax havens.

The central bank has meanwhile been criticised for irregularities in the recruitment process.

As a result, some major political parties are opposed to Tangen's appointment, and it remains up in the air.

READ ALSO: Norway's oil fund loses 1.3 trillion kroner ($125bn) in coronavirus crash

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OSLO

EXPLAINED: What Oslo’s easing of Covid-19 restrictions means for you

Most, but not all, of the Norwegian capital's local Covid restrictions have been lifted to fall in line with national coronavirus rules, with new limits on guests at home and new guidance on face masks. Here’s a rundown of what the latest restrictions mean for you.

EXPLAINED: What Oslo's easing of Covid-19 restrictions means for you
Oslo's skyline. Photo by Oscar Daniel Rangel on Unsplash

Covid-19 measures in Oslo have been relaxed, with the majority of local restrictions being replaced with the looser national rules.

The new rules are a mix of steps three and four of the city’s five-step reopening plan and were introduced after the lowest infection numbers since last autumn were recorded in Oslo last week. 

Last week, 239 coronavirus infections were registered in the Norwegian capital. 

“The gradual, controlled opening of Oslo has been a success. Many of the rules that the people of Oslo have been expected to live with are now being removed, and we will essentially live with the same corona rules as people elsewhere in Norway,” Oslo’s Executive Mayor Raymond Johansen said at a press conference on Tuesday.

Not all local restrictions have been lifted however, meaning there are a mix of local and national rules in place. 

Below we’ll take a look at how the measures will affect everyday life in Oslo. 

At home 

The significant change here is that the ban on having more than ten people gathered at home has been lifted completely. Instead, this will be replaced with the national recommendation not to have more than guests. 

So while it will not be recommended to have more than ten guests, it’s not an enforceable rule anymore. 

READ MORE: What happens if you get caught breaking the Covid-19 rules in Norway

Shopping 

The local rules for shopping malls and stores have been tweaked too. There will no longer be any rule that makes face masks mandatory in shops. In addition to this, the official social distancing measure has been halved, to one metre, and the limit on the number of people allowed in shops has been scrapped. 

However, it’s worth noting that some shops may wish to keep some infection control measures in place if they feel it helps keep staff and shoppers safe, so it may be worth bringing a mask along on your next trip to the shops just in case.

Face masks  

The rule on mandatory face masks in public has also been given the axe, with two exceptions. 

You will still need one if you are taking public transport or taking a taxi. 

Masks will no longer be needed in shops, gyms, museums and galleries, indoor swimming pools, spa facilities and hotel facilities such as pools and dining areas. 

Although, some places may still wish to continue with a mask policy, so always remember to have one handy to be sure. 

Hospitality 

At indoor public places, such as restaurants, 50 people are allowed in venues without fixed assigned seats and 200 people at events with set, assigned seats.

Outdoors, 200 people can gather in cohorts of three, meaning a potential venue of 600 for places with the space and capacity and where there is fixed designated seating.

Soon, when the government changes its rules for events, up to 5,000 people will be able to gather when there is a seating plan in place, provided venues aren’t operating above 50 percent capacity.  

Up to 20 people can book a table at a restaurant or bar when indoors and 30 people outdoors. 

Alcohol will now be able to be served until midnight rather than 10 pm, and this rule will stay in place until July 4th. The cut-off point will remain in place even if national rules change and allow alcohol to be served later. 

Sports, leisure and entertainment 

Bingo halls, bowling alleys, arcades, playgrounds can now reopen.

Oslo’s numbers cap on the people allowed in gyms, museums, galleries, and indoor pools has been lifted. 

Now, 20 people can work out, go for a swim, or take in some art indoors, and up to 30 can do so outdoors. 

Schools 

Restrictions for schools and kindergartens haven’t changed, however. 

This means that schools and kindergartens in Oslo will remain at yellow level. 

Yellow level means that full class sizes are allowed, but mixing between classes must be kept to a minimum. Yellow level also means increased cleaning and hygiene measures are also in place. 

You can read more about yellow level here

Adult education and university are at red level, which means digital learning where possible and minimal contact between students and teachers. 

You can read more on red level here

Work

People are still required to work from home where possible until July 4th. 

Executive mayor Johansen has previously said the home office would be one of the last pandemic measures to go, meaning it could be here for a while longer. 

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