Stockholm - Swedish heavy-vehicle maker Volvo on Friday reported a 37-per-cent drop in pre-tax income for the third quarter of 2008, citing the economic downturn in key markets.

Pre-tax income was 2.89 billion kronor (370 million dollars), compared to 4.57 billion kronor in the corresponding period 2007 for the Volvo group, excluding the Ford-owned car division.

Net sales were up 2 per cent to 69.6 billion kronor, while net income fell 36 per cent to 2 billion kronor.

Stockholm - The Swedish Academy that selects the Nobel literature laureate is reportedly split over how to respond to death threats against Italian best-selling author Roberto Saviano.

Saviano's book, Gomorra, has angered the mafia, or Camorra, in Naples, and he has been forced to live under police protection. A week ago he said in a newspaper interview that he was considering leaving Italy.

Stockholm - The Swedish government Thursday formally decided to halt an adoption programme with Vietnam over fears of irregularities.

Health and Social Affairs Minister Goran Hagglund said the decision hinged on the government's concern that "the rights of the individual child and biological parents are taken into account."

Hagglund's statement issued after the cabinet meeting said there were "disturbing signals" that children may even have been trafficked.

In September, the United States suspended adoptions from Vietnam over similar concerns.

Stockholm - Shares for main Swedish banking groups Nordea, Swedbank and SEB on Thursday declined after they reported third-quarter 2008 results.

While the reports suggested they had weathered the first phases of the financial turmoil, the banks' outlooks were more cautious.

Shares for the three groups initially opened in positive territory but fell off. Swedbank was down 8 per cent and SEB off some 5 per cent early afternoon on the Stockholm bourse.

The fourth major group Handelsbanken, which reported Wednesday, bucked the trend and remained up.

Stockholm - Sweden's central bank said Thursday it was to cut its interest rate by 0.50 percentage points to 3.75 per cent, the second cut this month.

The cut was to take effect October 29, the Riksbank said.

The bank's board of governors said "the interest rate cuts are aimed at alleviating the effects of the financial crisis" and added that the inflation target of 2 per cent remained.

Sweden was also experiencing the impact of the global financial crisis, and the economy was slowing down, the Riksbank said, adding that effects included higher loan costs for companies and households.

Stockholm - Swedish banking group Handelsbanken on Wednesday outdid analyst expectations and reported higher third-quarter operating profits and net interest income.

Handelsbanken was the first of the Nordic nation's four major banking groups to report results amid the ongoing financial turmoil.

Operating profits were up 6 per cent to 3.78 billion kronor (510 million dollars), the group said attributing this to "higher net interest income and lower costs."