It has probably not happened before that the managers of the largest companies have had to answer question after question from equity analysts about government grants. But this morning it happened. The catastrophic economic development in the wake of the coronavirus during the spring has for many companies been mitigated by the billions in support that the government has pumped out into the business community. To the stock market's big surprise, strangely enough.

Truck manufacturer Volvo's operating profit plummeted from 15 billion last year's second quarter to 388 million this year. But it was still better than equity analysts had thought, thanks in part to layoffs, and stock prices rose.

The truck manufacturer Volvo has been hit hard by the corona crisis and had 20,000 employees in Sweden laid off during the spring. But the interim report states that the company received a total of SEK 1.7 billion in various government redundancy support in the second quarter.

Uncertain autumn

This week, several companies reported that they were able to reduce costs sharply and quickly with the help of the state subsidies that pay part of the redundancy subsidies for the employees. Some have even flagged in advance that the results will not be as bad as expected thanks to state aid. This applies, for example, to Electrolux, which also presented its interim report today.

That the state subsidies make jingle in the coffers for the companies is not very strange, however - that is the whole point of them, here and in other countries. Given the Minister of Finance's frequently recurring press conferences where constantly swelling support programs have been presented in detail, this particular factor should be among the least uncertain at all for those who are to assess the state of the listed companies.

The more uncertain is the rest. Apart from Ericsson, which rose by almost ten percent in the morning after its report, and which does not see any major negative impact from the corona crisis either now or in the future, the uncertain autumn is the major theme in the reports.

Lighting in June

For many, it has brightened a little in June, even for the hotel chain Scandic, whose sales were almost wiped out for a while. Swedbank reports that consumers' card purchases during the midsummer week for the first time since the crisis were at the same level as last year at the same time.

But how politicians around the world will react to any new virus outbreaks during the autumn is still the biggest question. If there are new shutdowns, and if so, there will be continued state support from governments and central banks to the same extent, and if so, it will help to the same extent, these are the big questions.

The stock market, which has been on a plus for the year for several days, seems at least so far unconcerned about its contribution dependency.