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USA:s skuldtak

USA allt närmare ekonomisk avgrund – ingen bryr sig

Janet Yellen. Amanda Andrade-Rhoades / AP 

US Treasury Secretary  

US debt ceiling The US is getting closer to the economic abyss - nobody cares  

UFO over USA. War in Ukraine. Charges against the ex-president. The big news events follow each other and the entire United States now seems to be yawning at the fact that the deadline for the debt ceiling is approaching at breakneck speed, writes NBC News.  

The stock market is intact, so are the dollars, and the interest rate market has not been significantly affected. Polls show that Americans are not worried. At the same time, the Republicans and Democrats are far apart, and without an agreement in place within about three weeks, the economy risks collapsing.

- I suspect that the main reason for the blasé approach to the debt ceiling is that everyone thinks they have seen this movie before and already know the ending, says Moody's Analytics Chief Economist Mark Zandi.  

But the danger is that the panic, which is usually counterproductive, may be needed to get a debt ceiling in place. When the market panics, the incentive for politicians to come to an agreement increases, argues Zandi.

Alex Brandon / AP 

China's global ambitions 

Source: G7 about to step up the tone against China 

China's "economic means of coercion" in relations with other countries will be on the agenda when the leaders of the G7 countries meet in Japan at the end of the week, a source told Reuters. The final communique from the meeting is expected to include a special China section with a whole list of things that worry the G7, in addition to the point about economic coercion.  

At the same time, a separate document should be drawn up on how the G7 countries should cooperate against economic coercive measures from states in general. 

In both documents, the wording is expected to be sharper than in previous statements from the G7, according to the source.  

The meeting will be held in Hiroshima, Japan between Friday and Sunday. Inflation, growth and support for Ukraine are the big items on the agenda. But with the crisis surrounding the debt ceiling at home, it is not even certain that President Joe Biden will appear, writes the news agency.  

Woman in front of board with exchange rates in Buenos Aires. Illustration image. Daniel Luna / AP  

Argentina's financial crisis 

The crisis move: Argentina is expected to raise the interest rate to 97 percent  

Crisis-ridden Argentina is preparing to raise its key interest rate by as much as 600 basis points to 97 percent on Monday, finance ministry and central bank sources said, according to Bloomberg.  

Meanwhile, the central bank will intervene in currency markets to prevent a slide in the peso, which lost 13 percent against the dollar last month.  

Argentina will also turn to the IMF and the Brics countries for support, the news agency learns. The measures are expected to be presented by Finance Minister Sergio Massa on Monday.  

The country's inflation skyrocketed to 108.8 percent on an annual basis in April, new figures showed on Friday, according to Reuters.  

Archive image. Shutterstock  

 

Swedish inflation 

The Swedish krona loses value after inflation data  

 

The Swedish krona loses value after April's inflation figure turned out to be lower than expected.  

It reports Direkt. Against the euro and the dollar, the krona has weakened by 6 öre.  

 

At the same time, German interest rates are pointing upwards and the euro has weakened somewhat against the dollar. 

 

The rate of inflation amounted to 7.6 percent in April, measured according to the Riksbank's

 

Erdogan supporters celebrate in Istanbul. Khalil Hamra / AP  

The election in Turkey  

The election results hit the market hard – the lira plummets  

The Turkish stock market's main index fell 6 percent in the open on Monday after the weekend election. At lunchtime, the index is down around 3 percent. 

The lira is also backing down sharply. Reuters writes that Turkey's currency is headed for its worst day since November. According to Direkt, the lira traded at the lowest level ever, against the US dollar.  

The economy was a heavy issue in the election, where neither President Recep Tayyip Erdogan nor challenger Kemal Kilicdaroglu won a majority. A second round of elections will be held on May 28.  

Reuters collects dozens of experts' statements about the market. One says that Erdogan's success was a "big disappointment" for everyone who hoped for renewal, another that the stock market priced in that the election would be decided in the first round.  

Tatha Ghose and Ulrich Leuchtmann at Commerzbank note that Erdogan is in the driver's seat for round two - unless the lira collapses.  

- Economic policy until May 28 will therefore likely be focused on ensuring that such a collapse can be avoided.