Economy

Nissan and Honda confirm: Initiating merger talks

Japanese automakers Nissan and Honda have taken a first step toward merging their companies into a joint holding company, according to a joint press release sent out on Monday.

The companies have signed an agreement to initiate merger talks and the plan is for the joint holding company to be listed on the stock exchange by August 2026, the companies said during a joint press conference.

Mitsubishi Motors, which is part of the Nissan Group, is also expected to be part of the new automotive alliance.

The real estate crisis in China deepens

China's real estate crisis continues to deepen, with several major players struggling with debt and liquidity problems. Bloomberg writes.

Authorities have ordered lenders to report their exposure to real estate giant China Vanke, to assess the need for government support. Meanwhile, Hong Kong-based New World Development is negotiating to postpone loan payments.

The crisis has already hit several players, with Evergrande being the most famous example. The company is currently undergoing liquidation with debts equivalent to around SEK 3,600 billion.

Despite government efforts to stabilize the market, it could take another couple of years before the sector reaches the bottom, according to credit analyst Leonard Law.

XRP and dogecoin crypto year's winners: "US election driving"

Cryptocurrencies have had a strong 2024 with a big boost after Donald Trump's election victory. One of the biggest winners among the major currencies is the laggard XRP, which has surged 260 percent this year. The price had fallen 20 percent before it surged over 450 percent in the wake of Trump's victory. A similar movement is seen in dogecoin, which has surged 242 percent since the beginning of the year.

Bitcoin and ethereum are up 126 and 44 percent respectively, according to the site Cryptorank.

– What is driving prices is the effect of the US election, as well as the prospect of the country owning bitcoin as a strategic reserve asset in 2025, says Coinshares' head of analysis James Butterfill to Bloomberg.

Among the few cryptocurrencies that have retreated this year are polkadot and avalanche.

The annual gains were clearly higher before December 18, when the Federal Reserve's hawkish outlook put pressure on risk assets.

Musk's statement about the Fed: Absurdly overstaffed

Elon Musk, who has been tasked with cutting costs for federal agencies, is now also criticizing the US central bank, the Federal Reserve.

In a post on the X platform owned by Musk, he calls the US central bank "absurdly overstaffed".

The Fed has not yet commented on the statement. However, ECB President Christine Lagarde, in an interview with the news agency, urged Musk to visit Frankfurt and turn his back on the ECB team.

– I can assure you that if they work super hard every day, not just once a month, she says.

Lagarde: We are very close to defeating inflation

The ECB is approaching the inflation target but must remain vigilant for new clouds of trouble in the economy, says central bank chief Christine Lagarde to the FT.

– We have come very close to where we can say that the inflation battle is defeated, she says.

Lagarde points out that developments in the service sector are a factor of concern, where cost increases continue to remain at twice the inflation target. She also urges decision-makers to keep a close eye on real wages and corporate profits in the eurozone.

Swedish growth
Svantesson: The turnaround for the Swedish economy is delayed

After the economic strains of Christmas, many households are facing tougher times. Finance Minister Elisabeth Svantesson (M) emphasizes that the turnaround will come in 2025, but at the same time warns that the recession may last longer than previously expected.

– Optimism is there, but it is going a little slower, she says in an interview with P1 Morgon.

Households and companies are urged to prepare for a prolonged economic downturn.