Economy

Volvo Sues California: “Impossible Situation

Volvo and three industry peers are suing the state of California to stop it from enforcing strict emissions standards, writes Reuters.

Volvo and its peers argue that the California Air Resources Board (CARB) is illegally enforcing strict emissions standards that were effectively repealed in June when Trump revoked exemptions previously granted by the US Environmental Protection Agency.

The manufacturers are in an “impossible situation,” according to the lawsuit. Despite Trump’s decision, California insists that manufacturers must comply with CARB’s standards.

The truck manufacturers say they have “caught in the crossfire” between the president and the state.

Swedish exports
Scania: To export half of all trucks from China

Scania plans to export half of all trucks produced at its newly built factory in China to other countries in Asia and Oceania. The CEO states Christian Levin for the Financial Times.

– China has more free trade agreements with countries in the world than the EU. We of course want to take advantage of those export opportunities, he says.

So far, the equivalent of around 22 billion Swedish kronor has been pumped into the Chinese factory, whose production is due to start in October. It is the largest investment that Scania has made outside Sweden in over 60 years.

Fed vs inflation
US inflation rate slightly lower than expected

US inflation for July came in at 2.7 percent. It was slightly lower than the expected 2.8 percent, according to Trading Economics.

The annual rate is the same as for the CPI in June, but calculated in monthly terms it was a seasonally adjusted increase of 0.2 percent.

Housing was the subcomponent that was the primary factor in the increase. Food prices were basically unchanged.

Core inflation, which excludes energy and food prices, came in slightly higher than expected – 3.1 percent instead of 3.0 percent.

Trump considers subpoenaing Fed chief

Donald Trump is considering allowing a subpoena of Fed chief Jerome Powell. He writes this on Truth Social and points out that the renovation of the Fed's properties is being "horribly" handled.

At the same time, Trump continues to point out, as before, that Powell must lower interest rates

Chinese company: "Politically incorrect to buy from Nvidia"

Beijing urges local companies to stop using Nvidia's H20 chip. Chinese tech companies tell the Financial Times that it is no longer considered politically correct.

- It is not forbidden, but it has become politically incorrect to do so, a representative of a Chinese data center tells the FT.

Several Chinese tech companies have been urged to explain why they need to order Nvidia's H20 chip instead of domestic alternatives. Some tech companies are now considering buying fewer Nvidia chips after the authorities' actions, the business newspaper writes.

Tech giants Alibaba and Bytedance have not responded to the newspaper's questions. 

Indian inflation at eight-year low – could turn around quickly

India's inflation fell to its lowest level in eight years in July, Bloomberg reports. At the same time, the country's central bank predicts that prices may increase rapidly in the coming months.

According to data from the country's statistical authority, the CPI rose by just under 1.6 percent at an annual rate in July. This was significantly higher than the 1.4 percent increase that Bloomberg economists had predicted.

The Reserve Bank of India chose to leave key interest rates unchanged at last week's interest rate decision.