Economy

Swedish security situation
Increased demand for air defense expected to push up prices

As many countries, including Sweden, begin to arm themselves, there is a great risk that air defense prices will rise, reports Ekot.

Johan Granholm, who teaches military systems procurement at the Swedish National Defense University, believes that there are many who want to expand in the same area at the same time. And combined with the fact that there are few manufacturers of advanced air defense, this could push up prices.

- With so many eager buyers, you could say it is a seller's market, says Granholm.

Trump's tariff policy
Experts skeptical of US trade agreements

The US's trade relations will remain shaky with several countries, including those with which it has signed new agreements. Several Wall Street experts tell CNBC.

"These agreements are not finished and are partly based on false promises. They could easily fall apart," Andy Laperriere, head of policy at Piper Sandler, wrote in a client letter.

According to him, Trump's advisers and foreign negotiators disagree on important details. Laperriere also highlights that the current tariff levels are almost back to the same level as during Donald Trump's "liberation day" in April.

Both Laperriere and JP Morgan are now warning that the market has not priced in the economic impact of the tariffs.

Israel-Iran
Significant GDP loss in Israel after the war with Iran

Israel's economy unexpectedly shrank by 3.5 percent at an annual rate in the second quarter. According to a Bloomberg survey of six economists, the median forecast was for growth of 0.2 percent.

One explanation is that several businesses were forced to close in the country during the twelve-day war with Iran earlier this summer, the news agency writes.

According to the Israeli Bureau of Statistics, private consumption fell 4.1 percent while gross fixed investment plummeted 12.3 percent. 

The air strikes
Air Canada calls off strike after minister's intervention

Air Canada will end the strike among its flight attendants after the government gave directives to resume its flights. This is reported by NBC News.

The decision comes after Labor Minister Patty Hajdu yesterday introduced a so-called binding arbitration, which means that the old agreement between the parties is extended until a new one is signed.

In a press release, the airline states that it will resume flights immediately, but that travelers will likely continue to be affected by the strike for up to ten days.