Economy

The chip battle
Trump closes "loopholes" against China - chip giants are under pressure

It is now becoming more difficult for South Korean chip giants Samsung and SK Hynix to produce chips at their factories in China. This is after the Trump administration's decision to withdraw the companies' so-called VEU (validated end-user) permits, writes Bloomberg.

Previously, the companies were allowed to import American chip equipment to China without applying for a new license each time, but with the new rules, a deadline of 120 days applies instead.

US Trade Representative Jeffrey Kessler states in a comment that the new rules are being introduced to close loopholes that could disadvantage American companies.

Samsung and SK Hynix retreated 2 and 4 percent respectively on Monday.

Fed vs. inflation
Poll: Fed believed to be following Trump's lead - "becoming a puppet"

Financial markets have not fully priced in the risks that Donald Trump's attacks on the Federal Reserve may entail. Economists warn of this in a survey by the Financial Times, flagging, among other things, higher inflation and a reduced belief in the US's ability to manage its national debt.

94 economists based in Europe and the US participated in the survey. The responses consistently raise concerns that the president's pressure could lead to a permanent shift in the central bank, where the labor market and lower costs for the government are prioritized when Jerome Powell's term ends next year.

- The Fed will become a puppet of the government, says Christiane Baumeister, an economist at the University of Notre Dame.

52 percent of respondents believe that the Fed will change direction next year.

Tesla's future
Tesla's sales in Sweden are plummeting – sluggish for Model Y

Tesla continues to be struggling in Sweden, according to recent statistics from Mobility Sweden.

In August, the company's sales plummeted 84 percent compared to the previous year. A total of 210 cars were sold, compared to 1,348 last year. Sales of the new Model Y also did not please anyone, falling a full 87 percent during the period.

At the same time, total car sales recorded a slight increase in August compared to last year. A total of 2,168 cars were newly registered, which is 6 percent more than last year.

Europe's growth
Europe's industry is growing: "Concrete but fragile recovery"

The euro area's purchasing managers' index (PMI) amounted to 50.7 in August, compared to 49.8 in July. This is the highest figure in more than three years, notes Reuters.

A figure above 50 indicates that companies believe in growth in the economy.

- The recovery is concrete but remains fragile, says Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, adding that companies are still affected by "uncertainty".

The driving forces in Europe were Spain and Greece, whose figures landed well above 50 - worse was the German figure, which ended up at 49.8.

Scania announces layoffs - 750 jobs to be cut

Truck manufacturer Scania is announcing layoffs in order to "meet current conditions and future needs," the company said in a press release. 750 jobs will be cut in Sweden.

The notice affects two parts of the organization: 400 positions in HR, People & Culture and 350 positions in the commercial units.

– Our world is changing rapidly through technological development, regionalization and new market conditions. In order to remain strong in the future, we need to adapt, develop our working methods and review how we are organized. This is a difficult but necessary decision to strengthen Scania's competitiveness and continue to lead the transition towards a sustainable transport system, says Christian Levin, President and CEO, in the press release.