Economy

Fed vs. inflation

Setback for Trump: Cook to remain on board pending hearing

The Supreme Court will allow Lisa Cook to remain on the Fed board until January pending a hearing, CNBC reports.

The court's decision is a setback for Donald Trump, who has repeatedly and unsuccessfully asked federal courts to let him remove Cook from the Fed board, the channel writes.

Trump has accused Lisa Cook of not handling her mortgage applications properly. Cook denies the allegations.

The budget crisis in the US

Experts urge calm - predict small effects

Futures are falling on Wall Street, the dollar is weakening for the fourth day in a row and gold is reaching new records after the announcement that the US is shutting down large parts of the government.

The stalled negotiations mean, among other things, that the important jobs report on Friday is expected to be delayed, something that worries several analysts. The risk of an “information vacuum” around jobs and inflation data ahead of the next interest rate decision from the Federal Reserve, says Michael Bailey at FBB Capital Partners.

– With stocks and valuations near previous peaks, even minor negative news can quickly lead to a snowball effect that produces a short-term correction, he tells Bloomberg.

Aberdeen’s chief economist Luke Bartholomew is not as concerned, especially if the shutdown is short-lived. When asked by CNBC whether investors should be worried, he answers “probably not, honestly” and adds that the market will ultimately likely “shrug its shoulders at this”.

SEB’s senior economist Robert Bergqvist believes that the shutdown sounds dramatic, but that the effects will ultimately probably not be that great.

– A longer shutdown is needed for us to see greater effects on the economy and the market. The big concern is that everyone is waiting for the US jobs figures that are due on Friday, he tells EFN.

Budget crisis in the US

Trump on the shutdown: Will lay off many

Democrats are to blame for the impending shutdown of parts of the government last night, but they themselves will be hit hard, says President Donald Trump, according to American media.

– When we shut down, we will have to lay off employees, Trump tells reporters at the White House, according to NBC News.

At the same time, “a lot of good” will happen as a result of the shutdown, the president says, according to ABC News.

– We can get rid of things we don’t want, says Trump.

Around midnight Swedish time, the Senate will vote on two budget proposals, both of which are expected to be rejected.

Democrats oppose, among other things, the Republicans’ proposals to cut health insurance. 

Tesla's future

Brightness for Tesla in Sweden – rising from low levels

Tesla's sales are rising in France and Denmark for the first time this year measured on an annual basis, industry statistics show according to Reuters.

Not least, sales of the Model Y have taken off in Denmark and are now the best-selling electric car model in the country.

In Norway, Tesla's sales continue to be strong. A certain brightening is also visible in Sweden, where Swedish sales rose from low levels to 1,726 cars from 216 cars the month before, measured on a monthly basis.

However, the sales figure is 64 percent lower compared to last year.