Economy

Briefing: China will be hit harder by Trump 2.0

Not only are the tariffs now expected to be significantly higher than the 7.5-25 percent that were imposed on China during Trump's first term, the country's economy is in a clearly worse situation than last time. That's what Reuters writes after a review of China's economy.

The country's real estate crisis and the mountain of debt that has emerged as a consequence are two of the factors listed. Other problems are low wages and weak domestic demand. Reuters notes that China has indeed had export success in electric vehicles and solar energy, but that the country "depends on external demand".
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Europe's stock market rally came off: "Lower upside with Trump"

The morning's gains of almost 2 percent among several of Europe's stock exchanges were completely erased at the close. Reuters writes that concerns about Trump's tariffs ruined the stock market party on the continent.

"We see lower upside for European stocks under Trump," UBS equity strategists wrote in a market letter.

Going forward, the strategists foresee three main areas for Europe's markets: Potential trade restrictions, the scaling back of green initiatives and possible consequences for EU spending in Ukraine.

During the day, the European stock markets turned down towards zero, while Wall Street rushed towards new record levels.

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Analysis: Europe is not ready for the Maga storm

Trump's return to the White House occurs when Europe is politically and economically vulnerable, writes Reuters' Pierre Briancon.

Now the continent's leaders are hoping that the new president will not face all the threats of tariffs and stop military support, he says.

"If Trump does, Europe's ability to deal with the shock will be hampered by growing internal divisions."

A Republican administration risks more "America first" policies. This is written by Bloomberg's Lionel Laurent, who states that several European leaders congratulated Trump on his victory.

"Despite all attempts to soften the relationship with Trump, the fact remains that Europe stands helpless in the face of the coming geopolitical storm," writes Laurent in the text with the headline "Trump's European allies are defenseless against Maga".

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Swedish inflation is expected to have risen in October

Inflation in Sweden is expected to have risen to 1.3 percent in October, up from 1.1 percent in September. This is evident from Infront's survey ahead of Thursday's Statistics Sweden figures.

"The risks to our October forecast for inflation are balanced. The rapid KPI will be published just hours before the Riksbank's announcement and they will not have it available at their meeting," writes Nordea, which predicts that CPIF inflation will land at 1.3 percent.

Electricity prices increased in October after being at unusually low levels in previous months, writes Direkt. The new electricity transmission system has so far not caused any major price increases, and electricity futures are at seasonally normal levels.

Gasoline prices also rose during the period but have recently started to fall back.

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Wallenberg: "Cooperation with the USA is fundamental"

Swedish business profiles that DI spoke to after the US election emphasize the concern about increased protectionism.

Investor's chairman Jacob Wallenberg emphasizes that "the transatlantic link is fundamental for Sweden".

"Swedish industry is one of the largest investors in the US, with extensive production and development in the US," he writes in a comment to the newspaper.

Cevian founder Christer Gardell warns that Trump's policies could drive up inflation, and Social Democrats party leader Magdalena Andersson emphasizes the importance of continued cooperation for stability and trade.