The future of defense
SEB: Debt would increase by 3–4 percentage points
Continued Swedish support for Ukraine will involve loans of SEK 75 billion in the coming years, SEB writes in an analysis. If the rearmament is to reach the EU and NATO target of 3.5 percent of GDP, Sweden can expect its national debt to increase by 3–4 percentage points to 21.5 percent of GDP by 2030, the major bank says.
Just as Danske Bank wrote earlier on Monday, SEB estimates that Sweden's national finances are in good shape to handle increased debt.
"The effects are expected to be less noticeable than in many other European countries, where high debt would require cuts in other areas," write the bank's chief strategist Olle Holmgren and currency and interest rate strategist Amanda Sundström in the analysis.
SEB: Debt would increase by 3–4 percentage points
Continued Swedish support for Ukraine will involve loans of SEK 75 billion in the coming years, SEB writes in an analysis. If the rearmament is to reach the EU and NATO target of 3.5 percent of GDP, Sweden can expect its national debt to increase by 3–4 percentage points to 21.5 percent of GDP by 2030, the major bank says.
Just as Danske Bank wrote earlier on Monday, SEB estimates that Sweden's national finances are in good shape to handle increased debt.
"The effects are expected to be less noticeable than in many other European countries, where high debt would require cuts in other areas," write the bank's chief strategist Olle Holmgren and currency and interest rate strategist Amanda Sundström in the analysis.
Major bank: Sweden can handle higher loans for rearmament
Sweden plans to increase its defense spending in line with new international requirements and political decisions. According to Danske Bank, Sweden should be able to handle increased borrowing to reach the goals. Much thanks to strong government finances. Direkt reports.
– Then the question is whether you get up to 3 percent or 3.5 (of GDP, editor's note), it's hard to say. But if it gets up to 5 percent, then it starts to be quite difficult in practice, says Filip Andersson, head of analysis at Danske Bank Sweden to the news agency.
Sweden plans to increase its defense spending in line with new international requirements and political decisions. According to Danske Bank, Sweden should be able to handle increased borrowing to reach the goals. Much thanks to strong government finances. Direkt reports.
– Then the question is whether you get up to 3 percent or 3.5 (of GDP, editor's note), it's hard to say. But if it gets up to 5 percent, then it starts to be quite difficult in practice, says Filip Andersson, head of analysis at Danske Bank Sweden to the news agency.
Poland: Europe needs a common defense bank
Europe needs a common defense fund or bank to finance the continent's increased defense spending, says Polish Finance Minister Andrzej Domanski to Bloomberg.
– It could be an armaments bank, for example, we're looking at it.
Poland currently spends 4 percent of its GDP on defense, but US President Donald Trump wants to see all NATO countries spend 5 percent of GDP on defense.
Trump's tariffs
Sources: EU expands list of retaliatory tariffs against the US
The EU is working to expand its list of retaliatory tariffs that could be imposed on the US if Donald Trump goes ahead with his threats of steel and aluminium tariffs, sources told Bloomberg.
The 25 percent tariffs are estimated to cover goods worth 28 billion euros, equivalent to 312 billion kronor. That would be four times more extensive than the last time Trump targeted the EU's metals sector, the news agency notes.
The EU's retaliatory tariffs are currently paused until the end of March. If they are extended, the EU will take into account how they affect both the US and the EU's member states, according to the sources.
Europe needs a common defense fund or bank to finance the continent's increased defense spending, says Polish Finance Minister Andrzej Domanski to Bloomberg.
– It could be an armaments bank, for example, we're looking at it.
Poland currently spends 4 percent of its GDP on defense, but US President Donald Trump wants to see all NATO countries spend 5 percent of GDP on defense.
Trump's tariffs
Sources: EU expands list of retaliatory tariffs against the US
The EU is working to expand its list of retaliatory tariffs that could be imposed on the US if Donald Trump goes ahead with his threats of steel and aluminium tariffs, sources told Bloomberg.
The 25 percent tariffs are estimated to cover goods worth 28 billion euros, equivalent to 312 billion kronor. That would be four times more extensive than the last time Trump targeted the EU's metals sector, the news agency notes.
The EU's retaliatory tariffs are currently paused until the end of March. If they are extended, the EU will take into account how they affect both the US and the EU's member states, according to the sources.
After the tariff threat: Apple hires 20,000 in the US
Apple plans to invest around 500 billion dollars in the US and hire up to 20,000 Americans in the coming years, writes Bloomberg. Among other things, the company will start producing servers in Texas.
The announcement comes a few days after Apple CEO Tim Cook met with US President Donald Trump.
– We are optimistic about the future of American innovation, and we are proud to build on our long-term American investments, says Tim Cook in a statement.
Change of power gives economic hope – but “much remains”
The change of power in Germany is raising cautious optimism about a recovery for Europe’s largest but strained economy. And there is still much to be done, says SEB’s chief economist Jens Magnusson to TT.
The hope is that CDU leader Friedrich Merz will form a more capable coalition than the previous government, he points out. At the same time, Germany’s economic problems are far from over, warns Magnusson.
– You can still be cautiously optimistic, but you have to be careful, because there is much left to do, he says.
The change of power in Germany is raising cautious optimism about a recovery for Europe’s largest but strained economy. And there is still much to be done, says SEB’s chief economist Jens Magnusson to TT.
The hope is that CDU leader Friedrich Merz will form a more capable coalition than the previous government, he points out. At the same time, Germany’s economic problems are far from over, warns Magnusson.
– You can still be cautiously optimistic, but you have to be careful, because there is much left to do, he says.
Record: America's richest are responsible for half of consumption
The richest Americans now account for almost half of all consumption, writes the Wall Street Journal, citing a new report from Moody's Analytics.
The top 10 percent of income earners, who earn over $250,000 a year, have increased their spending dramatically. At the same time, the rest of the population has reduced their spending.
- The finances of the wealthy have never been better, their spending has never been stronger, and the economy has never been more dependent on that group, says Mark Zandi, chief economist at Moody's Analytics, to the WSJ.
The fact that the richest now spends 49.7 percent is a new record. Three decades ago, the same figure was 36 percent.
The richest Americans now account for almost half of all consumption, writes the Wall Street Journal, citing a new report from Moody's Analytics.
The top 10 percent of income earners, who earn over $250,000 a year, have increased their spending dramatically. At the same time, the rest of the population has reduced their spending.
- The finances of the wealthy have never been better, their spending has never been stronger, and the economy has never been more dependent on that group, says Mark Zandi, chief economist at Moody's Analytics, to the WSJ.
The fact that the richest now spends 49.7 percent is a new record. Three decades ago, the same figure was 36 percent.
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