Economy

EU-China Relations
Volvo Cars criticizes Franco-German agreement on climate standards

Volvo Cars has leveled sharp criticism at an agreement between Germany and France to lower climate standards—a move intended to bolster the EU's automotive industry, reports *SvD*.

The agreement would allow the sale of new gasoline and diesel-powered cars beyond 2035, effectively abandoning the goal of a climate-neutral automotive sector by that year. The proposal still requires approval from the EU.

Volvo Cars, which is investing heavily in electric vehicles, warns that these concessions could harm Europe's competitiveness.

"Slowing down or weakening long-term commitments for the sake of short-term gains risks undermining Europe's competitiveness," the company stated to the newspaper.

Europe's automotive industry is facing intense pressure from Chinese competitors. The agreement also includes provisions to ensure that public subsidies and procurement processes favor vehicles manufactured in Europe. 

China's Growth
China's growth exceeds expectations – exports reach record levels

China's economy grew by 4.5 percent in the third quarter compared to the same period last year. This growth rate was faster than anticipated—and aligns with the country's official target of 4.5–5 percent.

Meanwhile, the country's trade surplus is expanding and appears set to surpass last year's record—a trend that is creating friction with the EU, reports the *Financial Times*.

"The key takeaway for the macroeconomy is that China's economy remains driven by supply and production," says Yuhan Zhang, an economist at The Conference Board's China Center. 

The Oil Market
Natural gas prices at their highest levels in four years 

European natural gas prices have risen 11 percent in one month, reaching 89 euros per megawatt-hour, reports the WSJ. These are the highest levels seen since 2022.

Gas storage levels in Europe are at 74 percent—lower than is typical for this time of year—and have yet to reach the 80 percent target set for November 1.

The situation in Germany is somewhat worse, with storage levels at 61 percent—with only two weeks remaining to meet the 80 percent target. 

Ericsson's Iraq Scandal
Ericsson's IS-related scandal grows—US also investigating Syria

The US Department of Justice's investigation into the Ericsson scandal—involving suspected bribes to the Islamic State (IS) in Iraq—now also encompasses Syria, reports DI.

In its interim report released Thursday, the telecom giant updated its wording regarding the ongoing investigation, which now covers "related matters concerning historical conduct in various jurisdictions, including Iraq and Syria."

In a comment to DI, Ericsson reiterated that the full scope of the investigation remains uncertain.

In 2023, Ericsson was required to pay 2.2 billion kronor to US authorities after withholding information regarding the Iraq scandal, thereby violating a previous settlement. Analysts at Handelsbanken have previously warned that an expanded investigation could lead to higher fines. 

Elon Musk's Wealth
Musk: I will give a SpaceX share to every child in the US

"Next year, I will give a SpaceX share to every child in the US," writes tech billionaire and entrepreneur Elon Musk on his own platform, X.

It is unclear how such a transfer would be executed, Bloomberg notes.

If he were to do so, it would mean giving away approximately 72 million shares—worth about $10.5 billion at current valuations—according to Business Insider.

Musk is the world's richest man, and his stake in SpaceX is estimated to be worth just over $700 billion—equivalent to 7 trillion Swedish kronor—a figure that exceeds Sweden's entire GDP for 2025. 

The Crisis in the Real Estate Sector
Batljan: Real estate collapse nearly worse than the crisis of the 1990s

The Swedish real estate sector has endured difficult years, particularly on the stock market. Ilija Batljan, founder and major shareholder of Samhällsbyggnadsbolaget (SBB), believes the sector has been—and remains—in the midst of a crisis.

"And it continues to undergo a major real estate crisis—one that has been ongoing since 2023 and is on par with, or perhaps even tougher than, the crisis of the 1990s," he tells EFN.

In his view, the key difference is that in the 1990s, it was primarily the banking sector that was hit hard, which made that crisis a systemic threat.

This time, it is the equity and bondholders who have "paid an extremely high price" for this grueling ordeal—a period of hardship that, according to Batljan, is not yet over. In SBB's case, the stock has plummeted from SEK 67 at its peak in 2021 to just over SEK 2 today.