Stockholm rioting continues for fifth night

Police in Stockholm are to seek reinforcements after youths set cars ablaze and threw stones at police for a fifth night running, officials said.

About 30 cars were set on fire in poorer districts in north-western and south-western parts of the Swedish capital on Thursday night, with rioters causing widespread damage to property, including schools. However, a police spokesman said the overnight violence was less intense than in previous nights.

Despite Sweden's reputation for equality, the rioting has exposed a faultline between a well-off majority and a minority, often young people with immigrant backgrounds, who cannot find work, lack education and feel marginalised.

The violence appears to have been prompted by the death of a 69-year-old man shot by police this month in Husby, now the centre of the rioting. Read more >>

Ikea Withdraws Meatballs After Horse Meat Is Found

Smoked and salted horse meat on a sandwich.  (Photo credit: Wikipedia)

The escalating crisis over horse meat in beef products in Europe claimed another big retail victim Monday when the Swedish furniture giant, Ikea, withdrew meatballs from sale in 14 European countries.

The retailer said it had removed some products from its stores in Sweden after the authorities in the Czech Republic detected horse meat in Ikea meatballs. The company said it had made the decision even though its own tests two weeks ago had not detected horse DNA.

Ikea also announced that it was stopping sales “of the concerned batch” of meatballs in Slovakia, the Czech Republic, Hungary, France, Britain, Portugal, Italy, Netherlands, Belgium, Spain, Greece, Cyprus and Ireland.

“We are now initiating further tests on the same production batch in which the Czech Republic authorities found indications of horse meat,” Ikea added in a statement. It said results were expected in the coming days. Read more >>

Swedish Manufacturing Orders Plunge

Sweden’s manufacturing unexpectedly shrank in August at the fastest pace since May 2009 as the krona’s appreciation sent export orders plunging amid sagging demand from debt-stricken Europe.

The purchasing managers’ index fell to a seasonally adjusted 45.1 from 50.6 in July, Stockholm-based Swedbank AB (SWEDA), which compiles the gauge, said today. A reading below 50 signals a contraction. The index was seen falling to 50.1, according to the average estimate of 10 economists surveyed by Bloomberg.

“Sweden won’t go unscathed through this period of an international slowdown,” said Roger Josefsson, chief economist at Danske Bank A/S in Stockholm. “In contrast to data that’s been published earlier, this is data that’s come in after the still recent strengthening of the krona.”

Sweden’s central bank, which is set to announce its next interest rate decision on Sept. 6, in July kept its key rate unchanged and pushed back tightening plans because of turmoil in Europe. The Nordic country relies on sales abroad for about half of its output and sends 70 percent of its exports to Europe where economies are contracting amid austerity measures. Read more >>

U.S. Economy Losing to Sweden & Singapore

The U.S. has slipped down the ranks of competitive economies, falling behind Sweden and Singapore due to huge deficits and pessimism about government, a global economic group said Thursday.

Switzerland retained the top spot for the second year in the annual ranking by the Geneva-based World Economic Forum. It combines economic data and a survey of more than 13,500 business executives.

Sweden moved up to second place while Singapore stayed at No. 3. The United States was in second place last year after falling from No. 1 in 2008.

The WEF praised the United States for its innovative companies, excellent universities and flexible labor market. But it also cited huge deficits, rising government debt and declining public faith in politicians and corporate ethics. More...