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A |     "The accession of Sweden and Finland to NATO constitutes a test of loyalty to the western bloc, in particular to the US and Great Britain, which are the real geopolitical and geostrategic beneficiaries of the ongoing conflict," said Dr. Tiberio Graziani, chairman of Vision & Global Trends International Institute for Global Analyses.,The two Nordic countries' neutrality differs. Sweden had not joined a military alliance or participated in any war since 1814, with its neutrality being flexible, self-declared and not enshrined in law, as the Woodrow Wilson International Center for Scholars noted in its 2 February 2022 study.,In contrast, Finland's neutrality was stipulated by the Paris Peace Treaty of 1947 which was signed after the end of the Second World War between the Allied powers - including the USSR, the UK, the US and France - and former Nazi Germany allies, such as Italy, Romania, Hungary, Bulgaria and Finland.,"This definitely appears to be a violation of Finland’s international agreements signed after WWII with the Soviet Union then later Russia," said Earl Rasmussen, executive vice-president of Eurasia Group, citing the 1947 treaty as well as the 1992 Russo-Finnish treaty.,It raises questions as to whether benefits from the abandoned neutrality will outweigh potential security risks for the two Nordic states.,"I am puzzled by how this inclusion will provide increased security, it appears it will likely further deteriorate relations between Russia and the EU and more specifically with Finland and Sweden," Rasmussen said. "Strategically, I am not sure what the real impact will be. Essentially, both Finland and Sweden are de facto NATO members to include coordination and joint exercises. However, tensions will likely increase and increased defensive measures will likely occur in Russia’s northern regions as well as Kaliningrad.",Why Finland & Sweden’s NATO Admission Is So Important to the US16 May, 19:17 GMT,What Do Finns and Swedes Think About NATO Membership?,Meanwhile, popular support for NATO membership in both Nordic states has never been high.,According to a 2021 poll commissioned by EVA Finnish Business and Policy Forum, around 26% of Finns were in favor of joining NATO, 40% against and 33% remained undecided. A January 2022 Demoskop survey showed 42% of Swedes supporting NATO accession and 37% of respondents opposed it.,The Russian special operation in Ukraine is said to have invigorated NATO proponents in both Nordic countries. Rasmussen noted that recent surveys in Finland have shown a spike in support up to 76%. However, in Sweden, support to join NATO has remained relatively low, climbing to just 47%, according to him.,Meanwhile, unlike Sweden, Finland shares a 1,340 km (830 mi) border with Russia and has maintained longstanding economic relations with Moscow for decades. As of 2019, Finland imported around 60% of its energy from Russia with the latter being the fourth largest importer of Finnish goods in 2017, according to the Wilson Center. Furthermore, Russian speakers constitute the third largest ethnic group in the Nordic country.,Putin: If NATO Infrastructure is Deployed to Finland & Sweden, Russia Will Respond in ‘Mirror Way’01:02 GMT,"Even during the Cold War, both states were neutral and non-NATO members, with Finland developing strong economic and trade relations with Russia," the Eurasia Group vice-president explained. "As trade degrades and energy sharing diminishes there will likely be a strain placed on the economies, mostly with Finland.",Moscow has repeatedly underscored that Russia harbors no hostile intentions against either Nordic country, yet also signaling that the latest NATO expansion will not make the continent more stable or secure. Earlier this week, Russian President Vladimir Putin emphasized that the Kremlin has "nothing that could worry us in terms of Finland or Sweden's membership in NATO," adding, however, that if military equipment or troops are deployed along the border, Moscow will have to "respond in a mirror manner and create the same threats in the territories from which they threaten us.",There is yet another controversy surrounding Sweden and Finland's accession to the western military bloc: neither Nordic state has held a popular referendum to find out whether the public has really weighed all the pros and cons of NATO membership.,"Political leadership in both countries is taking a certain degree of risk to push forward the joining without a public referendum," Rasmussen said. "I am sure Washington and Brussels realize that risk.",In addition to that, NATO accession may increase political polarization in both Nordic states, according to the Eurasia Group vice-president. In particular, "the Finnish government is made up of several political parties with no single party having a clear majority, hence requiring partnerships being established," he noted, adding that worsening economic conditions could "potentially create divisions politically and thus alignments could easily change.",Meanwhile, the Swedish left has lashed out at the government and the Social Democrats over Stockholm's NATO admission deal with Ankara. According to Expressen, the Greens and the Left Party are mooting a no-confidence vote against Foreign Minister Ann Linde.,Bank of England Head: UK To Face More Inflation Than Other Major Economies10:47 GMT,Why NATO's 2% Requirement Appears Unrealistic Today,NATO rules may trigger further controversy as they will require Sweden and Finland to spend 2% of gross domestic product (GDP) on their defense budgets. Even though the Nordic countries have committed to reaching the benchmark by 2024, the long-term viability of their promises is in question, given skyrocketing inflation in Europe.,Inflation in Finland has recently risen to its highest level in over 30 years, hitting 7.1% in May. In April, the country's consumer price index (CPI), a popular gauge for inflation, stood at 5.7%, according to Statistics Finland.,Likewise, annual inflation in Sweden jumped from 6.4% in April to 7.3% in May, according to the country's Consumer Price Index with fixed interest rate (CPIF).,"To this end, just as the Ukrainian people are sacrificed, so the economies of European countries will be sacrificed, including Finland and Sweden," forecast Graziani. "Very difficult economic and social months await us in Europe. It will be a very hot autumn. Political crises in various countries of the European Union are likely to be hypothesized.",EU member states, the UK and the US are taking efforts to tame galloping inflation which throws their capability of adhering to NATO requirements into question. To complicate matters further, the UK is calling to step up funding and arming of Ukraine "until victory" amid the Russian special operation.,"The US and UK are using the conflict in Ukraine to pressure greater EU involvement and support to include NATO contributions," said Rasmussen. "While it is being projected that member states will meet their 2% objectives by 2024, based on developing economic conditions and a pending recession, I question the realism of that projection. Increasing real contributions for defense along with rising tensions between the EU and Russia may prove challenging as economic conditions worsen resulting in political disruptions across Europe.",Meanwhile, the US is not in its best shape either, according to Rasmussen. The country steadily moves forward into a potentially deep recession; increased tensions with China; emerging challenges in Latin America; tensions with Iran; and economic challenges at home. The scholar believes that it is likely one will see a major political change in the US in 2022 midterms, in 2024 and beyond.,What’s more, as the Republican Party becomes increasingly influenced by MAGA supporters, Trump's skepticism towards the NATO alliance may get a second wind in 2024. And this raises further questions about the future of the Cold War-era military bloc.。

B |     

The number of job openings fell to 8.8 million at the end of July, down from the prior month’s revised 9.1 million in a sign that the economy is downshifting, the Labor Department reported on Tuesday.
The drop brings the number about 2.5 million below the 11.4 million available jobs of a year ago.
Openings fell in professional and business services, down 198,000; health care and social assistance, off by 130,000; and state and local government, including education, where the combined losses totaled 129,000. There was a strong increase in information industry jobs, up by 101,000; and in transportation, warehousing and utilities, where openings increased by 75,000.
“Now it is taking a bit longer for jobseekers to find a job,” said Julia Pollak, chief economist for ZipRecruiter. “There’s meaningful slack in the job market, but it is still a historically tight job market. Overall, I still see the U.S. labor market as understaffed.”
The government will report the monthly jobs number for August on Friday with expectations for a gain of about 168,000 jobs.
“Investors should expect a softening labor report this Friday, further cementing the thesis that the Fed is getting close to finishing its tightening cycle,” said Jeffrey Roach, chief economist at LPL Financial.
Meanwhile, the Conference Board’s consumer confidence index for August found a pullback as Americans grew more concerned about rising prices of gasoline and groceries.
The present situation index – a reading of how consumers assess the current economy – fell to 144.8 from 153.0 in July. The expectations index, a forward-looking measure, declined to 80.2 from July’s bump to 88.
“Consumer confidence fell in August 2023, erasing back-to-back increases in June and July,” said Dana Peterson, chief economist at the business organization. “August’s disappointing headline number reflected dips in both the current conditions and expectations indexes. Write-in responses showed that consumers were once again preoccupied with rising prices in general, and for groceries and gasoline in particular.”
“The pullback in consumer confidence was evident across all age groups – and most notable among consumers with household incomes of $100,000 or more, as well as those earning less than $50,000,” Peterson added. “Confidence held relatively steady for consumers with incomes between $50,000 and $99,999.”
Consumers expected higher interest rates to come, while also lowering their assessment of the probability of a recession.
Also Tuesday, home prices rose 0.9% in June, according to the S&P CoreLogic Case-Shiller index. Prices were unchanged on a year-over-year basis.
"U.S. home prices continued to increase in June 2023," said Craig J. Lazzara, Managing Director at S&P DJI. "Our National Composite rose by 0.9% in June, and it now stands only -0.02% below its all time peak from exactly one year ago. Our 10- and 20-City Composites likewise each gained 0.9% in June 2023, and stand -0.5% and -1.2%, respectively, below their June 2022 peaks.”
"As we've noted previously, the recovery in home prices is broadly based,” Lazzara added. “Prices rose in all 20 cities in June, both before and after seasonal adjustment. Over the last 12 months, 10 cities show positive returns. Otherwise said, half the cities in our sample now sit at all-time high prices.
“Today’s market offers buyers the frustrating combination of low inventory and high home prices,” said Realtor.com economic data analyst Hannah Jones. “Many existing homeowners remain on the sidelines of the market, content to stay put as mortgage rates reach 20-year highs.”
“As a result, home shoppers are seeing fewer existing homes for sale and facing more competition for the homes available,” Jones added. “Builders have started to pick up construction activity to fill this gap, but remain cautious as affordability challenges continue to stifle buyer demand.”

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