VW’s labor union aims to reduce headcount and pay by 10%
Volkswagen’s works council announced on Monday that the car giant is considering wide-ranging pay cuts and layoffs, as well as closing or downsizing factories in Germany.
Works council president Daniela Cavallo said Volkswagen management recently presented the council with a plan that included a wage freeze for 2025 and 2026, as well as a 10% reduction in salaries across the board. All things considered, union workers will see their salaries reduced by about 18% during the period.
The VW logo shines on the roof of the brand tower at the Volkswagen headquarters factory behind a red light in the early morning.
Moritz Frankenberg | Picture Alliance | Getty Images
Cavallo said Volkswagen also intended to close three plants in Germany and downsize all others.
“Specifically, this means cutting even more products, volumes, shifts and entire assembly lines, far beyond what we have done in the past,” she said in an announcement Monday. said in a statement. “All VW plants in Germany are affected by this. None of them are safe,” Cavallo added.
Read the full text here. Shares were down about 1% in early afternoon trading.
-Sophie Kiderin
Stock prices turn negative
The pan-European Stoxx 600 index was down 0.14% as of 11am London time, reversing earlier gains with most regional stock exchanges and sectors in negative territory.
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Stoxx 600 in the past 5 days
Oil prices fall 6% after Iranian energy facility spared in Israeli attack
Oil prices fell 6% on Monday after weekend attacks on Israel left Iranian energy facilities undamaged.
As of 10:10 a.m. London time, global crude oil benchmark Brent crude futures fell 6.13% to $71.39 per barrel, while U.S. West Texas Intermediate futures fell 6.35% to $67.22 per barrel. It became a dollar.
On March 23, 2018, the oil tanker “Devon” prepares to transport crude oil from the Kharg Island oil terminal in the Persian Gulf, Iran, to India.
Ali Mohammadi | Bloomberg | Getty Images
France’s CAC40 index rises, supported by luxury stocks
France’s CAC40 index rose more than 1% on Monday and was up 0.8% as of 9:24 a.m. London time, with luxury stocks supporting the index’s gains.
Gucci owners Kering and Hermès rose about 2.6% and 2.1%, respectively, posting the biggest gains among companies on the CAC40 index on Monday. Meanwhile, LVMH rose nearly 1.5%.
Luxury stocks have been in a volatile period in recent weeks, reacting to a flood of news on consumer and economic conditions from China, the sector’s main market.
— Sophie Kiderin
Philips stock price falls by up to 15%
Shares in Dutch health products giant Philips fell in early European trading on Monday after the company cut its full-year sales outlook due to weak demand from China.
Shares in Philips, which is traded in Europe, fell as much as 15% after failing to start trading at market open and were last down 14.55% at 8:26 a.m. London time.
— Sophie Kiderin
European markets rise as trading begins
European markets opened higher on Monday, with the pan-European Stoxx 600 index up 0.24% as of 8:15 a.m. London time.
Travel and leisure stocks rose about 1.1%, while oil and gas stocks fell 1.7%.
Regional stock exchanges also mostly rose, with France’s CAC 40 up 0.7% and Germany’s DAX up 0.2%.
— Sophie Kiderin
Philips needs to ‘adapt to China’s new growth rate’, CEO Roy Jacobs says
Health device maker Philips needs to “adapt to China’s new growth rate,” CEO Roy Jacobs told CNBC’s “Squawk Box Europe” on Monday.
The company had expected China’s economy to stabilize in the second half of this year, but instead it has worsened, he said.
But Jacobs said China remains an important market for Philips.
“We believe that China fundamentally remains an attractive growth market for us, so it’s not a question of if, but when,” he said.
Jacobs’ comments came after Philips announced on Monday that it was cutting its full-year sales outlook due to “deteriorating” demand in China.
In an interview with CNBC, Jacobs said China’s problems are due to weakening consumer confidence and the resulting easing in sales, as well as the impact of anti-corruption measures on the health sector, which will keep the market at a “lowest level.” He said he is doing so. . ”
— Sophie Kiderin
Philips lowers sales outlook due to ‘worsening’ Chinese demand
Dutch medical equipment giant Philips said on Monday it was cutting its full-year sales forecast, citing weak demand from China.
The company said like-for-like sales growth for the full year 2024 is expected to be between 0.5% and 1.5%. This has been revised downward from the previously expected sales growth range of 3% to 5%.
Philips CEO Roy said: “Demand from Chinese hospitals and consumers further deteriorated in the third quarter, while other regions continued to see strong growth. We have adjusted our full-year sales outlook to reflect the continuing impact.” Jacobs said in a statement.
Like-for-like sales growth was flat in the third quarter, Philips said in an earnings call Monday. Analysts had expected growth of 2.1%, according to Reuters.
— Sophie Kiderin
European Market: Click here for opening call
European markets are expected to open mixed on Monday.
According to IG data, the UK’s FTSE 100 index is expected to fall eight points to open at 8,243, Germany’s DAX rises 30 points to 19,747, France’s CAC rises 12 points to 7,508 and Italy’s The FTSE MIB is expected to rise 108 points to 34,648.
Proceeds come from Phillips Monday. No major data released.
— Holly Ellyatt
Oil prices fall more than 4% after Israel’s ‘limited’ attack on Iran
Yen falls to three-month low after Japan’s election
The Japanese yen fell to a three-month low against the dollar on Monday after the ruling Liberal Democratic Party lost its majority in the House of Representatives in Sunday’s general election.
The currency hit a low of 153.32 against the dollar, its lowest since July 31.
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CNBC Pro: Analysts see 40% upside in Chinese tech stock, but one CIO warns it could become a ‘one-trick pony’
The Chinese tech company has attracted investor attention after its stock price fell, but one market watcher is unimpressed.
“There may be some short-term upside, but it’s not really about[stock prices]it’s about the broad-based It’s a matter of rising.”
Unlike Hsu, not everyone is too negative about the stock, with 35 out of 46 analysts rating it a buy or overweight, giving it an average upside of 40.1%.
CNBC Pro subscribers can read more about the stock and Su’s views here.
— Amara Balakrishna
CNBC Pro: Buy this tech stock that’s quietly automating warehouses with robots, say Berenberg and Citi – with 50% upside potential.
The investment bank is recommending investors buy the warehouse automation company’s stock, with a price target suggesting a potential upside of more than 50% over the next 12 months.
These systems mean warehouses can store goods four times more densely than manually operated warehouses, while also being able to retrieve goods faster than human workers. Increased efficiency and reduced operating costs for customers enabled the company to achieve significant profit margins, increasing the value of its stock.
CNBC Pro subscribers can read more here.
— Ganesh Rao
