Economy

The workforce reductions were first reported by weekly industry newspaper Automobilwoche.”Like other companies, we have to adjust the level of employment to the order situation, structural changes in the drive sector and the market penetration of future technologies,” a spokesperson for Bosch said in e-mailed comments.”We see a need to adjust up to 1,500 personnel capacities in the areas of development, administration and sales in the Drives division at the Feuerbach and Schwieberdingen sites by the end of 2025.”Bosch said it was trying to achieve this via moving staff to other departments, early retirement or voluntary redundancy agreements, adding the group was in talks with the works council over specifics.”We are facing significantly greater challenges than expected at the beginning of the year … Even if we want to maintain our employment level as best as possible with new products and a wide range of training measures, we will have to adjust this to the order situation in some areas,” Bosch said.Bosch confirmed that the company would refrain from compulsory redundancies at its German mobility locations until the end of 2027. More

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JERUSALEM (Reuters) -Israel registered a budget deficit of 16.6 billion shekels ($4.5 billion) in November, the Finance Ministry said on Sunday, citing a jump in expenses to fund Israel’s war with Hamas militants in the Gaza Strip.As a percentage of GDP, the deficit over the previous 12 months rose to 3.4% in November – 62.3 billion shekels – from 2.6% in October, it said.A ministry source said the deficit for 2023 would finish at about 4% of GDP, above a target of 0.9%, or 16.9 billion shekels, in the budget approved by lawmakers in May.The ministry noted that revenue fell by 15.6% last month, partly because of tax deferments resulting from the war that began on Oct. 7.November revenue was 30.3 billion shekels, the lowest monthly level this year. For the first 11 months of the year, revenue reached 401.5 billion shekels, 6.2% lower than the same period last year.Overall, the war is expected to weigh on growth in 2023 and 2024. The ministry and central bank project growth of 2% this year and 1.6% and 2% respectively in 2024.Expenses reached nearly 47 billion shekels, with about 6 billion attributable to the war, helping to push up January-November spending by 11.5% to 445.3 billion shekels.Israel’s deficit in October was 22.9 billion shekels and in November 2022 it was 1.7 billion shekels.Last week parliament gave its initial nod to a war budget that would add more than 30 billion shekels to spending on the war for the rest of 2023. The plan still requires final approval.($1 = 3.7033 shekels) More

The ECB’s initiative comes as part of a comprehensive approach adopted by the EU to address the financial stability concerns posed by climate change. By adjusting collateral limits, the ECB aims to influence the behavior of financial institutions, encouraging them to factor in climate-related risks when making lending decisions. This policy could lead to a more sustainable allocation of resources and help prevent climate risks from destabilizing prices.In addition, the EU’s decision to place bank-owned crypto services under the ECB’s supervisory umbrella further demonstrates the bloc’s intent to create a robust regulatory environment that can handle the complexities introduced by digital assets. Cryptocurrencies have been identified as potential channels through which climate risks could affect the financial system, given their energy-intensive nature and growing adoption by financial institutions.The ECB’s proactive stance on integrating climate change into its policy measures reflects an acknowledgment of the long-term economic threats posed by global warming. As central banks around the world grapple with unprecedented challenges, including those presented by environmental issues, such measures are increasingly seen as vital for maintaining financial stability and controlling inflation in an era marked by ecological uncertainty.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

Investors have been closely monitoring Treasury yields and calling for stability as they navigate an environment of uncertainty. With recent fluctuations, there is heightened sensitivity to the Fed’s every move. The anticipation is that the Fed will continue its hawkish rhetoric, indicating a cautious approach towards future rate hikes while acknowledging the economy’s deceleration. However, officials are not signaling an imminent recession, which offers some reassurance to market participants.Adding to the complexity of the central bank’s decision-making process are speculations among economists about when a downturn might occur. While some market observers suggest the possibility of an interest rate cut by March next year due to diminishing inflationary pressures and deficit concerns, Federal Reserve Chair Jerome Powell is expected to temper such expectations. In his briefing, Powell is likely to emphasize that any future rate hikes would be conditional and reiterate his vigilance against any resurgence of inflation.This careful balancing act reflects the Fed’s dual mandate to foster maximum employment and price stability. As investors brace for Wednesday’s policy statement, they remain alert to Powell’s guidance on navigating potential economic headwinds and the path forward for monetary policy.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

Annual inflation was slightly lower than predicted by analysts. The median forecast of 18 analysts polled had expected a reading of 34.8%.Month-on-month, prices rose by 1.3% in November, up from 1.0% in October. Food prices rose by 0.2% but surged 64.5 year on year. Annual inflation had been working its way upwards for two years, hitting a record high of 38.0% in September. The November figure was the lowest since May. More

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