Deutsche Telekom has reached an agreement with its works council on restructuring its troubled T-Systems IT services division, a company spokesman said on Friday, the International New York Times reported on a Reuters story. The spokesman confirmed an earlier report in Handelsblatt that said the agreement included moving large parts of the business to a newly created German subsidiary and affected more than 2,000 staff.
Germany
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A few weeks ago, Germany’s ruling Christian Democratic party put out a tweet that, depending on your viewpoint, was either naively sincere or shamelessly provocative. Above what looked like a pair of bondage items, the CDU said: “We have a small fetish: solid finances without new debts.” Fiscal rectitude, the tweet went on to say, represents justice between older and younger generations and is a precondition of investments in society’s future, the Financial Times reported in a commentary.
Germany’s stagnant economy is dragging down the eurozone, economists have warned, as new data showed Europe’s largest economy is on track for another sluggish year. Figures form IHS Markit showed the country’s purchasing managers’ index (PMI) fell to 43.4 in December from 44.1 the previous month, the first downward movement in three months. The result was worse than the 44.5 reading predicted by economists in a survey by Reuters. And the eurozone also saw a drop in the PMI, an index of prevailing direction of economic trends in manufacturing and services.
Germany will give financial assistance to customers hit by the insolvency of Thomas Cook because the tour operator’s insurance cover has proved insufficient, Reuters reported today. “Damages that are not compensated by other parties will be settled by the federal government,” it said in a statement, confirming a report by broadcaster ARD. Insurer Zurich’s liability is capped at 110 million euros ($121 million) but it has already registered claims worth 250 million and experts estimate total claims will reach 300 million to 500 million euros, ARD said.
The two-year recession in German industry is showing few signs of ending after orders in the country’s manufacturing sector fell more than expected in October with a further shrinkage expected in November, the Financial Times reported. Provisional figures published on Thursday showed that new manufacturing orders fell by 0.4 per cent in October, compared with the previous month, according to the Federal Statistics Office. Economists polled by Reuters had expected an increase of 0.3 per cent.
Ailing conglomerate Thyssenkrupp has worked out a new strategy for the group’s steel business, a leading labor representative said on Tuesday, adding the roadmap included significant investments but also restructuring steps, Reuters reported. The strategy paper was presented to the supervisory board of Thyssenkrupp Steel Europe on Tuesday, following labor protests at the division’s headquarters in Duisburg, in the heart of the Ruhr area, Germany’s industrial heartland.
A recent apology to Mario Draghi by Germany’s top central banker has highlighted a pressing concern in the eurozone’s largest economy about the European Central Bank: that criticism of its monetary policies is going too far and risks creating a domestic backlash, the Financial Times reported. Jens Weidmann, the Bundesbank president, said sorry to Mr Draghi after a broadside against the ECB’s stimulus package in September, which was delivered in an interview with Bild, Germany’s best-selling newspaper.
German energy group Innogy on Thursday said it was continuing to lose clients in Britain, where a price cap has increased pressure on the ‘Big Six’ energy providers, Reuters reported. Npower, Innogy’s British retail unit, lost 261,000 customers during the third quarter, bringing total customer losses to 447,000 so far this year. The division posted a nine-month adjusted operating loss of 167 million euros ($184 million). Npower’s problems will soon be an issue for German utility E.ON.
Thyssenkrupp’s new boss scrapped the German industrial group’s dividend, warned of deeper losses and asked investors for yet more patience over its turnaround, sending shares in the conglomerate down as much as 14.5% on Thursday, Reuters reported. The moves immediately turned up the pressure on Martina Merz, who served as chairwoman before taking over as CEO, to quickly sell the company’s elevators business - a prize asset it has put on the block to try to mend its finances.