The US House of Representatives approved a crucial stopgap funding bill on Thursday, securing the federal government's financial support through early March and preventing a looming partial government shutdown.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

The bill, passed with a vote of 314-108, now awaits President Joe Biden's final approval. This comes after the Senate's earlier approval with a decisive 77-18 vote, just ahead of the impending weekend deadline. <o:p></o:p>

"There will not be a shutdown on Friday," Reuters quoted Senate Majority Leader Chuck Schumer.<o:p></o:p>

The swift approval of the stopgap bill was prompted by concerns over an impending snowstorm on Friday that could have complicated lawmakers' travel plans for the weekend. <o:p></o:p>

The bipartisan effort, however, faced opposition from 106 Republicans and two Democrats in the House. Despite divisions, the urgency to avert a government shutdown due to a lack of approved funding for the fiscal year that started on Oct. 1 took precedence. <o:p></o:p>

The stopgap bill, often referred to as a "continuing resolution" (CR), will maintain spending at the previous fiscal year's levels until March 1 and March 8, providing lawmakers additional time to finalize a comprehensive budget for various government agencies.<o:p></o:p>

The contentious budget negotiations in Congress, marked by partisan disagreements, have further complicated the funding process. Although Schumer and House Republican counterpart Mike Johnson initially agreed to a $1.59 trillion discretionary spending level for the fiscal year, their latest dispute reveals a stark division. <o:p></o:p>

Democrats now assert that the agreed-upon amount is $1.66 trillion, reflecting the deep-seated discord within the Congress. The national debt, currently standing at $34.4 trillion, adds urgency to the need for a coherent and comprehensive fiscal plan. The interest payments on this debt are a growing concern for the Treasury Department.<o:p></o:p>

This marks the third stopgap funding bill, with its primary aim to provide short-term financial stability while the Congress grapples with the daunting task of passing 12 bills that constitute the full-year budget. <o:p></o:p>

The temporary funding measure, with its March deadlines, allows lawmakers to extend negotiations without facing an immediate shutdown crisis. However, it highlights the underlying challenges in achieving a consensus on long-term spending priorities. <o:p></o:p>

House Republicans, especially those advocating for spending cuts, may pose challenges for Mike Johnson, reminiscent of the opposition faced by his predecessor, Kevin McCarthy.<o:p></o:p>

Despite internal party tensions, Johnson seems to have maintained some support from hardline members who, while expressing displeasure, acknowledge the complex nature of the situation. <o:p></o:p>

Representative Tim Burchett, who had voted against McCarthy's leadership in September due to a bipartisan stopgap vote, acknowledged, "It's just reality. Johnson didn't create this problem."<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

The US House of Representatives approved a crucial stopgap funding bill on Thursday, securing the federal government's financial support through early March and preventing a looming partial government shutdown.

The US House of Representatives approved a crucial stopgap funding bill on Thursday, securing the federal government's financial support through early March and preventing a looming partial government shutdown. This is based on a Reuters report. The bill, passed with a vote of 314-108, now awaits President Joe Biden's final approval. This comes after the Senate's earlier approval with a decisive 77-18 vote, just ahead of the impending weekend deadline. "There will not be a shutdown on Friday," Reuters quoted Senate Majority Leader Chuck Schumer. The swift approval of the stopgap bill was prompted by concerns over an impending snowstorm on Friday that could have complicated lawmakers' travel plans for the weekend. The bipartisan effort, however, faced opposition from 106 Republicans and two Democrats in the House. Despite divisions, the urgency to avert a government shutdown due to a lack of approved funding for the fiscal year that started on Oct. 1 took precedence. The stopgap bill, often referred to as a "continuing resolution" (CR), will maintain spending at the previous fiscal year's levels until March 1 and March 8, providing lawmakers additional time to finalize a comprehensive budget for various government agencies. The contentious budget negotiations in Congress, marked by partisan disagreements, have further complicated the funding process. Although Schumer and House Republican counterpart Mike Johnson initially agreed to a $1.59 trillion discretionary spending level for the fiscal year, their latest dispute reveals a stark division. Democrats now assert that the agreed-upon amount is $1.66 trillion, reflecting the deep-seated discord within the Congress. The national debt, currently standing at $34.4 trillion, adds urgency to the need for a coherent and comprehensive fiscal plan. The interest payments on this debt are a growing concern for the Treasury Department. This marks the third stopgap funding bill, with its primary aim to provide short-term financial stability while the Congress grapples with the daunting task of passing 12 bills that constitute the full-year budget. The temporary funding measure, with its March deadlines, allows lawmakers to extend negotiations without facing an immediate shutdown crisis. However, it highlights the underlying challenges in achieving a consensus on long-term spending priorities. House Republicans, especially those advocating for spending cuts, may pose challenges for Mike Johnson, reminiscent of the opposition faced by his predecessor, Kevin McCarthy. Despite internal party tensions, Johnson seems to have maintained some support from hardline members who, while expressing displeasure, acknowledge the complex nature of the situation. Representative Tim Burchett, who had voted against McCarthy's leadership in September due to a bipartisan stopgap vote, acknowledged, "It's just reality. Johnson didn't create this problem." (With inputs from Reuters)

US Congress passes stopgap funding bill to avert shutdown

The escalating disruptions to shipping in the Red Sea are casting a dark shadow over Chinese exporters, inflicting financial strain and logistical challenges.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

Han Changming, a Chinese businessman whose trading company Fuzhou Han Changming International Trade Co Ltd faces severe setbacks, revealed that the cost of shipping a container to Europe surged from $3,000 to $7,000 due to heightened attacks on shipping by Yemen's Houthi movement. <o:p></o:p>

"The disruptions have wiped out our already thin profits," Reuters quoted Han as saying.<o:p></o:p>

The impact extends beyond increased shipping costs, with delays and higher insurance premiums taking a toll on businesses.<o:p></o:p>

The Red Sea disruptions are unravelling the intricacies of China's export-dependent economy, highlighting vulnerabilities to supply chain interruptions and external shocks.<o:p></o:p>

Premier Li Qiang, speaking at the World Economic Forum, stressed the importance of maintaining "stable and smooth" global supply chains. While not explicitly mentioning the Red Sea, the remarks highlighted the broader challenges faced by China.<o:p></o:p>

The disruptions are compelling some companies, including US-based BDI Furniture, to diversify production locations, reducing reliance on China amid geopolitical tensions.<o:p></o:p>

The fear now is that a prolonged crisis might encourage a "near-shoring" strategy, prompting businesses to shift production closer to home.<o:p></o:p>

The vulnerability of China's export economy is highlighted by the potential shift of companies opting for alternative manufacturing locations. <o:p></o:p>

Reuters cited Marco Castelli, the founder of IC Trade, who warned, "If it's permanent, then the whole mechanism will be readjusted. Some (companies) may also consider moving more production to India." <o:p></o:p>

The disruptions add to the challenges faced by China's struggling economy, grappling with a property crisis, weak consumer demand, a shrinking population, and sluggish global growth. <o:p></o:p>

As companies like Fuzhou Han Changming International Trade Co Ltd navigate delays and cost increases, there is a growing concern about the broader economic impact.<o:p></o:p>

Han Changming, whose business heavily relies on Europe and Africa trade, is pleading with suppliers and customers to share additional costs to sustain his company.<o:p></o:p>

The disruptions come at a critical time, with many companies already managing logistics challenges ahead of the Lunar New Year in February. The festive season leads to a mass exodus of nearly 300 million migrant workers and temporary factory closures, creating a rush to ship goods in the weeks preceding the holiday. <o:p></o:p>

Mike Sagan, Vice President for supply chains and operations at KidKraft, highlighted the impact, stating, "A lot of suppliers, they're screaming about money today." The disruptions, coupled with concerns about payment delays, are reverberating across the supply chain.<o:p></o:p>

Rerouting vessels from the Red Sea, primarily via the Suez Canal, to circumvent disruptions can add significant delays, impacting global container capacity and disrupting supply chains. <o:p></o:p>

The prolonged shipping schedules could result in delays for goods expected to reach Western shelves in April or May. Some logistics companies are already reporting container shortages at Ningbo-Zhoushan port, one of the world's busiest. <o:p></o:p>

The Suez Canal is a vital route for China's westward shipments, handling around 60 per cent of its exports to Europe. The broader impact on China's export landscape and the interconnected global supply chain remains a significant concern.<o:p></o:p>

The far-reaching consequences of the Red Sea shipping woes extend beyond financial strains to manufacturers reconsidering their future strategies. <o:p></o:p>

Yang Bingben, whose company manufactures industrial-use valves, revealed a substantial reduction in orders amid soaring freight costs. "The impact is huge," said Yang, emphasizing the potential loss. <o:p></o:p>

The uncertainty in trade conditions poses a particularly acute challenge for companies relying on just-in-time deliveries or frequent stock changes. <o:p></o:p>

Gerhard Flatz, Managing Director of premium sportswear manufacturer KTC, voiced concern that companies with shrinking margins might face closure, compounding the economic impact.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

The escalating disruptions to shipping in the Red Sea are casting a dark shadow over Chinese exporters, inflicting financial strain and logistical challenges. This is based on a Reuters report.

The escalating disruptions to shipping in the Red Sea are casting a dark shadow over Chinese exporters, inflicting financial strain and logistical challenges. This is based on a Reuters report. Han Changming, a Chinese businessman whose trading company Fuzhou Han Changming International Trade Co Ltd faces severe setbacks, revealed that the cost of shipping a container to Europe surged from $3,000 to $7,000 due to heightened attacks on shipping by Yemen's Houthi movement. "The disruptions have wiped out our already thin profits," Reuters quoted Han as saying. The impact extends beyond increased shipping costs, with delays and higher insurance premiums taking a toll on businesses. The Red Sea disruptions are unravelling the intricacies of China's export-dependent economy, highlighting vulnerabilities to supply chain interruptions and external shocks. Premier Li Qiang, speaking at the World Economic Forum, stressed the importance of maintaining "stable and smooth" global supply chains. While not explicitly mentioning the Red Sea, the remarks highlighted the broader challenges faced by China. The disruptions are compelling some companies, including US-based BDI Furniture, to diversify production locations, reducing reliance on China amid geopolitical tensions. The fear now is that a prolonged crisis might encourage a "near-shoring" strategy, prompting businesses to shift production closer to home. The vulnerability of China's export economy is highlighted by the potential shift of companies opting for alternative manufacturing locations. Reuters cited Marco Castelli, the founder of IC Trade, who warned, "If it's permanent, then the whole mechanism will be readjusted. Some (companies) may also consider moving more production to India." The disruptions add to the challenges faced by China's struggling economy, grappling with a property crisis, weak consumer demand, a shrinking population, and sluggish global growth. As companies like Fuzhou Han Changming International Trade Co Ltd navigate delays and cost increases, there is a growing concern about the broader economic impact. Han Changming, whose business heavily relies on Europe and Africa trade, is pleading with suppliers and customers to share additional costs to sustain his company. The disruptions come at a critical time, with many companies already managing logistics challenges ahead of the Lunar New Year in February. The festive season leads to a mass exodus of nearly 300 million migrant workers and temporary factory closures, creating a rush to ship goods in the weeks preceding the holiday. Mike Sagan, Vice President for supply chains and operations at KidKraft, highlighted the impact, stating, "A lot of suppliers, they're screaming about money today." The disruptions, coupled with concerns about payment delays, are reverberating across the supply chain. Rerouting vessels from the Red Sea, primarily via the Suez Canal, to circumvent disruptions can add significant delays, impacting global container capacity and disrupting supply chains. The prolonged shipping schedules could result in delays for goods expected to reach Western shelves in April or May. Some logistics companies are already reporting container shortages at Ningbo-Zhoushan port, one of the world's busiest. The Suez Canal is a vital route for China's westward shipments, handling around 60 per cent of its exports to Europe. The broader impact on China's export landscape and the interconnected global supply chain remains a significant concern. The far-reaching consequences of the Red Sea shipping woes extend beyond financial strains to manufacturers reconsidering their future strategies. Yang Bingben, whose company manufactures industrial-use valves, revealed a substantial reduction in orders amid soaring freight costs. "The impact is huge," said Yang, emphasizing the potential loss. The uncertainty in trade conditions poses a particularly acute challenge for companies relying on just-in-time deliveries or frequent stock changes. Gerhard Flatz, Managing Director of premium sportswear manufacturer KTC, voiced concern that companies with shrinking margins might face closure, compounding the economic impact. (With inputs from Reuters)

Red Sea shipping woes wreak havoc on Chinese exporters: Report

Macy's, the US department store chain, has revealed plans to cut 2,350 jobs and shut five stores, constituting 3.5 per cent of its total workforce. <o:p></o:p>

The company, which operated 722 stores as of January 2023, employs around 94,570 full- and part-time staff, excluding seasonal hires. <o:p></o:p>

According to Reuters, the restructuring initiative is part of Macy's broader strategy to adapt to evolving consumer trends and marketplace dynamics. <o:p></o:p>

The decision to slash jobs aligns with an ongoing $5.8 billion offer by an investor group, Arkhouse Management and Brigade Capital, to take Macy's private.<o:p></o:p>

Incoming CEO Tony Spring is spearheading efforts to trim expenses on promotions, aiming to enhance profit margins following the inventory surplus experienced by Macy's in 2022.<o:p></o:p>

The job cuts are integral to the company's strategic shift and its commitment to meeting the demands of an ever-changing consumer landscape. <o:p></o:p>

Macy's spokesperson stated that the layoffs are part of a comprehensive plan to deploy a new strategy aligned with market shifts. <o:p></o:p>

As the company assesses the optimal mix of on- and off-mall locations, it plans to close five full-line stores in the coming year.<o:p></o:p>

The Wall Street Journal, citing an internal memo to employees, reported that the layoffs are scheduled for January 26. <o:p></o:p>

The move follows Macy's robust performance in November, where it surpassed analysts' profit estimates for the quarter. <o:p></o:p>

Lower inventories and robust demand for beauty products contributed to the positive results. <o:p></o:p>

The streamlining effort, while driven by internal factors, also responds to external pressures from investor groups eyeing Macy's privatisation. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Macy's, the US department store chain, has revealed plans to cut 2,350 jobs and shut five stores, constituting 3.5 per cent of its total workforce. The company, which operated 722 stores as of January 2023, employs around 94,570 full- and part-time staff, excluding seasonal hires.

Macy's, the US department store chain, has revealed plans to cut 2,350 jobs and shut five stores, constituting 3.5 per cent of its total workforce. The company, which operated 722 stores as of January 2023, employs around 94,570 full- and part-time staff, excluding seasonal hires. According to Reuters, the restructuring initiative is part of Macy's broader strategy to adapt to evolving consumer trends and marketplace dynamics. The decision to slash jobs aligns with an ongoing $5.8 billion offer by an investor group, Arkhouse Management and Brigade Capital, to take Macy's private. Incoming CEO Tony Spring is spearheading efforts to trim expenses on promotions, aiming to enhance profit margins following the inventory surplus experienced by Macy's in 2022. The job cuts are integral to the company's strategic shift and its commitment to meeting the demands of an ever-changing consumer landscape. Macy's spokesperson stated that the layoffs are part of a comprehensive plan to deploy a new strategy aligned with market shifts. As the company assesses the optimal mix of on- and off-mall locations, it plans to close five full-line stores in the coming year. The Wall Street Journal, citing an internal memo to employees, reported that the layoffs are scheduled for January 26. The move follows Macy's robust performance in November, where it surpassed analysts' profit estimates for the quarter. Lower inventories and robust demand for beauty products contributed to the positive results. The streamlining effort, while driven by internal factors, also responds to external pressures from investor groups eyeing Macy's privatisation. (With inputs from Reuters)

Macy's Initiates Streamlining Effort: 2,350 Job cuts & 5 store closures disclosed

Social media giant Reddit is gearing up for its long-anticipated initial public offering (IPO) in March, marking the sector's first major debut since Pinterest in 2019.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

Reddit, valued at approximately $10 billion in a 2021 funding round, faces fierce competition from platforms like TikTok and Facebook for advertising revenue. <o:p></o:p>

The IPO would also be a litmus test for Reddit users' willingness to support the company's stock market entry, considering the platform's history of fuelling "meme" stock rallies.<o:p></o:p>

The San Francisco-based company, founded in 2005, plans to make its public filing in late February, initiate its roadshow in early March, and complete the IPO by the end of the same month. <o:p></o:p>

Reddit, seeking to sell about 10 per cent of its shares, will decide on the IPO valuation closer to the listing. <o:p></o:p>

While these plans could face delays, as seen in the past, sources caution that Reddit's IPO aspirations might encounter hurdles.<o:p></o:p>

Known for its niche discussion groups, Reddit generates revenue primarily through advertising and offers premium access for a monthly fee. Despite its popularity, the platform has yet to turn a profit. <o:p></o:p>

Reddit CEO Steve Huffman acknowledged the losses, attributing them to investments in the platform and lower user engagement with advertising compared to other social media. <o:p></o:p>

The company held off on its IPO plans until it neared profitability, also navigating market volatility that disrupted IPOs in recent years.<o:p></o:p>

The IPO move comes after Reddit expected to generate over $800 million in advertising revenue in 2023, reflecting a 20 per cent increase from the previous year. <o:p></o:p>

While the company looks to tap into its vast user base for financial gains, it introduced charges for accessing its application programming interface (API), causing discontent among users relying on third-party apps. <o:p></o:p>

This strategic shift signals Reddit's effort to monetise its services beyond traditional advertising models.<o:p></o:p>

Despite Reddit's delayed profitability, the broader social media sector has experienced a rebound, driven by a rally in technology stocks. <o:p></o:p>

Meta Platforms, operating Facebook, witnessed a threefold surge in shares over the past 12 months, while Snap's shares rose by 60 per cent during the same period.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Social media giant Reddit is gearing up for its long-anticipated initial public offering (IPO) in March, marking the sector's first major debut since Pinterest in 2019.

Social media giant Reddit is gearing up for its long-anticipated initial public offering (IPO) in March, marking the sector's first major debut since Pinterest in 2019. This is based on a Reuters report. Reddit, valued at approximately $10 billion in a 2021 funding round, faces fierce competition from platforms like TikTok and Facebook for advertising revenue. The IPO would also be a litmus test for Reddit users' willingness to support the company's stock market entry, considering the platform's history of fuelling "meme" stock rallies. The San Francisco-based company, founded in 2005, plans to make its public filing in late February, initiate its roadshow in early March, and complete the IPO by the end of the same month. Reddit, seeking to sell about 10 per cent of its shares, will decide on the IPO valuation closer to the listing. While these plans could face delays, as seen in the past, sources caution that Reddit's IPO aspirations might encounter hurdles. Known for its niche discussion groups, Reddit generates revenue primarily through advertising and offers premium access for a monthly fee. Despite its popularity, the platform has yet to turn a profit. Reddit CEO Steve Huffman acknowledged the losses, attributing them to investments in the platform and lower user engagement with advertising compared to other social media. The company held off on its IPO plans until it neared profitability, also navigating market volatility that disrupted IPOs in recent years. The IPO move comes after Reddit expected to generate over $800 million in advertising revenue in 2023, reflecting a 20 per cent increase from the previous year. While the company looks to tap into its vast user base for financial gains, it introduced charges for accessing its application programming interface (API), causing discontent among users relying on third-party apps. This strategic shift signals Reddit's effort to monetise its services beyond traditional advertising models. Despite Reddit's delayed profitability, the broader social media sector has experienced a rebound, driven by a rally in technology stocks. Meta Platforms, operating Facebook, witnessed a threefold surge in shares over the past 12 months, while Snap's shares rose by 60 per cent during the same period. (With inputs from Reuters)

Reddit plans IPO launch in March amid intense social media competition

China faces a formidable economic challenge as its ageing population threatens key policy goals, including boosting domestic consumption and tackling growing debt. <o:p></o:p>

According to Reuters, a record low birth rate in 2023 and the impact of COVID-19 deaths have resulted in a second consecutive year of population decline, raising concerns about the country's long-term growth prospects. <o:p></o:p>

The decline in the working-age population will exacerbate structural imbalances, impacting household consumption and straining pension and elderly care systems. This situation poses a significant hurdle to China's economic objectives for the coming decade.<o:p></o:p>

China's household consumption already constitutes one of the lowest proportions of economic output globally. Policymakers are grappling with the prospect of large segments of the population exiting the labour pool, entering retirement, and surpassing a prime period for consumption. <o:p></o:p>

About 300 million people, the country's largest demographic group aged 50 to 60, equivalent to the entire US population, are expected to leave the workforce in the next decade.<o:p></o:p>

This comes at a time when pension budgets are already stretched, with the Chinese Academy of Sciences predicting the pension system running out of money by 2035.<o:p></o:p>

China's retirement age, among the world's lowest, raises concerns about the financial preparedness of those entering retirement. People are expressing worries about relying solely on pension income. <o:p></o:p>

As China experiences rapid urbanisation, traditional expectations of children financially supporting aging parents are shifting. The demographic shift will reduce the ratio of workers supporting retirees, intensifying China's pension crisis. Demographers warn that by 2050, this crisis could become a humanitarian catastrophe.<o:p></o:p>

The ageing population not only affects the pension system but also has broader economic implications. China's second-largest demographic group, aged 30 to 49, currently in a prime consumption period, is expected to participate less in domestic consumption as they age. <o:p></o:p>

The subsequent generation, in their 20s, is the smallest since the 1950s due to China's one-child policy. This demographic trend poses challenges to sectors like real estate, which accounted for a significant portion of China's economic output. <o:p></o:p>

As demand for housing declines, China's reliance on exports may increase, affecting innovation and productivity improvement.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

China faces a formidable economic challenge as its ageing population threatens key policy goals, including boosting domestic consumption and tackling growing debt.

China faces a formidable economic challenge as its ageing population threatens key policy goals, including boosting domestic consumption and tackling growing debt. According to Reuters, a record low birth rate in 2023 and the impact of COVID-19 deaths have resulted in a second consecutive year of population decline, raising concerns about the country's long-term growth prospects. The decline in the working-age population will exacerbate structural imbalances, impacting household consumption and straining pension and elderly care systems. This situation poses a significant hurdle to China's economic objectives for the coming decade. China's household consumption already constitutes one of the lowest proportions of economic output globally. Policymakers are grappling with the prospect of large segments of the population exiting the labour pool, entering retirement, and surpassing a prime period for consumption. About 300 million people, the country's largest demographic group aged 50 to 60, equivalent to the entire US population, are expected to leave the workforce in the next decade. This comes at a time when pension budgets are already stretched, with the Chinese Academy of Sciences predicting the pension system running out of money by 2035. China's retirement age, among the world's lowest, raises concerns about the financial preparedness of those entering retirement. People are expressing worries about relying solely on pension income. As China experiences rapid urbanisation, traditional expectations of children financially supporting aging parents are shifting. The demographic shift will reduce the ratio of workers supporting retirees, intensifying China's pension crisis. Demographers warn that by 2050, this crisis could become a humanitarian catastrophe. The ageing population not only affects the pension system but also has broader economic implications. China's second-largest demographic group, aged 30 to 49, currently in a prime consumption period, is expected to participate less in domestic consumption as they age. The subsequent generation, in their 20s, is the smallest since the 1950s due to China's one-child policy. This demographic trend poses challenges to sectors like real estate, which accounted for a significant portion of China's economic output. As demand for housing declines, China's reliance on exports may increase, affecting innovation and productivity improvement. (With inputs from Reuters)

China's Demographic Challenge: Ageing population threatens economic shift & growth

In the quiet corners of the West Bank, once-thriving markets now stand deserted, echoing the economic fallout from the Israel-Hamas conflict that erupted on October 7. As we explore the repercussions through interviews recorded by AFP, we witness a region grappling with unprecedented challenges, where businesses that once flourished now face an uncertain future.

The human toll on local businesses

Hafeth Ghazawneh, owner of a famous falafel stall, shares his journey from prosperity to uncertainty. Before the conflict, his vibrant breakfast and lunch offerings attracted artisans from nearby workshops. In the aftermath of the attacks, his once-bustling stall sits abandoned, and his income has plunged from 7,000 to 2,000 shekels per month.

The ripple effect on the West Bank economy

Beyond the faltering stalls, the broader West Bank economy is in turmoil. The World Bank predicts a potential six per cent decline in GDP this year.

The International Labour Organization reports 32 per cent job loss. Israel's withdrawal of 130,000 work permits from Palestinians compounds the crisis, leaving many without a source of income and exacerbating an already dire situation.

Businesses struggle to stay afloat

Bishara Jubran, manager of a household products factory, provides insights into the challenges faced by businesses. With losses totalling $200,000 in the past year, his factory, once thriving on exports to Gaza, now struggles to find a market. Increased transport costs, checkpoints, and sealed-off towns further exacerbate the situation, with the West Bank's economy operating at only 50 per cent of its capacity.

Researcher Taher al-Labadi sheds light on the inherent fragility of the Palestinian economy. Hindered by Israel's control over borders and tax collection, the economic downturn has been compounded by unpaid taxes since the war outbreak. The Palestinian Authority, grappling with financial strain, has struggled to pay public servants, intensifying the economic challenges faced by the population.

Bottomline

As the West Bank grapples with the aftermath of the conflict, businesses and communities face an uphill battle. The fear of the unknown looms large, echoing the sentiments of Bishara Jubran: 'We don't know if we'll be able to go to work tomorrow.'&nbsp;

In the quiet corners of the West Bank, once-thriving markets now stand deserted, echoing the economic fallout from the Israel-Hamas conflict that erupted on October 7.

In the quiet corners of the West Bank, once-thriving markets now stand deserted, echoing the economic fallout from the Israel-Hamas conflict that erupted on October 7. As we explore the repercussions through interviews recorded by AFP, we witness a region grappling with unprecedented challenges, where businesses that once flourished now face an uncertain future. The human toll on local businesses Hafeth Ghazawneh, owner of a famous falafel stall, shares his journey from prosperity to uncertainty. Before the conflict, his vibrant breakfast and lunch offerings attracted artisans from nearby workshops. In the aftermath of the attacks, his once-bustling stall sits abandoned, and his income has plunged from 7,000 to 2,000 shekels per month. The ripple effect on the West Bank economy Beyond the faltering stalls, the broader West Bank economy is in turmoil. The World Bank predicts a potential six per cent decline in GDP this year. The International Labour Organization reports 32 per cent job loss. Israel's withdrawal of 130,000 work permits from Palestinians compounds the crisis, leaving many without a source of income and exacerbating an already dire situation. Businesses struggle to stay afloat Bishara Jubran, manager of a household products factory, provides insights into the challenges faced by businesses. With losses totalling $200,000 in the past year, his factory, once thriving on exports to Gaza, now struggles to find a market. Increased transport costs, checkpoints, and sealed-off towns further exacerbate the situation, with the West Bank's economy operating at only 50 per cent of its capacity. Researcher Taher al-Labadi sheds light on the inherent fragility of the Palestinian economy. Hindered by Israel's control over borders and tax collection, the economic downturn has been compounded by unpaid taxes since the war outbreak. The Palestinian Authority, grappling with financial strain, has struggled to pay public servants, intensifying the economic challenges faced by the population. Bottomline As the West Bank grapples with the aftermath of the conflict, businesses and communities face an uphill battle. The fear of the unknown looms large, echoing the sentiments of Bishara Jubran: 'We don't know if we'll be able to go to work tomorrow.'

Gaza's shockwaves: West Bank economy plunges, leaving livelihoods in limbo

The Al Nahyan royal family of Dubai, led by UAE president Sheikh Mohamed bin Zayed Al Nahyan, has been identified as the wealthiest family globally, possessing an opulent array of assets including a $490 million (₹4,078 crore) presidential palace, eight private jets, and even a football club, according to a recent report by GQ. <o:p></o:p>

With a staggering fortune derived from their ownership of approximately six per cent of the world's oil reserves, the family's holdings extend from a football empire, including Manchester City, to strategic investments in major companies such as Rihanna's beauty brand Fenty and Elon Musk's SpaceX.<o:p></o:p>

The family, boasting 18 brothers and 11 sisters alongside nine children and 18 grandchildren, resides in the lavish Qasr Al-Watan presidential palace in Abu Dhabi, covering nearly 94 acres and adorned with a magnificent chandelier composed of 350,000 crystals.<o:p></o:p>

The sheer scale of their wealth is further highlighted by their expansive car collection, managed by Sheikh Hamad bin Hamdan al Nahyan, featuring over 700 cars, including the world's largest SUV and high-end vehicles like Bugatti Veyrons, a Lamborghini Reventon, a Mercedes-Benz CLK GTR, a Ferrari 599XX, and a McLaren MC12. Their luxurious lifestyle extends globally, with posh properties in Paris and London under their ownership. <o:p></o:p>

The family's influence extends beyond their opulent lifestyle. Tahnoun bin Zayed Al Nahyan, the president's brother, oversees the family's chief investment company, which has witnessed an astronomical surge of almost 28,000 percent in the last five years.<o:p></o:p>

Currently valued at $235 billion, the company holds interests in agriculture, energy, entertainment, and maritime businesses, impacting various sectors globally. The substantial growth in their investment company emphasises their significant economic impact, providing employment opportunities to tens of thousands of individuals.<o:p></o:p>

The Al Nahyan family's football ventures have left an indelible mark on the sports landscape. In 2008, MBZ's Abu Dhabi United Group acquired the UK football team Manchester City for $255 million (₹2,122 crore). <o:p></o:p>

The family's company, the City Football Group, owns 81 percent of the football empire, managing clubs not only in the UK but also in global cities like Mumbai, Melbourne, and New York. Their foray into football aligns with their expansive portfolio, showcasing their diverse and influential investments across various sectors.<o:p></o:p>

This revelation about the Al Nahyan royal family's wealth places them in a league comparable to the British royal family, as reported by the New Yorker in 2015. <o:p></o:p>

<o:p>&nbsp;</o:p>

The Al Nahyan royal family of Dubai, led by UAE president Sheikh Mohamed bin Zayed Al Nahyan, has been identified as the wealthiest family globally, possessing an opulent array of assets including a $490 million (₹4,078 crore) presidential palace, eight private jets, and even a football club, according to a recent report by GQ.

The Al Nahyan royal family of Dubai, led by UAE president Sheikh Mohamed bin Zayed Al Nahyan, has been identified as the wealthiest family globally, possessing an opulent array of assets including a $490 million (₹4,078 crore) presidential palace, eight private jets, and even a football club, according to a recent report by GQ. With a staggering fortune derived from their ownership of approximately six per cent of the world's oil reserves, the family's holdings extend from a football empire, including Manchester City, to strategic investments in major companies such as Rihanna's beauty brand Fenty and Elon Musk's SpaceX. The family, boasting 18 brothers and 11 sisters alongside nine children and 18 grandchildren, resides in the lavish Qasr Al-Watan presidential palace in Abu Dhabi, covering nearly 94 acres and adorned with a magnificent chandelier composed of 350,000 crystals. The sheer scale of their wealth is further highlighted by their expansive car collection, managed by Sheikh Hamad bin Hamdan al Nahyan, featuring over 700 cars, including the world's largest SUV and high-end vehicles like Bugatti Veyrons, a Lamborghini Reventon, a Mercedes-Benz CLK GTR, a Ferrari 599XX, and a McLaren MC12. Their luxurious lifestyle extends globally, with posh properties in Paris and London under their ownership. The family's influence extends beyond their opulent lifestyle. Tahnoun bin Zayed Al Nahyan, the president's brother, oversees the family's chief investment company, which has witnessed an astronomical surge of almost 28,000 percent in the last five years. Currently valued at $235 billion, the company holds interests in agriculture, energy, entertainment, and maritime businesses, impacting various sectors globally. The substantial growth in their investment company emphasises their significant economic impact, providing employment opportunities to tens of thousands of individuals. The Al Nahyan family's football ventures have left an indelible mark on the sports landscape. In 2008, MBZ's Abu Dhabi United Group acquired the UK football team Manchester City for $255 million (₹2,122 crore). The family's company, the City Football Group, owns 81 percent of the football empire, managing clubs not only in the UK but also in global cities like Mumbai, Melbourne, and New York. Their foray into football aligns with their expansive portfolio, showcasing their diverse and influential investments across various sectors. This revelation about the Al Nahyan royal family's wealth places them in a league comparable to the British royal family, as reported by the New Yorker in 2015.

Inside the Royal Vault: The world's wealthiest family, the Al Nahyans of Dubai

Global e-commerce giant Amazon has revealed plans to cut jobs in its Buy with Prime unit, marking a 5 per cent reduction in the service's workforce. While the exact number of affected employees remains undisclosed, it's estimated that around 30 individuals have been impacted by this decision, according to sources cited by Reuters.

Launched in 2022, Buy with Prime offers fulfilment and delivery services to retailers outside Amazon's platform, utilising the company's extensive logistics network. Amazon emphasised the unit's continued importance despite the workforce reduction, committing to substantial ongoing investments.

Amazon spokesperson stated, 'We regularly review the structure of our teams and make adjustments based on the needs of the business, and, following a recent review, we've made the difficult decision to eliminate a small number of roles on our Buy with Prime team.' The company reassured affected employees of active support in securing roles within or outside Amazon.

Broader workforce adjustments across Amazon divisions

Amazon's announcement follows recent layoffs in various divisions, with several hundred employees affected in its streaming and studio operations. Notably, Twitch, Amazon's live-streaming platform, disclosed a significant 33% reduction in its workforce, impacting 500 employees. Simultaneously, the Audible audiobook unit revealed plans for a 5 per cent cut in its workforce.

This trend of job cuts extends beyond Amazon, with Google, a tech giant under Alphabet's ownership, recently announcing layoffs within its advertising sales team. The landscape reflects a shift in tech companies' strategies as they transition from pandemic-induced hiring surges to focusing on profitability and AI adoption amid rising inflation and interest rates.

Bottomline

The tech industry, once characterised by aggressive hiring during the pandemic, is undergoing a notable shift as companies reassess their structures. The trend of job cuts extends beyond Amazon, indicating a broader industry-wide realignment.

As global uncertainty rages on, tech companies must balance growth with cost-cutting measures. The job cuts, while challenging for affected employees, reflect the evolving priorities of these industry giants.

Global e-commerce giant Amazon has revealed plans to cut jobs in its Buy with Prime unit, marking a 5 per cent reduction in the service's workforce. While the exact number of affected employees remains undisclosed, it's estimated that around 30 individuals have been impacted by this decision, according to sources cited by Reuters.

Global e-commerce giant Amazon has revealed plans to cut jobs in its Buy with Prime unit, marking a 5 per cent reduction in the service's workforce. While the exact number of affected employees remains undisclosed, it's estimated that around 30 individuals have been impacted by this decision, according to sources cited by Reuters. Launched in 2022, Buy with Prime offers fulfilment and delivery services to retailers outside Amazon's platform, utilising the company's extensive logistics network. Amazon emphasised the unit's continued importance despite the workforce reduction, committing to substantial ongoing investments. Amazon spokesperson stated, 'We regularly review the structure of our teams and make adjustments based on the needs of the business, and, following a recent review, we've made the difficult decision to eliminate a small number of roles on our Buy with Prime team.' The company reassured affected employees of active support in securing roles within or outside Amazon. Broader workforce adjustments across Amazon divisions Amazon's announcement follows recent layoffs in various divisions, with several hundred employees affected in its streaming and studio operations. Notably, Twitch, Amazon's live-streaming platform, disclosed a significant 33% reduction in its workforce, impacting 500 employees. Simultaneously, the Audible audiobook unit revealed plans for a 5 per cent cut in its workforce. This trend of job cuts extends beyond Amazon, with Google, a tech giant under Alphabet's ownership, recently announcing layoffs within its advertising sales team. The landscape reflects a shift in tech companies' strategies as they transition from pandemic-induced hiring surges to focusing on profitability and AI adoption amid rising inflation and interest rates. Bottomline The tech industry, once characterised by aggressive hiring during the pandemic, is undergoing a notable shift as companies reassess their structures. The trend of job cuts extends beyond Amazon, indicating a broader industry-wide realignment. As global uncertainty rages on, tech companies must balance growth with cost-cutting measures. The job cuts, while challenging for affected employees, reflect the evolving priorities of these industry giants.

Amazon's workforce reduction in 'Buy with Prime' unit reflects shifting priorities

Airbus is optimistic about the future of Indian aviation, projecting a robust demand for 2,840 new aircraft and a need for 41,000 pilots alongside 47,000 technical staff in the next 20 years. <o:p></o:p>

Rémi Maillard, Airbus India and South Asia President, emphasized this outlook during a press conference at the 'Wings India 2024' aviation conclave in Hyderabad. <o:p></o:p>

He anticipates India's aviation market to be a driving force globally, with an estimated investment of $12 billion for new airports and renovations, expanding the current 150 to approximately 200 airports within five years.<o:p></o:p>

Maillard underscored India's pivotal role in Airbus's operations, revealing plans to double the company's sourcing from India to $1.5 billion by the end of the decade, up from the existing $750 million. <o:p></o:p>

The President and Managing Director expressed confidence in India's economic growth, projecting it to be the world's fastest-growing aviation market, fuelled by a 6.2 per cent annual growth rate. <o:p></o:p>

Last year, Airbus secured a record order of 750 aircraft, with 75 units already delivered to Indian carriers, including Indigo, Air India, Vistara, and Go First.<o:p></o:p>

To meet the evolving needs of India's aviation sector, Airbus commits to enhancing its manufacturing presence in the country. The company, in collaboration with Air India, is set to expand its joint venture training centre in Gurugram. <o:p></o:p>

Equipped with 10 simulators, the centre aims to train 5,000 pilots over the next decade. Earlier collaborations, such as the deal with Tata Advanced Systems Limited (TASL) in 2021 to manufacture C-295 transport aircraft for the Indian Air Force, showcase Airbus's commitment to strengthening its ties with India. <o:p></o:p>

The agreement includes delivering the initial 16 aircraft from Spain and subsequent manufacturing in India through an industrial partnership with TASL.<o:p></o:p>

Maillard highlighted the transformative role of the A350 aircraft in revolutionizing international travel in India. Six of these planes were delivered to Air India in the previous year, symbolising a significant step in the country's aviation landscape. <o:p></o:p>

The Airbus executive anticipates sustained economic growth for India over the next two decades, supporting the need for extensive aircraft, skilled pilots, and technical staff.<o:p></o:p>

<span lang="EN-GB" style="font-size:12.0pt;line-height:107%;font-family:&quot;Aptos&quot;,sans-serif;
mso-ascii-theme-font:minor-latin;mso-fareast-font-family:Aptos;mso-fareast-theme-font:
minor-latin;mso-hansi-theme-font:minor-latin;mso-bidi-font-family:&quot;Times New Roman&quot;;
mso-bidi-theme-font:minor-bidi;mso-ansi-language:EN-GB;mso-fareast-language:
EN-GB;mso-bidi-language:AR-SA">(With inputs from PTI)

Airbus is optimistic about the future of Indian aviation, projecting a robust demand for 2,840 new aircraft and a need for 41,000 pilots alongside 47,000 technical staff in the next 20 years.

Airbus is optimistic about the future of Indian aviation, projecting a robust demand for 2,840 new aircraft and a need for 41,000 pilots alongside 47,000 technical staff in the next 20 years. Rémi Maillard, Airbus India and South Asia President, emphasized this outlook during a press conference at the 'Wings India 2024' aviation conclave in Hyderabad. He anticipates India's aviation market to be a driving force globally, with an estimated investment of $12 billion for new airports and renovations, expanding the current 150 to approximately 200 airports within five years. Maillard underscored India's pivotal role in Airbus's operations, revealing plans to double the company's sourcing from India to $1.5 billion by the end of the decade, up from the existing $750 million. The President and Managing Director expressed confidence in India's economic growth, projecting it to be the world's fastest-growing aviation market, fuelled by a 6.2 per cent annual growth rate. Last year, Airbus secured a record order of 750 aircraft, with 75 units already delivered to Indian carriers, including Indigo, Air India, Vistara, and Go First. To meet the evolving needs of India's aviation sector, Airbus commits to enhancing its manufacturing presence in the country. The company, in collaboration with Air India, is set to expand its joint venture training centre in Gurugram. Equipped with 10 simulators, the centre aims to train 5,000 pilots over the next decade. Earlier collaborations, such as the deal with Tata Advanced Systems Limited (TASL) in 2021 to manufacture C-295 transport aircraft for the Indian Air Force, showcase Airbus's commitment to strengthening its ties with India. The agreement includes delivering the initial 16 aircraft from Spain and subsequent manufacturing in India through an industrial partnership with TASL. Maillard highlighted the transformative role of the A350 aircraft in revolutionizing international travel in India. Six of these planes were delivered to Air India in the previous year, symbolising a significant step in the country's aviation landscape. The Airbus executive anticipates sustained economic growth for India over the next two decades, supporting the need for extensive aircraft, skilled pilots, and technical staff. (With inputs from PTI)

Airbus Forecasts Soaring Demand: India to require 2,840 aircraft and 41,000 pilots in next 2 decades

Citigroup's CEO, Jane Fraser, engaged in a conference call on Thursday with managing directors, revealing further details of the bank's extensive restructuring, according to two undisclosed sources cited by Reuters.<o:p></o:p>

The call follows the bank's announcement last week of its intention to cut 20,000 jobs over the next two years, aiming to streamline operations and enhance financial performance. <o:p></o:p>

In separate discussions, managers in markets, risk, and investment banking were informed of their layoffs as part of the ongoing reorganisation. Citigroup remains vigilant in addressing the impact on its workforce, with more details on severance payments expected next week.<o:p></o:p>

While Citigroup has periodically updated on the job cuts, the recent call with managing directors offered insights into the broader plan. Fraser discussed various aspects of the reorganisation, emphasising that the current phase would reduce headcount by 5,000, with an additional 5,000 jobs to be cut from divesting businesses. <o:p></o:p>

Another 10,000 staff reductions are planned in support functions like technology and operations. Fraser's strategy to cut approximately 8 per cent of the staff aligns with her broader goal of enhancing the bank's efficiency and elevating its returns and share price. Investors and employees are keenly observing the timing and specifics of these organisational changes. <o:p></o:p>

The bank's fourth quarter was marked by a $1.8 billion loss due to one-off charges, prompting Citigroup to make decisive restructuring moves. Fraser's leadership has underscored the commitment to address internal deficiencies and enhance the bank's overall performance. <o:p></o:p>

The call with managing directors provided a forum for Fraser to communicate the intricacies of the reorganisation and elaborate on the phased job cuts, addressing concerns among employees and investors. Citigroup's planned layoffs stand out as one of the most significant workforce reductions on Wall Street in recent times. <o:p></o:p>

Citigroup is concurrently navigating a regulatory challenge, dealing with a 2020 consent order that demands corrections to longstanding deficiencies in internal controls. <o:p></o:p>

As part of its commitment to regulatory compliance, the bank appointed Jagdish Rao as the regulatory reporting and remediation head. This move is aligned with Citigroup's proactive measures to strengthen its internal controls and regulatory standing.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Citigroup's CEO, Jane Fraser, engaged in a conference call on Thursday with managing directors, revealing further details of the bank's extensive restructuring, according to two undisclosed sources cited by Reuters.

Citigroup's CEO, Jane Fraser, engaged in a conference call on Thursday with managing directors, revealing further details of the bank's extensive restructuring, according to two undisclosed sources cited by Reuters. The call follows the bank's announcement last week of its intention to cut 20,000 jobs over the next two years, aiming to streamline operations and enhance financial performance. In separate discussions, managers in markets, risk, and investment banking were informed of their layoffs as part of the ongoing reorganisation. Citigroup remains vigilant in addressing the impact on its workforce, with more details on severance payments expected next week. While Citigroup has periodically updated on the job cuts, the recent call with managing directors offered insights into the broader plan. Fraser discussed various aspects of the reorganisation, emphasising that the current phase would reduce headcount by 5,000, with an additional 5,000 jobs to be cut from divesting businesses. Another 10,000 staff reductions are planned in support functions like technology and operations. Fraser's strategy to cut approximately 8 per cent of the staff aligns with her broader goal of enhancing the bank's efficiency and elevating its returns and share price. Investors and employees are keenly observing the timing and specifics of these organisational changes. The bank's fourth quarter was marked by a $1.8 billion loss due to one-off charges, prompting Citigroup to make decisive restructuring moves. Fraser's leadership has underscored the commitment to address internal deficiencies and enhance the bank's overall performance. The call with managing directors provided a forum for Fraser to communicate the intricacies of the reorganisation and elaborate on the phased job cuts, addressing concerns among employees and investors. Citigroup's planned layoffs stand out as one of the most significant workforce reductions on Wall Street in recent times. Citigroup is concurrently navigating a regulatory challenge, dealing with a 2020 consent order that demands corrections to longstanding deficiencies in internal controls. As part of its commitment to regulatory compliance, the bank appointed Jagdish Rao as the regulatory reporting and remediation head. This move is aligned with Citigroup's proactive measures to strengthen its internal controls and regulatory standing. (With inputs from Reuters)

Citigroup continues overhaul with CEO Fraser addressing managing directors

Walmart, the retail giant, announced on Thursday its decision to increase the annual average salary and bonus for US store managers, effective February 1. <o:p></o:p>

The move aims to boost the average hourly wage at Walmart to over $18, with the average salary for store managers rising from $117,000 to $128,000 annually. The annual bonus, based on meeting targets and store profits, could reach up to 200 per cent of the base salary. <o:p></o:p>

The adjustments to the salary and bonus structure are part of Walmart's strategy to invest in its front-line hourly associates. The average hourly pay, which was $17.50 in January of the previous year, is expected to exceed $18 with this change. <o:p></o:p>

The new bonus structure extends to all US store managers, offering them an opportunity to earn an annual bonus linked to their salary, potentially up to 200 per cent. <o:p></o:p>

Walmart's decision follows a broader trend where companies are prioritising competitive compensation to secure and retain talented employees. The move aligns with the company's commitment to providing equitable compensation across all job roles and departments. <o:p></o:p>

The US labour market has experienced robust wage growth and strong retail sales, contributing to increased hiring by employers. Walmart is adapting to these market dynamics by enhancing its wage and benefit structures. <o:p></o:p>

This salary and bonus adjustment is part of Walmart's ongoing initiatives to invest in its store workers. In November, the company raised its sales and profit forecast for fiscal 2024, highlighting the growing importance of grocery shopping, particularly during periods of higher interest rates. <o:p></o:p>

Walmart, with approximately 1.6 million associates in the United States at the end of fiscal 2023, seeks to reinforce its position in the market by prioritizing employee welfare and satisfaction. <o:p></o:p>

Shares of Walmart responded positively to the announcement, rising by 1.4 per cent in late afternoon trade. The stock movement indicates a favourable market response to the news of enhanced wages for US store managers.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Walmart, the retail giant, announced on Thursday its decision to increase the annual average salary and bonus for US store managers, effective February 1. The move aims to boost the average hourly wage at Walmart to over $18, with the average salary for store managers rising from $117,000 to $128,000 annually.

Walmart, the retail giant, announced on Thursday its decision to increase the annual average salary and bonus for US store managers, effective February 1. The move aims to boost the average hourly wage at Walmart to over $18, with the average salary for store managers rising from $117,000 to $128,000 annually. The annual bonus, based on meeting targets and store profits, could reach up to 200 per cent of the base salary. The adjustments to the salary and bonus structure are part of Walmart's strategy to invest in its front-line hourly associates. The average hourly pay, which was $17.50 in January of the previous year, is expected to exceed $18 with this change. The new bonus structure extends to all US store managers, offering them an opportunity to earn an annual bonus linked to their salary, potentially up to 200 per cent. Walmart's decision follows a broader trend where companies are prioritising competitive compensation to secure and retain talented employees. The move aligns with the company's commitment to providing equitable compensation across all job roles and departments. The US labour market has experienced robust wage growth and strong retail sales, contributing to increased hiring by employers. Walmart is adapting to these market dynamics by enhancing its wage and benefit structures. This salary and bonus adjustment is part of Walmart's ongoing initiatives to invest in its store workers. In November, the company raised its sales and profit forecast for fiscal 2024, highlighting the growing importance of grocery shopping, particularly during periods of higher interest rates. Walmart, with approximately 1.6 million associates in the United States at the end of fiscal 2023, seeks to reinforce its position in the market by prioritizing employee welfare and satisfaction. Shares of Walmart responded positively to the announcement, rising by 1.4 per cent in late afternoon trade. The stock movement indicates a favourable market response to the news of enhanced wages for US store managers. (With inputs from Reuters)

Walmart raises wages for US store managers starting February

In response to uncertainties surrounding electric-vehicle (EV) demand, Tesla has implemented significant price reductions for its Model Y cars across Europe, including Germany.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

This move comes on the heels of Tesla's recent price cuts in China. <o:p></o:p>

The reductions aim to enhance Tesla's competitiveness in the European market amid shifting dynamics.<o:p></o:p>

The adjustments, coupled with revised price targets from UBS and Wells Fargo, led to a nearly 3 per cent decline in Tesla's shares, contributing to a challenging start for the stock in 2024.<o:p></o:p>

The price adjustments in Germany specifically target the Model Y Long Range and Model Y Performance, with reductions of 5,000 euros, bringing their prices to 49,990 euros and 55,990 euros, respectively. <o:p></o:p>

This reflects discounts of 9 per cent and 8.1 per cent compared to their previous prices. <o:p></o:p>

Additionally, Tesla cut the prices of Model Y rear-wheel drive models by 4.2 per cent. <o:p></o:p>

Similar adjustments were made in other European countries, including France, Denmark, the Netherlands, and Norway, with price reductions ranging from 4.2 per cent to 10.8 per cent. <o:p></o:p>

The rationale behind these moves was not explicitly provided, but it aligns with the broader trend of slowing EV demand, influenced by reduced state subsidies and higher borrowing costs.<o:p></o:p>

Tesla's struggle in the German EV market during 2023 is noteworthy, as it faced a 9 per cent decline in new registrations, totalling 63,685 vehicles. <o:p></o:p>

This contrasted with an 11.4 per cent increase in EV sales in Germany overall. <o:p></o:p>

Volkswagen surpassed Tesla as the largest seller of EVs in Germany during this period, claiming a 13.5 per cent market share compared to Tesla's 12.1 per cent. <o:p></o:p>

The dynamics in the German market could have influenced Tesla's decision to adjust its pricing strategy to regain market share.<o:p></o:p>

Wells Fargo and UBS responded to Tesla's market challenges by reducing their price targets on Tesla's stock by more than 8 per cent and nearly 11 per cent, respectively. <o:p></o:p>

These adjustments reflect the stock's decline of about 11.5 per cent in January alone. <o:p></o:p>

The EV manufacturer's recent decision to halt most car production at its Berlin factory from January 29 to February 11 due to component shortages also contributed to the stock's challenges. <o:p></o:p>

Tesla attributed the component issues to changes in transport routes following Red Sea vessel attacks.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In response to uncertainties surrounding electric-vehicle (EV) demand, Tesla has implemented significant price reductions for its Model Y cars across Europe, including Germany.

In response to uncertainties surrounding electric-vehicle (EV) demand, Tesla has implemented significant price reductions for its Model Y cars across Europe, including Germany. This is based on a Reuters report. This move comes on the heels of Tesla's recent price cuts in China. The reductions aim to enhance Tesla's competitiveness in the European market amid shifting dynamics. The adjustments, coupled with revised price targets from UBS and Wells Fargo, led to a nearly 3 per cent decline in Tesla's shares, contributing to a challenging start for the stock in 2024. The price adjustments in Germany specifically target the Model Y Long Range and Model Y Performance, with reductions of 5,000 euros, bringing their prices to 49,990 euros and 55,990 euros, respectively. This reflects discounts of 9 per cent and 8.1 per cent compared to their previous prices. Additionally, Tesla cut the prices of Model Y rear-wheel drive models by 4.2 per cent. Similar adjustments were made in other European countries, including France, Denmark, the Netherlands, and Norway, with price reductions ranging from 4.2 per cent to 10.8 per cent. The rationale behind these moves was not explicitly provided, but it aligns with the broader trend of slowing EV demand, influenced by reduced state subsidies and higher borrowing costs. Tesla's struggle in the German EV market during 2023 is noteworthy, as it faced a 9 per cent decline in new registrations, totalling 63,685 vehicles. This contrasted with an 11.4 per cent increase in EV sales in Germany overall. Volkswagen surpassed Tesla as the largest seller of EVs in Germany during this period, claiming a 13.5 per cent market share compared to Tesla's 12.1 per cent. The dynamics in the German market could have influenced Tesla's decision to adjust its pricing strategy to regain market share. Wells Fargo and UBS responded to Tesla's market challenges by reducing their price targets on Tesla's stock by more than 8 per cent and nearly 11 per cent, respectively. These adjustments reflect the stock's decline of about 11.5 per cent in January alone. The EV manufacturer's recent decision to halt most car production at its Berlin factory from January 29 to February 11 due to component shortages also contributed to the stock's challenges. Tesla attributed the component issues to changes in transport routes following Red Sea vessel attacks. (With inputs from Reuters)

Tesla Reacts to EV Market Dynamics: Slashes model Y prices in Europe following China adjustments

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