The most important news of the day at a glance. News today with Volkswagen, Tesla and how central banks act
Volkswagen is reducing working hours and wages at its plant in Brazil due to delivery bottlenecks. Union representative Wellington Demaseno said the union had approved a proposal to cut the German automaker’s working hours by 24 percent, and by 12 percent from July. The agreement goes into effect on July 7 indefinitely and will be reviewed monthly until auto parts supplies return to normal.
According to CEO Elon Musk, the new Tesla factories in Grunheide and Texas are currently losing billions. In an interview, Musk explained supply chain problems due to battery shortages and the situation in Chinese ports as the reason for this. “The two factories in Berlin and Austin are huge money-making facilities right now,” he told Tesla Owners of Silicon Valley, a Tesla-accredited association. “It’s really like a huge roar, the sound of money on fire.”
VOYAGER – Cryptocurrency Broker Increases Pressure on Three Arrows If the troubled hedge fund doesn’t repay the loan, Voyager will send the company a reminder. This notice of default is also a reminder to settle the claims within a certain period of time. The crypto broker is also considering legal action against the hedge fund.
According to a media report, Deutsche Bahn is facing a personnel change in the management body. In addition to Evelyn Palla, a third woman is to join the board, reports the “Wurtschaftswöcht”, citing supervisory board circles. The previous CFO of the long-distance transport department will be responsible for the newly created Regio department, i.e. local rail transport.
Focus central banks and economy:
USA/Fuel Tax US President Joe Biden has asked Congress to suspend the gasoline tax for three months. “We can bring gas prices down and give families a little relief,” Biden said. He also called on states to suspend their own fuel taxes. According to a government representative, energy companies should also be asked to increase the capacity of the refinery. Senior Republican Senator John Thune said in the first reaction that Biden’s proposal had no chance of passing Congress.
Germany/Brexit – Six years after the Brexit referendum on Great Britain’s exit from the European Union, the Association of German Chambers of Industry and Commerce (DIHK) draws a negative balance. “German investments in Great Britain have been declining since the export – in contrast to other important European trading partners such as France, Italy or Poland,” DIHK foreign trade chief Volker Trayer told the Reuters news agency.
According to its chief Jerome Powell, the Federal Reserve will act decisively to curb skyrocketing inflation. Currency officials have been quick to make that happen, Powell explained in his biennial US Congressional hearing. “It’s important that we reduce inflation if we want a sustained period of strong labor market conditions that benefit everyone,” he told the Senate Banking Committee. The aim is to bring inflation down to 2 percent while the labor market remains strong.
ECB/Inflation Federal Finance Minister Christian Lindner has called on the European Central Bank (ECB) to take swift action to bring high inflation under control. “My impression is that we are going through an ongoing economic crisis,” said the FDP chairman in Berlin at an event organized by the Federal Association of Volksbanken and Riefenbanken. The ECB is independent. “But on the other hand, there is also a very, very, very responsibility to take action to bring inflation under control.”