Economy: Trade unions demand wage increases of up to 2.5 percent +++ Porsche drops out of the DAX

The Swiss Federation of Trade Unions ( SGB ) is demanding wage increases of 2 to 2.5 percent for the coming year. It announced this at a press conference in Bern on Thursday morning (September 4). Its reasoning was that the Swiss economy is successful and 99 percent of workers are not directly affected by the American tariffs. Furthermore, wages have not been taken into account in the increased prosperity of the past ten years, so there is a need to catch up.

The SGB's wishes are unlikely to be well received by the Swiss Employers' Association (SAV). It has already dismissed Travail Suisse's wage demands: Given the US tariffs on Swiss exports, 2025 is a special year. Therefore, the priority is to secure jobs.

(dpa) Porsche faces a new setback after recent significant profit slumps: The sports car manufacturer is moving from the leading German stock index, the DAX, to the index for medium-sized companies (MDAX). Deutsche Börse announced this on Wednesday (September 3).

The pharmaceutical and laboratory supplier Sartorius will also be removed, as announced by Deutsche Börse subsidiary ISS Stoxx in Zug. The real estate platform operator Scout24 and the plant engineering company Gea will replace Porsche and Sartorius in the DAX. Sartorius will also be included in the MDAX in the future. The changes will take effect on September 22.

Porsche AG went public at the end of September 2022 and, as a promising newcomer, celebrated one of the largest IPOs in German economic history.

Just a few months later, the then highly profitable company was listed on the DAX. The shares had launched at an issue price of €82.50 and rose to almost €120 in the months that followed. Most recently, the share price was only around €45.

Almost three years later, the mood at the VW subsidiary has deteriorated significantly. The profitability of the once profitable gem has plummeted. The problems of the German auto industry are also affecting Porsche – be it the weakening Chinese market, problems with electric car sales, or the tariff dispute with the US. The company recently experienced sharp declines in profits. Therefore, the Swabian company is now looking to cut costs.

Porsche's decline is symbolic of the crisis in the German auto industry, which is struggling with declining profits. This is weighing on companies' share prices. The automotive sector's weight in the DAX has shrunk significantly within ten years.

Unlike Porsche AG, Porsche Automobil Holding SE remains in the DAX. The investment company is the largest shareholder in the car manufacturer VW with a 31.9 percent stake; it also holds approximately one-eighth of Porsche AG.

(dpa) The US oil company Conoco Phillips plans to eliminate 20 to 25 percent of its jobs. The reductions are to be largely completed this year, a spokesperson announced on Wednesday (September 3). Conoco Phillips did not give any reasons for the radical cuts. It simply stated that the company is constantly examining how to work more efficiently with existing resources. At the end of last year, Conoco Phillips had approximately 11,800 employees in 14 countries.

The layoffs are expected to affect both permanent employees and contract workers. Conoco Phillips closed the last quarter with a 15 percent decline in profits to $1.97 billion. The industry is under pressure from falling oil prices. Conoco Phillips acquired its competitor Marathon Oil for approximately $17 billion last year.

(dpa) Tesla is setting up a new European development center in Berlin-Köpenick. It will focus on materials research as well as vehicle and drive development, among other things, as Tesla manager Lars Moravy announced on Wednesday (September 3). Tesla plans to renovate an old factory facility with an area of ​​approximately 20,000 square meters for this purpose.

Initially, around 130 engineers who currently work at the Grünheide plant and at smaller locations in Berlin will relocate to Köpenick. In the coming years, the center is expected to grow to around 250 employees. Tesla had already announced the possibility of a European development center when it announced the new factory near Berlin.