Cost-cutters: German firm Siemens is slashing 15,000 jobs as it looks to save 6billion euros and move closer to US rivals The announcement comes two months after the ousting of Chief Executive Peter Loescher, who drew up the savings plan late last year. Europes biggest engineering firm, whose products range from hearing aids to gas turbines, is anxious to close the gap with more profitable rivals such as U.S.-based General Electric Co and Switzerlands ABB. Re-elected Angela Merkel visited the firm’s headquarters last year Siemens and its unions have reached an agreement over about half of the job cuts and a deal on the other half will follow, the spokesman said. He added that Siemens wanted to end speculation in the market about the number of jobs that are about to be cut. No workers have been laid off so far and Siemens has said it does not intend to make enforced redundancies, relying in stead on attrition and voluntary severance deals. In Germany, about 2,000 jobs will be cut at the companys industrial unit and another 1,400 at its energy and infrastructure business, the spokesman said. Siemens expects to close the current fiscal year on Monday with around 370,000 workers, the same as last year. The announcement comes just days after warnings the eurozone economy will not grow this year and that the region remains a considerable source of risk to the rest of the world. Pier Carlo Padoan, chief economist at the Organisation for Economic Cooperation and Development, told a conference in Lisbon that growth will not return until 2014. He also warned that it will take years to tackle record high unemployment across the region. German finance minister Wolfgang Schaeuble said there would be no change in tack in Berlins handling of the crisis following the re-election of Chancellor Angela Merkel.
Europe’s biggest engineering firm Siemens to cut 15,000 jobs across Europe in the next year in bid to save £5billion
turned the leaf on its banking crisis in 2009,” said Francesco Papadia, former head of the ECB’s financial market operations, who helped guide the central bank’s management of the financial crisis. “Now the euro area has a great opportunity, probably the last one, to achieve this.” But the political will to forge full banking union has waned as the heat of the crisis has passed, and German reluctance to back a central fund that would potentially come to the rescue of any troubled euro zone bank means that the ECB is preparing to take on its role from late next year in a dangerous vacuum. The ECB, both for its own reputation and the future of the bloc, is under pressure to ensure that banks undergo a thorough health check that will force them to recognize hidden losses. But without a pan-euro-zone bailout fund, such tests could highlight problems without a convincing solution, potentially undermining the banking union project before it has fully taken off. “To really solve the asset quality concerns, you need to have a backstop. If you find a gap, you need to be confident you can fix it,” said Ronny Rehn, analyst at Keefe, Bruyette & Woods (KBW) in London. “If you don’t have this, then we might have to lie to ourselves again and say there is no problem because we couldn’t afford to fund the problem.” CONFIDENCE OR COMPROMISE The ECB wants to check the health of big banks, under a so-called Asset Quality Review (AQR), before taking over their supervision. This will also help shape wider testing of banks outside the euro zone, overseen by the European Banking Authority (EBA). In Frankfurt, home of the ECB, there is growing resignation that a pan-euro-zone backstop is unlikely and that countries may be left to prop up their banks alone, as they were when the financial crisis struck. “We’ll have to have national backstops in place,” ECB President Mario Draghi told the European Parliament earlier this week. “If it (single resolution scheme) is not there in place, it will be up to the national authorities …
Europe’s plan to address weak banks risks unraveling
and Ireland, but even that was after a few months were there was little rain. The heaviest rainfall should fall for most locations in western Europe between Tuesday and Thursday, and though rain will not be heavy most of the time for those locations, there will be some drizzle and light rain for much of the time. Photo of Big Ben and Parliament at Dusk, courtesy of Photos.com With this rain, we are also looking at temperatures to be near to even below normal and keeping most locations from getting to warm as was the case for the end of September. Once we get to the weekend, however, it looks like some drier and warmer air will try and push into the area once again. Story by AccuWeather.com Senior Meteorologist Alan Reppert Tweet More FromAccuWeather SEP 30 1835 Northern New England and southern Quebec were hit by a early season snowstorm. Kilkenny, New Hampshire received 6 inches and Hatley, Quebec recorded 10 inches. 1882 Central Park in New York City concluded its wettest month ever with 16.85 inches of rain. 1961 An early season snowfall occurred over the Northern Plains with the greatest total (4 inches) falling in the New Ulm- Mankato area in Minnesota. Omaha, Nebraska had its first September snow in 70 years. 1970 A 19 month drought in southern California came to a climax. The drought, which made brush and buildings bone dry, set up the worst fire conditions in California history as hot Santa Ana winds sent the mercury up to 97 degrees at San Diego and 105 degrees at Los Angeles. During the last week of September whole communities of interior San Diego county were consumed by fire. 500,000 acres were burned and the fires did 50 million dollars damage. 1971 Hurricane Ginger was a storm with no place to go!
Europe markets open lower on US shutdown, Italy fears
government shutdown weighs on sentiment. IBEX 35 — The U.S. is facing its first government shutdown in 17 years as the Republican-run House at the weekend voted to delay President Barack Obama’s health care law by one year to keep the government running. Democrats within the U.S. Senate are planning to table the Republican measures when they convene on Monday, leaving the House just hours to pass a stand-alone spending bill free of any measures that undermine the health care law. Budget spending must be agreed by Congress before October 1, to prevent a government shutdown which could involve federal employees facing unpaid temporary leave. The arguments between Democrats and Republicans over the spending bill come ahead of a more crucial challenge to raise the Federal borrowing limit by October 17 in order to avoid a debt default. Meanwhile in Europe, Italy’s FTSE MiB index is expected to open down 85 points at 16,658 on Monday as the government faces another political crisis. Silvio Berlusconi, the leader of the center-right party, which makes up a large part of Italy’s coalition government, ordered a number of his ministers to resign from the cabinet on Saturday , throwing the government into chaos. Italian Prime Minister Enrico Letta said he would go before parliament on Wednesday for a confidence vote. There are no major corporate earnings releases scheduled on Monday. Follow us on Twitter: @CNBCWorld