Stellantis CEO Carlos Tavares Resigns Effective Immediately
Automaker Stellantis has announced the resignation of its CEO, Carlos Tavares, effective immediately. The decision, described by board member Henri de Castries as stemming from “differences in viewpoints” between the executive and the board, leaves the company without a clear successor. Tavares, widely regarded as one of the most respected leaders in the automotive industry, issued a profit warning in September concerning Stellantis’ 2024 financial results, citing declining sales. Shortly thereafter, the company revealed that Tavares would not seek a new term as CEO, with plans to retire at the end of his current tenure in early 2026. However, this timeline was cut short. Tavares has been at the helm of Stellantis since its formation in early 2021, following the merger of Fiat Chrysler and PSA Group, the parent company of Peugeot. During his leadership, Stellantis shares have fallen by approximately 40% in value this year. Known for his outspoken approach, Tavares frequently clashed with various stakeholders, including U.S. labor unions and the Italian government. Italy criticized his decisions to reduce automotive production in the country. Stellantis has initiated the search for a new CEO, a process it expects to conclude in the first half of 2025. Until then, the company will establish an interim committee to oversee leadership.
EasyJet Reports Strong Profits as Travelers Opt for All-Inclusive Packages
British airline EasyJet has announced significant profits, driven by a growing trend among travelers to book complete vacation packages, including flights and accommodations, directly through the airline. This trend reflects a resurgence in travel demand as people are eager to take holidays again. In markets such as Germany, England, and France, EasyJet offers customers the convenience of booking transport and lodging in one place. These package deals contributed £190 million (€228 million) to the company’s profits, a 50% increase compared to the previous year. CEO Kenton Jarvis has set an ambitious goal for next year: a 25% increase in customers purchasing vacation packages. EasyJet also benefited from additional revenue streams such as fees for extra baggage, onboard food and drinks, and higher ticket prices. As a result, the airline achieved revenue exceeding pre-pandemic levels. Passenger numbers for the fiscal year were slightly higher than in 2019, and profits surged 34% to £610 million. EasyJet’s fiscal year runs from October to September. Profit per aircraft seat rose by 24%, reaching £6.08. The company aims to increase this figure to £7–£10 per seat. With 100 million seats available and an average occupancy rate of approximately 90%, the airline is well-positioned for further growth. However, EasyJet faces challenges in Spain, where it was fined €29 million for allegedly charging unjustified fees for items such as carry-on cabin baggage. Other airlines were also penalized, with Ryanair receiving the largest fine of €108 million. Both EasyJet and Ryanair have announced plans to appeal the rulings.
Donald Trump Plans Significant Import Tariffs on China if Re-Elected, Canada and Mexico Also Targeted
Donald Trump has announced that, if he is re-elected as President of the United States, he will impose significant import tariffs on China. Canada and Mexico are also expected to face similar measures. On his social media platform, Truth Social, Trump stated that these tariffs are being introduced to combat illegal immigration and drug trafficking. Trump is proposing a 10% import tariff on products exported from China to the U.S. This tariff would be in addition to the existing tariffs already in place on Chinese goods. A 10% tariff is relatively moderate compared to Trump’s earlier campaign promises, where he suggested imposing a 60% tariff on Chinese imports. In addition to the measures against China, Trump also announced a 25% import tariff on all products coming from neighboring countries, Canada and Mexico. According to Trump’s post on Truth Social, “massive amounts” of drugs are being smuggled into the U.S. from China, passing through Mexico and Canada. He described the borders as “ridiculously open” and stated that the tariffs would remain until the drug trafficking is stopped. Both China and Germany have expressed a willingness to engage in talks with Trump, concerned that the introduction of additional tariffs could spark a global trade war. Robert Habeck, Germany’s Minister of Economy, warned that a trade war would result in a “lose-lose” situation for everyone involved.
Disney Settles for $43 Million After Years of Pay Inequality Claims by Female Employees
Disney has agreed to a $43 million settlement (€41 million) over allegations that thousands of women were paid less than their male counterparts for years. The settlement still requires court approval. The company maintains that it has always aimed to pay its employees fairly. The settlement covers thousands of women who have worked for Disney as employees since 2015. The case began in 2019 with Ronda Rasmussen, a financial analyst at the company. In 2017, she discovered that six male colleagues in the same role were earning more than she was. After raising the issue, she received a $25,000 raise. Eventually, Disney was sued by a group of 9,000 current and former female employees. Allegations included that the company based salaries on what employees had earned at previous jobs, which may have reinforced wage disparities. An investigation commissioned by the plaintiffs found that some women were paid 2% less than their male colleagues. Disney has disputed the findings of this investigation, but has agreed to use the results to allocate the settlement funds. Disney’s attorneys argued that, given the wide variety of jobs, it was impossible to fairly compare employees’ skills and experience. “We have always been committed to paying our employees fairly, and this case demonstrates that commitment. We are pleased to have resolved this matter,” a Disney spokesperson told Variety.
Bill Hwang Receives Lower Sentence Than Prosecutors Demanded in Archegos Fraud Case
Archegos founder Bill Hwang had previously been found guilty of fraud and market manipulation. He was accused of misleading banks by inflating the value of Archegos’s investments through various deceptive tactics. The imposed prison sentence, however, is less than the 21-year term initially sought by the U.S. Department of Justice. Prosecutors also demanded that Hwang pay over $12 billion in damages to victims. “This is one of those rare cases that can truly be described as a national disaster,” said prosecutor Andrew Thomas in court. Prosecutors argued that a “significant sentence” was necessary to deter Hwang and to send a clear message to even the most arrogant investors that grandiose schemes will be met with severe consequences. The collapse of Archegos in 2021 resulted in billions of dollars in losses, impacting various financial institutions, including the Swiss bank Credit Suisse, which later required a bailout. Last week, Hwang’s attorneys requested that no prison sentence be imposed. They argued that the substantial financial losses experienced in the sector were not solely due to Archegos. They further claimed that incarceration would be inappropriate, given Hwang’s age and health conditions, noting that he suffers from cardiovascular disease. Around 100 others have also appealed for leniency on Hwang’s behalf.
Spotify Reports Record Profits in Q3 Amid User Growth and Price Increases
Spotify now boasts 640 million users worldwide, marking an 11% increase compared to the third quarter of last year. The number of paying subscribers grew by 12% over the same period, reaching 252 million users. Due to last summer’s price hikes, paying users are now generating more revenue per person for Spotify than last year. The music streaming platform now earns an average of €13.95 per paying user per quarter, up from €12.88 in the same period last year. Over the past three months, Spotify’s paying subscribers generated over €3.5 billion in revenue. In addition, the company earned €472 million from advertising. Free users, who listen to music with ads between songs, contributed an average of €1.17 per listener in ad revenue during the last quarter. Spotify’s total revenue for the past quarter reached nearly €4 billion, representing a 19% increase from the same period last year. The platform reported a net profit of €454 million—the highest in the company’s history. This record profit is noteworthy considering that until last year, Spotify had nearly seventeen consecutive years of losses. The company took significant steps to cut costs last year, laying off 2,300 employees and implementing price increases, which have evidently paid off.
China challenges European car import taxes at WTO
The European Union decided on Tuesday to definitively impose import duties on electric cars made in China. In July, the EU already introduced provisional levies that could amount to more than 30 percent. Recently, electric cars from China, such as BYD, SAIC and Lynk & Co, have become very popular in Europe. According to Brussels, Beijing gives its car manufacturers a lot of support, bringing the vehicles to the European market at very low prices. This would result in unfair competition for car manufacturers of European soil. China said Wednesday morning that it does not agree with the decision and has filed a complaint with the WTO Disputes Board. “China will take all necessary measures to forcefully protect the legitimate rights and interests of Chinese companies,” the Chinese Ministry of Economic Affairs reports. At the same time, Beijing hopes that the EU wants to cooperate with China. Both parties therefore continue to negotiate with each other to reach a solution. Meanwhile, China is fighting with countermeasures, such as import duties on European agricultural products and spirits.
Philips stock has biggest price loss of this century
It is the worst trade market day for Philips in 26 years. This was because the company reported Monday morning that sales in China were disappointing. This will probably continue to play tricks on Philips for the rest of the year, reducing revenue expectations. Philips last lost more market value in one day in September 1998. Even during the sleep apnea affair of recent years, the Amsterdam-based group was spared such a large daily loss. However, the affair caused a gradual price loss. The value of the stock fell from 47 euros in April 2021 to a low of about 11 euros at the end of 2022. Since then, the market value of Philips has increased considerably. But the company had to give up a considerable part of those profits on Monday.
Volkswagen wants to close three German factories, tens of thousands of jobs at risk
It would be the first time ever that Volkswagen closes factories in home country Germany. Daniela Cavallo, chair of the works council, speaks of “starvation” by the management. “This means that even more products, shifts and complete production lines will be cut,” Cavallo says according to the Bloomberg news agency. Volkswagen employees were already planning to stop work on Monday. They protest against the plans to close factories. When the employees were informed about the latest state of affairs in negotiations with the company, it came out that at least three factories were now being closed. According to Cavallo, a salary reduction of 10 percent for all employees has also been proposed by the management. Volkswagen is facing decreasing demand in Europe and increasing competition from China. Unions state that employees must pay the bill for management mistakes.
ASML expects more pressure from the US for Chinese export restrictions
ASML is already not allowed to sell its latest chip machines in China, while that is the largest market for the Veldhoven company. Stricter export rules now also apply to older machines. In doing so, the government wants to prevent China from using advanced chips for military purposes. “When you look at the geopolitical landscape, I think it’s clear that the United States will continue to put pressure on its allies for more restrictions,” Fouquet told Bloomberg. According to Fouquet, we have to ask ourselves “what is good for the Netherlands and for Europe”. The CEO states that much of the business ASML does with China is focused on technologies that pose little danger to national security. China has been the largest market for ASML in the past five quarters. In the third quarter, the country accounted for nearly 2.8 billion euros in sales, almost half of ASML’s total turnover. According to Fouquet, this was mainly due to the backlog of orders placed during the corona pandemic. ASML expects Chinese sales to shrink to about 20 percent of total sales next year.