13/02/2026

BIZ & FINANCE FRIDAY | FEB 13, 2026

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Argentina moves closer to labour reform

BERLIN: German industrial giant Siemens yesterday raised its outlook for the year after a strong first quarter boosted by spending on artificial intelligence. Along with other industrial firms including France’s Schneider Electric, Siemens – which makes electrical gear – has benefitted from a buildout of data centres in the United States that provide the computing power for artificial intelligence. Core earnings at the firm rose 15% in its first quarter to end December to reach €2.9 billion (RM13 billion), it said, while revenue rose 4% to €19.1 billion. Growth was broad-based across the company, Siemens said, but its infrastructure division which makes much of the real-world electrical equipment needed for data centres saw record order intake. “This increase was mainly driven by the electrification and the electrical products businesses and included several larger contract wins from data centre customers, predominantly in the US.” The firm raised its outlook for earnings per share, a measure of underlying profitability, from a range of €10.40 to €11 to €10.70 to €11.10. Siemens CEO Roland Busch said the performance showed that the industrial giant was “very well positioned”. “We’re scaling industrial AI in our core industries together with world-class partners.” – AFP Siemens raises outlook as CEO touts AI shift Macron calls Musk ‘oversubsidised’, prompting retort ANTWERP: President Emmanuel Macron on Wednesday cited state support for Elon Musk’s Starlink as an argument for public investment in European industry, provoking a response from the world’s richest man after calling him “oversubsidised”. Speaking at a summit in the Belgian city of Antwerp, Macron argued for a “Buy European” competitiveness approach, and for massive investment partly financed through joint borrowing by the EU. “If you look at the US, you have a lot of private money ... but you have a lot of public money”too, he said. “Everybody is fascinated by Starlink ... But if you are lucid, Mr. Musk is probably one of the guys of the world who has had in his pockets the most ... billions dollars of the American taxpayers in order to be subsidised. “Elon Musk is first an oversubsidised guy by the federal agency in US,” he said. Musk quickly hit back on X at Macron’s remarks, responding that Europe’s states subsidised its industries more than the US did. “If you add up all the government funding Tesla and SpaceX have ever received, it is only about 1% of the combined value of the companies. “In contrast, if you do that with US and European major aerospace companies, the government money they have received *exceeds* 100% of their value!” – AFP French

at least 20 people were arrested. Milei has insisted that existing labour laws are too restrictive and discourage formal hiring. He wants the reforms adopted by March. “Today we are here to decide whether we remain trapped in a statist, corporate and patronage-based system that has driven away investment, destroyed jobs and impoverished millions of Argentinians,” Joaquin Benegas Lynch, a ruling party senator, told Wednesday’s debate. But for protester Federico Pereira, a 35-year-old sociologist, “with this exploitative labour reform, they are only thinking about the wealthy”. “Those who benefit are the bosses.” Since taking office in December 2023 with a plan to revitalise

Critics say the move will make jobs more precarious in a country where almost 40% of workers lack formal employment contracts. The Senate voted 42-30 early yesterday to pass the reform, which will now head to the Chamber of Deputies for approval. It came a day after demonstrators in the capital Buenos Aires hurled stones and bottle bombs at police who responded with tear gas and rubber bullets. A few dozen people, many hooded and masked, clashed with police blocking access to the Parliament, as lawmakers inside the building debated the plans. AFP witnessed injuries to one police officer and one protester, though an official toll has yet to be made public. Media at the scene estimated that

Argentina’s struggling economy, Milei has slashed government spending and spurred deregulation. Opposition parties and unions dispute that the reforms will create new jobs. They point out that the economy shows persistent signs of stagnation, marked by declining consumption and industrial activity. Security Minister Alejandra Monteoliva vowed that those responsible for Wednesday’s violence “will be identified” and punished appropriately. “They are dozens of members of leftist groups who acted in an organized manner, with premeditated violence and improvised weapons to ... sow chaos. “They will pay,” she said on X. – AFP

BUENOS AIRES: Argentina pushed closer yesterday to approving labour reforms that have triggered clashes between workers and police in the streets outside Congress. The reforms, a pet project of budget-slashing President Javier Milei, would make it easier to hire and fire workers, reduce severance pay, limit the right to strike and restrict holiday rights. fire workers, reduce severance pay and restrict holiday rights o Milei’s ‘pet project’ makes it easier to

A demonstrator waving a national flag is hit by a water cannon fired by riot police during a protest against the labour reform debate taking place in the National Congress in Buenos Aires. – AFPPIC

Mercedes-Benz net profit nearly halves in 2025 BERLIN: German carmaker

despite patchy demand even before US President Donald Trump last year hit foreign carmakers with tariffs. China, the world’s largest car market, has become a battleground for German carmakers amid a brutal price war and fierce competition from local players like BYD and Geely. Mercedes-Benz’s sales by volume in China plunged 19% last year to their lowest level since 2016, helping drag overall worldwide sales down by 10%. – AFP

thanks to one-off restructuring charges falling away. But at its core car business, Mercedes sees a profit margin this year of between 3% and 5% – weaker than the 5% it achieved this year. A storied company that traces its history back to Carl Benz inventing the first motor car in 1885, Mercedes-Benz was facing a triple whammy of cratering sales in China, stagnant demand in Europe and the costs of investing into electric cars

remained within our guidance,” Mercedes-Benz CEO Ola Kaellenius said, adding that he saw hope in over 40 new model launches planned over the next three years. “We are moving forward with a clear game plan and a very competitive product portfolio,” he said. The firm expects a similarly difficult 2026, with revenue projected to be around last year’s level of €132.2 billion but core profit “significantly above” the 2025 figure

Mercedes-Benz on Wednesday reported its lowest annual profit since the Covid pandemic, as it counted the cost of US tariffs and cut-throat competition in China. Net profit for 2025 was €5.3 billion (RM24.6 billion), Mercedes said, down almost 49% on the 2024 figure, but better than had been expected in a poll of analysts by financial data firm FactSet. “Amid a dynamic market environment, our financial results