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COVID-Driven Unemployment in Morocco

Employees work on a Moroccan ventilator at a factory in Casablanca following an outbreak of the coronavirus disease (COVID-19), in Casablanca, Morocco April 10, 2020. REUTERS/Youssef Boudlal
Employees work on a Moroccan ventilator at a factory in Casablanca following an outbreak of the coronavirus disease (COVID-19), in Casablanca, Morocco April 10, 2020. REUTERS/Youssef Boudlal
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COVID-Driven Unemployment in Morocco

Employees work on a Moroccan ventilator at a factory in Casablanca following an outbreak of the coronavirus disease (COVID-19), in Casablanca, Morocco April 10, 2020. REUTERS/Youssef Boudlal
Employees work on a Moroccan ventilator at a factory in Casablanca following an outbreak of the coronavirus disease (COVID-19), in Casablanca, Morocco April 10, 2020. REUTERS/Youssef Boudlal

The Moroccan Minister of Economy, Finance, and Administration Reform, Mohamed Benchaaboun, said Monday that the implementation of the 2020 finance bill has shown a MAD13.8 billion (USD1.38 billion) decline in revenues by the end of August, compared to the same period in 2019.

The minister estimated that the year 2021 would see a drop of MAD20 to MAD25 billion (USD2 to USD2.5 billion) in tax revenues compared to 2019.

He noted that the novel coronavirus pandemic increased the unemployment rate, expecting it to reach 13 percent in 2020 compared to 9.2 percent in 2019.

This is a result of forecasts that the gross domestic product will drop by 5 percent, and 227,000 jobs will be lost in the non-farm sector in addition to 78,000 jobs in the farm sector.

Further, Morocco had lost 589,000 jobs between the second two quarters of 2019 and 2020.

During the second quarter of 2020, the unemployment rate hiked by 4.2 percent reaching 15,6 percent in urban environments. Youths of ages ranging from 24 to 34 saw the highest rate of unemployment up to 22.6 percent.

In rural areas, unemployment rose to 7.2 percent.

The minister revealed that the financial bill would focus on social sectors, while creating 1,500 job opportunities in the health sector and 2,000 in the education sector.

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Business

Turkish Inflation Rises to 2.58% in October, Driven by Clothing and Food Prices

People shop at Eminonu district in Istanbul, Türkiye, November 4, 2022. (Reuters)
People shop at Eminonu district in Istanbul, Türkiye, November 4, 2022. (Reuters)
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Turkish Inflation Rises to 2.58% in October, Driven by Clothing and Food Prices

People shop at Eminonu district in Istanbul, Türkiye, November 4, 2022. (Reuters)
People shop at Eminonu district in Istanbul, Türkiye, November 4, 2022. (Reuters)

Turkish consumer price inflation climbed to 2.58% month-on-month in October, above expectations and driven by clothing and food price rises, while the annual figure was 29.77%, data from the Turkish Statistical Institute showed on Tuesday.

Clothing and footwear prices surged 12.58% during the month, while food prices rose 3.5% and transport prices were ‌up 2.02%.

In ‌a Reuters poll, monthly ‌consumer ⁠price inflation was forecast to ⁠be 2.4%, driven by higher energy price pressures as well as seasonally higher clothing and food prices, and the annual rate was seen at 29.56%.

In September, consumer prices rose 1.84% month-on-month and 29.73% year-on-year, ⁠below forecasts.

The lira stood at ‌49.9975 against the ‌dollar after the data, compared with a close ‌of 49.9725 on Monday.

The poll's median ‌estimate sees annual inflation at 29.57% by the end of 2026.

Türkiye's central bank kept its year-end interim inflation target at 24% while raising its ‌year-end inflation forecast to 28% in its third inflation report published ⁠in ⁠August.

Last Friday, the central bank said higher energy and commodity prices driven by geopolitical tensions continued to pose upside risks to inflation, a week after it cut its policy rate by 100 basis points to 36% at its October 22 meeting, its first cut since January.

Tuesday's data also showed the domestic producer price index rose 1.65% month-on-month in October for an annual increase of 27.41%.

Business

German Auto Crisis Deepens as Supplier Announces Job Cuts, Site Closures

05 November 2024, Bavaria, Herzogenaurach: A view of the headquarters of automotive and industrial supplier Schaeffler in Franconia. (dpa)
05 November 2024, Bavaria, Herzogenaurach: A view of the headquarters of automotive and industrial supplier Schaeffler in Franconia. (dpa)
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German Auto Crisis Deepens as Supplier Announces Job Cuts, Site Closures

05 November 2024, Bavaria, Herzogenaurach: A view of the headquarters of automotive and industrial supplier Schaeffler in Franconia. (dpa)
05 November 2024, Bavaria, Herzogenaurach: A view of the headquarters of automotive and industrial supplier Schaeffler in Franconia. (dpa)

German auto parts supplier Schaeffler said Tuesday that it planned to cut almost 3,500 jobs and close five sites in Europe as the crisis gripping the region's car industry deepens.

Like other German carmakers and suppliers, the group has struggled with competition for its key products, which include ball bearings and electric vehicle parts, especially from Chinese manufacturers.

Three-fourths of the 3,460 job cuts and four of the five site closures will be in Germany, the company said in a statement, pointing to "above-average" costs for workers in Europe's top economy.

The cuts, to be completed by 2028, are around three percent of the group's global workforce of almost 110,000. They should result in annual savings of around 300 million euros ($336 million) from 2030, it said.

Schaeffler, in a statement, said it was "responding to the persistently challenging environment in the automotive industry."

There was "an overall downturn in the market and intensifying competition... characterized by weakened demand for internal combustion engine vehicles and a delayed ramp-up of electric mobility," it added.

The cuts would be mainly focused on production and research and development.

Sites would be closed in Berlin, Dortmund, and two other towns in western Germany. A small site in Belgium will also be shuttered.

There will also be job cuts at sites in France and Slovakia.

Schaeffler said some of the job losses would be offset by the creation of positions in "future-oriented fields", such as humanoid robotics and defense.

While not as well-known as the car titans they work with, such as Volkswagen, BMW and Mercedes, Germany's suppliers are a crucial part of the auto ecosystem, providing everything from braking systems to in-car electronics.

But as their customers have fallen into crisis, battling Chinese competition, high production costs at home and weakening demand, suppliers have been hit hard.

Volkswagen is planning to cut around 120,000 jobs across its brands by 2030.

German industrial titan Bosch, the world's biggest supplier of car equipment, announced last year 13,000 job cuts, mostly in its auto division.

Business

Oil Rises as Peace Prospects Dim after US Hits Iran's Qeshm Island

Oil rigs operating in the Atyrau region's Irankol field in Kazakhstan (Reuters)
Oil rigs operating in the Atyrau region's Irankol field in Kazakhstan (Reuters)
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Oil Rises as Peace Prospects Dim after US Hits Iran's Qeshm Island

Oil rigs operating in the Atyrau region's Irankol field in Kazakhstan (Reuters)
Oil rigs operating in the Atyrau region's Irankol field in Kazakhstan (Reuters)

Oil prices rose more than $1 on Tuesday, as an Iranian official said a deal to the end the war was far off, while the United States struck Iran's Qeshm Island, fueling concerns over the escalation of hostilities and risks to energy supplies.

US West Texas Intermediate crude was up $1.6, or 1.66%, at $98.06 a barrel while Brent crude futures rose $1.84, or 1.76%, to $106.61 a barrel by 0744 GMT.

Both benchmarks had dropped more than 7% on ‌Monday as ‌talks between Iranian and Qatar officials lifted hopes for an ‌end ⁠to the US-Israeli war ⁠with Iran that were soon dashed.

A US official said on Monday the US had struck Iran's Qeshm Island. Some officials described the assaults as defensive and aimed at preventing Iran from attacking commercial ships in the Strait of Hormuz.

On Tuesday, a senior Iranian official told Reuters that both countries were far from reaching a deal to end the war, and Tehran would not accept Washington's "excessive demands".

Iran's ⁠parliament speaker Qalibaf said Tehran had given Washington a "strong and ‌rational response," adding, "The ball is in the US' ‌court," according to state media.

"The report added a degree of risk premium back ‌into the oil price," said Tim Waterer, chief market analyst at KCM ‌Trade.

"Just when markets were starting to price in a more diplomatic path, this reminder of ongoing military activity has flipped the tone."

The war started in late February has become a leading cause of high gasoline prices weighing on voters, and Trump is under pressure ‌to end the conflict, with mid-term elections set for Tuesday.

"For now, the risk of supply disruptions continues to provide a ⁠floor for prices, ⁠while uncertainty over Washington's next move, political developments and traders' reluctance to carry aggressive positions are capping the upside," said Priyanka Sachdeva, head of market insight at Phillip Nova.

Brent ended October at its highest in six months on concerns that the conflict could escalate again after the US midterm elections.

A Ukrainian drone attack damaged an oil refinery in the Russian city of Yaroslavl, governor Mikhail Evrayev said on Tuesday.

Russia launched a massive overnight strike on Ukrainian energy facilities in the Vinnytsia, Dnipropetrovsk and Kharkiv regions, Interfax news agency said, citing the defense ministry.

Additionally, the US will bring together delegations from Ukraine and Russia in Abu Dhabi on November 10 and 11 to discuss ending the war, post-war security pacts and de-escalation efforts.