Volkswagen’s leadership is warning that the company may need to cut an extra 50,000 jobs to stay competitive with auto industry rivals, according to an internal memo sent to staff.

The German automaker previously announced plans to cut 50,000 jobs across the company, including at its subsidiaries Porsche and Audi, and CEO Oliver Blume said in a memo reviewed by Reuters that further cuts are needed because Volkswagen is operating at a 20% cost disadvantage relative to its competitors.

The memo said that situation means a “theoretical deduction” of another 50,000 jobs across the company’s worldwide footprint, effectively confirming prior reports that Volkswagen was weighing up to 100,000 job reductions.

“We are currently assessing across all brands, companies and regions how many adjustments are actually necessary and feasible,” Blume said in the memo, according to Reuters.

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Volkswagen is Europe’s largest automaker but has seen its profits slump amid higher tariff costs, tough competition in the Chinese market and pressure on its German manufacturing network to become more efficient.

Blume said in the memo that he prefers “intelligent solutions” over the closure of facilities, and previously suggested that underutilized factories could be used for the defense industry or to produce Chinese Volkswagen models in Europe.

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Ticker	Security	Last	Change	Change %
VWAGY	VOLKSWAGEN AG	8.2665	+0.06	+0.69%

He said in the memo that looking into the next decade, the company “still cannot confirm competitive use cases for the plants of Emden, Hanover, Zwickau and Neckarsulm in the 2030s.”

The company’s leaders have faced angry calls from workers for the automaker’s management to explain its restructuring plans, which Blume presented to a supervisory board on Thursday.

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Reuters reported that sources familiar with the matter said labor representatives on the committee blocked proposals that were said to include job cuts and the possible closure of four factories.

Volkswagen’s statement after the meeting with stakeholders didn’t discuss job cuts or plant closures and instead announced plans to further reduce production capacity and gradually halve its lineup of models.

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“Of course, it’s understandable that not everything has been planned out down to the last detail yet, and that certain issues still need to be further discussed and evaluated,” Blume said in his message to workers. “There will certainly be more meetings in which we will work hard to find the best solutions.”

Reuters contributed to this report.

The National Stock Exchange‘s index services subsidiary, NSE Indices Limited, launched the Nifty500 Ahimsa Index, a new thematic index that tracks companies from the Nifty 500 universe whose business practices are aligned with the principles of “Ahimsa” or nonviolence.

According to the exchange, the index is aimed at investors who want exposure to companies that do not engage in activities that harm animals. It has been developed in collaboration with the Ahimsagain Foundation and is based on the foundation’s Ahimsa Investment Movement (AIM) framework, which assesses companies on the extent to which their products, services and business practices adhere to Ahimsa principles.

Under the AIM framework, companies are classified into three categories: Green, Orange and Red. Only companies classified under the Green category are eligible for inclusion in the index, while those placed in the Orange and Red bands are excluded, NSE said in a press release.

NSE Indices said the launch of the Nifty500 Ahimsa Index expands its range of thematic indices designed to cater to evolving investor preferences. The index is intended to provide a transparent, rules-based benchmark that combines ethical investment considerations with broad-based exposure to the equity market.

The index draws its constituents from the diversified Nifty 500 universe, providing representation across sectors while selecting companies that demonstrate stronger alignment with responsible and sustainable business practices under the AIM framework.

According to the exchange, the index is also expected to serve as a benchmark for asset managers and support the development of passive investment products, including exchange-traded funds (ETFs), index funds and other structured investment solutions.
The Nifty500 Ahimsa Index has a base date of April 1, 2016, and a base value of 1,000. It will be reconstituted on a semi-annual basis, while the weight of each constituent will be determined based on its free-float market capitalisation.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

NEW YORK — The S&P Energy Select Sector Index rose 28.43 points, or 2.45 percent, to 1,188.82 on Monday, outpacing broader markets as rising oil prices reflected heightened geopolitical risks in the Middle East and supply concerns.

Energy shares benefited from gains in crude futures amid reports of renewed U.S.-Iran tensions, including actions in the Strait of Hormuz. West Texas Intermediate crude climbed several percent before paring some advances, settling near $73 per barrel, while Brent crude traded around $78. The sector’s advance provided a counterweight to weakness in technology amid profit-taking in semiconductors.

The broader market showed mixed performance. The Dow Jones Industrial Average posted modest gains, the S&P 500 edged lower and the Nasdaq Composite declined about 1 percent. The divergence underscored rotation dynamics, with defensive and commodity-linked sectors finding support while growth names faced pressure.

Analysts attributed oil’s move to developments in the Gulf region. Reports of Iranian strikes on vessels and U.S. responses raised fears of potential disruptions to global energy flows. However, markets appeared to price in a contained scenario rather than widespread escalation.

Mohamed El-Erian, chief economic adviser at Allianz, told CNBC that investors view the conflict as likely localized. “The market is assuming that this clash will remain localized,” he said, noting indications that neither the U.S. nor Iran seeks full-scale confrontation.

The energy sector’s performance highlighted its role as a hedge during periods of geopolitical uncertainty. Major integrated oil companies and exploration and production firms led gains, benefiting from higher commodity prices. Refiners and service providers also participated in the advance.

The S&P Energy Select Sector Index’s year-to-date returns reflect volatility tied to global events. While the sector has lagged technology-driven indexes for much of the year, periodic spikes in oil prices provide opportunities for outperformance.

Broader economic factors also influenced trading. Investors monitored the start of earnings season, with major banks reporting this week. FactSet forecasts solid profit growth for S&P 500 companies, though energy firms’ results will depend on realized prices and production levels.

Larry Adam, chief investment officer at Raymond James, noted broader market resilience. He highlighted sustained capital investment in various sectors, including those tied to traditional energy infrastructure alongside emerging technologies.

Oil’s rise came as traders assessed potential impacts on inflation and consumer spending. Higher energy costs could feed through to broader prices, though recent disinflation trends have provided some buffer. The Federal Reserve’s policy path remains data-dependent, with officials watching commodity movements closely.

For energy producers, the current environment offers revenue support but also underscores the sector’s sensitivity to global events. Companies with diversified operations and strong balance sheets are better positioned to navigate swings.

The S&P Energy Select Sector Index includes major names such as Exxon Mobil, Chevron and ConocoPhillips. Their performance often serves as a barometer for investor sentiment toward traditional energy amid the transition to lower-carbon sources.

Monday’s gains followed a period of relative underperformance for the sector. Technology’s dominance has drawn capital away from cyclical areas, but geopolitical developments can quickly shift flows.

Analysts caution that oil price spikes may prove temporary if tensions ease. However, ongoing risks in key shipping routes keep a floor under prices in the near term.

The energy sector’s contribution helped limit downside in the Dow Jones Industrial Average. Financials and industrials also provided support, creating a mixed picture across the 30-stock index.

Broader indexes traded within recent ranges. The S&P 500’s modest decline kept it in positive territory for the year, while the Nasdaq faced more pressure from semiconductor weakness linked to profit-taking after SK Hynix’s U.S. listing.

SK Hynix’s American depositary receipts fell following a strong debut, dragging related names lower. The episode illustrated short-term volatility in AI supply chain stocks despite long-term demand tailwinds.

Market participants are shifting attention to corporate results. Banks’ earnings will offer insights into loan demand, credit quality and economic activity. Technology reports later in the season will address AI capital spending trends.

The energy sector’s advance aligns with historical patterns during periods of geopolitical stress. Investors often rotate into commodities and related equities when risks to supply emerge.

Longer term, the industry faces pressures from energy transition policies and technological change. Companies are investing in lower-carbon initiatives while maintaining traditional operations to meet current demand.

The S&P Energy Select Sector Index’s performance Monday reflects these crosscurrents. Short-term gains from oil prices contrast with structural challenges, requiring balanced strategies from producers.

Trading volume in energy names increased as the sector attracted interest. Options activity also picked up, signaling heightened awareness of potential volatility ahead.

As the week progresses, additional economic data and Fed commentary could influence commodity markets. Retail sales figures and inflation readings will be watched for impacts on consumer behavior and policy expectations.

For energy investors, the current environment offers both opportunities and risks. Higher prices boost near-term cash flows, but sustained elevation depends on resolution of geopolitical issues.

The sector’s role in diversified portfolios has grown amid macro uncertainties. Its correlation with traditional equities can vary, providing potential hedging benefits during stress periods.

Monday’s market action exemplified selective buying amid broader caution. Energy’s strength offset technology weakness, keeping major averages from steeper declines.

The S&P Energy Select Sector Index remains well below its all-time highs, leaving room for recovery if oil stabilizes at elevated levels. Producers with low-cost operations and disciplined capital allocation stand to benefit most.

Broader commodity markets showed mixed signals. Gold edged lower as risk appetite held in some areas, while agricultural futures traded quietly.

Currency markets reflected dollar strength on safe-haven flows tied to geopolitical news. Treasury yields moved modestly as investors assessed inflation risks from energy costs.

The session sets the stage for continued focus on Middle East developments and their economic ripple effects. Any de-escalation could pressure oil prices lower, while persistence of tensions might sustain support for energy shares.

Investors will monitor corporate updates for commentary on energy costs and hedging strategies. Banks’ exposure to the sector through lending could also feature in earnings discussions.

The energy sector’s Monday performance provides a timely reminder of its sensitivity to global events. As markets digest the latest developments, the S&P Energy Select Sector Index’s gains highlight its potential to deliver relative strength during periods of uncertainty.

A dozen US states have joined together to block the $110bn (£85bn) merger between Warner Bros. and Paramount, claiming the largest media consolidation in Hollywood history would stifle competition and raise consumer prices.

A group of states, led by California, have filed a lawsuit to halt the deal.

California Attorney General Rob Bonta claimed the merger would end up harming “audiences on every sofa and movie theater seat in the US”.

If it goes ahead, the new company would account for over a quarter of major film releases. Together with Disney, Universal, and Sony, just four conglomerates would control 86% percent of that market.

Combining Paramount and Warner Bros would end a century of fierce rivalry between two of Hollywood’s biggest hitmakers.

Between them, they own legendary franchises like Harry Potter, Batman, Mission: Impossible, and Top Gun, alongside TV giants like CNN, MTV, and Nickelodeon.

The regulatory challenge marks a significant hurdle for the entertainment giants as they attempt to merge operations.

In June, the US Department of Justice had approved the merger.

But the coalition of attorney generals has requested that the companies halt the transaction pending judicial review, threatening a temporary restraining order if they do not comply.

If approved, the combined titan would control nearly a third of the US theatrical motion picture market and basic cable programming.

Bonta claimed it “would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the US”.

The legal challenge focuses on three main areas: major cinema releases, massive blockbusters, and cable TV channels.

The states argue that losing this competition strips movie theaters and television networks of vital bargaining power. At present, if one studio demands unfair prices, a distributor can walk away and deal with the rival.

Without that option, the lawsuit argues that theaters and TV networks will face higher fees – costs that will eventually hit consumers through pricier tickets, high cable bills, and fewer choices.

“Nothing justifies these substantial harms to competition,” the lawsuit states.

However, supporters of the deal point out that the traditional media world is in crisis.

Cable TV audiences are shrinking rapidly, and cinema attendance faces intense, ongoing pressure from tech giants and streaming platforms, making scale an economic necessity.

In a statement, Paramount described the lawsuit as “fundamentally flawed” and “wrong,” adding that it would “vigorously defend the transaction”.

It added: “Delaying this transaction will only harm entertainment workers who have already suffered over recent years as technology has disrupted their livelihood and cost California tens of thousands of entertainment jobs.”

The BBC has contacted Warner Bros for comment.

NEW YORK — The cost of generating electricity from natural gas-fired plants in the United States has reached its highest level in at least 17 years, according to analysis from Lazard, and is expected to climb further amid surging power demand from data centers and artificial intelligence infrastructure.

Lazard’s latest Levelized Cost of Energy report highlights how rising fuel prices, construction costs and operational expenses have pushed natural gas power costs upward. The findings come as the U.S. grapples with unprecedented electricity needs from technology companies building massive data centers to support AI training and cloud computing.

Natural gas remains the dominant source of electricity generation in the U.S., accounting for a significant share of the power mix. However, the economics of gas-fired plants have deteriorated in recent years as renewable energy costs have fallen and fuel price volatility has increased. Despite these challenges, gas plants continue to provide essential dispatchable power, particularly during periods of peak demand or when renewable output is low.

The report underscores a broader trend in the energy transition. While solar and wind have achieved record-low costs in many regions, the intermittency of renewables requires backup from flexible sources like natural gas. This dynamic has kept gas plants relevant even as their levelized costs rise.

Data center demand is a primary driver of the projected increases. Technology giants are investing billions in new facilities across the country, many in regions reliant on natural gas for reliable baseload power. The AI boom has accelerated these builds, with hyperscalers seeking constant, high-volume electricity to power servers and cooling systems.

Analysts estimate that data centers could double or triple power consumption in certain markets over the next decade. This surge strains existing infrastructure and boosts the value of gas-fired generation, which can ramp up quickly to meet fluctuating loads.

Lazard’s analysis incorporates multiple factors, including capital costs, fuel expenses, operations and maintenance, and financing assumptions. The firm’s levelized cost metric provides a standardized way to compare different generation technologies over their lifetimes.

The 17-year high for gas power costs reflects a combination of inflationary pressures on construction and higher expected fuel prices. Natural gas prices have been volatile, influenced by domestic production trends, liquefied natural gas exports and global supply dynamics.

Renewable energy sources, particularly solar and onshore wind, continue to offer lower levelized costs in many scenarios. Battery storage costs are also declining, improving the economics of intermittent renewables. However, the full system costs of integrating high levels of renewables, including transmission upgrades and backup capacity, complicate direct comparisons.

Natural gas plants benefit from existing infrastructure and the ability to provide firm capacity. Many utilities and grid operators rely on them to ensure reliability, especially in regions with growing peak demand from electrification of vehicles, buildings and industry.

The Lazard report arrives as policymakers debate the future of the U.S. energy mix. The Inflation Reduction Act has accelerated renewable deployment through tax credits, but recent proposals in Congress could alter incentives. Uncertainty around federal policy adds complexity for developers of both gas and renewable projects.

Regional variations play a significant role. In areas with abundant renewable resources and supportive policies, solar and wind often undercut gas on cost. In other markets, particularly those with constrained transmission or high reliability needs, gas retains an edge.

Data center operators are increasingly signing power purchase agreements with various generators. Some are pairing renewables with storage and gas backup to achieve both cost efficiency and reliability. This hybrid approach reflects the practical challenges of meeting 24/7 demand with variable sources.

The power sector faces a capacity crunch in coming years. Retirements of older coal and nuclear plants, combined with rising demand, require significant new buildout. Natural gas is often the fastest option to bring online, though environmental regulations and permitting delays can extend timelines.

Environmental groups have criticized reliance on gas, citing methane emissions and long-term climate impacts. Advocates for gas argue that modern combined-cycle plants are far cleaner than older facilities and serve as a bridge to a lower-carbon future.

Utilities are navigating these tensions by pursuing diverse portfolios. Many are adding solar, wind and storage while maintaining or expanding gas capacity for reliability. The Lazard analysis helps inform these decisions by quantifying costs across technologies.

For investors, the report highlights opportunities and risks. Gas plant developers may benefit from near-term demand but face potential stranded asset risks if decarbonization accelerates. Renewable developers continue to see favorable economics, though integration costs and policy shifts introduce uncertainty.

The data center boom is reshaping power markets nationwide. States like Texas, Virginia and Georgia have seen massive investments, straining grids and prompting new generation proposals. Natural gas infrastructure in these regions positions it to capture incremental demand.

Longer-term forecasts suggest electricity demand growth will outpace recent decades due to AI, electrification and manufacturing reshoring. Meeting this demand affordably and reliably will require coordinated investment across the energy value chain.

Lazard’s findings align with other industry analyses showing rising costs for thermal generation. Fuel price forecasts, capital cost inflation and regulatory compliance all contribute to the trend.

The report also examines offshore wind, nuclear and other technologies. While nuclear offers carbon-free baseload power, high upfront costs and long construction times limit near-term deployment. Small modular reactors could change that dynamic in the 2030s.

Storage costs continue declining, enhancing renewables’ competitiveness. Batteries paired with solar can shift output to evening peaks, reducing reliance on gas peaker plants.

Transmission remains a bottleneck. Upgrading the grid to move power from resource-rich areas to demand centers is essential for optimizing the system cost-effectively.

Policymakers face difficult trade-offs. Supporting rapid renewable deployment can lower long-term costs and emissions, but ensuring reliability during the transition may require retaining or adding gas capacity.

The Lazard Levelized Cost of Energy report is widely referenced by utilities, developers and investors for its independent benchmarking. This year’s edition reflects updated assumptions on technology costs, capacity factors and financing.

As data center demand accelerates, power costs across the board are under scrutiny. Companies are exploring everything from on-site generation to long-term contracts with diverse suppliers to manage expenses and risks.

The energy transition is entering a more complex phase. While renewables dominate new capacity additions, dispatchable resources like natural gas remain critical for grid stability. Balancing these elements will determine the cost and reliability of U.S. electricity in the coming decade.

Monday’s market movements reflected broader commodity trends. Energy stocks advanced as oil prices rose on geopolitical developments, aligning with the sector’s sensitivity to supply risks.

For natural gas specifically, futures prices have responded to weather forecasts, storage levels and export demand. LNG terminals in the U.S. Gulf Coast continue shipping cargoes globally, linking domestic prices to international benchmarks.

The interplay between gas power costs and data center economics will shape corporate decisions. Hyperscalers seeking to minimize expenses may favor regions with abundant renewables and supportive transmission, while others prioritize reliability in gas-heavy markets.

Utilities planning new plants must weigh Lazard’s cost metrics against local conditions, regulatory hurdles and customer needs. The report serves as one input among many in a multifaceted decision process.

As the U.S. navigates record electricity demand growth, the cost of natural gas power reaching multi-year highs highlights the challenges ahead. Data centers are accelerating the need for new generation, forcing a reassessment of the optimal energy mix for reliability, affordability and emissions goals.

The coming years will test the industry’s ability to deliver power at scale while managing costs. Lazard’s analysis provides a valuable snapshot of current economics, informing strategies across the power sector.

SBI Funds Management has reduced the size of its IPO to Rs 9,813 crore from Rs 11,693 crore after raising about Rs 1,655 crore through a pre-IPO placement to 30 anchor investors. The issue will open for subscription on July 14 and close on July 16. The IPO is entirely an offer-for-sale (OFS) by State Bank of India and Amundi India Holding. Since there is no fresh issue, SBI Funds Management will not receive any proceeds from the IPO.

The pre-IPO placement was completed at Rs 574 per share, the upper end of the IPO price band. State Bank of India sold 28,832,748 equity shares, representing 1.42% of SBI Funds Management’s pre-IPO equity capital. According to SBI’s exchange filing, the bank signed the share purchase agreements on July 9. The transaction was scheduled to be completed by July 10.

PI Opportunities Fund-II was the largest buyer, acquiring 3,484,320 shares for about Rs 200 crore. Investor Akash Bhanshali also bought 3,484,320 shares for nearly Rs 200 crore, while 3P India Equity Fund I purchased 2,613,240 shares worth about Rs 150 crore.

Other investors in the pre-IPO placement included Malabar India Fund, Tata AIG General Insurance Company, Go Digit General Insurance, Anand Rathi Global Finance, Clarus Capital I, Carnelian Bharat Amritkaal Fund and Bennett Coleman & Co Ltd, along with other institutional and family office investors.

Also Read: SBI Funds among 6 IPOs on investors’ radar this week. GMPs indicate listing gains up to 118%

What does this mean?

The company is still not raising fresh capital because the IPO remains a pure OFS. The money goes to the selling shareholders, not to SBI Funds Management. For investors, the key signal is that large investors were willing to buy shares before the IPO at the top end of the price band, which gives some comfort on demand and valuation.

The smaller issue size can help bidding to some extent because fewer shares will now be available in the public offer. If demand stays strong, the reduced supply can improve subscription numbers, especially in institutional and HNI categories. It may also support sentiment around listing gains, helped by the current grey market premium of about 15%.

However, the impact should not be overstated. SBI Funds Management is still a large IPO, and listing performance will depend on overall market mood, subscription strength, valuation comfort and demand for AMC stocks. The pre-IPO placement is positive for confidence, but it does not change the basic nature of the offer, which remains an OFS by existing shareholders.

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SBI Funds IPO GMP

The shares are proposed to be listed on the BSE and NSE on July 21. The grey market premium stood at around 15%, indicating investor interest ahead of the issue opening.

The company has fixed a price band of Rs 545-574 per share. Investors can bid for a minimum of 26 shares and in multiples thereafter. At the upper end of the price band, one retail lot will cost Rs 14,924.

About SBI Funds Management

SBI Funds Management is India’s largest asset management company. It manages SBI Mutual Fund and is a joint venture between State Bank of India and Amundi. The company offers equity funds, debt funds, hybrid schemes, ETFs, index funds, PMS and other investment products.

The company had quarterly average assets under management of about Rs 12.5 lakh crore and a market share of around 15%. It benefits from SBI’s banking network, mutual fund distributor reach, strong SIP franchise and Amundi’s global investment and technology capabilities.

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For FY26, SBI Funds Management reported total income of Rs 4,976 crore, up 17% from Rs 4,236 crore in FY25. Profit after tax rose 21% to Rs 3,067 crore from Rs 2,540 crore. Return on net worth stood at 43.02%.

SBI Funds IPO valuation

At the upper price band, the IPO values SBI Funds Management at around 38 times FY26 earnings. Analysts have said the valuation is lower than several listed AMC peers, though the OFS structure means the company will not receive growth capital from the issue.

With the issue size now lower and institutional investors already coming in at the top end of the price band, the focus will shift to subscription demand when the IPO opens. Investors will also track grey market movement to assess possible listing gains.