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BUSINESS

Emir of Qatar wants stake in Porsche

The hereditary leader of the natural-gas rich Persian Gulf state of Qatar has reportedly expressed interest in buying a stake in the highly-indebted automaker Porsche, Focus magazine reported in its new issue.

Emir of Qatar wants stake in Porsche
Photo: DPA

Stuttgart-based Porsche AG has €3.3 billion worth of debt in needs to repay in the next year at a time when global credit markets remain nearly frozen. In total, the maker of wold-famous sports cars has over €9 billion in debt and is having to make interest payments from using cash from its core business, which is suffering due to the global economic slowdown.

A deal with the Emir of Qatar would give the company access to cash that desperately needs to avoid a crunch, the magazine reported. The article did not mention how much the Emir hoped to invest in the company.

Porsche took on the mountain of debt to finance a takeover attempt of Wolfsburg-based Volkswagen AG, which is Europe’s largest carmaker and many times bigger than Porsche. Last week, media reports said a dramatic change of course was underway and Volkswagen might instead buy Porsche to relieve the smaller company of its debt burden. Currently, Porsche owns 50 percent of Volkswagen and has said it hopes to raise its stake to 75 percent.

In its new issue, Der Spiegel magazine reports that the Piëch family, which controls Porsche, wants to remove current Chief Executive Officer Wendelin Wiedeking and Chief Financial Officer Holger Härter in once the company’s debt issues are resolved.

“It’s not a question of years, rather it’s of a few months,” before the two are replaced, an unnamed source close to the family told Spiegel.

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ECONOMY

Swiss central bank announces big rate hike in inflation fight

The Swiss National Bank (SNB) raises the key interest rate by 0.75 percentage points, putting it back in positive territory at 0.5 percent.

Swiss central bank announces big rate hike in inflation fight

“The rate change applies from tomorrow, September 23rd 2022”, SNB said in a press release on Thursday.

It added that “inflation [in Switzerland] rose to 3.5 percent in August and is likely to remain at an elevated level for the time being”.

The latest rise in inflation is principally due to higher prices for goods, especially energy and food, according to the bank.

The SNB’s forecast for the evolution of inflation is, however, positive.

It forecasts that the rate will drop to 2.4 percent in 2023 and and 1.7 percent for 2024.

“Without today’s SNB policy rate increase, the inflation forecast would be significantly higher”, the bank said.

In mid-June, the SNB tightened interest rates by half a percentage point for the first time in 15  years. Since then, inflation in Switzerland has continued to rise. For August 2022, the statisticians reported inflation of 3.5 percent, after 3.4 percent in June and July.

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