Siemens has been vocal about its plans of launching reconstruction projects in Syria and Iraq. As per the latest statement by the CEO, Joe Kaeser, on Thursday, President Trump has shown willingness to support such projects.
While Siemens is headquartered in Munich, the company has as many as 60,000 employees in the United States of America with another 100,000 that are employed indirectly. Being a net exporter, Siemens’ stateside operation, as per the CEO, is the largest across the globe.
CEO Kaeser Met With President Trump At The World Economic Forum In Davos
However, with the rising trade tensions of the U.S with Europe, Kaeser intended to clear his stance to the U.S authorities in order to prevent the company from getting caught in the crossfire. As per the sources, the CEO held an elaborate meeting with the Trump administration earlier this week at the World Economic Forum in Davos.
In the meeting, the sources further added, Kaeser highlighted the vast number of U.S workers that Siemens currently employs. He also expressed a desire for the U.S to see Siemens as a domestic company in an event that it penetrates into regions like Iraq and Syria in order to launch the reconstruction projects to rebuild the countries. The CEO also claims to have received approval from the U.S authorities as they saw it a reasonable demand from a company like Siemens that produces thousands of jobs for U.S citizens.
President Trump also met with the head of the European Commission, Von Der Leyen, and reiterated the risks of punitive tariffs that could be imposed on European products including the automobiles in an event that the EU continues to resist signing a trade deal with the U.S.
Siemens’ Performance In The Stock Market
In its performance results released in November, Siemens warned its machinery products and short-cycle automotive to face a decline in 2020 in wake of the expanding weakness in the global economy. Following a phase 1 trade deal between the U.S and China, however, such fears have diluted to some extent.
Siemens’ performance in the stock market was modestly upbeat in 2019. The German multination conglomerate started the year at around €98 in January 2019. Posting an around 20% increase for the year, the stock was seen trading around €118 at the end of 2019. In 2020, so far, the company has printed a loss of around 2.5% in the stock market.