Schneider Gains on Data Demand

Schneider Electric reported stronger-than-expected earnings, supported by rising demand for data center infrastructure.

The company, which provides critical systems such as cooling solutions and power management equipment, has benefited from increased investment in digital infrastructure. Data centers and related networks now account for a significant share of its order intake.

Growth has been driven primarily by demand in North America, with additional momentum emerging across parts of Europe. The expansion of AI-related computing capacity has intensified the need for reliable energy and operational systems.

Quarterly revenue showed solid organic growth, while full-year core earnings exceeded market expectations despite currency headwinds.

Looking ahead, the company outlined moderate growth projections, which analysts viewed as cautious given ongoing demand trends in digital infrastructure.

Leadership changes were also announced, with a new chief financial officer set to assume the role in April.

The results reflect continued momentum in sectors tied to large-scale computing and energy-efficient infrastructure.

Telekom Criticises EU Reforms

Deutsche Telekom’s leadership has voiced concerns over the European Union’s proposed overhaul of telecommunications regulations, arguing that the changes do not go far enough in reducing regulatory burdens.

Executives stated that the planned reforms introduce additional requirements rather than delivering meaningful deregulation. While the proposal includes measures to extend the duration of radio spectrum usage—seen as beneficial for investment planning—it stops short of introducing new financial obligations for large digital platforms that generate significant network traffic.

Telecom operators have long advocated for mechanisms requiring major technology companies to contribute to infrastructure costs. Instead, the EU has proposed a voluntary cooperation approach.

Company representatives expressed uncertainty over how effectively the reforms will address industry priorities, emphasizing the need for clearer policies that encourage long-term network development.

The discussion reflects ongoing tensions between telecom providers and policymakers as Europe seeks to balance investment incentives with regulatory oversight in its digital infrastructure strategy.

ECB Sees No AI Job Losses

The European Central Bank has indicated that artificial intelligence is currently improving productivity across the euro area without triggering widespread job reductions.

ECB President Christine Lagarde stated that while automation technologies are becoming more integrated into business operations, their impact on employment levels has not yet materialized in the form of significant layoffs.

Officials noted that productivity gains are emerging as companies adopt digital tools to enhance efficiency. However, the broader effects on labour markets remain under close observation as technological adoption continues to evolve.

The ECB emphasized the importance of monitoring future developments, acknowledging ongoing debates about the long-term implications of automation for workforce stability.

The remarks reflect a cautious outlook on how AI-driven transformation may reshape economic activity and employment patterns over time.