- Title: Markets react to upcoming U.S. election and VW diesel scandal
- Date: 7th November 2016
- Summary: HANNOVER, GERMANY (FILE) (REUTERS) VARIOUS OF POETSCH SPEAKING AT VW GENERAL ASSEMBLY BERLIN, GERMANY (FILE) (REUTERS) VARIOUS OF DIESEL ENGINE IN VW CAR BEING STARTED VARIOUS OF FUMES COMING OUT OF EXHAUST PIPE
- Embargoed: 22nd November 2016 10:03
- Keywords: VW Audi DAX markets Poetsch U.S. election Trump Clinton
- Location: FRANKFURT, INGOLSTADT, HANNOVER, WOLFSBURG & BERLIN, GERMANY
- City: FRANKFURT, INGOLSTADT, HANNOVER, WOLFSBURG & BERLIN, GERMANY
- Country: Germany
- Topics: Economic Events
- Reuters ID: LVA00457G33IL
- Aspect Ratio: 16:9
- Story Text: European stocks were up more than 1 percent on Monday (November 7) after the FBI said it stood by an earlier recommendation that no criminal charges were warranted against Democrat Hillary Clinton.
The news lifted a cloud over Clinton's presidential campaign two days before the U.S. election and calmed the markets which see Clinton as a more stable option.
Europe's index of leading 300 shares rose 1.2 percent, the strongest rally in three weeks, with a 2 percent rise in financials leading the way. Britain's FTSE 100 .FTSE and Germany's DAX were up 1.3 percent.
German market analysts were also keeping an eye on Volkswagen's deepening crisis as the emissions scandal refuses to go away.
"In the case of VW it is time to name names. If there are problems then they have to be addressed. It doesn't do anyone any favours if there is a new little scandal every three months. They have to deal with this and not be mired in this one thing the whole time. And if it turns out that the supervisory board chairman knew something then it has to be clearly addressed and if there should be more emissions scandals, now also as is being rumoured with Audi then they also have to be clearly addressed," Robert Halver of Baader bank told Reuters TV.
VW on Sunday announced that German prosecutors have widened an inquiry into suspected market manipulation by managers at Volkswagen to include the carmaker's supervisory board Chairman Hans Dieter Poetsch.
The investigation, which relates to Poetsch's time as finance chief, is the latest fallout from VW's admission last year that it cheated on diesel emissions tests.
VW has acknowledged it installed software that deactivated pollution controls on more than 11 million diesel vehicles sold worldwide, damaging its global business and prompting the departure of Chief Executive Martin Winterkorn.
Adding to its troubles, a German newspaper reported on Sunday that a U.S. regulator found another cheat software device in vehicles made by its luxury division Audi which is unrelated to the device that triggered last year's scandal at VW. Audi has declined to comment on the report.
- Copyright Holder: FILE REUTERS (CAN SELL)
- Copyright Notice: (c) Copyright Thomson Reuters 2016. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None