- Title: Markets react to upcoming U.S. election and VW diesel scandal
- Date: 7th November 2016
- Summary: FRANKFURT, GERMANY (NOVEMBER 7, 2016) (REUTERS) EXTERIOR OF FRANKFURT STOCK EXCHANGE TRADING FLOOR OF FRANKFURT STOCK EXCHANGE SIGN READING (German): FRANKFURT STOCK EXCHANGE TRADERS AT DESK DAX INDEX BOARD VARIOUS OF TRADERS WORKING DAX INDEX BOARD VARIOUS OF HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, TALKING TO TRADERS VARIOUS OF DAX INDEX BOARD (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "The fact that the FBI has now ended the Email affair means it has now become more likely that Mrs. Clinton will be the next leader of the U.S. And as she happens to stand for continuity and is not pro-protectionism and not for limiting free global trade she is very positive for the German stock markets as we need free global trade." TRADER WORKING DAX INDEX BOARD (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "If Trump does win, then the stock markets will drop at first. But I am certain that this will have levelled out again by the end of the year. Because even Donald Trump can't bypass the foundations of the global economy and the Washington bureaucracy. Even he will break against the hard wall of Washington bureaucracy if he tried to go against it." VARIOUS OF TRADERS WORKING DAX INDEX BOARD (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "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." TRADERS WORKING AT DESK VARIOUS OF DAX INDEX BOARD TRADERS WORKING
- 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: LVA00157G33IL
- 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: REUTERS
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