Volkswagen Facing New Probe

Germany’s Federal Motor Transport Authority (KBA) is considering recalling more Volkswagen cars due to its emissions scandal, the ‘Bild am Sonntag’ newspaper has reported.

The KBA has opened an investigation into whether a software update for 1.2-litre engine cars, including the popular Polo, enabled them to cheat emissions tests, the newspaper said, without naming its sources. It said prosecutors were preparing charges against unnamed Volkswagen managers for suspected fraud, noting the company gave assurances in 2016 that the 1.2-litre engines did not use illegal emissions-cheating devices.

VW has had to recall hundreds of thousands of cars since it admitted in 2015 to installing illegal software in engines to cheat US anti-pollution tests.

US-China trade talks boost European shares

News of talks between Beijing and Washington over an ongoing trade war between the world’s biggest economies boosted European shares on Friday after a gloomy week during which a rare revenue warning from Apple caused havoc.

Stocks sensitive to developments in the trade war, like carmakers, industrials, and miners, boosted the market while bank shares also rallied after China announced it would hold vice ministerial trade talks with the US on January 7th-8th.

The mining sector jumped 2pc, the top gainer as copper prices recovered thanks to the trade talks, while autos rose 1pc and banks climbed 1.3pc.

Oil stocks also rallied 1.8pc after news of the China-US trade talks boosted crude prices more than 1pc.

Overall Europe’s STOXX 600 rose 0.8pc while Germany’s DAX jumped 1pc and the leading euro zone stocks index gained 0.9pc.

Outside trade-related moves, Bayer shares climbed 2.4pc to top the DAX after a US judge overseeing lawsuits alleging its glyphosate-based weed killer causes cancer issued a ruling that could restrict evidence the plaintiffs consider crucial to their cases.

Tech stocks, which plunged 4pc after Apple’s revenue warning, rose 0.6pc on Friday – still underperforming the market.

Chipmaker AMS, which provides the facial recognition technology used in the latest iPhone, rose 1.3pc – a hesitant recovery after Thursday’s 23pc plunge.

German Exports Tops Expectations

Germany’s merchandise exports grew more-than-expected in October and at the fastest pace in five months, preliminary figures from Destatis showed on Monday. Exports increased a calendar ad seasonally adjusted 0.7 percent from September, when they declined 0.4 percent. Economists had forecast a 0.4 percent gain for November.

Imports rose 1.3 percent monthly after stagnation in the previous month, and . Economists were looking for a 0.5 percent gain.

Exports grew 8.5 percent year-on-year and imports rose 11.3 percent.

The calendar and seasonally adjusted surplus was EUR 17.3 billion in October. The trade balance was EUR 18.3 billion in October, unchanged from September. Economists had forecast a EUR 17.1 billion surplus. A year ago the surplus was EUR 19.1 billion. The current account surplus was EUR 15.9 billion in October versus EUR 19.5 billion in the same month last year.