The Traderszone Network

Volkswagen AG (VOWG_p.DE) said a scandal over falsified U.S. vehicle emission tests could affect 11 million of its cars around the globe as investigations of its diesel models multiplied, heaping fresh pressure on CEO Martin Winterkorn. It also warned that amount could rise, saying diesel cars with so-called Type EA 189 engines built into Volkswagen models worldwide had shown a “noticeable deviation” in emission levels between testing and road use. The U.S. Environmental Protection Agency (EPA) said on Friday Volkswagen could face penalties of up to $18 billion for cheating emissions tests.

NEW YORK/WASHINGTON (Reuters) – Volkswagen AG (VOWG_p.DE) will probably have to show there was some legitimate reason to install software that led to false vehicle emissions tests if it is to avoid U.S. criminal charges, lawyers said on Tuesday. As a result it is almost certainly exposed to very large civil penalties that could be imposed by the U.S. government, said attorneys with expertise in environmental prosecutions though not involved in the Volkswagen case.

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Wednesday’s meeting of Volkswagen’s supervisory board is likely to have seismic consequences for the automaker and its embattled chief executive.

Latest German PMI flash just out
– 53.3 prev
– services 54.3 vs 54.5 exp vs 54.9 prev
– composite  54.3 vs 54.6 exp vs 55.00 exp
Softer data gives euro a pause for thought but still underpinned

Currently 120.02 after the early rally ran into offers into 120.20
Offers:
120.20-25  120.40 120.60-65 120.85 
121.00 121.30 121.50
Bids:
  119.75-80 119.50 119.30 119.10 119.00 118.85 118.50 

Currently 1.1142 having triggered stops to 1.1154. Offers noted at 1.1160
Offers
1.1160 1.1185
1.1200 1.1225 1.1245 1.1275 1.1300 
Bids:
1.1120 1.1100 1.1085 1.1065 1.1050 1.1030 1.1000  

Currently 1.5340 with early demand now capped by EURGBP buying
Offers:
 1.5360 1.5375 1.5400 1.5425 1.5450 1.5480 1.5500 1.5520
Bids:
1.5330 1.5300 1.5285 1.5265 1.5250 1.5220 1.5200