Archives for September 2015

“It is clear that the Federal Office for Motor Traffic will not exclusively concentrate on the VW models in question, but that it will also carry out random tests on vehicles made by other carmakers,” Dobrindt was cited by Reuters.

The minister also announced that emissions manipulations by Volkswagen took place In Europe as well as the US.

“We have been informed that in Europe, vehicles with 1.6 and 2.0 liter diesel engines are also affected by the manipulations that are being talked about,” he told reporters, adding that the exact number of affected vehicles in Europe was unknown.

Reports on Thursday suggest one of BMW’s diesel models also exceeded EU emission regulations. The carmaker denied the report, saying “The BMW group does not manipulate or rig any emissions tests. We observe the legal requirements in each country and adhere to all local testing requirements.”

READ MORE: Volkswagen troubles piling on as emission scandal evolves

The emissions scandal broke after German auto maker Volkswagen admitted that 11 million vehicles worldwide were fitted with pollution control cheating software. The software could turn off emissions controls when driving normally and turn them on when the car is undergoing an emissions test, the US Environmental Protection Agency disclosed last Friday.

READ MORE: Volkswagen cheated on emission tests with tricky software – EPA

The device allowed VW vehicles to pollute 10 to 40 times over the legal limit, according to the agency.

Volkswagen head Martin WInterkorn stepped down on Wednesday, saying he personally had done nothing wrong but took responsibility for irregularities found in the diesel engines.

The world’s biggest carmaker, Volkswagen Group owns the Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Skoda and Volkswagen brands.

Article source: http://www.rt.com/business/316414-germany-cars-tests-scandal/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

“We returned to the topic suggested some time ago by the Federal Customs Service – the creation of a special ‘green corridor’, that is a simplification of Russian and Japanese customs procedures, relating to goods,” Voskresensky said earlier this week, after the 11th meeting of the Russian-Japanese intergovernmental commission on trade and economic issues.

Both sides agreed to explore the idea, with Japan’s government planning to facilitate growth of business contacts with Russia, the official added.

They also discussed existing and planned projects in agriculture and the medical industry.

The ‘green corridor’ initiative is primarily in Japan’s interests, experts say, as it will simplify the export of goods from the country to Russia. The agreement could also improve Japan’s businesses presence in Russia by creating investment projects and increasing access to Russia’s agricultural goods on Japanese and Asian markets.

READ MORE: Sanctions could lead to Russia-Japan currency swaps

Imports of Japanese cars and industrial machinery have been significantly reduced as a result of Western sanctions against Russia, according to the Russian Trade Mission in Japan. Japanese banks have problems with providing export credit for equipment sold to Russia, while sanctions make it difficult to conduct business using US dollar transactions, the mission said in May. The cost of the anti-Russia sanctions to Japanese businesses could already be $10 billion, it added.

Earlier this month, the Japan Bank for International Cooperation (JBIC) said the country was leaning towards direct ruble-yen currency swaps. The bank claimed it was elaborating opportunities with Russian banks such as Gazprombank, VTB and VEB.

Japan imported $22.2 billion worth of goods from Russia last year while exports to Russia were $8.2 billion. In 2013 Russian-Japanese trade amounted to $34.8 billion.

Article source: http://www.rt.com/business/316364-russia-japan-trade-boost/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

“I am shocked by the events of the past few days. Above all, I am stunned that misconduct on such a scale was possible in the Volkswagen Group,” WInterkorn said in a statement.

WInterkorn said that as CEO he accepted responsibility for the irregularities found in the diesel engines, and “therefore requested the Supervisory Board agree on terminating my function as CEO of the Volkswagen Group.”

The head of VW added that his resignation would lead to a fresh start which the company needed.

READ MORE: Volkswagen troubles piling on as emission scandal evolves

VW’s pollution scandal began in the US and has grown into the biggest in the company’s 78-year history. On Tuesday France called for an EU inquiry, with its environmental agency claiming it will conduct its own investigation. The UK transport secretary has also called for a probe. Germany, Italy and South Korea have also started investigations into Volkswagen vehicles.

German prosecutors are conducting a preliminary investigation into the manipulation of vehicle emission test results at Volkswagen, with US authorities also planning a criminal investigation.

The scandal broke last week, following a report from the US Environmental Protection Agency. The agency reported that VW vehicles contained software that turns off emissions controls when driving normally and turns them on when the car is undergoing an emissions test.

The device allowed VW vehicles to pollute 10 to 40 times over the legal limit, according to data from EPA.

The vehicles in question are four-cylinder diesel Volkswagen and Audi cars – Volkswagen Jetta (2009-2015), Volkswagen Beetle (2009-2015), Audi A3 (2009-2015), Volkswagen Golf (2009-2015) and Volkswagen Passat (2014-2015).

The Volkswagen Group is the world’s biggest carmaker. The company owns the Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Skoda and Volkswagen brands.

Article source: http://www.rt.com/business/316313-volkswagen-ceo-winterkorn-resigns/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

This is the worst result since March 2009, and is the seventh month in a row factory activity has fallen.

“The principle reason for the weakening of manufacturing is tied to previous changes in factors related to external demand and prices,” said Dr. He Fan, chief economist and director of research at Caixin Insight Group.

READ MORE: 

“Fiscal expenditures surged in August, pointing to stronger government efforts on the fiscal policy front. Patience may be needed for policies designed to promote stabilization to demonstrate their effectiveness,” he added.

The markets are clear that the Xi Jinping government’s goal to reach seven percent growth isn’t feasible.

“The weaker than expected PMI suggested domestic and external demand remained sluggish. It’s almost certain China’s economic growth will slide below 7 percent in the second half of this year,” economists at Minsheng Securities told Reuters.

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The final PMI index for September will be released on October,1.

Asian markets responded negatively on Wednesday to the factory activity contraction. Investors turned to safer assets such as government bonds amid fears of a weakening world economy.

The Shanghai Composite was 2.19 percent down at the close, Japan’s Nikkei lost 1.96 percent, the Hang Seng dropped 2.28 percent and Taiwan’s TSEC 50 Index was 2.06 percent in the red. This was the biggest drop for Asian markets this month since ‘Black Monday’ at the end of August.

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“The industrial sector in China remains a concern, indicating that the economy is not out of the woods yet, while the Fed’s comments last week indicate a glass half-empty view of the global economy,” Tai Hui, chief Asia markets strategist at JP Morgan Asset Management in Hong Kong told Reuters.

Article source: http://www.rt.com/business/316267-china-pmi-markets-contraction/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

“Discrepancies relate to vehicles with Type EA 189 engines, involving some eleven million vehicles worldwide. A noticeable deviation between bench test results and actual road use was established solely for this type of engine. Volkswagen is working intensely to eliminate these deviations through technical measures,” the company said in a statement on Tuesday.

The eleven million is more than VW sells in a year.

German newspaper Der Tagesspiegel reports that Volkswagen CEO Martin Winterkorn will step down by the end of the week, referring to people familiar with the situation. He is likely to be succeeded by Matthias Mueller, Porsche CEO, says the media.

From Agencies: Volkswagen CEO Winterkorn To Be Replaced By Porsche CEO Mueller

— CNBC-TV18 (@CNBCTV18Live) September 22, 2015

VW has refuted the rumor, calling it “ridiculous”, according to Reuters. 

The company’s shares have plummeted another 23 percent on Tuesday, leaving the stock almost 40 percent down in just two days. Regulators from Germany, France, Italy and South Korea have started investigations into Volkswagen’s vehicles.

The scandal broke last Friday after a report from the US Environmental Protection Agency that VW vehicles contained software that turns off emissions controls when driving normally and turns them on when the car is undergoing an emissions test.

The device allowed VW vehicles to pollute 10 to 40 times over the legal limit, according to the EPA.

US chief executive of Volkswagen Michael Horn said the firm was dishonest with US regulators, adding: “We have totally screwed up.”

READ MORE: 

The cars in question are four-cylinder diesel Volkswagen and Audi vehicles – Volkswagen Jetta (2009-2015), Volkswagen Beetle (2009-2015), Audi A3 (2009-2015), Volkswagen Golf (2009-2015) and Volkswagen Passat (2014-2015).

The Volkswagen Group is the world’s biggest carmaker. The company owns the Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Skoda and Volkswagen brands.

Article source: http://www.rt.com/business/316199-volkswagen-air-pollution-scandal/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

“Yes, we are ready, now everything depends on Russia,” the official told Sputnik News Agency on Monday.

With the strategy to strengthen its policy decisions, the Syriza-led government will support long-term cooperation with Moscow, Quick added.

“This time we will have a stable government that will stay in power for four years, so that we can work together with Russia in the investment sector. This time we have to do it”.

READ MORE: Greek snap election: New Democracy concedes defeat to Tsipras’s leftist Syriza

On Sunday, the left-wing Syriza party won a general snap election which was called after the party lost its majority in August.

Greece will maintain relations with various countries, including Russia, according to Quick. Athens has repeatedly complained of EU pressure and attempts to stop its cooperation with Russia on the Turkish Stream project.

During the St. Petersburg Forum in June, Moscow and Athens signed a €2 billion ($2.26 billion) deal to create a joint enterprise for the construction of the Turkish Stream pipeline across Greek territory. Since then the sides have been working out the details on the Greek extension of the Turkish Stream or the so-called South European pipeline.

READ MORE: Russia, Greece sign €2bn deal on Turkish Stream gas pipeline

The construction of the pipeline will begin in 2016 and is expected to be completed by 2019.

The 1,100km Turkish Stream pipeline will have four threads and an annual capacity of up to 63 billion cubic meters (bcm) of gas. About 16bcm will be supplied to Turkey while the remaining 47bcm will go to a hub on the Greek – Turkish border to be transported to Europe.

It replaces the South Stream project, which Russia suspended in December after the EU blocked its implementation. However, it is still unclear how Greece, an EU member, will participate in the project.

Article source: http://www.rt.com/business/316070-greece-russia-pipeline-cooperation/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Murat Telibekov, of the Muslim Union of Kazakhstan, came up with a comprehensive list of financial repercussions for engaging in various kinds of intercourse, and posted it on Facebook. Kazakh and Russian media were quick to pick it up.

Admittedly, there is nothing in the post indicating whether he was serious or not, and some of the outlets suggested that it may have been a response to a recently-introduced tax on picking wild mushrooms and berries.

The extensive list covers most of the ways of cavorting in bed (or not) that you might be able to think of, and proposes a broad range of fees, to be paid on a by-case basis.

Under the proposal, the cheapest you can pay is about $1, if you’re married and a Kazakh. This includes a 50 percent discount if at least one of you knows the state language. However, that is only if you do it the ‘traditional’ way and for no longer than 14 minutes.

From there, the tax only grows: If you and your partner are in a long-term relationship, but not officially married, it’s about $2.50 (again, this and any other price on the list can be cut in half if you know Kazakh).

A one night stand will cost you a base fee of almost $7.

If you’re gay, the proposal sets the tax at some $10.

Then it gets interesting: A vaguely-defined “non-traditional” act should be taxed at about $18, the proposed bill says.

Further multipliers are applied if you last for over 14 minutes, if you are especially well-endowed (assuming “engine volume” to be a euphemism for this), or if you’re a foreigner. Foreigners, naturally, will have to pay double to have sex in Kazakhstan.

Once can also buy a “year pass”, to save tax money. The elderly and the disabled will be exempt from the tax altogether.

At least the list is very detailed, allowing for careful expenses planning on your next trip to Kazakhstan.

Perhaps the most interesting part of the proposal is the part on how the tax is supposed to be enforced: Via a special police unit with the right to invade homes without a court ruling.

The proposal does have a well-meaning goal: All the tax money will go to improve the reproductive health of Kazakhstan’s people and combat STDs.

Article source: http://www.rt.com/business/315878-kazakhstan-sex-tax-muslim/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Wall Street opened lower with the Dow Jones Industrial Average, the SP 500 and the Nasdaq Composite over one percent lower.

Markets in Europe took a beating on Friday with Germany’s DAX and the CAC 40 Index in Paris losing over two percent and London’s FTSE down almost one percent, as of 15:00 GMT.

“The signaling by the Fed yesterday doesn’t see confidence to pull the trigger to raise from zero to 25 basis points, I think its negative sentiment that’s hitting the market,” Art Hogan, chief market strategist at Wunderlich Securities told CNBC. “I think they’ve done more harm than good.”

Others disagree.

“Ultimately, the Fed did the right thing by holding,” said the CEO of The Earnings Scout Nick Raich.

READ MORE: Fed doing nothing keeps ruble afloat

The main indices on the Moscow Exchange were trading lower on Friday. The dollar-denominated RTS index and the ruble-traded MICEX were losing under one percent, as of 15:00 GMT.

Most Asian markets traded flat managing meager gains, but Japan’s Nikkei lost almost two percent.

On Thursday, the US Federal Reserve kept interest rates unchanged as it was worried about the global economy, financial markets volatility and flat inflation at home.

READ MORE: US interest rate hike likely by end of 2015 – US Fed

“In light of the heightened uncertainties abroad and the slightly softer expected path for inflation, the committee judged it appropriate to wait for more evidence, including some further improvement in the labor market, to bolster its confidence that inflation will rise to two percent in the medium-term,” Fed Chair Janet Yellen said at a news conference after the two-day policy meeting.

Concerns over a possible rate hike have been disturbing global markets since July when Janet Yellen indicated a rise could happen as early as September. Rates in the US have been held at near zero since December 2008. The International Monetary Fund cut its growth outlook for the US economy in June and called the Federal Reserve to wait until 2016 before increasing interest rates. A US rate rise poses “tough challenges” for developing and emerging economies, the World Bank warned, as borrowing would become more costly for them.

The Fed’s next policy meetings are scheduled for October and December.

Article source: http://www.rt.com/business/315866-markets-plunge-fed-decision/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Shearman Sterling, a US law firm representing the group of bond holders, e-mailed a statement to Bloomberg, saying its client’s investments are delayed for more years than others. The statement added that these private bond holders have enough muscle to block the deal.

This is not the first time Shearman Sterling has called Kiev’s agreement with creditors unfair. In late August, a creditor committee led by Franklin Templeton (which owns about $7 billion of Ukrainian bonds) agreed a 20 percent write-off of some $18 billion worth of Eurobonds.

READ MORE: Debt holders consider Ukraine restructuring deal “unfair”

“It has been suggested that all bondholders should get identical packages of new bonds,” said the company last week.

However, the main difference is the blocking power. When the group’s discontent first arose, Ukraine’s Finance Minister, US-born Natalie Jaresko, said the investors represented by Shearman Sterling didn’t have enough of a stake to veto the deal and their objections would not have any effect.

Ukraine is obliged to restructure its multibillion dollar debt in order to get a $17.5 billion loan from the IMF. The deal is on the verge of collapse, as Russia, one of Ukraine’s biggest creditors, has refused to accept a haircut on the $3 billion due in December despite Kiev’s threats.

In response to Ukraine’s Prime Minister Arseny Yatsenyuk’s demand for Russia to write off part of the debt, Moscow left the following answer on the government website:

“The so-called debt operation, which Russia takes no part in, cannot ease Ukraine’s debt burden. It is in the debtor’s best interests to pay back the Russian Federation immediately, as a default on these liabilities will turn out much more expensive for Ukraine, which will have to pay both litigation costs and penalty interest for overdue payments.”

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Article source: http://www.rt.com/business/315839-ukraine-debt-deal-creditors/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Lukoil’s CEO Vagit Alekperov and Iran’s Deputy Petroleum Minister Amir-Hossein Zamaninia held talks in Tehran on Thursday. They discussed cooperation to increase oil production capacity, the restoration of old and the exploration of new oil fields in Iran.

“The Russian company has announced its readiness for participation in enhanced oil recovery and improved oil recovery plans for Iranian oil fields,” Zamaninia was cited as saying by PressTV.

“We are in active dialogue. We have an agreement, in terms of which we are working on exploration of the Persian Gulf shelf and a number of provinces,” Alekperov told Russian daily Vedomosti ahead of his visit to Tehran.

READ MORE: Lukoil eyes return to Iran after sanctions lifted – CEO

Lukoil’s cooperation with Iran was disrupted due to EU and US sanctions against the Islamic Republic. The Russian oil major had to abandon its Anaran oil project in 2010.

The Anaran oil block which was being jointly developed by Lukoil and Norway’s Statoil, has estimated crude reserves of two billion barrels. The Russian company took a $63 million loss when it abandoned the project. In 2013 Iran reimbursed Lukoil $60 million.

In April, Alekperov announced plans to return to Iran as soon as sanctions over the country’s nuclear program were lifted. Lukoil is also considering buying assets in Iran as well as in Mexico after 2016, putting into operation a number of huge projects in 2015-2016. The company has already reopened an office in Tehran.

READ MORE: Key points of historic nuclear deal reached by Iran and 6 world powers

Thursday’s meeting comes after the nuclear talks concluded in July. Iran is of great interest for all oil and gas companies, according to Lukoil’s CEO.

Last month Italy and Iran signed a deal which could see investment in Iranian projects worth $2 billion. The agreement aims at reviving trade and economic ties between the countries after Western sanctions against Tehran are removed. Delegations from France, Germany and Serbia have already visited Tehran to discuss trade and financial issues.

Iran and six leading world powers (the US, Britain, France, China, Russia and Germany) signed a comprehensive plan in July for ending international sanctions against Tehran in exchange for putting restrictions on its controversial nuclear program. The Islamic Republic agreed to the continuation of the UN’s arms embargo for up to five years and ballistic missile restrictions for up to eight years. Sanctions will be lifted over the next 10 years if Tehran adheres to the agreement.

Article source: http://www.rt.com/business/315828-lukoil-iran-oil-projects/?utm_source=rss&utm_medium=rss&utm_campaign=RSS