Investment Markets Overview — W/E 25th September 2015

The main event of the week was the announcement by Volkswagen, the world’s largest auto-maker, admitted that it had been cheating on its “US federal air pollution tests,” namely on its diesel vehicles which the Environmental Protection Agency alleges emitted up to 40 times the legal limit of pollutants. The admission prompted a 34% collapse in VW’s share price over the week, bringing its fall since the March 2015 high to 60% as initial guestimates suggest the cost to VW could be up to $18 billion in penalties and that is in the US alone. In reality the cost could be substantially higher than this as the company faces investigations from other agencies outside of America and from individual law-suits from shareholders and from VW owners who will claim they were fraudulently induced to pay a premium for clean diesel vehicles. Aside of the reputational damage to the VW brand, and possibly to other auto Marques, it reflects poorly on Germany’s leading sector, manufacturing, as questions are raised on possible cheating elsewhere, quite ironic after Germany has spent the past few years berating Greece for being tax-cheats.

25 Sept 15 .

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Additional Commentaries:
•US economic data . . .
•Euro-Zone . . .
•The UK . . .
•Out East . . .
•The $US index . . .
•Within the commodities complex . . .
•Economic data due next week includes . . .

China continued to roil the markets this week as it announced a further slow down of its closely watched manufacturing gauge   ……

Charts:
1.  Indices Weekly
2. US GDP V US Consumption & Sentiment
3. German IFO V German Dax
4. OZ Privte Credit V  OZ Stock-Index
5. Commodity YTD  Moves

Table:

13 Indices, 11 columns of detailed information, for accurate analysis

“It’s like a Pig on LSD, you don’t know which way it’s going to run.

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