WSJ : Merkel Urges Volkswagen to Make Full Disclosure in Emissions Scandal



Merkel Urges Volkswagen to Make Full Disclosure in Emissions Scandal

German chancellor wants vigorous company response in dealing with matter


BERLIN—German Chancellor Angela Merkel weighed into the Volkswagen AG emissions scandal in her weekly podcast on Saturday, suggesting that wider damage to the country’s corporate image will depend on how open and aggressive the car maker deals with resolving the affair.

Ms. Merkel, in comments published on her web site, said she didn’t believe the reputation of the “Made in Germany” logo has been damaged by the diesel scandal but warned against “taking it lightly.”

“A lot depends now on how VW deals with the matter,” Ms. Merkel said, adding that VW could put the affair behind it if it fully discloses what happened and changes its corporate structures in a way that ensures that something like this can never happen again. “I believe that VW is working on this with all of its powers.”

U.S. environmental authorities disclosed on Sept. 18 that Volkswagen had used a software device on some diesel-powered engines to manipulate emissions test and their cars appear cleaner in the lab than during normal road driving. The company is under investigation in the U.S. and Germany.

VW has since acknowledged that the software was installed on up to 11 million vehicles, including about 482,000 cars in the U.S. The “dieselgate” affair affects several of the company’s brands that use the EA 189 diesel engine in some models, including VW, Audi,Skoda and SEAT. The company is preparing a global recall that is expected to get underway early next year.

VW and government authorities in Germany and the U.S. have repeatedly reassured consumers that the VW affected cars are safe to drive, but need to be fixed to make them compliant with environmental regulation.

Ms. Merkel’s comments come ahead of a major annual industry conference on Nov. 3 at which the wider impact of the VW diesel affair is likely to be a theme.

Since taking office in her first term in 2005, the chancellor has maintained close ties to VW. Chief Executive Matthias Müller accompanied the chancellor on her trip to China this week.

In a separate development, the Sueddeutsche Zeitung newspaper reported in its Saturday edition that VW is preparing to offer an amnesty to employees who volunteer information about the emissions cheating scandal to encourage insiders with knowledge of the affair to speak out without fearing for their jobs or prosecution.

“Why should people speak out and incriminate themselves if they get nothing in return?,” the newspaper quotes a person identified as a VW executive as saying in the report.

A spokesman for the company dismissed the newspaper report about an amnesty program, saying “there is nothing to this.” The spokesman said the company has encouraged all employees to come forward with any information they have about the matter.

“We are not talking about a fundamental problem in the company, but rather a group of people that caused this,” the spokesman said. “Volkswagen does not have a fundamental problem in recognizing what is right and in fulfilling its responsibilities.”

According the report in the Sueddeutsche Zeitung, the amnesty program follows comments by CEO Mr. Müller at an assembly of workers in October that employees have no “work-related legal consequences” to fear if they volunteer information that leads to resolving the scandal.

Citing the anonymous VW executive, the report added that the amnesty wouldn’t be offered to senior executives, such as board members at the company’s brands, but only to lower-level employees.

Le Monde : CITROËN, PEUGEOT ET RENAULT EN TÊTE DES TRICHEURS



http://mobile.lemonde.fr/m-voiture/article/2015/10/31/selon-auto-plus-les-constructeurs-auto-sous-estiment-largement-la-consommation-de-carburant-des-vehicules_4800504_4497789.html


Le magazine Auto Plus a testé la consommation de carburant des principaux modèles vendus en France et relevé une sous-estimation massive par rapport aux données des fabricants. Sur 1 114 modèles, les chiffres de consommation relevés en conditions réelles par leur laboratoire, comparés à ceux qu’annoncent les marques, révèlent ainsi un écart important, en moyenne de + 37,2 %, selon l’enquête publiée le vendredi 30 octobre.

La conclusion est sans appel : « Les consommations annoncées par les constructeurs sont toutes plus fausses les unes que les autres, quel que soit le modèle et quelle que soit la marque. »

CITROËN, PEUGEOT ET RENAULT EN TÊTE DES TRICHEURS
Si on voulait classer les constructeurs par ordre de tricherie, le magazine relève les écarts les plus flagrants chez Citroën, Peugeot et Renault, qui comptent parmi les constructeurs dont les modèles sont « les plus déconnectés de la réalité », « allant de + 50 à + 65 % sur leurs derniers diesels Euro 6 en comparaison aux valeurs homologuées ».

BMW et Volkswagen viennent ensuite, « avec des écarts records constatés de + 55 à 65 % pour les derniers blocs diesels ». Cela étant, les marques allemandes s’approchent plus de la vérité quand il s’agit des moteurs à essence. Les plus honnêtes, sans être parfaits non plus, sont les constructeurs japonais (Nissan dCi exceptés).

Ces écarts ne sont pas nouveaux, les techniciens du labo de l’hebdomadaire « le constatent à chaque fois qu’ils effectuent des mesures sur un nouveau modèle ».

(ZH) ISIS Releases Video Of Alleged Russian Airplane Mid-Air Exposion After

ISIS Releases Video Of Alleged Russian Airplane Mid-Air Exposion After It Claims Responsibility For Disaster

That didn't take long: following the worst Russian airplane disaster in history, the question everyone was asking is who is responsible. Moments ago we may have gotten the answer.

A militant group affiliated to Islamic State in Egypt claimed responsibility for the downing of a Russian passenger plane that crashed in Egypt's Sinai peninsula on Saturday, the group said in a statement circulated by supporters on Twitter.

Below is the full statement from a group alleging to speak on behalf of Islamic State, posted on their affiliate site, translated by the Guardian's Jahd Khalil. It offers no evidence that the group brought down the plane, apart from their word.

Breaking: Downing of Russian airplane, killing of more than 220 Russian crusaders on board.

 

Soldiers of the Caliphate were able to bring down a Russian plane above Sinai Province with at least 220 Russian crusaders aboard.

 

They were all killed, praise be to God. O Russians, you and your allies take note that you are not safe in Muslims lands or their skies.

 

The killing of dozens daily in Syria with bombs from your planes will bring woe to you. Just as you are killing others, you too will be killed, God willing.

The tweet in question:

Many expressed their initial skepticism that ISIS is the responsible party:

An analyst with the Center for American Progress, Mokhtar Awad, told the Guardian that the Islamic State’s claim of responsibility "is quite vague.

“It doesn’t state how they were able to ‘down’ the plane allegedly. Even the most sophisticated of portable surface-to-air missiles cannot reach that high an altitude and are only a threat during periods of take-off or landing, but the plane had already climbed to its target altitude (from what we know thus far) when it began to likely experience technical failures.

 

The local affiliate, Wilayat Sinai, has been under some pressure over the past few months and may have jumped the gun on taking credit. Although there isn’t a precedent for such a spectacular lie about something they claim to have done, Islamic State itself has recently been embellishing more and more. For instance it claimed that the recent prison raid by Kurdish and US special forces were a total failure, when in fact video evidence surfaced showed them freeing the hostages. So this may be an instance of the rooster taking credit for the dawn.”

Then again, it could simply have been a bomb planted on the plane and set to explade after 20 minutes of flight time.

Even Russia's transport minister Maksim Sokolov has said that the claim Islamic State militants brought down the plane "can’t be considered accurate".

Now in various media there is assorted information that the Russian [plane]... was supposedly shot down by an anti-aircraft missile, fired by terrorists. This information can’t be considered accurate.

However, to corroborate their claim, ISIS has allegedly released this shocking video showing what appears to be a mid-air bomb explosion.

Viewer discretion advised.

Although according to latest social media updates, even IS Sinai is stating that this video is fake.

As a reminder, this is where the alleged explosion occurred:

 

Whether or not the video is real or staged like many of ISIS' previous "made in Hollywood" productions, is currently unknown.

Of course, is the same ISIS which a recently leaked CIA report revealed as being created by the CIA as a "tool" to overthrow Syria's Assad.

In other words, a proxy organization of US "shadow government destabilizing operations", trained in U.S. ally Turkey, and openly funded by both U.S. allies Saudi Arabia and Qatar, just took down a Russian plane.

The question now is did ISIS use a US-made surface-to-air missile to start what may be a very unpleasant war.

Also, does Russia get a carte blanche to begin attacks on ISIS in Egypt now, the same Egypt which recently "purchased" the two Mistral ships made by France, which were meant to be bought by Russia in a deal that was scrapped in the last minute due to NATO intervention?

One thing is clear: if the Russian population had any qualms about continuing the campaign in Syria, they were just eliminated in perpetuity.

We now await the Russian response, against both ISIS and its direct and indirect sponsors.

>>> Barron's Summary - 31st of October 2015

Barrons Saturday summary: Positive on cloud industry chip players, PFE, OAK, CAR, WY, SRCL, DSY.FR; Cautious on KMI 

Cover story: Positive on the cloud industry and its impact on the semiconductor industry. Cautious on INTC and QCOM as their chips represent a fading part of the demand. AMBA, BRCM, CY, MBLY, MU, NVDA and SNPS are the future of the demand. 

Trader: Opportunities will be abound in the near future with all but guaranteed confusing messaging from the Fed ahead of the December meeting. Markets appear to have recovered their losses but the gains are largely attributed to a few players such as AMZN, FB, GOOGL, and MSFT. Positive on SRCL given its valuation and history of performance. 

Features: 1) Emerging markets panel of William Blair Emerging Markets, Van Eck, Harding Loevner, and Acadian positive on WALMEXV.MX, HDB, 700.HK, 1685.HK, VLID3.BR, ADSEZ.IN, CIEL3.BR, 1299.HK, DABUR.IN, GAPB.MX, PKY1.DE, 034220.KR 2) Cautious on KMI given its valuation in a tough marketplace for its business model 3) Positive on PFE given the potential for its new medicines and its growth may exceed its competitors 4) Positive on CAR as the best pure play in the rental space following consolidation in the industry. 5) Positive on WY; seen as a great play for a continued housing recovery and its helped by recent strong management decisions

Profile: Putnam multi cap core fund holdings include AIG AAPL C CVS GILD GOOGL JPM MSFT PFE XOM and highlights the potential behind following insider buying disclosures and IPOs. 

Follow-Up: Positive on OAK despite its runup in a flat market. Company may have futher upside to the tune of 20%

Asian Trader: China Govt is still supporting the market and has lost an opportunity to bring in foreign funds by failing to admit it had a role in the Shanghai market turmoil

Emerging Markets: Sees KSU as a way to play emerging markets and the port expansion on the West Coast. 

European Trader: Positive on DSY.FR given its strong history of investment in light of volatility in Europe

Commodities: Conditions for the wheat and corn crop in the near future are likely to be negatively impacted by the sunspots that have been observed by NASA. Prices for the crops are likely to rise as a result. 

Streetwise: Positive on small cap stocks as they have underperformed in recent months and should therefore recover in the near term.

WSJ : Russian Passenger Jet Crashes in Egypt’s Sinai Peninsula, Killing 224

Russian Passenger Jet Crashes in Egypt’s Sinai Peninsula, Killing 224 People

Investigation launched into cause of crash of Kogalymavia flight to St. Petersburg from Sharm El Sheikh


A Russian passenger jet crashed in Egypt’s Sinai Peninsula, killing all 224 people on board, after losing contact with aviation authorities on Saturday.

Egyptian officials said the Airbus A321 jetliner, which was operated by Russian carrier Kogalymavia, was flying to St. Petersburg from Sharm El Sheikh, a resort town popular with Russian tourists, when it disappeared from radar screens.

Egypt’s flagship state-run newspaper, Al Ahram, quoted an Egyptian aviation official as saying the plane’s pilot had requested to land at the nearest airport after an unspecified mechanical problem shortly after taking off at 5:50 a.m. local time. The newspaper later cited another Egyptian aviation official as saying the pilot hadn’t made any distress calls or requests to land.

Egypt’s chief prosecutor said the cause of the crash was being investigated. He didn’t say whether terrorism was suspected.

Sinai Province, the Egyptian branch of Islamic State, claimed responsibility for downing the plane, but officials have cast doubt over whether the group has the capabilities to carry out such an attack. Islamic State and its affiliated groups have frequently made exaggerated claims.

Russian President Vladimir Putin ordered Prime Minister Dmitry Medvedev to form a state commission to investigate the crash, the Kremlin said Saturday.

The Russian Embassy in Cairo said on its official Twitter account that all those on board were killed.

Mr. Putin “expressed his deepest sympathies to the families of those who died in the crash.”

The wreckage was located south of the city of Al Arish in the sparsely populated, mountainous north Sinai, according to the aviation authority. As many as 50 ambulances were dispatched, it said.

A spokesman for Egypt’s prime minister said 15 bodies had been recovered and sent to a morgue in Cairo, while investigators continued to search the crash site for evidence and victims. One of the black boxes, which record flight data and audio, was located and taken into the custody of the prosecutor general’s office, he said.

According to the spokesman, the passengers comprised 214 Russians and three Ukrainians, of which 138 were women, 62 men and 17 children. The count didn’t include the seven crew members.

According to the Kremlin, Vladimir Puchkov, Russia’s minister of civil defense, emergencies and disaster relief, was ordered to send aircraft to Egypt to aid in the recovery of the wreckage of the aircraft. Russia’s Emergencies Ministry said five aircraft were flying to Egypt with first responders and forensic investigators on board. The ministry also set up a hot line to aid families of the victims.

The U.S. Federal Aviation Administration in March warned U.S. airlines to avoid flying over the Sinai Peninsula below 26,000 feet. Airline routes traversing the region “are at risk from potential extremist attacks involving antiaircraft weapons,” the FAA said, including shorter-range, shoulder-fired antiaircraft missiles. “Some of these weapons have the capability to target aircraft at high altitudes,” or when approaching or departing airports, the U.S. aviation regulator said, noting that an Egyptian military helicopter flying at lower altitudes had been downed by extremists using a missile.

While south Sinai’s resort cities are largely safe for visitors, a number of northern cities including Al Arish have been engulfed by anIslamist insurgency and the rise of Sinai Province.

The militant group has shown increased military sophistication this year, carrying out increasingly audacious attacks on military and police installations with equipment that had been previously unheard of by the group.

Those assaults, including a rocket attack on an Egyptian Navy frigate in the Mediterranean Sea and a sustained attempt to occupy the town of Sheikh Zuwayed, have shown that the insurgency is well equipped, but military experts and the U.S. government have said the group’s weapons would be incapable of reaching a flight at cruising altitude.

The nature of Saturday’s claim was unusual for the group, which typically includes video or photo evidence of the attacks it takes credit for. But Saturday’s claim wasn’t accompanied by any such visual evidence, instead relying on publicly available facts about the crash.

In taking credit for the crash, the group said it was in response to Russia’s recent entry into the Syrian civil war.

Kogalymavia operates five Airbus A321 passenger aircraft, according to a July news release. Company representatives couldn’t immediately be reached.

Airbus said the A321 that crashed was built in 1997 and operated by Metrojet since 2012. The plane, one of the oldest versions of the single-aisle plane model that first entered service in 1994, had logged nearly 21,000 flights and around 56,000 flights hours, the Toulouse, France-based plane maker said in a statement, adding that it was ready to assist the accident probe.

Airbus narrowbodies have been involved in several recent high-profile crashes, including that of a Germanwings flight in March, apparently at the hands of a suicidal pilot killing all 150 people on board. Late last year, an AirAsia Indonesia plane carrying 162 peoplecrashed into the Java Sea. The crash report is pending.

Still, the Airbus single-aisle jet family, which, along with the Boeing Co. 737 represents the backbone of global commercial airline operations, has a good safety record, with a rate of 0.10 fatal crashes per one million flights—well below many other airplane models.