Volkswagen lawsuit; Facebook execs out; Tesla's new SUV

In a statement late on Thursday, SEC blamed Volkswagen ( VLKAF ) two of the subsidiaries and former CEO Martin Winterkorn to "raise billions of dollars" through markets through " a number of deceptive claims "about the company's clean diesel cars.

"Volkswagen made false and misleading statements to investors and underwriters about vehicle quality, environmental compliance and VW's financial position," the SEC said.

On Friday, the Volkswagen spokesman said that the SEC's complaint was "legal and indeed wrong, and Volkswagen will fight it vigorously."

Volkswagen's current CEO Herbert Diess is also on fire after he seemed to refer to an infamous Nazi slogan while talking about a measure of the company's profits ̵[ads1]1; earnings before interest and taxes (Ebit) – on Tuesday.

Diess used the term "Ebit macht frei." The term sounds like "Arbeit macht frei", a slogan written on the gates of Auschwitz and other Nazi concentration camps during World War II. Diess has apologized unreservedly.

Volkswagen shares fell lower in Frankfurt trading.

2. Facebook executes out: Two of Facebooks ( FB ) senior executives leave the company, after CEO Mark Zuckerberg announced a plan to relocate it as a "privacy – focused "social network with closer integration between their apps.

Chris Cox, Facebook's chief product officer, and Chris Daniels, head of his mobile messaging platform WhatsApp, will both leave the company, announced it on Thursday.

Cox, who joined Facebook in 2005, was recently in charge of his "family of apps", including Instagram, WhatsApp and Messenger, ending after a short transition period.

Facebook shares were down to almost 2% in premarket trading.

3. Tesla's major reveals: CEO Elon Musk revealed the electric car manufacturer's latest vehicle, Model Y SUV, in California on Thursday.

Tesla ( TSLA ] did not reveal where it will make the vehicle and how it plans to scale production to meet demand.

The launch of model Y comes in middle of a tumultuous phase for Tesla, SEC wants Musk to be charged with contempt for tweeting "inaccurate and material" information about the company, while key administrators have left the company and is facing government review of driver's deaths related to autopilot [19659018]

Tesla shares fell more than 2% in premarket trading.

4. Brexit delayed: UK legislators Thursday voted to delay the country's resignation from the EU Prime Minister Theresa May is now set to ask EU leaders next week for extension to March 29.

The move may be good for the UK's currency, the pound, according to analysts.

"The refusal of a non-agreement fr a The British Parliament and the successful proposal to postpone Brexit are likely to transform the balance between the risk of pound and positive ", wrote Societe Generale analysts in a note.

The pound was edged higher to nearly $ 1.33.

But businesses are seeing Brexit developments with increasing nervousness about Britain crashing out of the EU without a transitional period that will protect trade.

"For every day that goes unclear, we move closer to the worst result – a cliff edge Brexit," said Marjorie Chorlins, CEO of the US-UK Business Council, in a statement. "We urge lawmakers to move with shipping and purpose next week to make an explicit choice on the road ahead."

5. Global Market Review: US futures were slightly higher on Friday morning.
Large shares in Asia also closed higher, while European markets edged up at the opening.
Before the clock newsletter: The key market news. In your inbox. Subscribe now!

6. Coming this week:
Friday – US industrial production and US consumer confidence report

Source link

Back to top button