Matthias Müller, Volkswagen’s new chief executive, said the German carmaker should be able to begin recalling vehicles affected by the diesel emissions scandal in January and complete repairs by the end of 2016. He said that 11m vehicles will require a software update, but others will need new hardware. The technical fix varies according to the model, transmission and country-specific factors, meaning VW requires a range of different solutions, adding to the expense. Shares in VW have fallen more than a third since the scandal broke. (FT)
Central banks around the world are selling U.S. government bonds at the fastest pace on record, the most dramatic shift in the $12.8 trillion Treasury market since the financial crisis. Sales by China, Russia, Brazil and Taiwan are the latest sign of an emerging-markets slowdown that is threatening to spill over into the U.S. economy. Previously, all four countries were large purchasers of U.S. debt (WSJ).
Yum Brands (the parent company of Taco Bell, KFC, and Pizza Hut) has discovered that the road to recovery in China is tougher than expected. Chinese same-store sales, a key industry metric, rose 2 per cent in the third quarter, but trailed behind estimates for 9.6 per cent growth. Comparable sales have declined in each of the four previous quarters. Yum has struggled in China, its biggest market, following a food safety scare in July 2014. China accounts for more than half the company’s revenues (FT).
Oil prices are on the rise again following a near 5% jump yesterday. The surge is being triggered by data from the American Petroleum Institute showing a 1.2M barrel decrease in crude stocks last week, and expectations of increasing demand from the EIA. Oil is up $.73 at $49.26 a barrel, and has rallied 27% from its August low.