Tuesday, 13th June: German genius VW could be hit with a lawsuit to provide compensation to roughly 220,000 customers after the not so genius emission scandal cropped up. Drivers from across the Netherlands, England & Wales are demanding compensation. VW has offered European drivers a software update for all of the affected vehicles, but that just doesn’t cut it. The case seems to be somewhat resolved in the United States, where the group have agreed to pay up to $25bn to address the claims from owners, environmental regulators, states and dealers, and have also offered to buy back about 500,000 polluting vehicles. However, it hasn’t been that simple across the other areas of the world where VW drivers have been affected. A UK law firm and Dutch Foundation have paired up against VW to try and make them cough up a suitable compensation.
FTSE opened 0.32% higher at 7535, and the FTSE250 followed the same direction, opening 0.44% higher, as the week ahead awaits the latest updates regarding monetary policy decisions to be released by the Federal Reserve. For today, investors will be keeping their eyes and ears open for when the monthly inflation figures are released. As expected by investors, inflation increased once again in May by 2.9% compared to May 2016, and it has moved by its highest level in nearly 4 years. One of the main drivers of this was an increase in the cost of holidays for Brits.
At the top of the FTSE was the London Stock Exchange group, which by mid day was up 4.44% at £35.49. The sharp increase came after news emerged of the groups’ double digit growth which is expected to continue into the long term future.
The positive start did not however carry on throughout the day, fairly similar to yesterday’s ups and downs, as the index took an abrupt u-turn and finished the day down 0.16% at 7500.