Thursday, 13th July: Jumping on the emissions scandal bandwagon today is Daimler, parent of the lavish and luxurious Maybach, the more accessible Mercedes-Benz, and cheap and cheerful Smart. The same investigation committee handling the VW case are now on Daimler’s back to address the emissions allegations. Shares dropped 2.5% after the market was filled in on a possible one million cars that were sold to customers from 2008 to 2016 that were tested using illegal software with the intention of manipulating emissions tests. If the investigations into the scandal are proven to be true, the group are likely to be hit with financial penalties, vehicle recalls, remediation requirements and more. During May, raids were carried out in 11 sites in Germany in an investigation against employees connected to the fraud and manipulated emissions treatment on diesel cars.
Giving Carillion a break today is N Brown, the online and catalogue retailer who has to cough up between £35m-£40m for selling flawed insurance products to customers from 2006 to 2014. Although the group has stressed that the cost will have little to no impact on their underlying operations, and will not put at risk the profile of the groups’ current and future customer or debtor balances, the market still reacted negatively and sent the shares down more than 8%, taking over Carillion’s spot at the bottom of the 250.
In a bid to attract more talent, Goldman Sachs is letting employees wear trainers and hoodies… Well not quite, but they have relaxed their dress code for computer engineers to try and lure in top tech talent with a more casual working environment. Many Wall Street firms and hedge funds have been losing the battle to win the hearts of the most talented individuals for years now, who typically reject firms like Goldman Sachs to be a part of a group which offers better working hours and workplace perks. Goldman Sachs is somewhat dependent on engineers, who make up about a quarter of the work force and played an important role in helping the group survive during the financial crisis.
After opening slightly higher, the FTSE began to drop again, but only by fractional amounts. Towards the latter half of the morning it fell flat following a 0.4% rise in the pound to $1.292, and took a larger gain at mid-day when it moved 0.15% higher after the miners took well to strong Chinese trade data, which reflected a 17.2% increase in imports and 11.3% in exports. To end an extremely volatile day of ups and downs, the FTSE finally closed almost flat, down 0.02% at 7415.