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BUSINESSFriday 25 September 2015
Wall Street drops on global growth worries Berlin: VW’s with
suspect software
STEVE ROTHWELL Investors will closely follow “That just made the market prices hurts mining com- are in Europe too
AP Markets Writer a speech on inflation and think, ‘Hey, does this mean panies. The stock dropped
NEW YORK (AP) — More monetary policy later Thurs- we’re never going to have $4.40, or 6.3 percent, to GEIR MOULSON
evidence that global eco- day by U.S. Federal Reserve a rate increase?’” $65.80. Associated Press
nomic growth is slowing Chair Janet Yellen. The Fed The S&P 500 has fallen 9.2 European markets also fell. BERLIN (AP) — The software
pushed the U.S. stock mar- has rate-setting meetings percent since setting a re- Germany’s DAX dropped at the center of Volkswa-
ket down for a third straight in October and December cord close of 2,130.82 in 1.9 percent, Britain’s FTSE gen’s emissions scandal in
day on Thursday. and investors are looking May and is on track for its 100 declined 1.2 percent the U.S. was built into the
The market fell sharply at for clues on the possible second straight month of and France’s CAC 40 lost automaker’s cars in Eu-
the open, pushing stocks timing of the Fed’s first in- losses. 1.9 percent. rope as well, Germany said
close to their lowest levels terest-rate hike in nearly a On Thursday, Caterpillar Automakers in Europe are Thursday, though it isn’t
of the month, before re- decade. was the biggest decliner in still suffering in the wake yet clear if it helped cheat
bounding during afternoon Policymakers held the the S&P 500. of Volkswagen’s emissions tests as it did in the U.S.
trading to close with only Fed’s benchmark interest The company slumped scandal. While VW’s stock A day after longtime CEO
slight losses. rate close to zero despite after cutting its 2015 rev- closed flat on the day, fel- Martin Winterkorn resigned
Caterpillar, a bellwether an improving job market enue forecast by $1 billion low German carmaker over the scandal, a mem-
for industrial companies, and a steady economy. to about $48 billion. Cater- BMW fell 5.2 percent af- ber of Volkswagen’s su-
fell sharply after cutting its pervisory board said he
sales outlook for this year Specialist Meric Greenbaum works at his post on the floor of the New York Stock Exchange. More expects more executives
and announcing that it evidence that global economic growth is slowing pushed the U.S. stock market down for a third to step down. The com-
would eliminate as many straight day on Thursday. pany’s supervisory board
as 10,000 jobs to cut costs. meets Friday and could
Also, the government re- (AP Photo/Richard Drew) announce new resigna-
ported that orders for long- tions then as well as a new
lasting U.S. manufactured Yellen told reporters after pillar also said sales would ter a report said one of its CEO.
goods dropped in August. the meeting that worries fall another 5 percent next models had failed a test in The U.S. Environmental Pro-
A key category that about China and emerg- year. The company said it Europe. Fiat Chrysler fell 7.5 tection Agency disclosed
tracks business investment ing markets were a factor may eliminate as many as percent. Friday that stealth software
plans was especially weak. in their decision. 10,000 jobs between now In commodities trading, makes VW’s 2009-2015
“We’re looking for that “She, in essence, moved and 2018. The maker of benchmark U.S. crude rose model cars powered by
good news and we’re not the goal posts,” said Quin- mining and construction 43 cents to $44.91 a barrel 2.0-liter diesel engines run
getting any,” said John cy Krosby, a market strate- equipment is suffering as a on the New York Mercan- cleaner during emissions
Toohey, vice president of gist for Prudential Financial. global slump in commodity tile Exchange. q tests than in actual driving.
equity investments at USAA. The EPA accused VW of
The Standard & Poor’s 500 installing the so-called “de-
index fell 6.52 points, or 0.3 feat device” in 482,000
percent, to 1,932.24. The cars sold in the United
Dow Jones industrial av- States. VW later acknowl-
erage lost 78.57 points, or edged that similar soft-
0.5 percent, to 16,201.32. ware exists in 11 million die-
The Nasdaq composite fell sel cars worldwide and set
18.27 points, or 0.4 percent, aside 6.5 billion euros ($7.2
to 4,734.48. billion) to cover the costs of
The market has been in a the scandal.
funk for the past month as The company has told of-
investors worry that slowing ficials that the vehicles
growth overseas, particu- in question included VW
larly in China, will hurt U.S. cars with 1.6-liter and 2-liter
companies. diesel engines in Europe,
A decision by the Federal German Transport Minister
Reserve to hold its bench- Alexander Dobrindt said
mark interest rate close to Thursday.
zero this month also made “We don’t yet have figures
investors uneasy. for how many of these 11
million cars that are appar-
$32.75M mortgage discrimination settlement with bank ently affected are in Eu-
rope,” Dobrindt said. “That
JOSH BOAK in predominantly minority Hudson City would need gation dating back to the will be cleared up in the
AP Economics Writer communities, said the Con- to pay $25 million for a 1930s that deprives minority next few days.”
WASHINGTON (AP) — sumer Financial Protection loan subsidy program to homebuyers — remains a Authorities will continue
Mortgage discrimination Bureau and Justice Depart- increase access to mort- problem decades after the working with Volkswagen
against black and Hispanic ment Thursday. gages in black and Hispan- passage of the 1968 Fair to determine what cars ex-
communities has led to a Those specific practices ic neighborhoods. It would Housing Act. actly are involved.
proposed $32.75 million set- show that Hudson City vio- also owe $2.25 million for Hudson City has $35.4 billion It isn’t yet clear to what
tlement between Hudson lated federal law by struc- community programs and in assets and 135 branches extent the scandal affects
City Savings Bank and the turing its business to avoid outreach and $5.5 million in in New Jersey, New York, other brands in the Volk-
federal government. providing credit based on penalties. Connecticut and Pennsyl- swagen Group, which has
The New Jersey-based race and national origin, The settlement and other vania. The government an- 12 brands in all — includ-
lender located branches, said U.S. Attorney Paul J. government investigations nounced the deal as M&T ing Seat, Audi, Skoda and
chose mortgage brokers Fishman of the District of into the lending policies of Bank is attempting to final- Porsche. q
and marketed loans that New Jersey. other banks indicates that ize its acquisition of Hudson
discouraged borrowers Pending court approval, redlining — a form of segre- City.q
