Volkswagen (DE:VOWG_p) added provisions of around 2.5 billion euros (£2.23 billion) on Friday to the mounting total from its diesel emissions scandal, which has already cost the company around 20 billion euros.
“The reason is an increase in provisions relating to the buyback/retrofit programme for 2.0l TDI vehicles, which is part of the settlements in North America that is proving to be far more technically complex and time consuming,” it said in a statement.
Its shares dropped after the statement and were down 3.1 percent by 0757 GMT, at the bottom of the German blue-chip DAX index (GDAXI), which was up 0.2 percent.
House prices in London have fallen for the first time since 2009 and prices across Britain overall rose at their slowest pace in more than four years in September, mortgage lender Nationwide said on Friday.
In a latest sign of the slowdown in Britain’s housing market since last year’s Brexit vote, Nationwide said prices in London fell by an annual 0.6 percent this month.
The British capital – which has attracted property investors around the world – represented the weakest performing region in the country for the first time since 2005.
Nationally, Nationwide said house prices rose 2.0 percent year-on-year in September, slowing slightly from a rise of 2.1 percent in August and the weakest increase since June 2013.
The dollar was higher against other major currencies on Friday, supported by hopes for an upcoming U.S. fiscal plan and a December rate hike by the Federal Reserve, while investors still awaited the release of U.S. data due later in the day.
The greenback was boosted after U.S. President Donald Trump unveiled a plan on Wednesday calling for lower tax rates for businesses and individuals as part of a comprehensive overhaul of the U.S. tax code.
Gain’s were capped however as the proposal still faces an uphill battle in the U.S. Congress, with the Republican Party divided over it and Democrats hostile.
Sentiment on the U.S. dollar also remained supported since Fed Chair Janet Yellen called for gradual rate hikes in a speech on Tuesday.
Market participants were looking ahead to the release of U.S. reports on personal spending and consumer sentiment due later Friday, for further indications on the strength of the economy.
Euro zone inflation undershot expectations in September, Eurostat data showed on Friday, highlighting that price growth remained week and supporting the European Central Bank’s case for only gradual removal of stimulus.
Inflation in the 19-member currency bloc held steady at 1.5 percent this month, missing expectations for 1.6 percent and trending well below the ECB’s target of almost 2 percent.
With inflation heading lower in the coming months, likely bottoming out below 1 percent early next year, the ECB is in a difficult spot: strong economic growth would warrant policy tightening but weak consumer prices call for continued stimulus.
The likely compromise is a small reduction in asset buys from next year, accompanied by a pledge to keep monetary policy easy for even longer.