Rolling coverage of the latest economic and financial news
Shares in Volkswagen have jumped by 7% in early trade in Frankfurt, Reuters reports, after the company agreed the biggest restructuring in its history.
That confirms that investors had not expected VW’s supervisory board to back the plan, and had feared conflict between management and unions.
The unanimous approval of Volkswagen’s Zukunftsplan 2030 last night is, in our view, a fundamental breakthrough and a much-better-than-feared outcome. We expect the market to react positively.
Virtually every single one of the numerous investors we spoke to over the last few days continued to view Volkswagen as simply “not fixable”, and scepticism around the likelihood of a comprehensive agreement remained extremely high.
Continue reading…Rolling coverage of the latest economic and financial newsShares in Volkswagen have jumped by 7% in early trade in Frankfurt, Reuters reports, after the company agreed the biggest restructuring in its history.That confirms that investors had not expected VW’s supervisory board to back the plan, and had feared conflict between management and unions.The unanimous approval of Volkswagen’s Zukunftsplan 2030 last night is, in our view, a fundamental breakthrough and a much-better-than-feared outcome. We expect the market to react positively.Virtually every single one of the numerous investors we spoke to over the last few days continued to view Volkswagen as simply “not fixable”, and scepticism around the likelihood of a comprehensive agreement remained extremely high. Continue reading…
