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The UK's 'dieselgate scandal' has lasted a decade. Carmakers are facing a key trial in UK litigations.
A decade after Volkswagen's Dieselgate scandal, lawyers for 1.6 million claimants are bringing a trial against some of the biggest automakers in the world. They accuse them of cheating on diesel emissions tests. Owners of diesel cars made by Mercedes-Benz, Ford, Nissan and Renault, as well as the Stellantis owned brands Peugeot and Citroen, allege that the companies used illegal 'defeat device'. The claimants' attorneys say that these devices monitored emissions when cars were being tested, and made sure they stayed within legal limits. However, when the vehicles were on the roads, they did not. However, the manufacturers say that the claims are flawed, and deny any similarities with the scandal in 2015 which cost Volkswagen billions in fines and compensation. Mercedes-Benz has said that its emission control system is technically and legally justified. 'DEFEAT DEVICES' TRIAL BEGINS The trial will be centered on a sample of diesel cars produced by five manufacturers who are being sued for allegedly using prohibited defeat devices. The court will decide on any damages that should be paid at a second trial next year. The ruling of the court will also apply to hundreds of thousands similar claims made against other manufacturers, including Stellantis' Vauxhall/Opel as well as BMW. Martyn Day from Leigh Day said that if the allegations were proven, "it would demonstrate one of most egregious breach of corporate trust of modern times". VW was forced to pay over 32 billion euros ($37billion) for vehicle repairs, fines, and legal fees after admitting to using defeat devices to cheat on emissions tests. Former Chief Executive Martin Winterkorn also faced criminal charges but his trial has been suspended due to health reasons. LITIGATION AND FINES IN THE WORLD The High Court of London has already ruled against VW's defeat devices in 2020. VW settled these claims in 2022 without admitting any liability. The group of claims against 14 manufacturers is much larger than the VW lawsuit, and the lawyers representing the claimants valued the litigation at $7.97 billion. Around the world, automakers are being sued, including in The Netherlands, where a Dutch court ruled that diesel cars sold under the Stellantis brand Opel, Peugeot Citroen, and DS had defeat devices. Stellantis argued this ruling was incorrect. In the United States, suppliers and manufacturers have paid fines to resolve investigations on diesel vehicle emissions. (1 euro = 0.8645 pounds) (Reporting and editing by Elaine Hardcastle).
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Shanghai Copper falls as tensions between China and the US escalate
Shanghai copper fell on Monday as trade tensions between China and the United States escalated after President Donald Trump threatened to increase tariffs sharply. In response to Beijing's recent expansion of its controls on rare earth exports, the U.S. President threatened on Friday to impose a 100% additional tariff on imports coming from China as well as new export controls for critical software. China blamed Trump for the escalated situation on Sunday, accusing him of hypocrisy. Beijing has not taken any further countermeasures in advance of a possible meeting between Trump, the Chinese president Xi Jinping, and South Korea's President Moon Jae-in later this month, a meeting Trump had threatened to cancel. As of 0330 GMT, the most active copper contract at Shanghai Futures Exchange dropped 2.17%, to 84.650 yuan (11,870.71) a metric ton. The London Metal Exchange's benchmark three-month price of copper increased by 0.08%, to $10,526 per ton, at 0409 GMT. This was after the previous session saw a drop of over 3%. Analysts at Chinese broker GF Futures say that the price of copper is rising due to the short term impact of Trump’s tariff threat. However, supply issues caused by a series mine disruptions are continuing to support its price. After Freeport declared force majeure last month at its flagship Grasberg Mine in Indonesia, investors have been buying copper. Aluminium fell 1.02% among SHFE base metals. Zinc dropped 0.63%. Nickel tumbled 1.87%. Tin slid 2.53 %. Lead was the only metal to gain, gaining 0.15%. The LME metals market saw aluminium up 0.09%. Zinc was up 0.7%. Nickel fell by 0.43%. Lead dropped 0.45%. Tin fell by 1.36%. $1 = 7.1310 Chinese Yuan Renminbi (Reporting and editing by Eileng Soreng; Lewis Jackson, Dylan Duan)
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Oil recovers some of the losses caused by US-China tensions
Oil prices rose Monday, after falling to a five-month low in the previous session. Investors hoped that potential talks between U.S. presidents and Chinese leaders could ease tensions over trade between the two world's largest economies and oil users. Brent crude futures rose 92 cents or 1.47% to $63.65 per barrel at 0408 GMT, after falling 3.82% to its lowest level since May 7. U.S. West Texas Intermediate Crude was at $59.79 per barrel, up 89-cents or 1.51% after a 4.24% drop to its lowest level since May 7. WTI prices are expected to settle on Tuesday, as Monday is an American public holiday. The rebound in the oil markets was likely caused by traders profit-taking on the 'TACO trade' after Trump and Vice-President JD Vance indicated that the newly-announced tariffs were more a negotiation tool and that they were open for making a deal. "However (price) volatility is expected." "I do not think oil or other risk assets will reverse their losses any time soon," she said. Last week, U.S. and China trade tensions erupted after China increased its rare earth export controls. This prompted U.S. president Donald Trump to respond on Friday by imposing 100% tariffs on China’s U.S. bound exports as well as new export controls on “any and all critical" software before November 1. The move comes ahead of a possible Trump-Xi summit on the sidelines the Asia-Pacific Economic Cooperation Forum in South Korea. U.S. trade representative Jamison Greer stated that the meeting could still take place later this month. Goldman Sachs analysts wrote in a report that the most likely scenario is that both sides will pull back from their most aggressive policies, and that the talks could lead to an extension - possibly indefinite – of the tariff escalation freeze reached in May. They added that there was still a risk of trade tensions increasing, which could lead to higher export taxes or greater restrictions on exports, at least temporary. The oil prices fell in March and April, when tensions between China and the United States were at their highest. Customs data show that China's crude oil imports rose by 3.9% in September compared to a year ago, reaching 11.5 million barrels a day. Refineries were operating at the highest rates of utilisation so far this season, and stockpiling continued. Trump announced on Sunday in the Middle East that the Gaza War has ended. He is now heading to Israel, where he will be releasing Israeli hostages as well as Palestinian prisoners under the fragile ceasefire which he brokered. (Reporting and editing by Lincoln Feast, Sonali Paul, and Florence Tan)
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Every trade cloud in Europe has a Taco lining
Wayne Cole gives us a look at what the future holds for European and global markets. Once again, it's TACO-time. Investors hope that the latest rantings of President Trump about tariffs will have little impact in the long run. He did, after all, strike a different note on social media at the weekend. "Don't worry, China will be fine!" The highly respected President Xi had a bad day. The U.S.A. is trying to help China and not harm it !!!" Imagine a drinking-game where you get a shot of alcohol for each exclamation point. Trump will join other world leaders to discuss the Gaza ceasefire in Egypt on January 28. There will be many opportunities for new headlines. Beijing responded by defending their restrictions on rare earth mineral and refusing to accept a call from White House. This is nothing new. Exports in September grew by 8.3% year-on-year, which was twice the expected rate, and imports were also well above expectations. Exports of rare Earths dropped 31% in August. This is likely because the Chinese government tightened up on Western technology and defence manufacturers. S&P 500 and Nasdaq Futures both rose 1.8% as investors assumed that the deadline for November would be extended. The Q3 earnings season, which begins this week for major banks, is expected to be a very positive one. European stock futures have risen between 0.2% to 0.5%. Asia stocks continue to be affected by Friday's fallout. Nikkei Futures, the cash market being closed for a holiday, have risen 1.6% to 46835, but this is still well below Friday's finish of 480888. South Korea is down by 1.2%, and Chinese blue-chip stocks are down 0.9%. The currencies have stabilized with the safe-haven Japanese yen falling and the risk-hedge Aussie rising. The euro is at $1.1600 while markets watch to see if France's new cabinet will last more than 14 hours and if they can pass a budget in parliament. The Treasury cash market is closed on holiday. However, 10-year futures have fallen by about 5 ticks. Gold reached a new peak of $4,059 while oil recovered more than 1%. The markets indicate a 96% probability of a Federal Reserve interest rate cut in December. Fed Chair Powell will have the opportunity to provide his advice when he addresses the NABE Annual Meeting on Tuesday. This week, a host of other Fed officials will be in Washington to attend the IMF/World Bank meeting. Market developments on Monday that may have a significant impact ECB head Lagarde is speaking, as are Paulson from the Fed, Greene of BoE, and Mann.
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China's imports of iron ore reached a new record in September
Imports of iron ore to China in September increased 10.6% compared to the previous month. This was a record-breaking month for one month. The increase was due to an improved demand and higher prices, which encouraged miners to boost shipments. Data from the General Administration of Customs revealed that the world's biggest iron ore consumer, China, imported 116.33 millions metric tons of this key ingredient for steelmaking last month. This is the fourth consecutive month in which the country has exceeded 100 million tons. The volume in September, which exceeded analysts' expectations between 100 million to 106 million tonnes, was higher than the 105.22 millions tons in August, and was also 11.7% more than 104.13 millions tons for the same month in 2024. Analysts said that prices of the main steelmaking ingredient, which is a key component in the production of steel, have risen and are now above the psychologically important level of $100 per ton. This could lead high-cost miner to increase shipments. Iron ore average price Steelhome data showed that the number of people who bought a home in July increased by 5.3% compared to the previous month. Then, in August, it grew 2.5% and in September, 3.6%. The steel industry has seen a rise in confidence as a result of Beijing's promise to clamp down on fierce competition that is destructive, or involution style competition. The demand for iron ore in China, the world's largest consumer of the material, also increased after mills began production again following a suspension in September to accommodate a military parade. Data from the consultancy Mysteel revealed that by late September, the average daily hot metal production, which is typically a gauge for ore demand rose to 2,42 million tonnes from 2.4 millions tons at the end of August. China's imports of iron ore in the first three-quarters of 2025 totalled 917.69 millions tons, a flat rate year-on-year. Ge Xin is the deputy director of Lange Steel. He said that the strong steel demand in China and abroad was also a factor behind robust ore imports. STEEL EXPORTS ARE RECORD HIGH China's exports of steel in September increased by 10% over August, reaching a peak of 10,47 million tons for a period lasting four months. This was contrary to expectations that the growing backlash against cheap Chinese steel could lower outbound shipments. Exports for the first nine-month period of this year increased by 9.2%, reaching a new record for the time at 87.96 millions tons. This keeps the total for the entire year on track to reach a new high.
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China's coal imports in September rose to a nine-month high
Customs data released on Monday showed that China's imports of coal rose to their highest level in nine months, as domestic coal prices increased, making imported coal more affordable. However, shipments were still below the levels seen a year ago. China's General Administration of Customs reported that the country imported 46 million metric tonnes of coal last month. The decline in prices on the international market was responsible for the lower total of last month compared to September, when it was a record high. This record was broken in November. September 2024 is now the second highest month ever. The rapid rise in domestic coal prices during the second half has made imported coal more attractive. The main reason for the rapid recovery of imports is this price advantage, said Feng Dongbin. Vice general manager at consultancy Fenwei Digital Information Technology. The tightening of supply has helped boost prices in the domestic market. Inner Mongolia, China’s largest coal producing region, closed 15 mines after they exceeded the allotted production. The highest thermal power generation in August, mainly from coal, has been recorded since 1998. The data showed that China's imports of coal fell by 11% in the first nine-month period, to 345.89 millions tons. Colleen howe, Christian Schmollinger (Editing)
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China's exports of rare earths drop sharply in September
Customs data released on Monday showed that China's exports of rare earths dropped 31% from the previous month, despite new controls implemented last week. This threatened to disrupt a possible trade truce between Washington and Beijing. China, which is the largest exporter of the rare earths on the planet, sold 4,033 tonnes of the rare earths during September. This was a drop of 30.9% compared to August and the lowest since February. The rare earths family consists of 17 elements. Because the data released on Monday was aggregate, it's unclear which types of exports were affected or which countries. On Oct. 20, a more detailed breakdown will be published. China's rare earth exports dropped sharply in April, after the country imposed export restrictions as a response to U.S. Tariffs. The shipments recovered steadily up until June when they reached an all-time peak, but they have been falling every month since. The U.S. president was prompted to take action after China announced on Friday that it would be expanding its export controls for rare earths. New tariffs are on the way were coming for Beijing. Reporting by Lewis Jackson in Beijing and Amy Lv; editing by Thomas Derpinghaus
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Taiwan's T-Dome air defence system is better integrated for higher kill rates
The Taiwanese "T-Dome", an air defence system, will have a more integrated and efficient "sensor-to-shooter," mechanism to achieve a higher killing rate. A special budget for the end of the year will propose specific expenditures on the system. Taiwan's President Lai Ching-te revealed the multi-layered system of air defence he calls "T-Dome", as part of the government's plans to modernise its military in order to better deter China. China views the island is its own territory, and has increased military and political pressure. Wellington Koo, the Minister of Defence, told reporters in Taipei that Lai's idea was to use a "sensor-to shooter" concept to integrate systems to respond faster and more effectively to enemy targets. He said that if you achieve integration you will increase the chances of interception and be able to coordinate firepower more efficiently and effectively. The U.S. Military has focused on "Sensor-to-Shooter", including the Combined Joint All-Domain Command and Control Concept to connect sensors and shooting into one system. Taiwan's surface-to air defence systems revolve around Patriot missiles made in the U.S. and Sky Bow missiles from Taiwan, along with Stinger missiles designed for low-level interception. Taiwan has also developed the Chiang-Kong high-altitude interceptor missile. We won't achieve effective interception if we don't integrate our anti-missile capabilities with anti-air, anti-drone and anti-air capabilities. Koo stated that we will prioritize procurements that emphasize mobility and high-survivability. He added that a special budget will be released by the end the year to fund new equipment for "T-Dome". Koo added that the "T-Dome", which is asymmetrical, also fits Taiwan's approach to war, allowing its smaller forces to be more agile and capable of delivering a more focused punch. Lai, rejecting Beijing's claims of sovereignty, has committed to increasing defence spending to 5% GDP by 2030. China has never given up the use of force in order to control Taiwan. Beijing's armed forces continue to fight corruption while developing new weapons such as stealth fighters, aircraft carriers and other advanced technology. (Reporting and editing by Christian Schmollinger; Additional reporting by Roger Tung)
Iron ore prices fall on Sino-US trade tension
Iron ore futures declined on Monday due to concerns about renewed Sino-U.S. tensions. However, the firm demand from China's top consumer, along with the hope of Beijing providing more stimulus to offset the impact on its economy, helped to limit losses.
U.S. president Donald Trump announced additional tariffs of 100% for China's U.S. bound exports as well as new export controls "on any and all critical software". These measures were to be implemented by November 1, just nine days before the existing tariff relief was due to expire.
Trump's steep tariff increases, which ended an uneasy truce, between the two world's largest economies, followed China's announcement to increase restrictions on rare-earth elements, vital to the semiconductor and defense industries.
Analysts said that the renewed Sino-US Trade spat has soured market sentiment and sent prices of commodities lower. However, it also raised hopes that China will unveil stimuli to counter the negative effects on its economic development.
As of 0250 GMT, the benchmark November iron ore price on Singapore Exchange was down 0.15% at $106.2 per ton.
As of 0300 GMT, the most traded January iron ore contract at China's Dalian Commodity Exchange dropped 0.13% to 794.50 yuan (111.44 dollars) per ton.
ANZ analysts stated in a report that "Fiscal Measures may be implemented if necessary to mitigate any potential shocks related to trade".
Analysts at ANZ said that policymakers have the ability to adapt recent regulatory tightening in relation to anti-involution campaigns.
The data from Mysteel, a consultancy, showed that the stable demand is also a factor in limiting the downside. Data shows that the Chinese steelmakers' average daily hot metal production was 2,42 million tonnes per week by October 10 - 3.6% more than during the same period of last year.
Coking coal, coke and other steelmaking materials fell by 2.19% and 1.35 percent, respectively.
The benchmarks for steel on the Shanghai Futures Exchange have lost ground. Rebar fell by 1.03%, while hot-rolled coils dropped 0.97%. Wire rod and stainless steel also lost ground.
(source: Reuters)