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Opening Bell: Volkswagen's legal issues, NAMA and Noonan, Draghi's commitment to QE

The Volkswagen emissions scandal could now lead to some of Europe's biggest ever class action law...
Newstalk
Newstalk

07.33 24 Sep 2015


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Opening Bell: Volkswagen&#...

Opening Bell: Volkswagen's legal issues, NAMA and Noonan, Draghi's commitment to QE

Newstalk
Newstalk

07.33 24 Sep 2015


Share this article


The Volkswagen emissions scandal could now lead to some of Europe's biggest ever class action lawsuits.

The global impact of the scandal is not yet known but drivers in the UK could find out later if their cars are affected.

Bozena Michalowska-Howells of law firm Leigh Day in the UK said: "The key issue in this country is whether or not these devices were able to bypass the European emissions tests.

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"If it is shown that this piece of software defeated the European testing then Volkswagen would be in a very similar position as it is in the US and may well then have to call in their cars with all the resulting costs involved.

"This could well lead to one of the largest group claims ever in this country against Volkswagen for the way in which consumers may have been misled in relation to their vehicle."

Volkswagen's chief executive Martin Winterkorn quit on Wednesday saying he accepted responsibility for "irregularities found in diesel engines" but had not been aware of any wrongdoing.

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Northern Ireland's deputy first minister says that the role played by Ireland's Minister of Finance, Michael Noonan in the sale of NAMA's Project Eagle loan portfolio "raises questions."

Sinn Féin’s Martin McGuinness told the inquiry yesterday that he had been "kept in the dark" regarding the sale of the Northern Irish portfolio, and that he was not aware of phone calls and meetings about the transaction.

He says that he was never “fully briefed or engaged” ahead of the controversial sale.

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The European Central Bank (ECB) has reiterated its commitment to quantitative easing - Mario Draghi has said that if inflation weakens the bank is willing to increase its bond buying activity.

"Should some of the downward risks weaken the inflation outlook over the medium term more fundamentally than we project at present, we would not hesitate to act," he told the European parliament yesterday.

He continues, "The asset purchase program has sufficient inbuilt flexibility. We will adjust its size, composition and duration as appropriate, if more monetary policy impulse should become necessary."

The ECB's current bond-buying programme is pumping €60bn into bond markets every month.

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There are fresh warnings that a lack of office space in Dublin is putting jobs at risk.

The Economic and Social Research Institute (ESRI) and commercial property company, Jones Lang Lasalle say that there is appetite for more office space, especially from multinationals who are already operating in Ireland.

Vacancy in the city is at just 5% - and with space in some new builds already committed, companies face a year long wait for new supply to come on the market.


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