Business News Roundup, Feb. 19
Volkswagen internal memos and e-mails suggest that company executives pursued a strategy of delay and obfuscation with U.S. regulators after being confronted in early 2014 with evidence that VW diesel vehicles were emitting far more pollutants than allowed.
The documents, first reported on by the German newspaper Bild am Sonntag and since reviewed by the New York Times, could raise the potential penalties for Volkswagen based on laws requiring public disclosure of problems with the potential to affect a company’s stock price.
According to the documents reviewed by the Times, a confidant of Winterkorn wrote to him in May 2014, warning that regulators might accuse the carmaker of using a defeat device — software that recognized when the car was being tested for emissions and activated pollution-control equipment.
At other times, the cars produced up to 35 times the allowed amount of nitrogen oxide emissions, which are linked to lung ailments and premature deaths.
The number of cars in the United States has since risen to include about 100,000 Audi and Porsche cars with diesel engines.
A man who interfered with a flight crew on a New York-bound US Airways jet that was forced to divert to Pittsburgh has been sentenced to prison.
Authorities say Pectol ignored instructions to remain in his seat, threw his belongings and fought flight attendants and passengers who restrained him.
Cheaper jet fuel and a tax gain helped Virgin America Inc. overcome lower fares and boosted fourth-quarter profit.
CEO David Cush said in an interview Thursday that the average price passengers pay per mile could continue to fall through 2016 as airlines — including his own — keep adding to the supply of seats for sale.
Excluding a noncash gain of $173.5 million related to accounting of tax assets and other one-time items, Virgin earned $1.20 per share, matching the average forecast of eight analysts surveyed by Zacks Investment Research.
Nordstrom’s fourth-quarter earnings failed to meet Wall Street expectations, following a dismal third quarter in which it also failed to meet analysts’ expectations and lowered its outlook for the year.
The number of people seeking unemployment aid fell last week to the lowest level since November, evidence that stock market turmoil and slow growth overseas haven’t caused U.S. businesses to cut jobs.
The Labor Department says weekly applications for jobless benefits fell 7,000 to a seasonally adjusted 262,000.
Average long-term U.S. mortgage rates were unchanged this week, but remained at historically low levels amid worries about the global economy.
Mortgage buyer Freddie Mac says the average rate on a 30-year, fixed-rate mortgage remained at 3.65 percent this week after dropping for six straight weeks.
The average rate on 15-year fixed-rate mortgages was also unchanged from last week at 2.95 percent after falling for five consecutive weeks.
The average rate on five-year adjustable rate mortgages inched up to 2.85 percent from 2.83 percent last week.