Germany

German prosecutors have opened another investigation into Volkswagen, this one focusing on whether the company broke local tax laws by making false claims about its vehicles’ carbon dioxide emissions, the International New York Times reported. In addition, there were signs on Tuesday that allegations of emissions cheating could spread to other carmakers, after an environmental organization in Berlin said tests by a Swiss university showed suspicious pollution readings from a Renault passenger van.

Lufthansa cancelled almost 1,000 flights for Monday after a union for its striking cabin crews announced plans to expand its work stoppages to Munich airport, the Irish Times reported. The airline said it was ready to resume negotiations. UFO, the cabin crews’ union, said talks over disputed retirement rules collapsed, triggering the resumption of strikes after a pause on Sunday. Day-long strikes will begin at 4.30am on Monday in Munich, Frankfurt and Dusseldorf and continue for at least 18 hours, the union said.

The Karlsruhe, Germany-based communications business Comsoft has declared itself insolvent. The specialist in air traffic control and air traffic management software is well known as a solution provider in the market and provides air navigation systems and services to civil and military air traffic control authorities. In addition, a satellite communications technology subsidiary – Comsoft Satellite Services – in which Comsoft holds a 60 per cent stake filed for insolvency on the same day – October 23.

Deutsche Bank said on Thursday that it planned to cut as many as 35,000 jobs through internal cuts and the sale of businesses over the next two years as part of an overhaul by John Cryan, the bank’s new co-chief executive, to simplify the lender and improve its returns, the International New York Times DealBook blog reported. As part of its revamping, the German bank, which has a big presence on Wall Street, plans to shut its operations in 10 countries, cut the numbers of its investment banking customers in half and modernize its technology.

A remarkable period of growth ended at Volkswagen on Wednesday when the carmaker reported its first quarterly loss in at least 15 years and began the costly process of absorbing the expense of fixing millions of cars designed to cheat on emissions tests, the International New York Times reported. The day also was the end of a defining era of Volkswagen ambition. Matthias Müller, the new chief executive, signaled that the company would no longer be focused on becoming the world’s largest carmaker. He said on Wednesday that sales would not cease to be an overriding measure of success.

German regional lender HSH Nordbank could agree with the European Commission as early as next week to offload billions of euros in troubled assets onto its government owners and avoid the risk of being shut down, sources said. The ship financier, majority owned by the regional states of Schleswig-Holstein and Hamburg, had to seek support from its owners after being hit by the slump in global trade in the wake of the financial crisis. The European Commission requires banks that receive state aid to undergo substantial restructuring and shrink their balance sheets.

Papierfabrik Walsum has postponed the opening of insolvency proceedings again. In reply to an enquiry, the spokesman for the responsible lawyers office, HRM Henneke Röpke Partnerschaft Rechtsanwälte, said that negotiations are still underway with potential investors. It was added that demand for the products of the Norske Skog subsidiary enables the paper machine to continue to run at full capacity, and customers welcome the change in the product mix. Regular insolvency proceedings are now likely to be opened on 1 November.

Volkswagen has already set aside billions in potential costs related to its emissions-rigging scandal, the Irish Times reported. Mounting speculation that the crisis-stricken company will sell stock to raise funds is sending its non-voting shares to the biggest discount versus voting ones in six years. A capital increase would dilute the value of the more commonly traded, non-voting stock - and investors have taken note. The price of those shares has fallen €25.60 below its less-traded stock, reversing a premium from before the scandal broke.

German exports posted their steepest decline in almost seven years in August, the clearest sign yet that economic weakness in emerging markets is forcing Europe’s export champion away from its longtime reliance on foreign trade, The Wall Street Journal reported. The data will be welcome in the U.S. and at organizations such as the International Monetary Fund that have long lobbied for Europe’s largest economy to reduce its mammoth trade surplus and rely more on domestic growth as a way to help boost surrounding economies in the eurozone.

Deutsche Bank AG expects to report a surprise third-quarter loss of 6.2 billion euros ($7 billion) and may eliminate its dividend for the year after writing down the value of its two biggest divisions and boosting its reserve for legal costs, Bloomberg News reported. The estimates, announced in a statement Wednesday, are part of a strategy that co-Chief Executive Officer John Cryan will present Oct. 29 as he looks to shore up capital and boost profitability at Europe’s biggest investment bank.