Rolling coverage of the latest economic and financial news
- Introduction: BoJ points to global slowdown
- How will it ever get inflation to 2%?
UK outsourcer Interserve, which handles thousands of government contracts including cleaning hospitals and prisons and providing school meals, may be about to fall into administration.
A pre-pack administration would allow the firm to keep operating:
Ahead of the crunch vote on the financial restructuring of government contractor Interserve, i'm told largest shareholder Coltrane is refusing to budge and will vote against. Means a pre-pack administration is on the cards.
It sounds bad but is unlikely to result in disruption to the many public services run by Interserve, at least if you believe the company and the Cabinet Office. But it does speak to underlying problems in outsourcing and construction industries.
Overnight, German carmaker Volkswagen and its former chief executive Martin Winterkorn have been accused of defrauding US investors.
My colleague Jasper Jolly explains:
The US Securities and Exchange Commission is suing Volkswagen and its former chief executive, accusing them of defrauding investors by making “deceptive” claims about the environmental impact of its cars.
The regulator said that from 2007 until 2015, VW carried out a “massive fraud” when selling securities and half a million cars it described as clean diesel, when executives knew about the extent of the cheating, the SEC alleged. The cars emitted 40 times more harmful nitrogen oxides than allowed under US rules.