Oct. 29 (Bloomberg) -- Porsche SE climbed the most in at least 12 years on speculation the sports-car maker will profit from Volkswagen AG's fourfold increase as it takes steps to ease a so-called short squeeze. Volkswagen tumbled.

Porsche, which is Volkswagen's largest shareholder, jumped 37 percent to 63.05 euros in Frankfurt, the steepest gain since at least January 1996. Volkswagen slumped 45 percent to 517 euros. BaFin, Germany's financial-market regulator said it's reviewing ``possible market manipulation'' after Volkswagen surged 348 percent in two days.

The maker of the 911 sports car has options equivalent to 31.5 percent of Volkswagen's common stock, and said today that it may settle as much as 5 percent of the contracts to increase the supply of shares. The 5 percent stake... // Bloomberg

Oct. 29 (Bloomberg) -- Most German stocks advanced as investors speculated central banks may lower borrowing costs to spur economic growth, while a slump in Volkswagen AG weighed on the benchmark DAX Index.

Deutsche Bank AG snapped a five-day drop, leading financial companies higher as money-market rates declined. Daimler AG rallied 21 percent after Merrill Lynch & Co. recommended buying shares in the world's second-largest maker of luxury cars. Volkswagen, Europe's largest carmaker, sank 45 percent after climbing more than fourfold in the previous two days.

The benchmark DAX Index slipped 14.76, or 0.3 percent, to 4,808.69. The measure rallied 11 percent yesterday, fueled by the surge in Volkswagen shares. DAX Index futures expiring in December gained 3.1 percent as of 5:45 p.m. in... // Bloomberg

Oct. 29 (Bloomberg) -- Most German stocks advanced as investors speculated central banks may lower borrowing costs to spur economic growth, while a slump in Volkswagen AG weighed on the benchmark DAX Index.

Deutsche Bank AG snapped a five-day drop, leading financial companies higher as money-market rates declined. Daimler AG rallied 18 percent after Merrill Lynch & Co. recommended buying shares in the world's second-largest maker of luxury cars. Volkswagen, Europe's largest carmaker, sank 41 percent after climbing more than fourfold in the previous two days.

The benchmark DAX Index fell 42.09, or 0.9 percent, to 4,781.36 as of 3:53 p.m. in Frankfurt. The measure rallied 11 percent yesterday, fueled by the surge in Volkswagen shares. DAX Index futures expiring in December gained 2.2... // Bloomberg

Oct. 29 (Bloomberg) -- Porsche SE climbed the most in at least 12 years on speculation the sports-car maker will profit from Volkswagen AG's fourfold increase as it takes steps to ease a so-called short squeeze. Volkswagen tumbled.

Porsche, which is Volkswagen's largest shareholder, jumped as much as 43 percent to 65.98 euros in Frankfurt, the steepest gain since at least January 1996. Volkswagen slumped as much as 48 percent to 491 euros. BaFin, Germany's financial-market regulator said it's reviewing ``possible market manipulation'' after Volkswagen surged 348 percent in two days.

The maker of the 911 sports car has options equivalent to 31.5 percent of Volkswagen's common stock, and said today that it may settle as much as 5 percent of the contracts to increase the supply of shares.... // Bloomberg

Oct. 29 (Bloomberg) -- European stocks gained for a second day as falling credit costs spurred a rally in financial shares, while higher commodity prices pushed up oil and metals producers.

Royal Bank of Scotland Group Plc , Allianz SE and Axa SA jumped more than 10 percent as money-market rates dropped in Europe, the U.S. and Asia. Daimler AG surged 19 percent after Merrill Lynch Last Updated: October 29, 2008 10:25 EDT // Bloomberg

THE car industry is on its knees. General Motors is burning through $US1 billion ($A1.56 billion) a month and is worth a fraction of what it was. Other manufacturers including Ford and Honda are cutting production.

But Volkswagen, the business that gave the world the Beetle and the campervan, found itself the most valuable company in the developed world this week, the result of another bout of financial speculation that went spectacularly wrong.

Panic buying by hedge funds drove the company's share price into the stratosphere, allowing VW at one point to leapfrog oil giant ExxonMobil to become the biggest company by sharemarket value at just short of a staggering 300 billion ($A596.36 billion). Amid the buying frenzy, the shares touched 1005, five times the level at which they were... // BusinessDay.com.au

Oct. 29 (Bloomberg) -- Porsche SE climbed the most in at least 12 years on speculation the sports-car maker will profit from Volkswagen AG's fourfold increase as it takes steps to ease a so-called short squeeze. Volkswagen tumbled.

Porsche, which is Volkswagen's largest shareholder, jumped as much as 43 percent to 65.98 euros in Frankfurt, the steepest gain since at least January 1996. Volkswagen slumped as much as 48 percent to 491 euros.

The maker of the 911 sports car has options equivalent to 31.5 percent of Volkswagen's common stock, and said today that it may settle as much as 5 percent of the contracts to increase the supply of shares. The 5 percent stake increased in value by 10.8 billion euros ($13.8 billion) in this week's first two days of trading, data compiled by Bloomberg... // Bloomberg

Oct. 29 (Bloomberg) -- Stocks rallied in Europe and Asia for a second day as lower financing costs signaled central bank efforts were unlocking credit markets, while higher commodity prices lifted mining and energy companies. U.S. index futures fell.

Royal Bank of Scotland Group Plc, Allianz SE and Axa SA jumped more than 10 percent. Mitsubishi UFJ Financial Group Inc. climbed 7.8 percent in Japan. Daimler AG surged 19 percent after Merrill... // Bloomberg

Oct. 29 (Bloomberg) -- Porsche SE climbed the most in at least 12 years on speculation the sports-car maker will profit from Volkswagen AG's fourfold increase as it takes steps to ease a so-called short squeeze. Volkswagen tumbled.

Porsche, which is Volkswagen's largest shareholder, jumped as much as 43 percent to 65.98 euros at 10:57 a.m. in Frankfurt, the steepest gain since at least 1996. Volkswagen slumped as much as 48 percent to 491 euros.

The maker of the 911 sports car has options equivalent to 31.5 percent of Volkswagen's common stock, and said today that it may settle as much as 5 percent of the contracts to increase the supply of shares. The 5 percent stake increased in value by 10.8 billion euros ($13.8 billion) in this week's first two days of trading, data compiled by... // Bloomberg

Seeking Alpha (Enlarge photo)

On Tuesday,  Volkswagen ( VLKAY.PK ) briefly became the worlds largest company by market capitalisation as panic-buying by hedge funds desperate to cover losses caused its value to shoot up by up to 150bn.

Shares in Europes largest carmaker soared as high as 1,005 in early trading, having closed at about 210 on Friday. That gave it a market capitalisation of around 296bn ($369bn), higher than that of ExxonMobil ( XOM ), the oil company that... // Seeking Alpha

Oct. 29 (Bloomberg) -- Stocks rallied in Europe and Asia as lower financing costs signaled central bank efforts were unlocking credit markets, while higher commodity prices lifted mining and energy companies. U.S. index futures fell.

Deutsche Bank AG, Royal Bank of Scotland Group Plc and Axa SA rallied more than 10 percent. Daimler AG surged 19 percent after Merrill Lynch Last Updated: October 29, 2008 05:48 EDT // Bloomberg

Bizarre stock market activity has made Volkswagen briefly the worlds biggest company by market value on Tuesday according to reports from the BBC.

VW shares topped out at 1,005 euros, which made the company worth 296bn euros ($370bn; £237bn), this was well over Exxon Mobils $343bn value, which was the most valuable company in the world until these turn of events.

The panic buying of the company was helped by Porsche as the luxury German... // Fleet Directory

Oct. 29 (Bloomberg) -- Germany's DAX Index dropped for the first time in three days as a slump in Volkswagen AG shares overshadowed speculation central banks may lower interest rates to spur economic growth.

Volkswagen, Europe's largest carmaker, sank 39 percent after climbing more than fourfold in the previous two days. The stock was the only decliner in the benchmark DAX Index today. Daimler AG rose 17 percent after Merrill Lynch & Co. recommended buying shares in the world's second-largest maker of luxury cars. Commerzbank AG snapped a five-day drop as Deutsche Bank AG lifted its recommendation for Germany's second-biggest bank by assets.

The benchmark DAX Index lost 89.88, or 1.9 percent, to 4,733.57 as of 9:26 a.m. in Frankfurt. The measure rallied 11 percent yesterday, fueled by... // Bloomberg

Oct. 29 (Bloomberg) -- Stocks rallied in Europe and Asia as lower financing costs signaled central bank efforts were unlocking credit markets, while higher commodity prices lifted mining and energy companies. U.S. index futures fell.

Deutsche Bank AG, Royal Bank of Scotland Group Plc and Axa SA rallied more than 10 percent. Daimler AG surged 19 percent after Merrill Lynch Last Updated: October 29, 2008 05:48 EDT // Bloomberg

Oct. 29 (Bloomberg) -- Stocks rallied in Europe and Asia as lower financing costs signaled central bank efforts were unlocking credit markets, while higher commodity prices lifted mining and energy companies. U.S. index futures fell.

Deutsche Bank AG, Royal Bank of Scotland Group Plc and Axa SA rallied more than 10 percent. Daimler AG surged 19 percent after Merrill Lynch Last Updated: October 29, 2008 05:48 EDT // Bloomberg

Volkswagen (VW) became Europe's biggest firm by market value yesterday after Porsche announced plans to raise its stake in the German vehicle maker to 75 percent, triggering demand from short sellers.

VW rose as much as 147 percent to E520 (R7 328) in Frankfurt trading yesterday. Porsche said it would increase its holding from 42.6 percent, prompting some short sellers to buy from a shrinking pool of stock to end their bets.

Volkswagen has more than tripled this year, giving it a market value of E145 billion, more than Nestlé and BP, according to data compiled by Bloomberg.

Porsche, which has accumulated VW shares since 2005 in an effort to protect ties to its largest supplier, said on Sunday that it aimed to increase its holding from 42.6 percent.... // Business Report

EUROPE REPORT: EUROPEAN STOCKS rebounded from a five-day losing streak yesterday as the Dow Jones Stoxx 600 traded near the cheapest relative to earnings in more than six years and BP's profit topped analysts' estimates.

BP rallied 5.4 per cent after Europe's second-biggest oil company said earnings rose 83 per cent in the third quarter. SAS Group gained as Citigroup recommended the stock, saying it was cheap.

Volkswagen surged as much as 93 per cent to become the world's biggest company by market value briefly. Socit Generale and ING led financial companies lower. Germany's DAX surged 9.9 per cent, buoyed by Volkswagen, which accounts for 27 per cent of the benchmark's weighting.

Total, Europe's biggest refiner, advanced 6.2 per cent to 37.685. Royal Dutch Shell, the region's... // Irish Times

The automotive industry is on its knees. General Motors is burning through $1bn a month and is worth a fraction of what it was. Other manufacturers including Ford and Honda are cutting production.

But Volkswagen, the business that gave the world the Beetle and the camper van, found itself the most valuable company in the developed world yesterday, the result of another bout of financial speculation that went spectacularly wrong.

Panic-buying by hedge funds drove the company's share price into the stratosphere, allowing VW at one point to leapfrog oil giant ExxonMobil to become the biggest company by stockmarket value at just short of a staggering €300bn (£240bn). Amid the buying frenzy, the shares touched €1,005 each, five times the level at which they were changing hands on... // Buzzle

Oct. 29 (Bloomberg) -- Deutsche Boerse AG reduced Volkswagen AG 's weighting in the DAX Index, the benchmark for German stocks, to 10 percent after the shares surged more than fourfold in the past two days.

Europe's biggest carmaker represented 27 percent of the DAX following the rally, an increase from 6.8 percent on Oct. 24, according to data compiled by Bloomberg . Volkswagen's weighting is more than triple that of the second-biggest company in the index, E.ON AG.

The share surge meant Volkswagen was having an outsized effect on the DAX . While it was the only company out of 30 in the index that gained on Oct. 27, Volkswagen's 147 percent jump was enough to drive the measure up 0.9 percent.

``This adjustment is an extraordinary measure,'' Deutsche Boerse said in a statement... // Bloomberg

The automotive industry is on its knees. General Motors is burning through $1bn a month and is worth a fraction of what it was. Other manufacturers including Ford and Honda are cutting production.

But Volkswagen, the business that gave the world the Beetle and the camper van, found itself the most valuable company in the developed world yesterday, the result of another bout of financial speculation that went spectacularly wrong.

Panic-buying by hedge funds drove the company's share price into the stratosphere, allowing VW at one point to leapfrog oil giant ExxonMobil to become the biggest company by stockmarket value at just short of a staggering 300bn (£240bn). Amid the buying frenzy, the shares touched 1,005 each, five times the level at which they were changing hands on Friday.... // guardian.co.uk

Volkswagen briefly overtook Exxon as the world's biggest company by market value, after Porsche's plan to raise its stake in the car maker triggered a four-fold increase in VW's share price, but not everyone is cheering the sudden surge.

Several international investment banks have been caught in a so-called short squeeze as they were betting on a drop in the share price, and the German financial regulator has started to look into the unusual gains, which has forced the banks to cover their bets.

Shares of Volkswagen - Europe's biggest car maker - rose as high as 1005 euro yesterday before settling back to 972.30 euros, up 90% on the day after a 150% rise the previous day. Volkswagen has risen more than fivefold this year and at its intraday peak was valued at 296 billion euro, more than... // WA today

Volkswagen has overtaken Exxon as the world's biggest company by market value, after Porsche's plan to raise its stake in the car maker triggered a four-fold increase in VW's share price, but not everyone is cheering the sudden surge.

Several international investment banks have been caught in a so-called short squeeze as they were betting on a drop in the share price, and the German financial regulator has started to look into the unusual gains, which has forced the banks to cover their bets.

Shares of Volkswagen - Europe's biggest car maker - rose as high as 1005 euro yesterday before settling back to 972.30 euros, up 90% on the day after a 150% rise the previous day. Volkswagen has risen more than fivefold this year and at its intraday peak was valued at 296 billion, more than Exxon... // Sydney Morning Herald

Shares of Volkswagen rose sharply overnight to touch 1005 euros, making the carmaker the world's largest company by market value. It was bigger than US oil giant Exxon at the time.

The stock reversed afterwards, only to regain ground again later to close 82 per cent higher in Frankfurt at 945.00 ($1873), up 425.00 ($842) on the day.

Frankfurt's benchmark DAX closed up 11 per cent - mostly on the back of VW's rise - outperforming other major indices in Europe by a wide margin.

Volkswagen's shares have been on a roller-coaster ride since Porsche Automobil Holding began building a major stake in its much-bigger German peer in recent months. In the past year, the shares have traded in a range from 144.30 to 950.

Short sellers, betting in recent weeks that Volkswagen shares would fall,... // The Australian

Volkswagen AG became the world's biggest company by market value after Porsche SE announced plans to raise its stake in the German carmaker to 75%, triggering demand from short-sellers.

Volkswagen rose as much as 485.01 euros, or 93%, to 1,005.01 euros and was up 89% as of 9:55 a.m. in Frankfurt trading. Porsche said it will increase its holding from 42.6%, prompting some short-sellers to buy from a shrinking pool of stock to end their bets. Volkswagen has risen more than sixfold this year, valuing it at 294-billion euros (US$367-billion), more than Exxon Mobil Corp.'s US$343-billion market value at Monday's close, according to data compiled by Bloomberg.

Porsche, the maker of the 911 sports car, has accumulated Volkswagen shares since 2005 to protect ties to its biggest supplier.... // Financial Post

Oct. 28 (Bloomberg) -- Germany's DAX Index increased the most in two weeks as Volkswagen AG extended yesterday's record gain, overshadowing lower forecasts from Deutsche Lufthansa AG and SAP AG.

Volkswagen, which briefly overtook Exxon Mobil Corp. as the world's biggest company by market value after Porsche SE announced plans to raise its stake in the carmaker, rallied 82 percent today. Lufthansa, Europe's second-largest airline, and SAP slumped at least 4 percent.

The benchmark DAX Index advanced 488.81, or 11 percent, to 4,823.45, the steepest one-day gain since Oct. 13, even as 21 of 30 stocks in the measure fell. DAX Index futures expiring in December jumped 11 percent as of 6:27 p.m. in Frankfurt. The HDAX Index of the country's 110 biggest companies climbed 10 percent.

The DAX... // Bloomberg

Oct. 28 (Bloomberg) -- European stocks rebounded from a five-day losing streak as the Dow Jones Stoxx 600 Index traded near the cheapest relative to earnings in more than six years and BP Plc's profit topped analysts' estimates.

BP rallied 5.4 percent after Europe's second-biggest oil company said earnings rose 83 percent in the third quarter. SAS Group gained as Citigroup Inc. recommended the stock, saying it is cheap. Volkswagen AG surged as much as 93 percent to become the world's biggest company by market value briefly. Societe Generale SA and ING Groep NV led financial companies lower.

``Valuations are interesting,'' said Vincent Juvyns , a strategist at ING Investment Management in Brussels, which oversees $537 billion. ``Good earnings reports are giving a bit of cheer to the... // Bloomberg