GERMAN COURT OPENS VW HEARINGS

A German court opened proceedings Monday in a landmark case in which some 470,000 consumers aim to establish a right to compensation from automaker Volkswagen for cars affected by the company’s diesel emissions scandal.

The case, brought by the Federation of German Consumer Organizations on behalf of hundreds of thousands of diesel owners, uses rules enacted last year that allow a form of class-action suit.

The new system was prompted in part by the scandal over Volkswagen’s use of software to turn emissions controls off when vehicles weren’t being tested.

The Braunschweig state court declared the suit admissible as proceedings opened, but suggested that the plaintiffs have plenty of work to do to prove their case.

Draghi calls for more government spending to support growth.

NY» European F RANKFU R T, G ER M A Central Bank head Mario Draghi says that stimulus measures including negative interest rates will have to stay in place longer if governments do not step up spending to help growth.

Draghi was quoted Monday by the Financial Times as saying: “Our policies will continue to work, albeit at a slower pace than if governments were spending more.”

“We have countries that have fiscal space and don’t use it,” he said.

He argued that the 19 countries that use the euro need to set up a central spending capacity since individual governments tend to follow their own priorities and not those of the currency union.

Saudi Arabia credit rating downgraded over attacks, outlook.

ON» Credit rating LON D agency Fitch has downgraded Saudi Arabia over the increase in diplomatic and military tensions in the region after the kingdom’s biggest oil processing facility was attacked.

Fitch said in a report on Monday it was cutting Saudi Arabia’s sovereign credit grade to A from A+ due to the tensions as well as broader weakness in the country’s finances.

The agency said it believed “there is a risk of further attacks on Saudi Arabia, which could result in economic damage.”

An attack Sept. 14 struck the world’s largest crude oil processing plant, which is in the kingdom’s east, taking out about 5% of the world’s daily production. The Saudis say Iran was behind the attack, which Tehran denies.

— Denver Post wire services