Here’s what to expect in the week ahead:
Ex-VW official faces sentencing in emissions case.
A federal judge in Detroit is scheduled to sentence a Volkswagen executive, Oliver Schmidt, on Wednesday to a potentially lengthy prison term for his role in the automaker’s decade-long diesel emissions scandal. Mr. Schmidt, the former head of Volkswagen’s environmental and engineering center in Michigan, pleaded guilty in August to charges of conspiracy, fraud and violating the Clean Air Act in connection with Volkswagen’s systematic scheme to rig vehicles with devices that circumvented federal pollution tests. Prosecutors have recommended that Mr. Schmidt receive a prison term of seven years and fines of up to $400,000. It would be the harshest penalty yet imposed on a Volkswagen official. The company itself has pleaded guilty to conspiracy and other charges, and paid more than $22 billion in civil and criminal penalties and consumer settlements. Bill Vlasic
Investors will closely watch German talks.
Investors will be monitoring the German Social Democrats’ convention on Thursday in Berlin, where the main issue will be whether to continue participating in a grand coalition with Chancellor Angela Merkel and her Christian Democrats. Five years of compromising with Ms. Merkel have hurt the party’s standing with blue collar voters, and the party had planned to remain in opposition after elections in September. But the Social Democrats are Ms. Merkel’s only option to form a stable government, and they face pressure to cooperate in the interests of political and economic stability. So far the turmoil in Berlin has not shaken business confidence, but that could change if the political instability continues. Jack Ewing
Draghi to discuss new bank regulations.
The world’s bankers will be listening closely when Mario Draghi, the president of the European Central Bank, holds a news conference on Thursday after a meeting of the committee that sets global standards for lenders. Mr. Draghi, who is the chairman of the group that includes central bankers and regulators from the world’s largest countries, will provide an update on…