Mercedes owner Daimler slumps on diesel costs

Daimler shares fell as much as 5% after the German automaker cut its profit forecast for the third time in 12 months, saying it was setting aside hundreds of millions of euros to cover a regulatory crackdown on diesel emissions.

The warning — that group operating profit would be flat this year, compared with previous expectations for a slight increase — was the first under new chief executive, Ola Kaellenius, and led some analysts to call for a fresh approach from his team.