Carlos Ghosn fallout; Bitcoin plunges; Soup wars

1. End of a business legend: The arrest of Carlos Ghosn in Japan on Monday is forcing three...

Posted: Nov 20, 2018 12:42 PM
Updated: Nov 20, 2018 12:42 PM

1. End of a business legend: The arrest of Carlos Ghosn in Japan on Monday is forcing three major automakers to make tough decisions about their leadership.

Ghosn, the chairman of Nissan (NSANY) Mitsubishi Motors (MMTOF) and Renault (RNSDF), was detained by Japanese authorities after an investigation by Nissan revealed "significant acts of misconduct" over many years.

Banking, finance and investments

Brexit

Business and industry sectors

Business, economy and trade

Company activities and management

Company earnings

Consumer products

Continents and regions

Economic indicators

Economy and economic indicators

Europe

European Union

Financial markets and investing

Financial performance and reports

Financial results

Government organizations - Intl

Holiday retail

North America

Northern Europe

Seasonal retail

Securities trading

Stock indexes

Stock markets

The Americas

United Kingdom

United States

Companies

Target Corp

Business figures

Carlos Ghosn

Nissan Motor Corporation

Renault SA

Currencies

Money, banknotes and coins

Daniel Loeb

Asia

East Asia

Japan

Automakers and manufacturing

Automotive industry

Bitcoin

Digital currencies

Nissan said the misconduct included significantly under-reporting his compensation and misusing company assets. Ghosn is yet to respond to the allegations.

Ghosn is credited with rescuing Nissan and Renault, and stitching together three automakers into a global alliance. But he's now likely to be ousted as chair of all three.

Finance Minister Bruno Le Maire said that he would meet with representatives from Renault on Tuesday to discuss appointing interim management because Ghosn is "no longer capable of leading the group."

The French government owns 15% of Renault. Ghosn also serves as CEO at the carmaker.

Nissan's board will meet Thursday to remove Ghosn from his position. Mitsubishi has also asked its board of directors to "promptly remove" Ghosn as chairman.

Shares in Renault dropped another 3.5% on Tuesday after getting rocked in the previous trading session. Nissan stock shed 5.5% in Tokyo and shares in Mitsubishi declined nearly 7%.

2. Down goes bitcoin: The price of bitcoin has plunged 15% over the past 24 hours, at one point reaching a low of $4,200. It continues to swing wildly.

As is often the case with digital currencies, the cause of the crash is unclear. The US Securities and Exchange Commission recently cracked down on "initial coin offerings," and sales of crypto mining equipment appear to have slowed.

Bitcoin prices are now roughly 75% below record levels set a year ago at the height of a bubble.

3. Soup earnings: Investors are eagerly awaiting an earnings report from Campbell Soup (CPB) amid a fierce proxy fight for control of its board.

Activist investor Daniel Loeb wants to replace five members of the company's 12-person board. Campbell management says it knows the company best and can put it back on the right track.

The struggling 149-year-old company has faced a slew of problems including poor sales, an ill-fated acquisition of Bolthouse and the abrupt departure of its CEO this year.

If Campbell has a strong quarter, management could use the good results to bolster its case. But if earnings disappoint, Loeb will be ready to pounce.

4. Global market overview: US stock futures were lower, signaling another tough day of trading on Wall Street.

European markets opened in negative territory on Tuesday. Germany's DAX led the retreat, shedding over 1%.

In Asia, Japan's Nikkei dropped 1.1% while benchmark indexes in Shanghai and Hong Kong lost roughly 2%.

The Dow dropped 1.6% on Monday and the S&P 500 shed 1.7%. The Nasdaq tumbled 3% as tech stocks including Apple (AAPL), Facebook (FB), Amazon (AMZN) and Google parent Alphabet (GOOGL) suffered heavy losses.

Before the Bell newsletter: Key market news. In your inbox. Subscribe now!

5. Earnings and economics: Barnes and Noble (BKS), Best Buy (BBY), Campbell Soup (CPB), Hormel Foods (HRL), Lowe's (LOW) and Target (TGT) are set to release earnings before the open.

Foot Locker (FL) and Gap (GPS) will follow after the close.

The US Census Bureau will release a report on housing starts for October at 8:30 a.m. ET.

Markets Now newsletter: Get a global markets snapshot every afternoon. Sign up now!

6. Coming this week:
Tuesday — BJ's Wholesale Club (BJ), Best Buy (BBY), Barnes and Noble (BKS), Campbell Soup (CPB), Target (TGT), TJX (TJX) and Gap (GPS) earnings
Wednesday — Deere & Co. (DE) earnings
Thursday — US markets closed for Thanksgiving
Friday — Black Friday; US markets close early

Terre Haute
Clear
67° wxIcon
Hi: 86° Lo: 65°
Feels Like: 67°
Robinson
Overcast
65° wxIcon
Hi: 87° Lo: 63°
Feels Like: 65°
Indianapolis
Scattered Clouds
74° wxIcon
Hi: 85° Lo: 67°
Feels Like: 74°
Rockville
Clear
61° wxIcon
Hi: 86° Lo: 64°
Feels Like: 61°
Casey
Clear
70° wxIcon
Hi: 85° Lo: 64°
Feels Like: 70°
Brazil
Clear
67° wxIcon
Hi: 87° Lo: 64°
Feels Like: 67°
Marshall
Clear
67° wxIcon
Hi: 87° Lo: 64°
Feels Like: 67°
Partly cloudy to mostly clear. A few pop-up showers expected
WTHI Planner
WTHI Temps
WTHI Radar

WTHI Events

 

Illinois Coronavirus Cases

(Widget updates once daily at 7 p.m. CT)

Confirmed Cases: 201727

Reported Deaths: 7905
CountyConfirmedDeaths
Cook1137884943
Lake13047450
DuPage12592523
Kane10027305
Will9576347
St. Clair4215162
Winnebago3814134
McHenry3308114
Madison285579
Kankakee182969
Rock Island179638
Peoria175837
Champaign172919
Kendall143123
Unassigned1382209
Sangamon134533
DeKalb96031
LaSalle87828
Boone77023
Jackson74320
McLean70315
Macon70223
Tazewell6129
Adams5817
Coles54621
Randolph4957
Williamson4777
Clinton43317
Ogle4215
Whiteside36817
Grundy3535
Union33723
Stephenson3366
Monroe33413
Knox3311
Jefferson31720
Morgan2916
Iroquois27412
Henry2661
Vermilion2572
Bureau2473
Cass24511
Macoupin2093
Franklin2051
Warren1960
Perry1933
Effingham1921
Lee1861
Logan1791
Montgomery1757
Woodford1723
Marion1680
McDonough14715
Christian1444
Jersey1412
Jo Daviess1361
Livingston1343
Saline1342
Douglas1333
Pulaski1011
Moultrie1000
Shelby922
Clark882
Mercer774
White750
Fayette733
Hancock721
Johnson710
Washington691
Bond683
Carroll684
Wayne672
Greene660
Piatt650
Jasper617
Cumberland603
Mason580
Menard580
Ford522
Lawrence520
Gallatin512
Wabash440
Massac430
Alexander370
Fulton370
De Witt340
Marshall330
Clay310
Crawford310
Hamilton310
Edgar300
Pike300
Scott280
Edwards240
Richland240
Schuyler190
Hardin180
Brown150
Henderson150
Putnam130
Calhoun120
Pope110
Stark70
Out of IL30

Indiana Coronavirus Cases

(Widget updates once daily at 8 p.m. ET)

Confirmed Cases: 77565

Reported Deaths: 3105
CountyConfirmedDeaths
Marion16304733
Lake7840283
Elkhart499287
Allen4103164
St. Joseph368183
Hamilton2941104
Vanderburgh208215
Hendricks1972109
Cass18099
Johnson1800119
Porter139139
Clark133350
Tippecanoe126312
Madison104866
LaPorte95730
Howard93865
Kosciusko87212
Bartholomew84447
Floyd83750
Marshall80123
Monroe77732
Delaware76852
Vigo75213
Dubois71812
Noble70829
Boone70446
Hancock69439
Jackson6065
Warrick60030
Shelby57228
LaGrange56910
Grant53230
Dearborn52228
Morgan49235
Henry46020
Clinton4564
Wayne40210
White38011
Montgomery36321
Lawrence35827
Harrison35524
Decatur34732
Putnam3288
Daviess28420
Miami2792
Scott27810
Jasper2592
Greene25634
Franklin24915
Gibson2434
DeKalb2424
Jennings23212
Ripley2208
Steuben2173
Fayette2057
Carroll2033
Perry18813
Posey1810
Starke1817
Orange17924
Wabash1795
Wells1782
Fulton1742
Jefferson1722
Knox1681
Whitley1606
Tipton15416
Sullivan1521
Washington1481
Clay1415
Spencer1393
Randolph1325
Huntington1303
Newton12110
Adams1202
Owen1101
Jay940
Rush914
Pulaski841
Fountain762
Brown752
Blackford662
Pike660
Ohio656
Benton630
Vermillion610
Parke591
Switzerland560
Martin500
Crawford480
Union410
Warren251
Unassigned0207