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What does the fall of Carlos Gonna mean for his automatic alliance
The arrest of Mr. Gosna yesterday could cause major problems for the three automakers that he controlled: Nissan, Renault and Mitsubishi.
He was accused of perplexing his compensation to the Japanese authorities and other corporate violations. (It is reported that Nissan-affiliated company bought $ 17.8 million for it, according to the Nikkei Asia Survey.)
Nissan and Mitsubishi said they would remove him as chairman, while the French government says Renault is in charge of interim management.
But Mr. Ghosn played an important role in overseeing the empire — the world's largest automaker if viewed as one business, and it is unclear that someone else can keep it together.
Stephen Wilmot of Heard on the street explains what can happen instead:
The risk to investors in its downfall is that Renault, Nissan and Mitsubishi return to being small but massive automakers, as well as unprecedented technological changes make the scale more necessary than ever.
More: This arrest is a general warning to C.E.O., the FT editorial board writes.
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Today's DealBook briefing was written by Andrew Ross Sorkin in New York, and Michael J. De la Merced and Jamie Condlyff in London.
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Tech Shares Dropped the Stock Market
Yesterday, the Nasdaq fell 3 percent, led by Apple and semiconductor manufacturers. Facebook, Amazon and Netflix all ended up in the non-market, at least 20 percent of their peaks in September.
Matt Phillips of the NYT brings the numbers home: “In early November, Apple was worth more than $ 1 trillion. Now it is estimated at 880 billion dollars. "
Technical investors have a lot of bear. Apple's iPhone sales are questionable; Facebook is bogged down in even greater scandal; and chip makers seem to be on the verge of collapse. Labor tensions also do not help.
But the size of these companies puts their problems at risk, as Mr. Phillips notes:
The bulk of technology companies have a negative impact on the market in both directions. The confusion in Tech on Monday pushed the major stock market indices toward negative territory in November, with the result that investors cling to profits of less than 1 percent for the year.
UK companies support Theresa May & Brexit
Although the political allies of the British Prime Minister do not seem interested in her plan for leaving EW, she may have the backing of the country's business. Yesterday, she received a warm welcome from the Confederation of British Industry, a trading group, from corporate leaders who were relieved by some certainty and repelled by the risk of a contactless Brexit.
Benjamin Muller from the New York Times spoke to the audience:
“She made a deal on the table that was true for the first time in two and a half years,” said Craig Beaumont, director of external relations and advocacy for the Federation of Small Enterprises, who was in the audience. "The business accepts that it is in a tough position, but assesses the progress that it has made."
Some corporate leaders have doubts: several leading financiers, including investor Guy Ruky, publicly supported the “people's voice” in order to reconsider the issue of withdrawing from E.U.
But Ms. Mai’s plan may offer more certainty than another possible outcome if he fails: Brexit, led by Jeremy Corbin, leader of the opposition Labor Party. The head of the Confederation of Business said that there is no time to revise.
More Brexit News: It seems that the rebellion against the leadership of Ms. Mai in her Conservative Party has declined. France and Spain may require further concessions from the UK. And e-mails show that a major supporter of the Prorexit campaign was trying to work with Steve Bannon in 2015.
Arrival
EUROPEAN UNION. leaders will discuss their future relationship with the UK. Officials are expected to tell today how they plan to negotiate on issues such as data protection, security, and trade after the UK leaves.
President Xi Jinping from China will sign investment deals in the Philippines. During a state visit to Manila, Mr. Sy is expected to agree on billions of dollars worth of infrastructure projects with his Philippine counterpart Rodrigo Duterte.
BuzzFeed solution for new media issues? Mergers
Digital publishers, such as BuzzFeed, Vox Media, and Vice, have been looking for years, such as the future of journalism, until advertising is paid. The founder of BuzzFeed, Jonah Peretti, told the NYT that the best way to fix it for large companies in this sector to consolidate.
A big part of the problem is that Facebook and Google dominate digital advertising, which leads to media companies attracting advertisers. Some startups, such as The Athletic and The Information, have turned to subscription models. But Mr. Peretti argues that for larger advertising-managed companies, such as his own, joining a club can be a way to get some negotiation opportunities. And he says he held preliminary talks with some competitors.
Big obstacles remain, as Ed Lee from The New York Times points out:
Any transaction will be difficult to remove, given the number of investors involved and the aggravating losses that may arise from the combination of several unprofitable startups. Downsizing would be inevitable.
Other media news: Traditional media companies are also struggling, as more than 1 million Americans cut the cord in the last quarter.
US Considers Technical Restrictions on Exports
New weapons in America's trade wars may include blocking the sale of exotic technologies abroad. The Commerce Department published yesterday a public comment yesterday on whether "there are specific new technologies that are important to the national security of the United States."
The notification lists dozens of technologies, from quantum computing and A.I. to brain computer interfaces and micro robots that may be subject to export restrictions. Companies may need at least to be licensed to export sensitive technologies to “countries subject to the US embargo, including those subject to the arms embargo”.
It remains to find out how wide the consultations can be, but they can affect everything from the sale of supercomputers to the more common devices such as the iPhone.
“If you think about the range of products that this potentially implies, this is very important,” said WaPo, David Edelman, director of the project on technology, economics and national security at the Massachusetts Institute of Technology. "This is either the opening of big negotiations with industry and the public, or a little cry for help in defining these rules."
Bitcoin is not bad, a very bad year is getting worse
• Last Thursday, Bitcoin Cash, itself a by-product of Bitcoin, came under the so-called “hard fork” to become two separate currencies after the developers failed to reach an agreement. This raised concerns about the erosion of cryptotermine.
• Regulatory control, a big factor contributing to the steady decline in bitcoins this year, still hangs over the industry. Last week S.E.C. forced the two companies to return the funds received through the initial offers of the coins, because sales were not properly registered.
Revolving door
G.E. departed John ricewho last year left the conglomerate as chairman of his gas business.
L Brands Hired John mehas from Tory Burch, like C.E.O. for his Secret lingerie Victoria & # 39; s.
British TSB bank called Debbie Crosby, C.O.O. its rival CYBG, as its C.E.O.
According to Business Insider, Goldman Sachs and UBS were the most active poachers of bankers from competitors this year.
Compass, backed by real estate SoftBank, hired Kristen ankerbrandt from the Carlyle group as C.F.O.
Read speed
offers
• As part of the new Taylor Swift record with Universal, the label should give any money from the sale of its Spotify shares to its artists. (New York Times)
• It is reported that the Saudi company Aramco has abandoned plans to release up to $ 40 billion. US bonds to finance the takeover of chemical manufacturer Sabic by making IP.O. look more dubious than ever.
• Chinese regulators approved Walt Disney takeover for most of the 21st century Fox. (New York Times)
• David & # 39; s Bridal, a wedding dress retailer, has filed for bankruptcy protection. (New York Times)
• The Asian aviation industry may use some consolidation. (Breakingviews)
• Warburg Pincus is reportedly raising up to $ 4 billion for China’s investment fund. (Reuters)
Politics and politics
• Sixteen Democrats signed a public letter against the return of Nancy Pelosi as Speaker of the House of Representatives. (WaPo)
• Abolition of popular tax burden by Republicans could cost them in the medium term. (New York Times)
• Last year, Ivanka Trump repeatedly used personal email for White House questions. (WaPo)
• A federal judge blocked the Trump administration from automatically refusing to provide asylum to migrants who illegally cross the border between the United States and Mexico. (AP)
• King Salman from Saudi Arabia has publicly supported his son and heir to Crown Prince Mohammed bin Salman, who is accused of having a role in the murder of Saudi dissident Jamal Hashoggi. (New York Times)
• Senate Democrats have sued to prevent Matt Whitaker from serving as acting prosecutor general. (Politician)
Deal
• Farmers affected by a trade war should benefit from a $ 12 billion aid program, but it is bogged down. (New York Times)
• Some potential beneficiaries of this trade war: Malaysia, Japan, Pakistan and other Asian countries. (Bloomberg)
• Nvidia should be a thin line because it supplies A.I. chips in the US and in China. (WSJ)
• As Trump's sales representative, Bob Leichizer, prepares for battle at the G20 meeting in Buenos Aires next month. (FT)
• American companies do not want to quit China. (CNBC)
Technology
• What happens to cities that don’t get a big new Amazon office? (Upshot)
• Uber returns to Germany, and this time he plays well. (Also: Take a look inside the car self-service before it was involved in a fatal accident.)
• Facebook's profit schedule is shrinking, but not only because it spends money on privacy and security. (Bloomberg)
• The Snap board is said to believe that Evan Spiegel is focused on the long term — and his aversion to short-term thinking is a source of frustration. (Information)
• Read some of the steps that qualifiers, P.R., which Facebook fired last week, were posted to tech blogs. (TechCrunch)
Best of the rest
• How the predatory lending industry hurts small businesses and makes some government officials very rich. (Bloomberg)
• Small European countries attract talents better than US (Bloomberg)
• Why equal paid maternity and paternity leave benefits both families and employers. (Also: Goldman Sachs fired a 15-year-old veteran when she was on maternity leave.)
• The opioid industry is trying to fight the efforts of the state of New York to make it pay for the crisis of addiction. (WSJ)
• The bond market makes less sense. (Bloomberg)
• Witness Danske Bank says a large European bank handled suspicious payments of $ 150 billion related to its money laundering scandal. (Reuters)
• Standing tables may be overpriced. (Upshot)
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