Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Nissan’s board ousts Ghosn, Asian markets are poised for declines after thin Thanksgiving trading and American retailers are optimistic as the Black Friday shopping frenzy approaches. Here are some of the things people in markets are talking about.
Ghosn Gone
Carlos Ghosn was dismissed as Nissan Motor Co. chairman three days after his arrest on allegations of financial misconduct, marking a stunning fall from grace for an executive who had gained a cult-like status leading a global car alliance. Nissan’s board voted unanimously to remove him from his post, it said after a meeting that lasted into the Tokyo evening on Thursday. At the same time, the panel pledged continuity by saying its alliance with Renault SA won’t change. Ghosn, 64, is set to officially remain a director, since a shareholder vote is needed to remove him from the board.
Brexit Deal
The U.K. and the European Union have agreed to the final piece of their Brexit deal, setting out a vision for close economic ties in a draft that hands British Prime Minister Theresa May some key political wins. EU Council President Donald Tusk said the draft declaration on future ties had been agreed in principle, pending leaders’ sign-off on Sunday. May faces one more hurdle: She now needs to convince a skeptical Parliament to back it in a vote that will probably take place next month.
Markets Open
Asian futures are down after U.S. equity futures dropped alongside European stocks on Thursday in a subdued day of trading thanks to the American Thanksgiving holiday. Volumes are likely to remain thin on Friday in Asia. The pound jumped and the euro strengthened after the U.K. and EU’s breakthrough over the Brexit deal. Oil was back below $54 a barrel. Treasuries didn’t trade because of the holiday, and they won’t trade in Asia, as Japan is shut to celebrate its own version of Thanksgiving.
Spiking Costs
Chinese developers with refinancing needs are biting the bullet. Not only have borrowing costs in China doubled since January, but the National Development and Reform Commission is said to be considering stricter assessments for companies looking to extend their offshore debt issuance quotas to next year, forcing some firms to borrow now rather than wait for market conditions to improve. China’s home builders have sold $37 billion of dollar bonds so far this year for refinancing, and about 65 percent of that was completed by June, according to data compiled by Bloomberg. Meanwhile, average yields on Chinese junk bonds, which mainly consists of developers, have surged to a four-year high.
Coming Up
The economic docket in Asia looks pretty light, with inflation data due in Malaysia and Singapore, and Taiwan updating on industrial production. In the U.S., Black Friday, as the day after Thanksgiving has become known, marks the traditional start to the U.S. holiday shopping season. The sales figures will be closely watched to gauge the resilience of the American economy. Retailers are expecting holiday revenue to accelerate this year on the back of low unemployment and high consumer confidence.
This is what caught our eye over the last 24 hours.
- India’s rupee surges thanks to cheaper oil.
- Morgan Stanley says Fed will start to sound more dovish.
- China mulling cutting tariffs on plane parts.
- Dolce & Gabbana’s marketing blunder reverberates.
- Discounts another sign the Hong Kong property boom is over.
- Global tariffs surge ahead of Xi-Trump G20 meeting.
- How crypto’s 2017 boom turned to a bust.
To contact the editor responsible for this story: Peter Jeffrey at pjeffrey@bloomberg.net
©2018 Bloomberg L.P.