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 11:42 AM
Updated: Nov 20, 2018 11:42 AM

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.

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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.

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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.

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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

Minnesota Coronavirus Cases

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Ramsey2610103
Stearns198412
Nobles14883
Anoka126259
Dakota118244
Olmsted57510
Washington56230
Kandiyohi4751
Rice4112
Clay40625
Scott3792
Todd2960
Wright2691
Sherburne2192
Mower2161
Carver1852
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Steele1480
Martin1265
Blue Earth1221
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Nicollet747
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Itasca537
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Meeker440
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Jackson390
Becker370
Murray360
Lyon360
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Rock210
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Pope80
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Renville50
Mahnomen51
Red Lake40
Traverse30
Big Stone30
Clearwater30
Redwood30
Grant30
Lac qui Parle30
Houston20
Lake10
Hubbard10
Roseau10
Kittson10

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 18342

Reported Deaths: 496
CountyConfirmedDeaths
Polk3876115
Woodbury265831
Black Hawk171343
Linn93876
Marshall87815
Dallas87317
Buena Vista6820
Johnson6058
Muscatine54741
Wapello5384
Crawford4882
Tama40026
Scott34610
Louisa33610
Dubuque33016
Jasper25716
Pottawattamie2277
Sioux2100
Washington1858
Wright1240
Allamakee1194
Plymouth1191
Warren1140
Story961
Poweshiek888
Mahaska888
Bremer676
Henry671
Clinton601
Des Moines581
Boone560
Taylor480
Cedar461
Guthrie443
Clarke400
Benton391
Jones360
Iowa360
Monroe354
Shelby350
Clayton313
Buchanan310
Osceola310
Marion300
Webster291
Hamilton280
Madison261
Fayette260
Monona240
Lee230
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Cerro Gordo221
Davis200
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Lyon190
Grundy190
Floyd181
Sac170
Mills160
Hardin150
Butler150
Delaware150
Humboldt140
Ida140
Keokuk140
Hancock140
Appanoose133
Jackson130
Dickinson130
Clay130
Greene130
Howard120
Audubon121
Winnebago110
Cass110
Page100
Van Buren90
Franklin90
Carroll90
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Chickasaw80
Emmet80
Unassigned80
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Union60
Montgomery60
Mitchell50
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