Today we are watching…
1. Morgan Stanley (#mstan)
This morning, European stocks are hitting three-week lows, US futures are tumbling on fears of a second wave of coronavirus, and Morgan Stanley economists are regretting what they said yesterday; “we have greater confidence in our call for a v-shaped recovery.” Oh, dear! Chetan Arya led the prediction on the back of aggressive policy action from the Federal Reserve and encouraging surprises in growth data. It seems the market isn’t valuing those elements in the short-term, as a second wave and second potential lockdown increases in probability. A sharp but short downturn could be on the way until governments stamp the virus out and rule out a suicidal second lockdown. Expect volatility!
2. Nissan (#nissan)
In 2018, Nissan boss Carlos Ghosn was accused of under-reporting his pay and ‘misusing company assets’ (joy-riding in the cars?). He denied everything but was still thrown in the locker by Tokyo police. Shares in his company crumbled. He posted bail and managed to “free” himself of prison food. Authorities still watched Ghosn’s house like a hawk, but then, poof, he was gone! He escaped to Lebanon, where he insists it was all a setup. It might have been. There were emails uncovered from inside Nissan that showed insiders trying to “neutralize his initiatives” and reform Nissan’s relationship with Renault to make it more favorable to Nissan. It looks like a coordinated hit job, so enter more lawyers.