Stephen Wilmot of Heard on the Street explains what could happen instead:
The risk for investors in his downfall is that Renault, Nissan and Mitsubishi go back to being small but mass-market carmakers just as unprecedented technological change is making scale more necessary than ever.
More: This arrest is a warning to C.E.O.s everywhere, the FT editorial board says.
Tech drove the stock market slump
The Nasdaq fell 3 percent yesterday, led by Apple and semiconductor manufacturers. Facebook, Amazon and Netflix all ended up in bear-market territory, down at least 20 percent from their peaks in September.
Matt Phillips of the NYT drives the numbers home: “Apple was worth more than $1 trillion at the start of November. Now, it’s valued at $880 billion.”
Tech investors have plenty to be bearish about. Apple’s iPhone sales are in question; Facebook is mired in yet more scandal; and chip-makers appear to be on the brink of a crash. Trade tensions don’t help, either.
But the size of these companies makes their fall everyone’s problem, as Mr. Phillips notes:
The sheer bulk of the technology companies gives them outsize influence over the market — in both directions. The tumult in tech on Monday pushed major stock market indexes into negative territory for November, leaving investors clinging to a gain of less than 1 percent for the year.
Futures markets tracking U.S. stocks suggest that the slide could continue today.
British companies support Theresa May’s Brexit deal
Though the British prime minister’s political allies don’t seem keen on her plan for departing the E.U., she may have the backing of the country’s businesses. She received a warm reception yesterday at the Confederation of British Industry, a trade group, from corporate leaders who were relieved by some certainty and repelled by the risk of a no-deal Brexit.
Benjamin Mueller of the NYT spoke to the audience:
“She put a deal on the table, which is the first time in two-and-a-half years that’s been true,” said Craig Beaumont, the director of external affairs and advocacy for the Federation of Small Businesses, who was in the audience. “Business is accepting she’s in a tough position but appreciating the progress she’s made.”
Some corporate leaders have doubts: Several top financiers, including the investor Guy Hands, have publicly backed a “people’s vote” to reconsider leaving the E.U.