Nissan, Altria, US job report: This Week's Top Trending Financial Tweets - Week 49
#7. Nissan recalls 150 000 vehicles
It’s safe to say that the past few weeks haven’t been great for Nissan. After the arrest of the car manufacturer’s ex-chairman Carlos Ghosn, Nissan now said it will recall 150 000 vehicles in Japan, the Financial Times reports.
The recall comes after ‘several newly found nonconformities that may have caused inaccurate pass/fail judgments during the inspection process.’
Nissan has said it will issue a recall for 150,000 vehicles in Japan due to improper inspections for brakes and steering in the latest scandal to hit the carmaker following the arrest of its ex-chairman Carlos Ghosn https://t.co/3ncZD4anlQ pic.twitter.com/QoSJWRmq68— Financial Times (@FinancialTimes) December 7, 2018
#6. Altria’s $1.8 billion investment
Marlboro cigarette maker Altria Group Inc has made a big bet on the fast-growing marijuana industry. The company invested $1.8 billion in Canadian cannabis producer Cronos Group Inc., Reuters reports.
The deal gives Altria a stake of up to 55% in Cronos and is the latest in a series of investments from consumer companies that are hoping to benefit from Canada’s move to legalize marijuana for recreational use, according to the same Reuters article.
Altria to invest $1.8 billion in Canadian cannabis producer Cronos https://t.co/98rosli2UK— Reuters Top News (@Reuters) December 7, 2018
#5. Chinese stocks down
Several Chinese stocks went down quite a bit on Thursday. The movement followed the arrest of Huawei’s Chief Financial Officer Meng Wanzhou in Vancouver, Canada, TechCrunch reports.
Canadian officials detained Meng because of suspicions of Huawei violating American sanctions on Iran. Shares of ZTE - Huawei’s main competitor - went down close to 6% in Hong Kong and those of Shennan Circuit, one of Huawei's suppliers dived almost 10% at some point.
Chinese stocks plummet as Huawei CFO arrest raises trade fears https://t.co/w2oabYKR8i— TechCrunch (@TechCrunch) December 6, 2018
#4. This year’s biggest biotech IPO
Moderna Inc. - a Massachusetts-based biotech firm - raised no less than $604 million in this year’s biggest initial public offering by a biotechnology company, Bloomberg reports.
According to the same Bloomberg article, Moderna doesn’t have any approved drugs (yet). The company expanded the size of the offering to sell almost 26.3 million shares at $23 per share. As such, the offering gives Moderna a market value at IPO of around $7.85 billion.
Moderna raises $604 million in year's biggest biotech IPO https://t.co/LloLtQYv5e— Bloomberg (@business) December 7, 2018
Further reading: Investing in Biotech: Five selection criteria
#3. US November job report
On Friday, there was the highly anticipated US job report for November. Although the report was not as good as expected, the US economy still added 155 000 jobs last month, CNN Business reports. The country’s unemployment rate remained stable, however, at 3.7%.
The report is reassuring for investors who were worried about the Fed moving too fast with its interest rate hikes.
#2. Oil up 5%
We already mentioned this week’s OPEC meeting in Vienna in last week’s overview, wondering if the cartel and non-cartel members would be able to come to an agreement.
It turns out they did.
On the OPEC side, Iran gave the cartel the green light on Friday to reduce the oil output by around 0.8 million barrels per day from 2019 onwards, Reuters reports.
On the non-OPEC side, it seems Moscow is ready to cut around 200 000 bpd and other non-OPEC countries could add another 200 000, which brings the grand total to 1.2 million bpd.
Oil surges 5 percent as OPEC agrees output cut https://t.co/i1Icrtg6yL— Reuters Top News (@Reuters) December 7, 2018
#1. South Africa introduces a minimum wage
Starting from the first of January 2019, South Africa will introduce a minimum wage. According to president Cyril Ramaphosa, the new legislation will force companies to pay their workers at least 20 rand ($1.42) per hour, Bloomberg reports.
Although this is still a very modest wage, it’s meant to provide an economic stimulus and help create jobs in a country where 27% of the labor force is unemployed, president Ramaphosa said.
South Africa's minimum wage to kick in January 1, president says https://t.co/luyzqx99Dz— Bloomberg (@business) December 7, 2018
And that's a wrap. As always, we’ll continue to track Twitter and bring you the top financial micro-messages from the web. See you back here next week.