The following are some of the news items mentioned in the last few days:

  • Moody’s downgraded Nissan’s credit rating to junk yesterday, citing risks associated with implementation of its restructuring plan, renewal of its product line-up and global trade policies
  • The proposed merger between Nissan and Honda, which aimed to create the world’s third-largest automaker, has been called off due to significant disagreements over the merger’s structure and strategic direction.
    • Key Developments:
      • Merger Proposal: In December 2024, Nissan and Honda announced plans to merge, intending to finalize details by mid-2025 and complete the merger by August 2026.
      • Disagreements Emerge: Negotiations faltered when Honda proposed making Nissan a subsidiary rather than an equal partner. Nissan’s CEO, Makoto Uchida, opposed this structure, citing concerns over Nissan’s autonomy and potential.
      • Talks Collapse: By February 2025, the merger discussions were officially terminated. Despite the end of merger talks, both companies expressed intentions to continue collaborating on technology and electric vehicle development.
      • Financial Implications:
        • Nissan’s Challenges: Nissan has been grappling with declining sales and profitability. Moody’s downgraded Nissan’s credit rating to junk status, citing weak profitability due to diminished demand and an aging model lineup.
        • Honda’s Position: Honda has maintained a stronger financial position, reporting a 25% increase in pre-tax profit, driven by robust U.S. sales and a thriving motorcycle division, despite facing challenges in the Chinese market.
      • Potential Partnerships:
        • Tesla Investment Speculation: Following the collapse of merger talks, Japanese business leaders, including former Prime Minister Yoshihide Suga and ex-Tesla board member Hiro Mizuno, suggested that Tesla CEO Elon Musk consider investing in Nissan. However, Musk dismissed the idea, emphasizing Tesla’s unique production processes.
        • Foxconn’s Interest: Taiwan’s Foxconn has also been mentioned as a potential partner for Nissan. Foxconn proposed a partnership with Honda that could include Nissan and Mitsubishi Motors in the future.
      • The dissolution of the merger talks leaves Nissan at a critical juncture, facing financial challenges and the need to explore new partnerships or strategies to navigate the evolving automotive industry landscape.
  • With the election of Trump, many US citizens are moving to Spanish Capital, Madrid. The number of visas issued to Non-EU citizens has skyrocketed in the last few years
  • Italian PM seeks to avoid angering White House having stood by Kyiv
  • European Space agency is preparing for a potential cancellation by US President Donald Trump of key elements of the Artemis Moon programme, the vehicle for many of Europe’s lunar ambitions
  • In the upcoming German federal election on Sunday, February 23, 2025, polling stations will be open from 8:00 a.m. to 6:00 p.m. local time. Immediately after polls close at 6:00 p.m., exit polls will be released, providing an initial indication of the election outcome. The counting of votes will commence promptly, with preliminary official results expected to be available by approximately 7:00 p.m. This snap election was called following the collapse of Chancellor Olaf Scholz’s coalition government in late 2024, leading to the Bundestag’s dissolution and the scheduling of the election for February 23, 2025.
    • The election will determine the composition of the 630-member Bundestag, which will subsequently elect the next Chancellor. Key parties in contention include the center-right Christian Democratic Union (CDU) led by Friedrich Merz, the far-right Alternative for Germany (AfD) headed by Alice Weidel, the center-left Social Democratic Party (SPD) with incumbent Chancellor Olaf Scholz, and the Greens led by Robert Habeck. Recent opinion polls suggest a lead for the CDU, with the AfD in second place.
    • Given the multiparty landscape, it is anticipated that coalition negotiations will follow the election, as no single party is expected to secure an absolute majority. The formation of a new government may take several weeks, with projections indicating that a new administration could be in place by April 2025.
  • Ne Zha 2, which is based loosely on a 16th-centurt tale of a young outcast endowed with magical, dragon-slaying powers has raked in more than $1.7B USD since its release last month. The box office takings make it the world’s highest grossing animated film ever, entering the all-time global top 10
    • It came out exactly at CNY
    • Director took 6 years to make the film
    • Uses Maya Software to make the movie
    • Non hollywood film to gross 1B USD in single market
    • Chinese has been trying to make a big splash and has managed to do with this movie
    • Might or might not do well in US
    • Signifies chinese audiences preference towards domestic films
  • Apple is withdrawing icloud storage from UK
  • Coinbase says SEC will drop lawsuit against crypto group