Good morning! Here’s what you need to know in markets on Thursday.
1. Takata will seek bankruptcy protection from creditors on Monday, two sources said, as the Japanese company faces billions of dollars in liabilities stemming from the biggest recall in automotive history. The Japanese company, whose defective air-bag inflators have been blamed for at least 16 deaths and more than 150 injuries worldwide, will file for protection in Tokyo District Court under the Civil Rehabilitation Act, Japan’s version of US Chapter 11 bankruptcy, said the sources, one of whom has direct knowledge of the matter and one who was briefed on the process.
2. George Clooney created a tequila company on a whim, and now it’s being sold to Diageo for up to $US1 billion (£790 million), CNBC reported Wednesday. The idea behind Casamigos, the brainchild of Clooney and his two friends Rande Gerber, who is Cindy Crawford’s husband, and Michael Meldman, was born when Clooney and Gerber bought neighbouring properties in Mexico and got into drinking tequila — so much so that they decided to create their own, Clooney told CNBC in 2016.
3. Snap acquired Zenly, a French startup that makes a social map so people can see where their friends are hanging out, for $US200 million (£157.7 million) in cash plus additional stock awards, according to a person familiar with the matter. Bloomberg reports that Los Angeles-based Snap bought Zenly in late May, according to the person, and has already turned the product into a feature on its main Snapchat application that lets users see friends’ photo and video posts by location.
4. The red-hot cryptocurrency Ethereum flash-crashed on Wednesday afternoon but has recouped all its losses. The cryptocurrency tumbled from about $US296 (£233.50) to a low of $US13 (£10.25) in a matter of minutes.
5. The European Central Bank is publishing its economic bulletin at 9.00 a.m. BST (4.00 a.m. ET). The bulletin, published after the ECB’s governing council meeting, sets out the central bank’s latest thinking.
6. Oracle’s quarterly profit blew past analysts’ estimates as the business software maker’s big push towards cloud-based products and services paid off. In after-hours trading on Wednesday, the company’s shares were up more than 11% to $US51.55.
7. The Nasdaq climbed more than 0.7% for the second time in three days, rebounding from a 0.8% decline on Tuesday. The S&P 500 and Dow had ideas of their own, declining as weakness in energy companies and raw-material producers more than offset gains in healthcare stocks.
8. Asian markets are higher. Japan’s Nikkei index is up 0.03% at the time of writing (6.25 a.m. BST/1.25 a.m. ET), the Hong Kong Hang Seng is 0.47%, and China’s Shanghai Composite is up 0.93%.
9. Alibaba’s chairman and founder, Jack Ma, thinks that new technologies could be a threat to more than just jobs. During an interview with CNBC’s David Faber on Wednesday, Ma said that new technologies like machine learning and artificial intelligence could lead to the third World War.
10. China’s Dalian Wanda Group denied as “malicious speculation” reports that some Chinese banks had ordered the sale of its bonds, the company said in a statement on Thursday. Wanda Group, controlled by billionaire Wang Jianlin, called the speculation “rumours”, and said it was operating normally.