Taylor Swift's next act

MARKETS

• U.S. markets: Not. Enough. Space. To. Describe. Damage. Here. Keep. Reading.
• Real estate: We don't always write about home builder sentiment...but when we do, it's because the National Association of Home Builders' monthly confidence index dropped to its lowest level in more than two years. Rising interest rates seem to be taking a bite out of demand.

AUTO

Nissan’s Chairman Went Rogue

Nissan chairman Carlos Ghosn was arrested Monday after an internal investigation found he had allegedly been underreporting his income "over many years." He'll be booted from the board before the week's out.

But there's more. Nissan said "numerous other significant acts of misconduct have been uncovered, such as personal use of company assets." It also identified another board director, Greg Kelly, in the misconduct.

This is a shocker

Ghosn joined Nissan's team in 1999 and is considered the main architect of a global alliance between Nissan (-5.85%), Mitsubishi, and Renault (-8.43%). Let's untangle this (now's the time to grab your pen and paper)...

• Renault, a French automaker, owns 43.4% of Nissan. And Nissan owns 15% of Renault.
• Mitsubishi joined the party when Nissan took a 34% stake in 2016.
• Ghosn is also the CEO and chairman of Renault and the chairman of Mitsubishi.

And while it spans countries, time zones, and cultures, the alliance has been successful. Together, these companies sold 10.6 million cars in 2017, and as a single entity they'd be considered the world’s largest automaker, per the NYT.

Ghosn was a superstar: He earned the nickname "Le Cost Killer" in France after turning around Renault. And when he was credited with saving Nissan in Japan, he even became the subject of a comic book.

So were there any warning signs?

Well, Ghosn's compensation had recently become a hot topic. He barely won shareholder support for his $8.5 million pay package from Renault in 2017. And in 2010, he became Japan's highest-paid executive.

In total, he brought home about $17 million last year from the three alliance members, per Bloomberg.

Zoom out: Ghosn's downfall is sure to put Nissan's governance under the microscope. And with Ghosn out of the picture, experts are questioning the alliance's future.

MARKETS

Volatility Is the New Normal

Let's survey the damage of another day in the dumps.

Big tech: Always a good place to start. Apple fell 4% with reports out that it cut production orders for its three newest iPhone models. Facebook also dropped 5.7%. It is taking on water as (even more) info comes out about poor management decisions made by Mark Zuckerberg and Sheryl Sandberg.

In fact, every single FAANG stock fell into bear market territory yesterday (each down at least 20% from 52-week highs). Some context? The tech sector was the S&P's best performer last year.

Then there's crypto: Last year at this time, you couldn't wait to come home for Thanksgiving and (attempt to) explain digital tokens to anyone who'd listen. One year later? Bitcoin fell below $5,000, and it's down more than 65% in 2018.

Bottom line: Hedge fund manager Ray Dalio didn't offer any kind of pick-me-up in a Bloomberg interview, predicting, "We will have low returns going forward for a long time."

RETAIL

David’s Bridal Is Just Too Wed to Debt

Tired of your Instagram feed being overrun by those holiday-season proposals at the Christmas tree farm?

You might be spared this year. Millennials are getting hitched in record low numbers, and those who do are opting for more low-key nuptials. That's bad news for David's Bridal.

The wedding dress retailer filed for Chapter 11 bankruptcy protection yesterday—a heavy debt load and changing consumer preferences became too much to handle.

• David's Bridal had tried to adapt to the new norm by purchasing digital gift firm Blueprint Registry this summer...
• But, as CNBC put it, "It can be hard...for traditional retailers hamstrung by debt to build up the infrastructure necessary to support an expansive e-commerce business."

Zoom out (x2):

1. With millennial-focused labels including Anthropologie and Asos creating their own bridal lines, shopping for the big day at 68-year-old David's Bridal is a bigger ask for the young & in love.
2. There are just fewer weddings these days—in 1978, 59% of 18- to 34-year-olds were married. Now, only 29% are.

RETAIL

Your Guide to Holiday Retail Lingo

If you're confused about some of the jargon retailers are using this holiday shopping season (where are the days of simple layaway?), you're not alone. Let's crack open the dictionary and talk retail terms so you know what to expect come Black Friday.

Check Out With Me

• Who's offering it: Walmart
• What it means: You can buy items in-store using employees' handheld devices instead of waiting in the checkout line.
• Worth noting: Target's offering a nearly identical option called "Skip the Line."

Drive Up

• Who's offering it: Target
• What it means: Buy something on the Target app and pick it up without heading inside the store—an employee will deliver it to the parking lot.
• How it's used in conversation: "Honey, is it really necessary to use Drive Up for a single toothbrush?" "Of course, Gail."

Ship to Store

• Who's offering it: Macy's
• What it means: Buy something online and pick it up at the store later.
• Worth noting: Most major retailers have this option, but it goes by different names. The words "pickup" and "in-store" typically make an appearance.

Zoom out: These tactics are all about making the shopping experience more convenient for customers. And right now, there's only one king of convenience—that's Amazon.

MUSIC

Taylor Swift, Savvy Dealmaker

The pop superstar has (again) shown she can bend the music industry to her will.

Yesterday, Swift finally landed on Universal Music Group's Republic Records for her highly anticipated new contract. But on her own terms...

• Stipulation 1: If UMG sells its stake in recently public Spotify, the proceeds must be redistributed to the label's artists.
• Stipulation 2: Swift will own her own masters (aka the original recordings of her songs) going forward.

Zoom out: Swift has used her tremendous leverage (she's got 113 million Instagram followers) to bring about change in the streaming era. She previously withheld her music from Spotify and boycotted Apple Music over their financial arrangements with artists...but Swift has since returned to both streamers after scoring wins.

Now, Big Machine Records will join John Mayer and Calvin Harris on Swift's list of exes. And FWIW, the label—which signed Swift when she was 15—has reportedly been floating a sale for more than $300 million.

WHAT ELSE IS BREWING

• BuzzFeed News is launching a paid membership program for $5/month or $100/year (which also gets you a New Yorker-style tote bag).
• General Electric (-2.24%) has named retired exec John Rice as chairman of its struggling power unit.
• L Brands (-4.52%) cut its annual dividend in half. It also announced that John Mehas, the president of Tory Burch, will become the new CEO of Victoria's Secret.
• Twitter (-5.02%) is redesigning its iOS app to make follower counts less prominent.
• American Airlines (-2.53%) pilots have asked the carrier to begin their contract renegotiations in a bid for higher salaries.
• Societe Generale has settled its drawn-out sanctions violations case with U.S. authorities and agreed to pay $1.34 billion to regulators.

BREAKROOM

From the Crew
Want to hear some weird/interesting facts about November 20?

• It's the 20th birthday of the International Space Station (the first section was launched into orbit on Nov. 20, 1998).
• November 20 is the busiest day of the year to book Botox appointments, with booking rates 79% higher than average.
• They have nothing in common.

Google Trends Trivia
Can you name the Google search term? (Hint: it spikes once a year in November).

(Answer located at bottom of newsletter)

Breakroom Answers