How Low Can You Go…
Vanguard Group is lowering the minimum amount customers need to invest to get a price break on more than three dozen of its funds. The move by the $5.3 trillion indexing giant comes as it pushes to lure investors at a time when asset managers are coming under pressure to slash the costs of funds. Starting this week, Vanguard will lower the minimum investments for its admiral shares to $3000 from $10,000 for 38 index mutual funds. The funds make up the majority of Vanguard’s index funds available to individual investors and include some of the industry’s largest stock and bond index funds. Vanguard became the world’s second-largest asset manager after BlackRock Inc. by launching some of the cheapest funds in the industry.
Carlos Ghosn, one of the world’s best-known chief executives and current head of Nissan has been arrested and fired from his role as chairman of the board. The moves come after an internal investigation found he underreported his income by $44 million and engaged on other “significant misconduct”. Ghosn’s downfall could threaten the future alliance between Nissan, France’s Renault, and Japan’s Mitsubishi that Ghosn had sought to make permanent. Renault, which owns more than 40 percent of Nissan and which Ghosn also serves as CEO, has called a board meeting today to decide what measures it will take. Ghosn is a household name in Japan, where he’s considered a business superstar and even earned a manga comic book about his life. Ghosn has been credited for saving Nissan from bankruptcy through strategic moves like the Renault deal and cost cutting.
Asia: Asian shares closed lower Tuesday as investors reacted to news of Nissan’s CEO being arrested.
Europe: European markets closed lower on Monday, amid lingering uncertainty surrounding the U.K.’s future relationship with the European Union.
U.S: U.S. markets tumbled on Monday after a report that Apple was cutting back on orders from suppliers escalated investors fear the economy is slowing down. DJIA: -395.78 25017.44 NASDAQ: -219.40 7028.48 S&P: -45.54 2690.73
Word of The Day:
The markets for buying and selling equity and debt instruments. Capital markets bring together suppliers of cash such as retail and institutional investors, and users of capital like businesses, governments, and individuals.
Dinner or Drink:
Bourbon Cider Cocktail
1 part Maker’s Mark® Bourbon
1 tsp to 1 tbsp. Sugar
2 dashes Bitters
3 parts Hard Cider, Dry
Garnish with Cherry, Maraschino
In a champagne glass, stir together the sugar and the bitters until the sugar dissolves. Add Maker’s Mark® Bourbon. Top with cold cider. Garnish with a cherry and slice of orange.