Investors have been keenly watching both Honda Motor Co Ltd (TYO: 7267) and Nissan Motor Co Ltd (TYO: 7201) ever since the two legacy car companies announced plans of a merger to create the world’s third-largest automaker.  

According to Carlos Ghosn, however, Nissan will be on the losing end of such a transaction as Honda will undoubtedly be in the driver’s seat following the merger scheduled for the back half of 2026.

“It’s very sad to see that they’ll be the victim of a carnage, because there’s total duplication between Nissan and Honda,” he said in a recent interview with CNBC.

Ghosn served as the chief executive of Nissan for 14 years from June 2021 to April 2027.

Why is Carlos Ghosn against Nissan-Honda merger

Industry veteran Carlos Ghosn is against a potential merger between Nissan and Honda as a lack of complementarity will likely see them resort to cost reduction to make synergy.

“And we know exactly who’s going to pay the price of it. It’s going to be the minor partner, it’s going to be Nissan,” he argued on Squawk Box Europe.

Nissan would have been better off exploring a merger with Renault as it has better synergies with the French automaker, Ghosn added.

Carlos Ghosn played a central role in forming the Nissan-Renault-Mitsubishi alliance in 1999. The partnership between the three automaker, however, has undergone significant restructuring in recent years.

Honda stock has rallied on Nissan news

On the flip side, Ghosn’s concerns might actually be good news for Honda investors.

After all, if Honda and Nissan, together, emerge as a much stronger entity within the automotive space – and Honda gets to drive that entity, its shares will likely succeed in commanding a premium over the next few years.

That’s part of the reason why Honda stock has rallied a whopping 20% ever since it formally engaged with Nissan over a potential merger.

Honda shares pay a rather lucrative dividend yield of 5.1% at writing that makes up for another good reason to have them in your portfolio.

Nissan is struggling with losses

Nonetheless, a potential merger with Honda could still mean a lifeline for the embattled Nissan.   

The automaker lost 9.3 billion yen ($62 million) in its latest reported quarter and significantly lowered its full-year guidance in November.

Nissan announced plans of trimming its global production capacity by 20% at the time as well. Its chief executive Makoto Uchida told investors last month:

Nissan will restructure its business to become leaner and more resilient, while also reorganising management to respond quickly and flexibly to changes in the business environment … and set Nissan back on a path of growth.

Nissan stock does not currently pay a dividend.

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Brazil wraps up 2024 in a puzzling duality: impressive economic growth on the one hand and lackluster market performance on the other.

Gross domestic product (GDP) growth is expected to hit 3% for the third consecutive year, unemployment is at record lows, and the trade surplus has reached new heights.

Despite these achievements, financial markets tell a starkly different story.

The iShares MSCI Brazil ETF has plummeted 33% this year, while the Brazilian real is the worst-performing major currency globally.

Five-year bond yields have surged five percentage points to nearly 15%.

Brazil’s fiscal spending fuels investor fears

Investor unease stems from concerns about Brazil’s long-standing fiscal challenges.

Excessive government spending, which often triggers inflation and high debt payments, looms large.

President Luiz Inácio Lula da Silva, commonly known as Lula, has stretched fiscal limits during his current term, prioritizing social spending over budgetary discipline.

A November budget package aimed at restoring investor confidence fell flat, avoiding meaningful spending cuts and instead relying on uncertain revenue-boosting measures.

“I think the economic team is really flummoxed about what to do next,” says Ryan Berg, director of the Americas program at the Center for Strategic and International Studies in Barron’s report.

Structural reform in Brazil remains elusive

Brazil’s fiscal issues are deeply entrenched, with 95% of the federal budget constitutionally mandated.

Changing these allocations requires a three-fifths majority in Congress, an almost insurmountable task given the fractured legislature comprising 30 political parties.

Still, some analysts see potential opportunities.

“Bond markets might be near the point where all that is in the price,” argues Arif Joshi, emerging market debt portfolio manager at Lazard Asset Management.

He notes that government bonds offering 15% returns, coupled with inflation below 5%, could attract investors if Lula signals fiscal restraint.

However, one major concern has been alleviated: Brazil’s central bank remains independent.

Gabriel Galipolo, a Lula appointee who assumes the role of governor next year, has demonstrated a commitment to monetary vigilance, voting to raise the key interest rate to 12.25% since September.

Lula’s administration has also proposed a tax system overhaul for 2025 to simplify the country’s complex tax framework, which could further reassure investors.

International trade offers a silver lining

Brazil’s economic fortunes are buoyed by its robust trade relations.

The country exports three times more to China than to the US, insulating it from potential tariff threats under a returning Donald Trump.

Additionally, the European Union recently signed a free-trade agreement with the Mercosur bloc, after 25 years of negotiations.

If ratified, the deal could significantly boost Brazilian exports.

Despite some positive indicators, structural issues remain at the heart of Brazil’s economic struggles.

Past reforms, like pension changes under former President Jair Bolsonaro, have only scratched the surface.

“Maintaining high growth depends on Lula pulling a rabbit out of a hat,” CSIS’ Berg says.

While the president has demonstrated resilience, translating that into meaningful fiscal reform will be his biggest test yet.

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Every year, as the holiday season rolls around, families gather to watch cherished Christmas movies – It’s a Wonderful Life, Miracle on 34th Street, Home Alone, and Love Actually.

Yet, one film that consistently divides opinion is Die Hard. The 1988 action-thriller starring Bruce Willis has earned a spot on many festive playlists, but the question lingers – is it truly a Christmas movie?

Die Hard: The unconventional holiday classic

Die Hard tells the story of NYPD officer John McClane (Bruce Willis), who arrives in Los Angeles on Christmas Eve to reconnect with his estranged wife at her company’s holiday party.

The festive atmosphere turns chaotic when a group of terrorists, led by Hans Gruber (Alan Rickman), seizes the building and takes hostages. McClane becomes the unlikely hero, taking on the terrorists to save his wife and other partygoers.

Though the film was released in July 1988 in the United States, many viewers argue that its Christmas Eve setting, holiday references, and festive soundtrack place it firmly within the holiday movie category.

Others, however, dismiss it as a straightforward action film that happens to take place during the holiday season.

Robert Davi’s evolving perspective on Die Hard

One voice that has added weight to the debate is Robert Davi, who played FBI agent Big Johnson in the film. Initially skeptical about the film’s holiday credentials, Davi has since reconsidered his stance.

In an interview with The Mirror, Davi admitted, “When I first was doing it, I didn’t think it was a Christmas movie in 1988. But it absolutely has been. It’s set during Christmas. It’s become a Christmas film – many people’s favorite Christmas film.”

Davi pointed to the film’s re-release in theaters during the Christmas season as evidence of its enduring association with the holidays.

Cultural impact and festive re-evaluation

Despite its action-heavy narrative, Die Hard features numerous holiday elements that fans highlight to support its status as a Christmas movie.

The soundtrack includes seasonal songs like “Let It Snow! Let It Snow! Let It Snow!” and “Christmas in Hollis” by Run-D.M.C.

Christmas trees, decorations, and dialogue referencing the holiday season appear throughout the film.

One iconic moment that solidified Die Hard’s Christmas status for fans is McClane’s use of festive tape to secure a gun to his back, culminating in his famous line:

Now I have a machine gun. Ho-ho-ho.

Director and star offer differing views

The film’s director, John McTiernan, has also weighed in on the debate.

Speaking to the American Film Institute (AFI) in 2020, McTiernan revealed that although the film wasn’t initially intended as a Christmas movie, its reception transformed it into one.

“The joy that came from it is what turned it into a Christmas movie,” McTiernan said, suggesting that the audience’s perception plays a vital role in defining the film’s identity.

Bruce Willis, however, remains steadfast in his belief that Die Hard should not be classified as a Christmas movie.

During Comedy Central’s 2018 Roast of Bruce Willis, the actor declared, “Die Hard is not a Christmas movie. It’s a goddamn Bruce Willis movie.”

Audience interpretation and the subjective nature of genre

The Die Hard debate underscores the subjective nature of genre classification.

For many viewers, a Christmas movie is any film that evokes a holiday spirit or is watched as part of annual holiday traditions.

By this definition, Die Hard qualifies based on its Christmas setting and recurring holiday themes.

Others argue that Christmas movies must centre around themes of family, love, redemption, and the magic of the season.

Films like A Christmas Carol and Elf embody these qualities, whereas Die Hard leans more heavily into suspense, violence, and action.

What makes a Christmas movie?

The broader debate over Die Hard reflects larger questions about how movies are categorised.

Genre labels often blur, with many films transcending their initial classifications.

For instance, The Nightmare Before Christmas straddles the line between Halloween and Christmas, while Gremlins similarly blends horror and holiday cheer.

Critics of rigid genre definitions argue that audience experience should be the primary factor in determining a film’s identity.

For some, Die Hard embodies the holiday spirit through its narrative of perseverance, reconciliation, and unexpected heroism.

The role of tradition in shaping perception

For many families, Die Hard has become an annual Christmas Eve tradition.

Much like The Lord of the Rings or Harry Potter marathons during the holiday season, the association is less about thematic content and more about shared experiences and rituals.

Social media fuels this tradition, with fans posting memes, quotes, and watch party announcements each December.

Die Hard merchandise, including advent calendars and Christmas ornaments featuring Hans Gruber’s infamous fall from Nakatomi Plaza, reinforces its place in holiday pop culture.

The case against Die Hard as a Christmas movie

Despite strong arguments in favour of Die Hard’s Christmas credentials, detractors emphasise the film’s core identity as an action movie.

They point out that while the story unfolds during Christmas, the holiday setting is incidental rather than integral to the plot.

Film purists contend that Die Hard lacks the emotional warmth and moral lessons typically associated with holiday classics.

Unlike It’s a Wonderful Life, which focuses on community, empathy, and second chances, Die Hard centers on shootouts and explosions.

A debate with no clear resolution

As Die Hard approaches its 36th anniversary, the debate over its status as a Christmas movie shows no signs of fading.

Whether viewed as a holiday classic or simply an adrenaline-fueled action flick, the film’s enduring popularity speaks for itself.

Ultimately, the answer may lie in the eye of the beholder.

For those who cherish Die Hard as part of their holiday traditions, it will always be a Christmas movie – and for those who disagree, the season offers no shortage of alternatives.

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Nike Inc (NYSE: NKE) has had a turbulent 2024 but the coming year is unlikely to be particularly kind to the world’s largest sportswear brand either, according to Wall Street analysts.

Shares of the footwear and apparel company are on track to closing this year with a more than 25% decline due to a series of strategic errors.

Nike promoted Elliot Hill – an industry veteran to the role of its chief executive, tasked with orchestrating a turnaround in October.

But experts remain convinced that it will take more than a year for the company to meaningfully recover.   

How long will it take for Nike to return to growth?

Nike recorded better-than-expected results for its second financial quarter last week that marked the start of its long overdue turnaround, as per Stacey Widlitz of SW Retail Advisors.

Stacey continues to see Nike as a quality name and expects the company to return to growth once it reinvigorates focus on innovation.

“But it’s going to be a long-term, painful process,” she added in a recent interview.

A big mistake that Nike made was trimming its alliance with wholesale partners, including Dick’s Sporting Goods and Foot Locker, in a bid to boost its direct-to-consumer sales, according to Widlitz.

“When you pull back from that channel and withhold some of your best and newest product, someone else comes in and fills those shelves” – and that someone in this case proved to be Hoka and On Running, she argued.

Nike’s store and online sales were down 13% on a year-over-year basis in Q2.

Nike CEO is fully committed to a turnaround

CEO Elliot Hill has already committed to building back trust with the wholesale partners.

“We’ll actively support mutually profitable sell-through. Simply put, we’ll win when our partners win,” he said on the company’s latest earnings call.

He has also disclosed plans of strengthening focus on innovation and sports – a lack of which has meaningfully contributed to Nike losing its mojo, according to experts.

But again, analysts are not entirely convinced that his turnaround plan will help Nike stock fully recover by the end of 2025.

Is Nike stock worth buying for 2025?

Following the earnings call last week, Telsey Advisory downgraded Nike shares to market perform.

Its analysts expect the potential turnaround to “take longer to execute, require greater investments in brand marketing, and result in lower sales and profitability over the next 12 months.”

They now find NKE as fairly valued at about $80 – only slightly above its current price of $77.

Nonetheless, Nike stock pays a dividend yield of 2.09% at writing.

So, its investors do have at least some incentive to wait for the new management to make good on its promise of a significant turnaround.

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