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Friday, April 21, 2017

Euro under siege in France election; Toy glut in America; Venezuela targets Spanish company

What's new... what's next
 

By Matt Egan, Patrick Gillespie, Julia Horowitz
and Paul R. La Monica of CNNMoney

1. French election's 'nightmare scenario'

The future of the euro is once again at stake. France's presidential election on Sunday could result in a runoff in June between two euroskeptics. Markets have long fretted over the popularity of far-right Marine Le Pen, who wants to dump the euro. But there's also been a surge for Jean-Luc Melenchon, who has also threatened to drop the euro if Europe doesn't meet key demands. Citigroup calls this potential match-up a "nightmare scenario" for investors. 

2. GM, Movistar under siege in Venezuela

President Nicolas Maduro's administration denies it seized GM's Venezuela plant for state use -- it's just saying the plant is "under embargo," but it should still be up and running. GM isn't buying that wording: It's keeping the plant closed after Wednesday's alleged seizure. GM isn't alone this week either. Maduro is investigating phone service provider Spain's Telefonica subsidiary Movistar, alleging it's aiding his political opponents. In any case, Maduro's government is running out of time and money fast.

3. There is a toy glut & Barbie sales plunge

Mattel has had a rough start to 2017. Losses were bigger than expected and sales fell more than anticipated. It will be tough for new CEO Margo Georgiadis to turn things around. There's just too many toys that Mattel makes that kids don't want. Hasbro makes the toys that kids want. Hasbro has Star Wars toys and the Disney Princess line...which used to belong to Mattel. But it's not all bad news for Mattel. Hot Wheels sales are up, and Mattel may soon get help from Disney too thanks to toys tied to Pixar's Cars 3.

4. The plot to get rich by bombing a soccer team

Bomb a famous soccer team. Profit from the ensuing fall in the club's stock. It sounds like a chilling movie plot, but that's actually what police believe motivated an attack last week on Germany's Borussia Dortmund that injured one player. The man charged with planting explosives near the team bus borrowed tens of thousands of euros from a bank to bet on a fall in the club's shares after the attack. File that under "Stange but True."

5. Quick Takes:

Chinese auto giant hopes Americans will buy a car with this familiar name on it

McDonald's mobile ordering bet could pay off big -- and investors are loving it

Trump denies Exxon Mobil's plans to bypass sanctions and drill for oil in Russia

Another casualty at the shopping mall. Bebe is closing all its stores

Ivanka Trump to donate $425K advance and any future book profits to charity

New Wells Fargo CEO claims that the bank is America's 'best corporate citizen'

6. What's next:

Nigeria next week: Richard Quest is on his way to Lagos and will write the Profitable Moment from there next week.

More toy trouble? Wall Street is hoping the toy glut revealed by Mattel doesn't infect Hasbro, the maker of Monopoly and Transformers toys. Hasbro, whose stock has raced far ahead of Mattel's in recent years, is expected to post earnings on Monday morning. Quarterly numbers are also on tap from Halliburton, the oil services giant that could provide evidence of a rebound in U.S. drilling activity.

Whirlpool worried about trade? The seller of refrigerators and dishwashers gets more than half of its sales from overseas, making it a good gauge of the global economy. Look to see if Whirlpool voices any concern about Trump's trade rhetoric or rising geopolitical concerns.

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