“Those who cannot remember the past are condemned to repeat it.” — George Santayana

1. German Growth Slows to Five-Year Low — according to flash data, German GDP grew 1.5% in 2018, compared with 2.2% in 2017, pointing to the weakest growth rate in five years. Reasons include a trade war-induced economic slowdown, delays in auto output due to tougher pollution standards and a warmer-than-expected November that held down energy production.
2. NY Grants Hemp License to Canopy Growth — Canopy Growth was granted a license to produce hemp in New York State. Canopy (NYSE:CGC) plans to invest between $100M-$150M for the operations, which will be “capable of producing tons of hemp” on an annual basis. Marijuana is still illegal in the U.S. at the federal level, though many states have passed laws legalizing its use for medical or recreational purposes.
3. PG&E Prepares for Possible Bankruptcy — PG&E (NYSE:PCG) CEO Geisha Williams has stepped down, with General Counsel John Simon named interim chief executive in her place. PG&E (PCG) also announced plans to initiate voluntary reorganization proceedings under Chapter 11 and intends to supply natural gas and electric service without disruption during the process.
4. Huawei Under Investigation for Allegedly Stealing Trade Secrets — the Chinese company is now being investigated by federal prosecutors for reportedly stealing trade secrets from T-Mobile in the United States. According to WSJ, “The investigation grew in part out of civil lawsuits against Huawei, including one in which a Seattle jury found Huawei liable for misappropriating robotic technology from T-Mobile’s Bellevue, Wash., lab, the people familiar with the matter said. The probe is at an advanced stage and could lead to an indictment soon, they said.”
5. Tesla Cuts Workforce By Around 7% — Tesla is slashing its full-time staff headcount by approximately 7%. The layoffs come on the back of various cost-cutting measures the EV maker has made of late as it looks to boost margins and ramp up production of the Model 3. “In Q4, preliminary, unaudited results indicate that we again made a GAAP profit, but less than Q3,” Elon Musk wrote in an email to Tesla (NASDAQ:TSLA) employees. Also, Ford (NYSE:F) announced an all-electric plugin version of its F-150 pickup truck at the Detroit Auto Show – a decision the automaker says will “future-proof” the model and F-Series franchise.

The week ahead — Economic data from Econoday.com:

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