By Geoffrey Smith and Alan Murray
May 12, 2016

The globetrotting Carlos Ghosn was in Yokohama this morning to announce that Nissan will buy a 34% stake in scandal-plagued Mitsubishi Motors for $2.2 billion, creating a new Nissan-Renault-Mitsubishi alliance that will approach global auto leaders Toyota and Volkswagen in its scale. Mitsubishi had lost nearly half its market value since admitting last month it overstated the fuel economy of its vehicles, but shares jumped after the Nissan announcement. The purchase would give Nissan a stronger presence in emerging Southeast Asian markets, where Mitsubishi’s small cars do well.

 

The biggest deal of the day, however, is yet to be made. Donald Trump and Paul Ryan will meet at Republican National Committee offices later today for a showdown over who runs the Republican party. I’m backing Ryan, both for his pro-growth agenda and on style points. But Trump has the stronger hand. Polls in the last few days – see here and here – have challenged political conventional wisdom that Trump can’t beat Hillary Clinton in November.

 

Meanwhile, schoolyard etiquette has also infected international diplomacy. The Chinese state run newspaper called the British media “barbarians” after Queen Elizabeth was caught on tape calling some Chinese officials “very rude.”

 

Enjoy the day. News below.

 

Alan Murray
@alansmurray
alan.murray@fortune.com

 

 

 

 

 

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