One of the world’s most powerful auto bosses is accused of under-reporting his salary over many years
- Latest: Nissan apologises, and proposes sacking Ghosn
- Japanese media: Ghosn has been arrested
- Car boss is accused of under-reporting his salary
- Renault shares have slumped
Renault’s shares are continuing to be pummelled; now down 14%.
The news that Carlos Ghosn has ben arrested on suspicion of violating financial trading has “rocked investor confidence in the Paris-listed stock”, says David Maddon of CMC Markets.
The news that Carlos Ghosn is being ousted from Nissan is causing massive shockwaves in the car industry.
Ghosn seems to be built for the job: He has the ability to connect with strangers instantly and to compartmentalize, no discernible private life outside his family, and a willingness to travel 300,000 miles a year (that’s 11 circumnavigations).
The question is, Who will run this leviathan, which he calls the Renault-Nissan Alliance, after the 60-year-old retires, or if, God forbid, something happens to him?
It is a measure of the extraordinary rise of Mr Ghosn in Japan that he should be deemed worthy enough to eat. The Japanese take their food seriously and do not welcome foreign intrusions. As such, the “Ghosn bento” could be seen as a Japanese way of bestowing acceptance upon him.
Japanese newspaper Yomiuri is now reporting that Carlos Ghosn has been arrested by prosecutors in Tokyo. That’s not been confirmed yet (obviously it’s a fast-moving story…)
Nissan Ghosn: Has Been Arrested – Yomiuri
Nissan Chairman Carlos Ghosn has now been arrested, according to one report in Japan https://t.co/WSRCJ4ebxV
Nissan has now issued a statement, accusing chairman Carlos Ghosn and ‘representative’ Greg Kelly of ‘serious misconduct’.
Based on a whistleblower report, Nissan Motor Co., Ltd. (Nissan) has been conducting an internal investigation over the past several months regarding misconduct involving the company’s Representative Director and Chairman Carlos Ghosn and Representative Director Greg Kelly.
The investigation showed that over many years both Ghosn and Kelly have been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn’s compensation.
Blimey: Renault’s shares have now plunged by over 10%.
Traders in France are understandably shocked by the news that chairman Ghosn faces arrest in Japan for allegedly under-reporting his income.
Newsflash: We’re getting more details from Japan about the shock investigation into Nissan/Renault chairman Carlos Ghosn.
According to Japanese press agency Jiji:
NISSAN SAYS GHOSN USED COMPANY MONEY FOR PERSONAL USE AND COMMITTED SEVERAL OTHER SERIOUS ACTS – JIJI
NISSAN SAYS ITS BOARD TO PROPOSE THAT GHOSN BE TERMINATED FROM CHAIRMAN POST SWIFTLY – JIJI
What a snap: NISSAN SAYS ITS BOARD TO PROPOSE THAT GHOSN BE TERMINATED FROM CHAIRMAN POST SWIFTLY
Boom! Shares in Renault are sliding following a report that auto magnate Carlos Ghosn faces arrest in Japan.
According to the Asahi newspaper, Ghosn is being probed by prosecutors for allegedly violating Japan’s financial instruments and exchange act.
Shares in UK builders are dropping this morning, following a report that house prices have fallen 1.7% this month.
Online estate agent Rightmove reported that the average house price fell by £5,000 in November, with wealthy parts of the South East suffering the biggest reversal.
“Higher-end, former hotspot towns are now among the biggest annual fallers with Rickmansworth (-7.1%), Esher (-6.4%) and Gerrards Cross (-6.0%) now cold spots following price rises of nearly 40% over the seven preceding years.”
The pound has risen in early trading, shaking off some of last week’s losses.
Sterling is up 0.25% at $1.287 against the US dollar, as Theresa May continues to show impressive sticking power.
“This is absolutely the day at which we stand at the bar of history on this…..
“It is quite clear to me that the captain is driving the ship at the rocks.
…and Theresa May will continue to present herself as the only grownup in the room, selling her deal to businesses while her MPs plot. https://t.co/mzYa3MFU66
Will we get to those 48 no confidence letters? ♀️ But if it doesn’t happen within a day or two, many at Westminster may conclude the ERG’s rebel leaders are all and no .
Despite the war of words between the US and China, European stock markets have opened higher.
In London, the FTSE 100 is up around 0.5%, with similar gains in other major markets:
U.S. Vice President Mike Pence didn’t give the bulls what they wanted over the weekend. At the Asia-Pacific Economic Cooperation Summit, Pence said there would be no end to U.S. tariffs on Chinese goods until China changes its ways. His comments suggest that a deal between President Trump and President Xi is unlikely to see the light when the leaders meet at the G20 Summit later this month.
Given that we are near the end of the earnings season and the U.S. economic calendar has only tier 2 data to release, expect markets to trade on thin volumes. Political headlines will likely dominate, and thus expect volatility to remain high.
China’s Global Times, the state-sponsored newspaper, is often a good guide to Beijing’s thinking.
And today’s editorial argues that it’s “not a big deal” that the APEC summit ended without a joint communique for the first time in a quarter of a century.
“It’s delusional of some US elites to think that China is the largest beneficiary of the international system since they mistakenly blame China for the US’ own problems. China has realized its development through hard work, not by taking advantage of the international system.”
Analysts at ING are also concerned that Mike Pence and Xi Jinpeng failed to mend any fences, saying:
The risk to global economies and markets from the Sino-US trade war is elevated after an impasse between two countries at the APEC summit
The discord between America and China over trade loomed over last weekend’s APEC gathering in Papua New Guinea, says Royal Bank of Canada’s Sue Trinh:
The Sino-US discord was palpable at the APEC Summit in PNG, so much so that the confab ended with members unable to agree on a communiqué, for the first time ever.
Aside from this being further evidence of a growing anti-China alliance in the APAC region (watch out for Taiwan’s referendum this Saturday to remove “China” from the Olympic team name), the rhetoric is sharpening between the key players.
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
The United States . . . will not change course until China changes its ways.
“We have great respect for President Xi and China, but as we all know, China has taken advantage of the United States for many, many years and those days are over.”
Unilateralism and protectionism will not solve problems but add uncertainty to the world economy.
History has shown that confrontation, whether in the form of a cold war, a hot war or a trade war, produces no winners.”
Mike Pence sounded far more aggressive on the trade issue over the weekend, where the differences between the US and China was laid bare at the Asia Pacific Economic Co-operation meeting, as Xi and Pence, sparred over trade and security.
It appears that #Trump and #China are pretty far apart on Trade issues based on speeches by China Xi and Vice President Pence over the weekend. #Index #futures open lower with the S&P in many downed 12 points. There’s probably no miracles coming out of the G 20. $ES_F $SPY pic.twitter.com/2LntWjq3Ow