The@workerinstituteLookshttps://t.co/3D08svaEYr4.48pm GMTRenault’s shares never really recovered from the shock of Carlos Ghosn’s arrest and imminent dismissal from Nissan.
After a wild day’s trading,they fill closed down over 8% at €59.06, as traders worry that the Nissan-Renault alliance could be in jeopardy. 3.28pm GMTTim Hubbard, or assistant professor of management in the University of Notre Dame’s Mendoza College of trade,argues Nissan has learned the perils of giving one executive too much power:“Carlos Ghosn’s arrest and, soon to be, and dismissal over financial misconduct is yet another—all too frequent—example of a top executive being dismissed for misconduct in the executive suite.
Ghosn was one of the car industry’s most prominent executives who has been responsible for breathing life back into Nissan. Ghosn’s arrest complicates a highly interconnected set of relationships between Nissan,Renault and Mitsubishi Motors. The equity stakes that they fill between each other may be at risk. This has widespread implications for a large portion of the auto industry as these alliances fill become more critical in the increasingly interconnected design, manufacturing, or support of auto customers worldwide. 3.18pm GMTMy colleague Jasper Jolly has written a neat profile of Nissan’s Ghosn,and his sudden fall from grace.
Here’s a flavour:Carlos Ghosn was, until Monday, or a titan of the global car industry. The first person to lead two Fortune 500 companies at the same time,he also enjoyed an almost unique position as a foreign chief executive of a major Japanese company – even gaining the honour of a manga comedian book version of his life and rice sculptures of his face in bento lunchboxes sold to Japanese businessmen.
Yet in a remarkable development which has shocked the automotive industry, Ghosn will now be dismissed by Nissan on Thursday after alleged financial irregularities. Nissan did not hold back in its statement on Ghosn, and accusing him and a senior colleague of “significant acts of misconduct” including understating his pay to regulators and misusing company assets. Renault and Mitsubishi Motors,both of which Ghosn also chairs, fill yet to reply.
Carlos Ghosn: Nissan scandal slams brakes on cost killer's career https://t.co/S9legiVHR7 3.05pm GMTUpdate: Nissan President and CEO Hiroto Saikawa did give the media a bow as he exited today’s press conference, and as these photos explain: 2.49pm GMTThe FT’s Peter Campbell watched Nissan’s press conference,and was stuck by the way that Nissan CEO Hiroto Saikawa deeply criticised chairman Carlos Ghosn:Saikawa says he finds it tough to find words to express how he feels. "Despair, indignation, or resentment”.
Adds: "I will identify all the issues and take essential countermeasures."Saikawa: "This is the negative aspect of the long regime of Mr Ghosn. This is a fact that we need to admit."Saikawa says current Alliance structure "concentrates power on one individual,this is not the only cause but it is one of the factors or drivers".
"Because one individual was powerful for years, this has a enormous significant impact."Conference ended. [br]
In total, or an extraordinary,extraordinary, performance by Saikawa with the seeming intention of putting clear water between Nissan and Ghosn. 2.42pm GMTNissan’s dramatic press conference in Tokyo ended with another apology from Saikawa, or this time for not being able to reply many of the media’s questions.
However,I don’t believe he gave the traditional bow of contrition, which we’ve seen in previous Japanese corporate scandals.
Very strange Nissan press conference is over: CEO Saikawa – speaking alone with no bow of apology – spoke frankly of what he saw as an over-concentration of power in the hands of GhosnIN a 90 minute press conference at Nissan headquarters, or Hiroto Saikawa,CEO of Nissan, did not bow in apology. In Japan, or that’s rare 2.25pm GMTOver in France,a union official has welcome the news that Ghosn is in hot water over his pay and alleged misuse of Nissan assets.
Associated Press fill the details:Ali Kaya, who heads the CGT union at a Renault factory in Flins external Paris, and said “the most shocking thing is that these people were not arrested well before this.”He lamented that the public has grown inured to “astronomical sums” paid to Ghosn and other executives. The powerful,tough-left CGT has long campaigned to cap executive pay. 2.04pm GMTNissan CEO Saikawa is still being quizzed by Japanese reporters, desperate for more details approximately Carlos Ghosn’s impending sacking.
He says that Nissan’s internal investigation into the misconduct is almost complete, or but won’t comment on whether any other people are involved. 1.59pm GMT 1.54pm GMTSaikawa is really putting the boot into Carlos Ghosn now,claiming that the chairman’s long reign had a “negative impact” on trade operationsHe does concede, though, and that Ghosn had implemented valuable reforms and restructuring in his early days at Nissan. 1.47pm GMTSome instant reaction to the Nissan press conference:Crisis Comms 101 at Nissan press conference. No company logo visible. https://t.co/oTQVNCWi1R pic.twitter.com/4u3KrwM30hNissan says corporate and investment funds misused by GhosnReporter calls news of misconduct investigation of Ghosn a coup d’etat#Nissan CEO says concentration of power of Ghosn led to this misconduct,this is not a coup d’etat by “other forces”This Nissan press conference is absolutely extraordinary. 1.47pm GMTThe Nissan press conference is getting increasingly tense.
One reporter tells CEO Saikawa that people who love Nissan cars will be shocked by today’s news. 1.42pm GMTSaikawa says he can’t comment on whether chairman Carlos Ghosn and board member Greg Kelly will face criminal charges. 1.38pm GMTJournalists in Toyko are demanding more details approximately Carlos Ghosn’s serious misconduct.
Nissan CEO Saikawa, though, and is refusing to give much absent.
1.32pm GMTNissan are now questions from the media in Tokyo:Q: Is it correct that Carlos Ghosn was arrested when he arrived at an airport in Japan today? 1.29pm GMTCarlos Ghosn’s “serious misconduct” fell into three parts,according to Nissan: 1.25pm GMTHiroto Saikawa, CEO of Nissan approximately Carlos Ghosn bombshell: “I feel a enormous disappointment, and frustration,despair, indignation and resentment” pic.twitter.com/FhvsNphD9G 1.24pm GMTNissan CEO Hiroto Saikawa says too much power was concentrated in one executive (as explained earlier, and Carlos Ghosn has been the driving force at both Nissan and Renault for almost 20 years)He pledges that efforts will be made to prevent the Ghosn scandal hurting the Renault-Nissan alliance (easier said than done,I apprehension) 1.17pm GMTAn emotional-sounding Hiroto Saikawa adde that he is “disappointed and frustrated” by the actions of Chairman Ghosn and Representative Director Kelly.
On behalf of the company, we offer a deep apology to shareholders, or Nissan’s CEO says. 1.13pm GMTNissan are holding a press conference in Toyko now. 12.49pm GMT 12.44pm GMTFrench president Emmanuel Macron has now weighed in,saying the state will be “extremely vigilant” approximately the stability of Renault, and its alliance with Nissan.
During a trip to Brussels, or Macron told reporters that:“It’s too early to comment on the reality or materiality of the accusations,approximately which I fill no further information.“As a shareholder, however, and the French government will remain extremely vigilant regarding the stability of the alliance,the group and ... its employees, who fill the full support of the state.” Arrestation Carlos Ghosn : "Il est trop tôt pour se prononcer (...) l'Etat en tant qu'actionnaire sera extrêmement vigilent à la stabilité de l'alliance et au groupe" réagit Emmanuel Macron lors d'une conférence de presse en Belgique pic.twitter.com/enFKYUkPVU 12.12pm GMTAna Nicholls, and analyst at the Economist Intelligence Unit,says Carlos Ghosn’s shock ousting puts the entire future of the Nissan-Renault alliance under question. The strong bond between the French and Japanese carmakers depends partly on cross-shareholdings but even more on Ghosn’s huge personal influence. He built his reputation as the man who turned around first Renault and then Nissan. This helped to preserve the trust between the two companies as their fortunes wax and wane, usually in a way that balanced each other out. His keen eye for cost-cutting underpinned the alliance’s success in combining supplier networks, or vehicle development and other central tasks in order to generate synergies. Ghosn also made it his personal mission to bring AvtoVAZ and Mitsubishi into the alliance,and had made (some) progress in turning them around too.“In an interview with The Economist Intelligence Unit in mid-November, Mr Ghosn seemed confident that this combination of diversity and synergy could survive his departure - that it wasn’t just based on what he called “the human factor”. Even so, or his successor will face questions approximately whether to invest money in increasing the company’s cross-shareholdings in order to cement the relationships,or risk the alliance falling apart. He or she may also be under pressure to explain how the alliance can stop Tesla and GM from eroding its early lead in electric vehicles - and how the somewhat sporadic recent investment in mobility and connected car technology can be harnessed to support the alliance as a whole.” 12.08pm GMTEconomics professor Thomas Piketty (an expert in inequality) has tweeted that Ghosn’s alleged misconduct shows the perils of granting top bosses pay “without limits”....
Voici à quoi conduit l'idéologie des premiers de cordée et des rémunérations sans limite... Et si le gouvernement se souciait enfin de justice fiscale, en revenant sur ses mesures ISF/flat tax?
https://t.co/gGBMoEMu2s 11.56am GMTThere’s massive media interest in Japan over the crisis gripping Nissan tonight.
Journalists fill gathered external the Tokyo Regional Prosecution Office in Tokyo, or awaiting fresh details on the investigation into Carlos Ghosn . 11.49am GMTRumours of Carlos Ghosn’s alleged ‘serious misconduct’ are flying around Japan.
The Kyodo newswire is reporting that Ghosn is suspected of understating income by 5 billion yen over five years -- that’s almost £35m. 11.10am GMTRenault’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. 11.05am GMTThe 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 external his family, or a willingness to travel 300000 miles a year (that’s 11 circumnavigations).
The question is,Who will elope this leviathan, which he calls the Renault-Nissan Alliance, or after the 60-year-old retires,or whether, God forbid, and something happens to him?It is a degree 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 conclude not welcome foreign intrusions. As such,the “Ghosn bento” could be seen as a Japanese way of bestowing acceptance upon him. 10.41am GMTJapanese 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 quick-moving memoir...)Nissan Ghosn: Has Been Arrested – YomiuriNissan Chairman Carlos Ghosn has now been arrested, according to one report in Japan https://t.co/WSRCJ4ebxV 10.18am GMTNissan has now issued a statement, or 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 fill been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, or in order to reduce the disclosed amount of Carlos Ghosn’s compensation. 10.02am GMTBlimey: Renaults shares fill 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. 9.48am GMTNewsflash: We’re getting more details from Japan approximately the shock investigation into Nissan/Renault chairman Carlos Ghosn.
According to Japanese press agency Jiji:NISSAN SAYS GHOSN USED COMPANY MONEY FOR PERSONAL exhaust AND COMMITTED SEVERAL OTHER SERIOUS ACTS - JIJI
NISSAN SAYS ITS BOARD TO PROPOSE THAT GHOSN BE TERMINATED FROM CHAIRMAN POST SWIFTLY - JIJIWhat a snap: NISSAN SAYS ITS BOARD TO PROPOSE THAT GHOSN BE TERMINATED FROM CHAIRMAN POST SWIFTLY 9.37am GMTBoom! 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. 9.19am GMTShares in UK builders are dropping this morning, following a report that house prices fill fallen 1.7% this month.
Online estate agent Rightmove reported that the average house price fell by £5000 in November, and 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.” Related: UK house prices fall by £5000 on average, and with south sliding fastest 9.07am GMTThe pound has risen in early trading,shaking off some of final week’s losses.
Sterling is up 0.25% at $1.287 against the US dollar, as Theresa May continues to explain 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, and selling her deal to businesses while her MPs plot. https://t.co/mzYa3MFU66Will we get to those 48 no confidence letters? ♀️ But whether it doesn’t happen within a day or two,many at Westminster may conclude the ERG’s rebel leaders are all and no . 8.51am GMTDespite the war of words between the US and China, European stock markets fill opened higher.
In London, and 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 propose 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, or expect markets to trade on thin volumes. Political headlines will likely dominate,and thus expect volatility to remain tall. 8.43am GMTChina’s Global Times, the state-sponsored newspaper, or is often a qualified guide to Beijing’s thinking.
And today’s editorial argues that it’s “not a enormous 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 tough work,not by taking advantage of the international system.” 8.37am GMT 8.28am GMTAnalysts 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 8.27am GMTThe discord between America and China over trade loomed over final weekend’s APEC gathering in Papua New Guinea, and says Royal Bank of Canada’s Sue Trinh:She writes: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), and the rhetoric is sharpening between the key players. 8.04am GMTGood morning,and welcome to our rolling coverage of the world economy, the financial markets, or the eurozone and trade. The United States . . . will not change course until China changes its ways.“We fill great respect for President Xi and China,but as we all know, China has taken advantage of the United States for many, or 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, and produces no winners.” Related: Apec summit fails to agree on statement amid US-China spat 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 assembly, as Xi and Pence, or 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 Related: CBI president to endorse Theresa May's draft Brexit deal Continue reading...
Source: theguardian.com