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| Nissan board 'dismisses Carlos Ghosn' as chairman - business live | |
| (about 1 hour later) | |
| Here’s Reuters’ latest take on Carlos Ghosn’s dismissal: | |
| Nissan’s board ousted chairman Carlos Ghosn on Thursday after the shock arrest of the industry heavyweight, Japanese broadcaster NHK reported without citing sources, ushering in a period of uncertainty for its 19-year alliance with Renault. | |
| A Nissan Motor Co spokesman declined to comment. | |
| The Franco-Japanese alliance, enlarged in 2016 to include Japan’s Mitsubishi Motors, has been rattled to its core by Ghosn’s arrest in Japan on Monday, with the 64-year-old group chairman accused of financial misconduct. | |
| Ghosn had shaped the alliance and was pushing for a deeper tie-up, including potentially a full Renault-Nissan merger at the French government’s urging, despite strong reservations at the Japanese firm. | |
| Japanese prosecutors said Ghosn and Representative Director Greg Kelly, who has also been arrested, conspired to understate Ghosn’s compensation at Nissan over five years from 2010, saying it was about half the actual 10 billion yen ($88 million). | |
| Shin Kukimoto, deputy public prosecutor at the Tokyo District Public Prosecutors Office, said on Thursday that court approval was received a day earlier to detain Ghosn for 10 days but he could not comment on whether he had admitted to the allegations. | |
| Nissan executives have five seats on the nine-member board, Renault loyalists have two seats and the remaining two are held by unaffiliated outside directors, a former bureaucrat and a race driver. | |
| With Ghosn and Kelly still in detention, neither of the men were able to vote or defend themselves at the meeting. | |
| Nissan has also voted to dismiss representative director Greg Kelly, according to the Nikkei newspaper. | |
| Nissan: Dismisses Kelly As Representative Director – Nikkei | |
| Kelly, a lawyer by training, was a close ally of Carlos Ghosn and the first American to sit on the Japanese carmaker’s board of directors. | |
| On Monday, Nissan CEO Hiroto Saikawa labelled Kelly the “mastermind” behind Ghosn’s alleged misuse of Nissan funds. | |
| Now this is interesting... Reuters is reporting that Renault had urged Nissan NOT to dismiss Carlos Ghosn today, before the meeting began. | |
| #Renault board has urged #Nissan before board meeting to postpone decision on removing #Ghosn (sources via Reuters) | |
| Ghosn is also Renault’s CEO and chairman, on top of his duties at Nissan. | |
| Renault had two seats on Nissan’s nine-strong board (although there were only seven representatives today, as Ghosn and Greg Kelly were both arrested on Monday) | |
| Japanese broadcaster NHK is reporting that the Nissan board has voted to remove Carlos Ghosn as their chairman at today’s meeting. | |
| Nissan Board Dismissed Ghosn As Chairman - NHK | |
| Either way, there should be a statement soon.... | |
| Reuters is reporting that “multiple Nissan board members” have been spotted leaving the company’s HQ, suggesting the meeting may finally be over... | |
| Crowds of reporters have gathered in front of Nissan’s global headquarters in Yokohama, desperate to hear news from today’s board meeting: | Crowds of reporters have gathered in front of Nissan’s global headquarters in Yokohama, desperate to hear news from today’s board meeting: |
| Elsewhere, Ghosn’s face beams down from large electronic screens as the public keep up with events: | Elsewhere, Ghosn’s face beams down from large electronic screens as the public keep up with events: |
| The pound has jumped to its highest level since Dominic Raab resigned as Brexit secretary a week ago. | The pound has jumped to its highest level since Dominic Raab resigned as Brexit secretary a week ago. |
| Sterling has gained 1.5 cents against the US dollar to $1.292, clawing back most of last week’s losses. | Sterling has gained 1.5 cents against the US dollar to $1.292, clawing back most of last week’s losses. |
| The trigger: Britain and the EU have agreed a new, longer, text outlining the political declaration on the framework for the future relationship after Brexit. | The trigger: Britain and the EU have agreed a new, longer, text outlining the political declaration on the framework for the future relationship after Brexit. |
| Our Politics Live blog has full details: | Our Politics Live blog has full details: |
| Nissan flack tells Bloomberg no press conference today. Since it's subject to mandatory disclosure, a press release will be filed with TSE #tictocnews | Nissan flack tells Bloomberg no press conference today. Since it's subject to mandatory disclosure, a press release will be filed with TSE #tictocnews |
| It’s important to remember that Carlos Ghosn hasn’t been charged yet, let alone convicted. | It’s important to remember that Carlos Ghosn hasn’t been charged yet, let alone convicted. |
| But Tokyo prosecutors have already suggested that he could face a 10-year stretch, if convicted of breaching Japanese financial law. | But Tokyo prosecutors have already suggested that he could face a 10-year stretch, if convicted of breaching Japanese financial law. |
| JUST IN: Ghosn may be sentenced up to 10 years in prison, says Shin Kukimoto, deputy chief prosecutor at Tokyo’s Prosecutors Office. Here's what we know #日産自動車 #ゴーン会長 pic.twitter.com/z2Ihxq88Us | JUST IN: Ghosn may be sentenced up to 10 years in prison, says Shin Kukimoto, deputy chief prosecutor at Tokyo’s Prosecutors Office. Here's what we know #日産自動車 #ゴーン会長 pic.twitter.com/z2Ihxq88Us |
| There’s an increasingly negative mood in the financial markets today. | There’s an increasingly negative mood in the financial markets today. |
| All the European stock indices are in the red, down around 1%, wiping out Wednesday’s gains (which followed heavy losses on Tuesday). | All the European stock indices are in the red, down around 1%, wiping out Wednesday’s gains (which followed heavy losses on Tuesday). |
| Russ Mould, investment director at AJ Bell, says: | Russ Mould, investment director at AJ Bell, says: |
| Hopes have been dashed that yesterday’s rally would be the start of a new recovery. The FTSE 100 was down 0.6% to 7,010 on Thursday morning amid notable weakness in utilities, telecoms and bank stocks. It is a similar story across Europe with Germany’s DAX index down 0.4%, France’s Cac 40 index down 0.5% and Spain’s IBEX 35 index falling 0.7%. | Hopes have been dashed that yesterday’s rally would be the start of a new recovery. The FTSE 100 was down 0.6% to 7,010 on Thursday morning amid notable weakness in utilities, telecoms and bank stocks. It is a similar story across Europe with Germany’s DAX index down 0.4%, France’s Cac 40 index down 0.5% and Spain’s IBEX 35 index falling 0.7%. |
| UK energy provider Centrica is one of the top fallers, down 8%, after reporting that it lost 372,000 home energy customers in the last four months. Added to the cost of the UK energy price cap, and investors are fretting that the company could cut its dividend. | UK energy provider Centrica is one of the top fallers, down 8%, after reporting that it lost 372,000 home energy customers in the last four months. Added to the cost of the UK energy price cap, and investors are fretting that the company could cut its dividend. |
| The lights are blaring at Nissan’s HQ, as the board continue deliberate on whether to dismiss Carlos Ghosn. | The lights are blaring at Nissan’s HQ, as the board continue deliberate on whether to dismiss Carlos Ghosn. |
| We’re expecting an announcement from the company later, and a statement to the Japanese stock exchange. | We’re expecting an announcement from the company later, and a statement to the Japanese stock exchange. |
| Japan’s industry minister and France’s finance minister are due to meet in Paris on Thursday to seek ways to stabilise the Nissan-Renault alliance, Reuters reports. | Japan’s industry minister and France’s finance minister are due to meet in Paris on Thursday to seek ways to stabilise the Nissan-Renault alliance, Reuters reports. |
| “For me, the future of the alliance is the bigger deal,” said a Nissan official, when asked about Ghosn’s arrest. | “For me, the future of the alliance is the bigger deal,” said a Nissan official, when asked about Ghosn’s arrest. |
| “It’s obvious that in this age, we need to do things together. To part would be impossible.” | “It’s obvious that in this age, we need to do things together. To part would be impossible.” |
| Investors are still digesting Ghosn’s fall, and its impact on the car industry. | Investors are still digesting Ghosn’s fall, and its impact on the car industry. |
| Shares in Nissan (which plunged 6% after his arrest), gained 0.8% today. But shares in Renault have dipped by 1.2% in early trading in Paris. | Shares in Nissan (which plunged 6% after his arrest), gained 0.8% today. But shares in Renault have dipped by 1.2% in early trading in Paris. |
| Japanese broadcaster NHK are reporting that Ghosn is accused of instructing an aide to make a $1.5m payment for his home in Lebanon to be refurbished: | Japanese broadcaster NHK are reporting that Ghosn is accused of instructing an aide to make a $1.5m payment for his home in Lebanon to be refurbished: |
| Informed sources say Ghosn allegedly sent an email telling an executive, who is a close aide, to arrange a payment for the Lebanon house. | Informed sources say Ghosn allegedly sent an email telling an executive, who is a close aide, to arrange a payment for the Lebanon house. |
| Sources say about $9m was spent to purchase it and about $6m went for renovations. | Sources say about $9m was spent to purchase it and about $6m went for renovations. |
| That house is one of the four which Nissan allegedly funded, at a cost of $17.8m. | That house is one of the four which Nissan allegedly funded, at a cost of $17.8m. |
| Carlos Ghosn has reportedly hired a former Tokyo prosecutor to defend him. | Carlos Ghosn has reportedly hired a former Tokyo prosecutor to defend him. |
| Bloomberg has more details: | Bloomberg has more details: |
| Motonari Otsuru oversaw high-profile probes against Livedoor founder Takafumi Horie and Kanebo during his tenure as a prosecutor. | Motonari Otsuru oversaw high-profile probes against Livedoor founder Takafumi Horie and Kanebo during his tenure as a prosecutor. |
| Ghosn will need a hot-shot lawyer; Tokyo prosecutors are now saying that his alleged actions would constitute a “heavy crime,’’ more serious than insider trading. | Ghosn will need a hot-shot lawyer; Tokyo prosecutors are now saying that his alleged actions would constitute a “heavy crime,’’ more serious than insider trading. |
| JUST IN: Tokyo prosecutors say Nissan chief Carlos Ghosn's actions would constitute heavy crime https://t.co/G3gEY6kZQI pic.twitter.com/tTMD7FoD8Y | JUST IN: Tokyo prosecutors say Nissan chief Carlos Ghosn's actions would constitute heavy crime https://t.co/G3gEY6kZQI pic.twitter.com/tTMD7FoD8Y |
| Shin Kukimoto, deputy public prosecutor at the Tokyo District Public Prosecutors Office, is discussing Carlos Ghosn’s arrest right now. | Shin Kukimoto, deputy public prosecutor at the Tokyo District Public Prosecutors Office, is discussing Carlos Ghosn’s arrest right now. |
| Kukimoto told reporters that Ghosn is being held at the Tokyo Detention Centre and that the Tokyo District Court on Wednesday. | Kukimoto told reporters that Ghosn is being held at the Tokyo Detention Centre and that the Tokyo District Court on Wednesday. |
| Kukimoto also confirmed that the Tokyo District Court decided yesterday to extend Ghohn’s detention for another 10 days. | Kukimoto also confirmed that the Tokyo District Court decided yesterday to extend Ghohn’s detention for another 10 days. |
| But, prosecutors won’t say whether Ghosn has admitted any of the charges | But, prosecutors won’t say whether Ghosn has admitted any of the charges |
| Why isn’t #CarlosGhosn talking?- Tokyo court approved detention of Ghosn for 10 days - Tokyo prosecutor cannot comment on whether Ghosn has admitted to allegations Watch our continued coverage on #SquawkBoxEurope on @CNBCi now. @cherykang remains on the ground in Japan! | Why isn’t #CarlosGhosn talking?- Tokyo court approved detention of Ghosn for 10 days - Tokyo prosecutor cannot comment on whether Ghosn has admitted to allegations Watch our continued coverage on #SquawkBoxEurope on @CNBCi now. @cherykang remains on the ground in Japan! |
| Japan is gripped by the fall from grace of one of their most successful and popular (until this week anyway) bosses. | Japan is gripped by the fall from grace of one of their most successful and popular (until this week anyway) bosses. |
| The Japan Times noted that Nissan’s Hiroto Saikawa had blamed Ghosn’s alleged wrongdoing on a regime “in which all power at Nissan was concentrated in the hands of Ghosn for an extended period.” | The Japan Times noted that Nissan’s Hiroto Saikawa had blamed Ghosn’s alleged wrongdoing on a regime “in which all power at Nissan was concentrated in the hands of Ghosn for an extended period.” |
| The newspaper added: | The newspaper added: |
| “If that is the case, it is Nissan itself that allowed such opaque ways of management at the company for nearly 20 years, and the automaker will not escape blame for its poor governance, which could result in damaging the interests of its stakeholders.” | “If that is the case, it is Nissan itself that allowed such opaque ways of management at the company for nearly 20 years, and the automaker will not escape blame for its poor governance, which could result in damaging the interests of its stakeholders.” |
| The Yomiuri Shimbun said Nissan’s prospects “have become ever more unclear” as a result of Ghosn arrest. “Nissan must strive to improve its organisation through such means as repairing its corporate governance, so it can hasten to restore trust,” it said. | The Yomiuri Shimbun said Nissan’s prospects “have become ever more unclear” as a result of Ghosn arrest. “Nissan must strive to improve its organisation through such means as repairing its corporate governance, so it can hasten to restore trust,” it said. |
| The Asahi Shimbun described this week’s events as “stunning” and urged Nissan to fully disclose the results of its internal investigation into Ghosn and Greg Kelly. | The Asahi Shimbun described this week’s events as “stunning” and urged Nissan to fully disclose the results of its internal investigation into Ghosn and Greg Kelly. |
| “The company is in danger of falling into dysfunction unless it does its best to disclose whatever it can to its shareholders and comes up with measures to deal with the current crisis.” | “The company is in danger of falling into dysfunction unless it does its best to disclose whatever it can to its shareholders and comes up with measures to deal with the current crisis.” |
| The Mainichi Shimbun said the allegations against Ghosn, if proved true, amounted to “a serious act of betrayal” and “the distorted product of a long-term dictatorship”. It added: | The Mainichi Shimbun said the allegations against Ghosn, if proved true, amounted to “a serious act of betrayal” and “the distorted product of a long-term dictatorship”. It added: |
| “The carmaker must undergo a fundamental review of its management in a bid to win back the trust of shareholders and the market.” | “The carmaker must undergo a fundamental review of its management in a bid to win back the trust of shareholders and the market.” |
| Carlos Ghosn’s fate will be decided by seven Nissan board members, on a simple majority vote. | Carlos Ghosn’s fate will be decided by seven Nissan board members, on a simple majority vote. |
| And following CEO Hiroto Saikawa’s savage denunciation on Monday, it would be a major shock if the board didn’t dismiss their chairman today. | And following CEO Hiroto Saikawa’s savage denunciation on Monday, it would be a major shock if the board didn’t dismiss their chairman today. |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| The eyes of the auto industry are focused on Japan today, as the board of Nissan meets to decide whether to dismiss chairman and CEO Carlos Ghosn. | The eyes of the auto industry are focused on Japan today, as the board of Nissan meets to decide whether to dismiss chairman and CEO Carlos Ghosn. |
| The Japanese carmaker was plunged into crisis this week when Ghosn was arrested, follow an internal inquiry into alleged “serious misconduct” by the man who had led the company for almost 20 years. | The Japanese carmaker was plunged into crisis this week when Ghosn was arrested, follow an internal inquiry into alleged “serious misconduct” by the man who had led the company for almost 20 years. |
| Ghosn is accused of misreporting his salary and misusing company assets -- including using huge luxury homes in Rio de Janeiro, Paris, Amsterdam and Beirut bought using company funds. | Ghosn is accused of misreporting his salary and misusing company assets -- including using huge luxury homes in Rio de Janeiro, Paris, Amsterdam and Beirut bought using company funds. |
| Senior executive Greg Kelly, who was also arrested this week, could be fired today too; Nissan claim he was one of the ‘masterminds’ behind Ghosn’s alleged misdeeds. | Senior executive Greg Kelly, who was also arrested this week, could be fired today too; Nissan claim he was one of the ‘masterminds’ behind Ghosn’s alleged misdeeds. |
| The meeting was due to start a few minutes ago, so we should have a result soon. | The meeting was due to start a few minutes ago, so we should have a result soon. |
| Nissan’s CEO, Hiroto Saikawa, has already savaged Ghosn’s legacy. On Monday he told reporters he felt “indignation and resentment” over his mentor’s conduct. | Nissan’s CEO, Hiroto Saikawa, has already savaged Ghosn’s legacy. On Monday he told reporters he felt “indignation and resentment” over his mentor’s conduct. |
| And rather than hail Ghosn’s achievements, Saikawa argued that his long tenure appeared to have had a “negative impact” on day-to-day operations. | And rather than hail Ghosn’s achievements, Saikawa argued that his long tenure appeared to have had a “negative impact” on day-to-day operations. |
| As AFP put it: | As AFP put it: |
| Ghosn’s fate appears all but sealed after his hand-picked replacement as CEO, Hiroto Saikawa, launched an astonishing broadside at his mentor following his arrest Monday at a Tokyo airport as he landed in his private jet. | Ghosn’s fate appears all but sealed after his hand-picked replacement as CEO, Hiroto Saikawa, launched an astonishing broadside at his mentor following his arrest Monday at a Tokyo airport as he landed in his private jet. |
| Saikawa said “too much authority” had been placed in the chairman’s hands and lamented the “dark side of the Ghosn era”, as he called the board meeting to fire him. | Saikawa said “too much authority” had been placed in the chairman’s hands and lamented the “dark side of the Ghosn era”, as he called the board meeting to fire him. |
| Executives at Renault (which Ghosn also chairs) will be dialling into the Nissan board meeting. Ghosn’s fate could affect thousands of workers at the Renault-Nissan-Mitsubishi alliance which he created. | Executives at Renault (which Ghosn also chairs) will be dialling into the Nissan board meeting. Ghosn’s fate could affect thousands of workers at the Renault-Nissan-Mitsubishi alliance which he created. |
| Otherwise, it’s a quiet day in the markets, with America closed for Thanksgiving. Italy’s budget row, and the Brexit talks, will also feed into the chatter on the trading floors. | Otherwise, it’s a quiet day in the markets, with America closed for Thanksgiving. Italy’s budget row, and the Brexit talks, will also feed into the chatter on the trading floors. |
| The agenda | The agenda |
| 7am GMT: Nissan extraordinary board meeting | 7am GMT: Nissan extraordinary board meeting |
| 12.30pm GMT: European Central Bank releases minutes of its October meeting | 12.30pm GMT: European Central Bank releases minutes of its October meeting |