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Carlos Ghosn holds first press conference since escaping Japan - business live Carlos Ghosn holds first press conference since escaping Japan - business live
(32 minutes later)
Rolling coverage of the latest economic and financial newsRolling coverage of the latest economic and financial news
Ghosn blames “unscrupulous, vindictive individuals” at Nissan and its legal firm Latham and Watkins for launching the legal charges against him.
I am not above the law, he insists -- but had no choice but to escape Japan because its legal system and its 99% conviction rate.
Choosing to escape was the most difficult decision of my life, he continues.
But as the charges against him are “baseless” he had “no other choice” but to protect himself and his family.
Carlos Ghosn turns to Greg Kelly, his former aide who was also arrested last year -- and remains in custody.
Ghosn says that Kelly has been persecuted because he refused to sign up to a plea bargaining deal, alongside Hari Nada- a senior vice-president at Nissan who blew the whistle on Ghosn.
Kelly is a “victim of the system” and an honourable man, “with no release date in sight”, Ghosn says, asking the media to remember him.
Carlos Ghosn says he won’t reveal how he escaped from Japan -- and you can feel the wave of disappointment rippling through the press conference.
Instead, he is going to outline how he is innocent, and how the charges should never have been brought.
He thanks his family, his wife Carole (cue some applause), his friends and his lawyers.
And he takes another swipe at Japan, saying baseless media attacks had been orchestrated by Japanese authorities.
Carlos Ghosn says his imprisonment went against United Nations standards.
Ghosn is laying into the Japanese criminal justice system, saying he was interrogated for up to eight hours a day without a lawyer present, and without knowing what evidence was held against him.
It is impossible to express the depths of my deprivation, he declares.
Ghosn claims investigators threatened him, saying things would get even worse if he didn’t confess. He had no contact with his family, apart from through letters.
The feeling of hopelessness was profound, he adds, hitting out at prosecutors for re-arresting him after he was released on bail the first time last year.
Carlos Ghosn begins by welcoming the press to today’s event.
As you can imagine, today is a very important day for me, he says.
Ghoshn says he has looked forward to it for 400 days, since he was taken into custody in Japan and “brutally” taken away from his family, his friends and his company.
Ghosn is being introduced now - here’s a live feed.
And here’s the scene inside:
Here’s the scene outside the press conference a few minute ago:
Carlos Ghosn has arrived for today’s press conference. He’s looking suitably serious, dressed smartly in a suit, white shirt and a pinky salmon-coloured tie.
There’s a flurry of camera flashes from the assembled press (who have now navigated the tight security outside).
The Financial Times has drawn up a list of questions for Ghosn to answer today.
They include:
More here.
Some background: Carlos Ghosn faced four charges in Japan, and was held in custody for more than three months before securing bail.Some background: Carlos Ghosn faced four charges in Japan, and was held in custody for more than three months before securing bail.
Two of those charges were for allegedly understanding Ghosn’s by more than $80m for the best pat of a decade. He was also accused of transferring $14.7m from a Nissan account to a friend’s company, and another $5m to companies controlled by his family.Two of those charges were for allegedly understanding Ghosn’s by more than $80m for the best pat of a decade. He was also accused of transferring $14.7m from a Nissan account to a friend’s company, and another $5m to companies controlled by his family.
You can get up to speed on the world’s most famous corporate fugitive here:You can get up to speed on the world’s most famous corporate fugitive here:
Ghosn’s wife, Carole, is clearly delighted to have her husband back in the country.Ghosn’s wife, Carole, is clearly delighted to have her husband back in the country.
The Lebanese-born fashion designer has given an interview to the Le Parisien magazine, in which she explains how Carlos’s dramatic bunk from Tokyo to Beirut before the new year was a lovely surprise.The Lebanese-born fashion designer has given an interview to the Le Parisien magazine, in which she explains how Carlos’s dramatic bunk from Tokyo to Beirut before the new year was a lovely surprise.
She said:She said:
Mrs Ghosn is also caught up in the legal battle. Yesterday, Japanese prosecutors have issued an arrest warrant for her, claiming she had given false testimony last year.Mrs Ghosn is also caught up in the legal battle. Yesterday, Japanese prosecutors have issued an arrest warrant for her, claiming she had given false testimony last year.
More here:More here:
Journalists are also being scanned by security staff before they’re allowed into today’s press conference.Journalists are also being scanned by security staff before they’re allowed into today’s press conference.
Ironic really, as Carlos Ghosn appears to have evaded such security measures during his dramatic escape.Ironic really, as Carlos Ghosn appears to have evaded such security measures during his dramatic escape.
There’s huge interest in Carlos Ghosn’s appearance.There’s huge interest in Carlos Ghosn’s appearance.
Scores of journalists have flocked to the Lebanese Journalists Syndicate building to hear from the former Nissan chief -- and there are even armed police outside.Scores of journalists have flocked to the Lebanese Journalists Syndicate building to hear from the former Nissan chief -- and there are even armed police outside.
Over in Beirut, Carlos Ghosn is preparing to appear for the first time since he fled Tokyo.Over in Beirut, Carlos Ghosn is preparing to appear for the first time since he fled Tokyo.
The former boss of the Nissan-Renault-Mitsubishi alliance is hosting a press conference, where he’s likely to insist he is innocent of the financial misconduct charges filed in Japan.The former boss of the Nissan-Renault-Mitsubishi alliance is hosting a press conference, where he’s likely to insist he is innocent of the financial misconduct charges filed in Japan.
It’s scheduled to begin at 3pm local time, or 1pm GMT (in around 50 minutes).It’s scheduled to begin at 3pm local time, or 1pm GMT (in around 50 minutes).
Ghosn’s dramatic escape by private jet (apparently in an audio equipment case), captured headlines around the world last week. He’s now likely to blast Japan’s justice system, and could also criticise colleagues who - he claims - set him up.Ghosn’s dramatic escape by private jet (apparently in an audio equipment case), captured headlines around the world last week. He’s now likely to blast Japan’s justice system, and could also criticise colleagues who - he claims - set him up.
My colleague Justin McCurry sets the scene:My colleague Justin McCurry sets the scene:
Shares in holiday firm TUI are falling deeper into the red, down 4.5% today, making it one of the top fallers.Shares in holiday firm TUI are falling deeper into the red, down 4.5% today, making it one of the top fallers.
Rising tensions in the Middle East could hit demand for holidays to the region, even if both sides avoid further escalation.Rising tensions in the Middle East could hit demand for holidays to the region, even if both sides avoid further escalation.
A number of airlines have said they are suspending flights over Iraqi and Iranian airspace, or cancelled flights, including Air France, KLM, Qantas, Lufthansa and Emirates.A number of airlines have said they are suspending flights over Iraqi and Iranian airspace, or cancelled flights, including Air France, KLM, Qantas, Lufthansa and Emirates.
That’s a blow to the local economies.That’s a blow to the local economies.
Agathe Demarais of the Economist Intelligence Unit argues that Iran is trying to avoid escalating the situation, while also showing that it has retaliated to the killing of Qassem Suleimani:
Another sign that calm appears to be returning to markets:
Just in: Boeing says it is “ready to assist” over the Ukranian International Airlines 737-800 plane which crashed shortly after leaving Tehran’s Imam Khomeini airport today.
In a statement, the US firm says:
Boeing’s 737-800 is the most widely-used aeroplane in service today. It is the forerunner to the 737-MAX, which is currently grounded following two fatal crashes.
Boeing shares are down 2% in pre-market trading.
My colleague Michael Safi tweets:
The markets are recovering some of their earlier losses.
Gold has dropped back to $1,582 per ounce, compared with $1,610 after the Iranian attacks. It’s still higher than yesterday, but only around $10.
Brent crude has eased back to $68.64 per barrel, down from $71.75. That’s still 0.5% up today.
European markets are pulling back too, now down only 0.2% on average. That puts the FTSE 100 down 15 points at 7,558.
There are also signs that Wall Street will open calmly.
Why the turnaround?
Traders are relieved that Iraq’s prime minister’s office says it has not heard of any Iraqi casualties yet -- there also don’t appear to be any casualties on the US forces side.
Wall Street has also noted Iraq’s foreign minister, Javad Zarif, who says
Marios Hadjikyriacos of trading firm XM sums up the mood at present:
In an interesting twist, Iraq has now confirmed that it was warned by Iran that last night’s missile attacks were taking place.
That could reassure the markets that Iran isn’t trying to escalate the situation, but still felt forced to make a public retaliation.
Corrections corner: Gold hit $1,600 per OUNCE this morning, not per barrel as I foolishly mistyped earlier.
Thanks to kind readers who flagged up (and let’s pretend they were very small barrels....)
Finablr’s share price is also being dragged down by the news that two investors are trying to sell stock.
Saeed Mohamed al-Qebaisi and Khalifa Butti al-Muhairi hope to sell $75m of Finablr stock, and another $490m in FTSE 100-listed NMC Health -- whose stock is down 15% today.
This comes after NMC was attacked by US short-seller Muddy Waters, which claimed last month that its financial statements are bogus. NMC’s shares have halved in value since.
The Times reckons al-Qebaisi and al-Muhairi may need to sell shares to meet a margin call on shares pledged as collateral for debts....
Back in the City, shares in financial services group Finablr have plunged by a sixth after its Travelex subsidiary was struck by a major cyber attack.
The Abu Dhabi-based firm has tumbled to the bottom of the FTSE 250 index, with hackers reportedly demanding a $3m ransom before they unlock its computer systems.
Travelex, which also provides foreign currency services for Virgin Money and Tesco, was attacked by the Sodinokibi ransomware more than a week ago.
Finablr told shareholders this morning that “some data” has been encrypted by Sodinokibi - which locks down data until the victim pays up.
It added:
In the meantime, investors have sent shares down 17% to 127.8p, the lowest since it floated last May.
Bad News: Germany’s factories are continuing to struggle badly.
Factory orders across the eurozone’s largest economy slumped by 1.3% month-on-month in November, meaning they were 6.5% lower than a year ago.
This is rather weaker than expecting, showing that German manufacturing stumbled through much of 2019. It suggests growth was weak in the final quarter of last year.
Carsten Brzeski, economist at ING, says the “hard reality” is that Germany’s economy is struggling.