Dollar slightly firmer around ¥113 in late Tokyo trading

Abstract: The dollar was slightly firmer around ¥113 in late Tokyo trading Friday, supported by hopes that the United States and China may begin moving to resolve their damaging trade war. At 5 p.m., the dollar stood at ¥112.96-97, up from ¥112.89-90 at the same time Thursday. The euro was at $1.1435-1436, up from $1.1359-1359, and at ¥129.18-19, up from ¥128.24-24. The dollar was sluggish versus the yen throughout the morning after the Institute for Supply Management’s U.S. manufacturing index for October turned out weaker than expected Thursday, traders said. In the afternoon, the U.S. currency took a sudden upturn to top ¥113 following a news report that U.S. President Donald Trump asked senior officials to make a draft of a trade deal with China, the traders also said. In late trading, the dollar fluctuated narrowly around ¥113. The dollar-yen pair is unlikely to move much prior to Friday’s announcement of U.S. jobs data for October and Tuesday’s U.S. midterm elections, a Japanese bank official said. An official of a bank-linked securities firm said that the dollar “is expected to be capped at a technically important level of around ¥113.30.” “China may not necessarily accept a U.S. proposal for a deal,” an official of a foreign exchange margin trading service firm said, warning against making a premature judgment on the course of the two countries’ trade friction.


U.S. sanctions set to bite in Iran, but what will happen next?

Abstract: WASHINGTON - Six months after U.S. President Donald Trump bolted from a nuclear deal on Iran, the United States from Monday will try to strangle the country’s economy with sweeping sanctions, but doubts abound on how effective the campaign will be. The United States has vowed to end all sales of Iranian oil, the country’s crucial export, as well as international banking transactions, snapping back sanctions lifted by Trump’s predecessor, Barack Obama. But much has changed since the Obama administration targeted Iran’s economy in 2012. Obama won broad, if at times begrudging, international support as he set a goal of bringing Iran to the table to end its nuclear program. Iran — led by a more moderate president, Hassan Rouhani — has, according to U.N. inspectors, abided by the 2015 agreement, which is still supported by European powers and Russia and China, which all signed the nuclear deal. “This is not 2012, when the world was united behind sanctions against Iran. This is the Trump administration trying to force the rest of the world to go along with a policy that most countries do not accept,” said Barbara Slavin, an Iran expert at the Washington-based Atlantic Council. “The U.S. has had some success in terms of frightening away major corporations. The sanctions hurt a lot. But Iran is still going to be able to sell oil,” especially to China, she said. The United States has accepted that it will need to issue waivers to countries that do not fully stop buying Iranian oil, with friends of the United States such as India and South Korea looking for sanctions exemptions, and Tehran may keep up clandestine sales. The Trump administration has sent mixed signals, swerving between saying it will send Iranian oil exports to “zero” and dangling waivers that could allow some to keep buying. A senior administration official said this week that the U.S. has agreed to let eight countries — including Japan, India and South Korea — keep buying Iranian oil, but only temporarily. The European Union has gone so far as to protect businesses that operate in Iran. It has announced plans for a legal framework through which firms can skirt U.S. sanctions, although few major corporations have been eager to risk the wrath of penalties in the world’s largest economy. U.S. Secretary of State Mike Pompeo has issued a list of demands for Iran that go well beyond the nuclear program that was the focus of Obama’s deal. He wants the Shiite clerical regime to withdraw from war-ravaged Syria, where it is a critical ally of President Bashar Assad, as well as to end long-standing support to regional militant movements Hezbollah and Hamas. Pompeo has also insisted Iran cut off backing for Yemen’s Houthi rebels, who are facing a U.S.-backed air campaign led by Saudi Arabia. In a recent tweet Pompeo crowed that the International Monetary Fund is predicting a 3.6 percent contraction of Iran’s economy next year. “That’s what happens when the ruling regime steals from its people and invests in Assad — instead of creating jobs for Iranians, they ruin the economy,” he said. But experts see no rapid turnaround from Iran’s leaders — especially the military and clerical establishments, for whom resistance to the United States has been an article of faith since the 1979 Islamic Revolution overthrew the pro-U.S. shah. “It’s basically magical thinking. The Iranians have been able to continue their support to regional proxies and allies for 40 years despite economic pressure,” said Ali Vaez of the International Crisis Group. He said the Trump administration believes that a constrained, struggling Iran will see its influence erode. But the final goal, he said, is unclear. “I think the end game depends on who you’re asking. The president himself is interested in having a broader, better deal with the Iranians, but I believe that most of his national security team are interested in either destabilizing Iran or assuring a regime change in Tehran,” Vaez said. Trump’s national security adviser, John Bolton, is a long-standing hawk with ties to Iran’s armed, exiled opposition. One European diplomat believes Trump is following his playbook on North Korea, with which he is negotiating only a year after threatening “fire and fury.” “It’s the same war plan as with Kim Jong Un and North Korea — sanctions, maximum pressure and then ready to negotiate,” he said. The United States says it is exempting humanitarian goods from the sanctions, although Europeans say they have received no guidance on how to avoid penalties. Another Western diplomat said that Iran is more dependent on the outside world than the country’s conservatives would like to think. “In truth there are starts of a panic as there’s beginning to be a shortage of medicine. We’re heading back to the old war economy, which is tightly controlled.” Complicating Trump’s effort, Saudi Arabia — Iran’s regional rival, which has long pressed Washington to get tough — is increasingly unpopular after the murder of Saudi journalist Jamal Khashoggi in the kingdom’s Istanbul consulate. But Tehran has been winning few friends, with France and Denmark recently accusing the clerical state’s intelligence agencies of plotting to attack Iranian opponents in Europe.

u.s .
trade
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nuclear weapons
iran
donald trump


Can music make cheese tastier? Swiss Emmental maker experiments

Abstract: BERTHOUD, SWITZERLAND - When searching the perfect chunk of cheddar or Parmesan, cheese aficionados have probably never grilled vendors over what kind of music was played to their cheeses. But a Swiss cheese-maker has embarked on an experiment to test the impact of music on Emmental, one of the most famous cheeses in Switzerland. Marching through his 19th-century cellar in Burgdorf, a town also known as Berthoud, on the edge of the Emmental region in central Switzerland, Beat Wampfler shows off hundreds of perfectly formed circles of the holey classic maturing in neat rows. A veterinarian by day but consummate apron-wearing cheese enthusiast at night, Wampfler’s love for Emmental has aged well over the years. In one corner of his impeccably clean cellar, nine open wooden crates sit with wheels of Emmental inside, and small music speakers directly below. Since September, the cheeses have been blasted with sonic masterpieces from the likes of rock gods Led Zeppelin to hip-hop legends A Tribe Called Quest. The project hopes to show that the power of music can influence the development, characteristics and even flavor of the cheese. “Bacteria is responsible for the formation of the taste of cheese, with the enzymes that influence its maturity. I am convinced that humidity, temperature or nutrients are not the only things that influence taste,” Wampfler said. “Sounds, ultrasounds or music can also have physical effects.” Parts of the scientific community have spent years analyzing the effect of sound on plants, and some moms-to-be believe playing classical music to their unborn child makes it smarter. Is testing whether hard rock stimulates Roquefort or Queso is a follower of flamenco really so far-fetched? The University of the Arts in Bern does not think so, and is helping Wampfler conduct the experiment. “At first we were skeptical,” admitted Michael Harenberg, the university’s music director. “Then we discovered there is a field called sonochemistry that looks at the influences of sound waves, the effect of sound on solid bodies.” Scientists have experimented with sonochemistry, in particular looking into how ultrasound can affect chemical reactions. With Wampfler’s cheeses, the sounds played to them also include techno beats, ambient choirs and Mozart’s “Magic Flute.” “We are trying to … answer the question: In the end, is there anything measurable? Or something that has an effect on the taste?” Harenberg said. Students at the university are helping to conduct the project as part of a program launched last year to bring communities in the region together — in this case agriculture and the arts. “At first we were a bit scared,” laughed program director Christian Pauli. “We never thought we would find ourselves one day in a cellar in Burgdorf concerned about cheese.” For now, the Emmentals age bathed in their respective genres, maturing their flavors in potentially alternative sonic-induced ways, awaiting tasting in the new year. “Will the cheese taste better? It’s hard to say,” Wampfler said. Mulling over the different music styles, he couldn’t predict a winner but had a favorite: “I hope that the hip-hop cheese will be the best.” A jury of expert cheese tasters will assess whether there is a hole in this Swiss cheese experiment on March 14.


U.N. agencies' report says hundreds of millions of adults, children in Asia's booming cities are undernourished

Abstract: BANGKOK - Hundreds of millions of children and adults in Asia’s rapidly expanding cities are undernourished, and will remain so without “inclusive, sustainable and nutrition-sensitive” urban planning, United Nations officials said Friday. The Asia-Pacific region has the world’s highest rate of urbanization and is home to more than half the world’s 821 million undernourished people, four U.N. agencies said in a report released in Bangkok. “Progress in reducing undernourishment has slowed tremendously,” said the regional heads of Food and Agriculture Organization, the U.N. Children’s Fund, the World Food Program and the World Health Organization. “As migration from rural to urban areas continues apace, particularly involving poorer families, urban malnutrition is a challenge facing many countries,” they said in a statement. World hunger rose in 2017 for a third consecutive year due to conflict and climate change, jeopardizing a global goal to end the scourge by 2030, the United Nations said in an earlier report. At the same time, more than 1 in 8 adults are now obese, with the Asia-Pacific region recording the fastest-growing prevalence of childhood obesity, fueled by easier access to processed foods rich in salt, fat and sugar. Rapid urbanization is a key factor in both, the rising levels of malnutrition and obesity, in Asia and the Pacific. China and India, the world’s most populous countries, are expected to account for more than a fourth of the projected growth in the global urban population by 2050, adding about 690 million to their cities. Historically, urbanization has been seen as a sign of social and economic transformation, associated with higher standards of living, including better health and nutrition. “However, if not managed well, rapid urbanization can also lead to dysfunctional food systems, resulting in undernutrition and obesity occurring within the same city or even the same household,” the report noted. “It is therefore important to ensure that the rapidly expanding cities in Asia and the Pacific are planned in an inclusive, sustainable and nutrition-sensitive manner.” The challenge is exacerbated by the rising numbers living in slums. About one-third of the urban population is in slums with limited access to welfare benefits and safety nets, which impacts on their food security, nutrition and livelihoods. In addition, informal food markets and street vendors that provide cheap and convenient meals to the urban poor are increasingly under attack in many Asian countries including Thailand and Malaysia. Urban food policy in the region must take into account transport, infrastructure, housing, education, and water and sanitation for greater impact, the report noted. “Urban planners must become new nutrition partners,” it said. “The world cannot meet the 2030 target of zero hunger if Asia and the Pacific is not leading the way. The sense of urgency cannot be overstated.”


Freed journalist Jumpei Yasuda expresses gratitude, apologizes over Syria ordeal

Abstract: Journalist Jumpei Yasuda, who returned to Japan last month after being held by militants in Syria for more than three years, said Thursday that he did not hold any grudge toward the Japanese government over his ordeal. “I believe the government officials did everything they could,” given their stance of not paying ransoms to terrorists and that gathering information on the situation in that region is difficult. “I owe an apology to all those who did their utmost to secure my release, and I’d also like to say that I’m deeply grateful for all the efforts” that led to the release, he told a jam-packed news conference at the Japan National Press Club in Tokyo. “I’m really sorry for involving, and thus endangering, the government.” Addressing a recent barrage of criticism, mostly online, which claimed that Yasuda should take personal responsibility for entering a war zone, the journalist said that he deserved it. “You enter conflict-stressed zones on your own responsibility, and you can blame yourself if something happens to you,” he said. Yasuda, who after returning to Japan spent several days in a hospital, said he was still recovering from the traumatic events. Yasuda was abducted soon after he entered Syria from Turkey via a mountainous route on June 22, 2015. He believes he may have been deceived by people who were meant to be helping him cross the border. Yasuda said he did not know for certain the name of the group that held him. However, based on conversations he was part of or heard while in captivity, he concluded that the group may be the al-Qaida-linked Hayat Tahrir al-Sham, or the Levant Liberation Committee. The group was formed from a merger of the Nusra Front and other militant groups. He said he could keep track of the events because he was allowed to keep records in a diary. Yasuda said that in late July 2015, the militants informed him that they had demanded the Japanese government pay a ransom. The group was reported to have been seeking $10 million (¥1.1 billion). Apparently the militants had high hopes that Tokyo would respond to their demand, and they allowed Yasuda to watch television and treated him to sweets and local delicacies while keeping him under surveillance during the first months of his ordeal. Yasuda said the militants informed him that the government was willing to pay. But in the closing days of December that year, they told him that Tokyo had ceased negotiations. “During that time, I clung to the idea that the government was trying to buy time,” he said. Yasuda, who was transferred to various locations over the period of his 40-month detention, was held alongside other hostages. They included Pakistanis and an Italian man, who like Yasuda appeared in a video wearing orange jumpsuits begging for help. Yasuda said that to scare him and prevent him from leaking information about his whereabouts or the militant group, he was often forced to listen to other hostages being tortured. He mentioned that Uighurs were among the militants keeping him under surveillance in the last months of his ordeal. Militants suspected him of spying, and later played with his emotions by keeping him in a room where he wasn’t able to move, he added. He said he was given script for most of the videos that militants released for negotiations, some of which were disclosed by media in Japan. Before filming, he said, he was often required to eat chili peppers because the militants wanted him to appear tearful. “They assured me they wouldn’t kill me,” he said. He also said his captors repeated promises of a prompt release numerous times, but in the last weeks he felt desperate and told the guards to “either let me go or kill me.” Looking ahead, Yasuda said he had no idea whether he would return to Syria or neighboring countries to report. “I go to such places when I want to get information, when I have questions,” he said. He also stressed that “the role of journalists reporting from conflict-stressed zones is indispensable,” as they observe events impossible to cover and hard to comprehend from the outside. For example, he said that in Syria he was hoping to obtain documents concerning members and the structure of the Islamic State group, which in 2015 wielded power in the nation and posed a significant threat to the world. “At that time I wanted to see how the world of Islam works there, whether an outsider can grasp how it works and what problems exist in that society,” he said. “I still want to learn more about Syria and convey the voices of people living there.”


Articles published during wartime by former Domei News Agency released online in free-to-access archive

Abstract: The Japan Press Research Institute has started releasing online articles published mostly during wartime by the Domei News Agency, the predecessor of Jiji Press and Kyodo News. The articles released Thursday were those compiled in “Domei Junpo” news booklets issued between July 1937 and January 1941. According to the institute, which is chaired by former Jiji Press President Yutaka Nishizawa, “Domei Junpo” was published every 10 days from July 1937 to January 1943. In booklets’ subsequent form, rebranded “Domei Jiji Geppo” and released monthly, publication continued until March 1945. A total of 225 issues — with about 26,000 pages and containing some 300,000 articles — were published in total. The materials released Thursday make up half of the archive. On a dedicated website , viewers can search for articles by their headline, year, dateline and other details. The articles, in PDF format, are available to download for free, and may be quoted in magazines or other media as long as the source is cited. The articles include a report on the Marco Polo Bridge incident on July 7, 1937, in which Japanese and Chinese troops clashed in a suburb of Beijing, triggering a full-scale war between the two countries. In February, materials from the booklets issued between January 1941 and March 1945 will be released, including an article on the attack on Pearl Harbor in Hawaii by the Imperial Japanese Navy on Dec. 8, 1941, which plunged Japan and the United States into war. Photo news distributed to schools, English news published for overseas readers and weekly photo magazines will also be digitized in 2019 and coming years. An official at the institute said the trove of articles is of great value as a historical source, and they expressed hope that the online release will contribute to research into the history of the 1926-1989 Showa Era and media in the period. The Domei News Agency existed between January 1936 and October 1945. Its roles included helping with the implementation of Japan’s national policies. With a staff of about 5,500, Domei News Agency distributed articles and photographs to some 200 organizations in Japan, including newspaper publishers, and published Japanese-language newspapers in many locations in Asia outside Japan. At its peak, the agency maintained a total of 68 branch and other offices across Japan, in addition to its head office in Tokyo, as well as branches in China and Singapore. It also translated news about Japan into languages including English and Chinese for distribution on shortwave radio.


Man arrested in Hamamatsu over fatal stabbing of Filipino ex-girlfriend

Abstract: SHIZUOKA - A man was arrested Friday on the suspicion that he had fatally stabbed his Filipino ex-girlfriend the previous night at a restaurant in Shizuoka Prefecture, local police said. Yasumasa Yamaguchi, 45, allegedly stabbed Rowena Casimiro Haga, 48, at around 11:20 p.m. Thursday at a restaurant they used to frequent in the city of Hamamatsu. Haga had complained of being stalked by Yamaguchi, according to the police. Yamaguchi was warned not to approach Haga by the police in June after he tried to force his way into her home. Haga was found lying on the floor with multiple stab wounds to her chest when a paramedic arrived at the restaurant, according to the local rescue service. Yamaguchi fled in a car but was arrested around four hours later on a road about 2 kilometers from the crime scene.


Airbnb to remove listings in West Bank settlements

Abstract: JERUSALEM - Short-term rental company Airbnb Inc. said it will remove listings in Jewish settlements in the occupied West Bank, enclaves that most world powers consider illegal for taking up land where Palestinians seek statehood. “We concluded that we should remove listings in Israeli settlements in the occupied West Bank that are at the core of the dispute between Israelis and Palestinians,” a statement on the Airbnb website said. “Our hope is that someday sooner rather than later, a framework is put in place where the entire global community is aligned so there will be a resolution to this historic conflict and a clear path forward for everybody to follow.” An Airbnb spokesman said Monday that the decision, affecting some 200 listings, would take effect in the days ahead. There was no immediate response from the government of Israel, which captured the West Bank in the 1967 Middle East war, nor from Palestinian authorities. Some 500,000 Israelis live in the West Bank and East Jerusalem, areas that are also home to more than 2.6 million Palestinians. Oded Revivi, mayor of the West Bank settlement of Efrat and a representative of the umbrella settler council Yesha, described the Airbnb decision as contrary to its mission, as stated on the website, of “help(ing) to bring people together in as many places as possible around the world. “When they make such a decision, they get involved with politics, which … is going to defeat the actual purpose of the enterprise itself,” he said.


Tokyo stocks plunge on Wall Street fall

Abstract: Stocks turned sharply lower Tuesday, hurt by an overnight plunge in U.S. equities. The Nikkei 225 average dropped 238.04 points, or 1.09 percent, to end at 21,583.12 after briefly sagging nearly 300 points in early trading. On Monday, the key market gauge rose 140.82 points. The Topix, which covers all first-section issues on the Tokyo Stock Exchange, closed 11.94 points, or 0.73 percent, lower at 1,625.67. It gained 8.31 points Monday. The tech-heavy Nasdaq composite index tumbled 3.03 percent and hit the lowest level in nearly seven months Monday due to growing concerns over sales of Apple Inc.’s new iPhone products, dampening market sentiment in Tokyo, brokers said. Investors were also concerned about the course of the U.S. economy after a weak housing market index released by the National Association of Home Builders. There was little positive news flow, an official of a bank-affiliated securities firm said, suggesting that high U.S. long-term interest rates are taking a toll on the world’s largest economy. “Foreign investors are already in a holiday mood” ahead of Thanksgiving Day in the United States on Thursday, an official of a Japanese brokerage firm said. “Given limited market participation, buying interest is unlikely to increase significantly,” the official said. Mitsuo Shimizu, chief strategist at Aizawa Securities Co., expressed hopes for Black Friday this week to be a positive turning point for stock prices. Falling issues outnumbered rising ones 1,294 to 734 in the first section, while 84 issues were unchanged. Volume increased to 1.430 billion shares from 1.286 billion Monday. Nissan dived 5.45 percent after Chairman Carlos Ghosn was arrested the previous day for allegedly underreporting his executive remuneration. Mitsubishi Motors, for which Ghosn also serves as chairman, dropped 6.85 percent. But Ghosn’s arrest had only a limited impact on the overall Tokyo market, brokers said. Technology names met with selling after their U.S. peers fared poorly overnight. They included Apple-linked Murata Manufacturing and Alps Electric, semiconductor-related Advantest and Sumco, and game maker Nintendo. Other major losers included mobile phone carrier SoftBank Group and clothing retailer Fast Retailing. By contrast, Toyota gained 1.59 percent after JPMorgan Securities Japan Co. raised its investment rating and target stock price for the leading automaker. Also higher were power firm Tepco and railway operator JR East.


Dollar lowers to around ¥112.50 in late Tokyo trading

Abstract: The dollar was weaker around ¥112.50 in Tokyo trading late Tuesday, dampened by weak stock prices. At 5 p.m., the dollar stood at ¥112.50-51, down from ¥112.75-75 at the same time Monday. The euro was at $1.$1458-1459, up from $1.1407-1411, and at ¥128.95-97, up from ¥128.62-62. The dollar traded at around ¥112.40 in early trading. The greenback rose to levels around ¥112.60 in midmorning trading, as the Nikkei 225 stock average trimmed losses after a weak start, traders said, adding that dollar buying by Japanese importers also gave a boost to the U.S. currency. In the afternoon, the dollar’s topside grew heavy as the Nikkei moved deeper into the red, traders said. The dollar was “firm” against the yen even after a risk-averse mood strengthened due to lower stock prices, a currency broker said. “Some traders sold the dollar on speculation that interest rate gaps between Japan and the United States will narrow” as they expect an end to U.S. Federal Reserve rate hikes, an official of a trust bank said.


Nissan Chairman Carlos Ghosn arrested over allegations of 'grave' financial misconduct

Abstract: Carlos Ghosn, chairman of the alliance between Nissan Motor Co., Renault SA and Mitsubishi Motors Corp., was arrested Monday over the alleged underreporting of his income and misuse of company funds, in an unprecedented scandal that sent shock waves through one of the world’s top automaker groups. Ghosn, 64, is expected to be relieved of his post Thursday at a meeting of the company’s board of directors, Nissan CEO Hiroto Saikawa told a news conference later in the evening, adding that Ghosn’s long reign had negatively impacted the firm’s governance. The carmaker said it had initiated an internal investigation after a report by a whistleblower revealed misconduct by Ghosn and Nissan Representative Director Greg Kelly, alleging that the two executives had conspired to underreport Ghosn’s salary for a number of years. The Tokyo District Public Prosecutor’s Office had questioned Ghosn earlier in the day and arrested him and Kelly. Together, the amount of their underreporting amounted to some ¥5 billion over five years between 2011 and 2015, sources said. The automaker said its investigation also exposed other wrongdoings, including using the company’s assets for personal purposes. At the hastily organized news conference, which ran late into the evening, Saikawa apologized for the trouble he said had been caused by Ghosn, who has long been seen as the public face of the automaker. “We cannot go into details today, but we have confirmed that this matter is totally unacceptable as a company. Experts have also said this misconduct is grave enough to relieve (Ghosn and Kelly) from their posts,” Saikawa said. “We are deeply sorry and regret the betrayal of trust of various related people, shareholders and suppliers who have supported us for many years because Ghosn was leading Nissan,” he said. Nissan has been providing information to prosecutors and has been cooperating fully with their investigation, Saikawa added. He said he will propose to Nissan’s board of directors that Ghosn be removed from his positions as chairman and representative director as well as Kelly from his position as representative director on Thursday. Asked why Nissan had been unable to identify Ghosn’s alleged malfeasance earlier, Saikawa said the misdeeds had “not really come to the surface,” an indication of the chairman’s grip on power and apparent to stymie transparency within the company. Still, Saikawa also praised Ghosn’s leadership, noting that it had made Nissan stronger. Asked about how Ghosn’s reign had collapsed as if by a “coup d’etat,” Saikawa stressed that there was no such intent behind the internal probe. “That is not my understanding and I am not explaining this case in that way,” he said. Ghosn is one of the best-paid executives among Japanese companies, a fact that has often been a target of criticism. His reported salary last year fell by some 33 percent from 2016, to ¥730 million — the first time in four years that his pay had not hit at least ¥1 billion. In 2016, his salary was ¥1.09 billion and in 2015 he received ¥1.07 billion. After the news broke, Renault shares took a nosedive on the European market, briefly dipping more than 10 percent compared with Friday’s closing. Beyond his role as Nissan chairman, Ghosn also chairs the alliance between Nissan, Renault and Mitsubishi Motors. Saikawa vowed that Ghosn’s arrest would not affect the alliance, adding that board members would be closely communicating on the issue. The arrests also left the general public stunned. Interviewed by The Japan Times on Monday evening, Toru Takahashi, a public official from Tokyo who was testing Nissan cars at the firm’s Yokohama headquarters, voiced incredulity. “I’m worried about the company’s future,” he said. “If I were considering buying a Nissan car now, I’d probably have second thoughts.” Ghosn, a rare foreign top executive in Japan, is well-regarded for turning Nissan around from near bankruptcy. He came to the company in 1999 as chief operating officer to lead the carmaker’s turnaround under a capital alliance with Renault. Becoming president of Nissan in 2000, he spearheaded a recovery with plant closures and other drastic restructuring measures, shocking the Japanese business community and cementing his reputation as a cost-cutter. His management style stood out as he set numerical “commitment” targets and carried out aggressive reforms. Under his nearly two-decade tenure, Nissan moved away from conventional practices in the Japanese auto industry. For instance, it negotiated aggressively with steel-makers to lower steel sheet purchase costs, triggering fierce competition among major steel mills. In the first half of 2018, the Nissan, Renault and Mitsubishi Motors alliance became the world’s largest auto seller, outflanking major rival Volkswagen in a neck-and-neck race. The alliance sold 5.54 million vehicles worldwide in the first six months of this year, up 5 percent from the same period last year, according to data from the three companies. The figure outstripped the 5.52 million vehicles sold by the Volkswagen group, which grabbed the top spot in global sales for the second straight year in 2017.

fraud
nissan
carmakers
carlos ghosn
police


Carlos Ghosn arrest: Key events at Nissan since 1999 restructuring

Abstract: The following is a chronology of major events related to Nissan Motor Co. October 1999 The firm unveils a drastic restructuring plan including closing a major factory in Tokyo and slashing over 20,000 employees. May 2001 Posts record group net profit for fiscal 2000. May 2009 Incurs group net loss in fiscal 2008, hit by the financial crisis triggered by the bankruptcy of Lehman Brothers. The firm falls into the red for the first time since Carlos Ghosn became chief operating officer in June 1999 May 2012 Group net profit exceeds that of Toyota Motor Corp. in fiscal 2011. May 2016 Agrees to bring Mitsubishi Motors Corp., hit by a fuel economy data manipulation scandal, under its wing. July 2018 The alliance of Nissan, Renault SA and Mitsubishi Motors becomes the world’s largest auto seller, surpassing the Volkswagen group. Nov. 19 Chairman Carlos Ghosn is arrested by Tokyo prosecutors on suspicion of understating his salary in Japan by ¥5 billion ($44 million).


Carlos Ghosn's arrest stirs anger and dismay among Nissan employees

Abstract: Nissan Motor Co. employees reacted with anger, surprise and dismay Tuesday to the arrest the day before of charismatic Chairman Carlos Ghosn for allegedly underreporting his income. Despite criticism directed at the 64-year-old Ghosn for his alleged long-running financial misconduct, some employees gave him credit for rescuing Nissan from the brink of bankruptcy in the 1990s and turning it around through drastic reforms. The high-profile arrest also surprised Cabinet ministers, triggering calls for Nissan to take a fresh look at its system of governance that allowed the wrongdoing to take place. At Nissan’s headquarters in Yokohama, many tight-lipped employees in suits shunned reporters’ questions as they hurried into the building. “It all comes down to one man’s rule, after all,” said a male worker who agreed to give his take on events. Tokyo prosecutors arrested Ghosn on Monday, along with Nissan Representative Director Greg Kelly, on suspicion of underreporting the chairman’s salary by around ¥5 billion ($44 million) over five years from 2011, or about half of the amount he earned. “They are the only ones reaping the benefits and it’s unacceptable,” a male worker in his 20s said on his way to a Nissan factory in Tochigi Prefecture. “Our management should have a sense of responsibility following a recent string of scandals.” Nissan’s brand image had already been hurt after it admitted in September last year that for many years uncertified employees had checked vehicles produced in Japan, forcing it to recall over 1 million units sold domestically. The automaker reported this year that data from emissions or fuel-efficiency tests had been falsified at its domestic plants. Chief Cabinet Secretary Yoshihide Suga said the arrest is “truly regrettable” and vowed to “closely watch the situation” to gauge its economic impact. After news broke of Ghosn’s arrest, Nissan CEO Hiroto Saikawa told a late-night news conference Monday that an independent panel will investigate the chairman’s misconduct. Saikawa acknowledged that a lack of transparency and governance was partly to blame. “There is a view that one of the factors (behind the misconduct) is the concentration of power at the top level. We urge Nissan to seriously discuss ways to ensure governance at a third-party panel,” industry minister Hiroshige Seko told reporters after a Cabinet meeting Tuesday. Saikawa said what he feels about Ghosn’s arrest “goes beyond regret” and is akin to “resentment and disappointment.” A male employee at the Tochigi plant who has worked for Nissan for four decades shared those feelings, but also demanded that employees be given a full explanation. Meanwhile, another male worker dispatched to the plant from Nissan’s headquarters said Ghosn is irreplaceable. “Nobody but Ghosn could have gotten the company back on its feet,” he said. “We have a lot to lose.” On Monday night, another man working at the assembly plant said, “To be honest, I’m disgusted with a series of misconduct” involving Nissan, apparently referring to recent scandals over quality checks. “I want the company to be responsible.” Meanwhile, a crowd of reporters, photographers and TV crews gathered Monday evening outside a high-rise condominium building in Minato Ward, Tokyo, where Ghosn lives when he’s in Japan. “Is it true?” asked a woman who said she has seen him in the elevator there. “As he has received a huge amount in remuneration, I think he does not need to underreport anything.” Japanese fans of Nissan cars were also stunned by the news. A 47-year-old woman in Tokyo who has owned Nissan cars for 17 years said, “I might consider purchasing from outside Nissan when I replace the current one.” Yasuyuki Nakayama, a 36-year-old civil servant living in the city of Akita, said: “I’m shocked, but I want to keep driving Nissan cars because I like them. I don’t want the brand’s reputation to be hurt.” In Suita, Osaka Prefecture, Reiko Takebayashi, 72, said she had believed Ghosn was “an incredible person” due to his remarkable business achievements. “I don’t think the incident has anything to do with (product) quality, but still it makes me worried. The image of the carmaker itself has been tarnished,” Takebayashi said. A car dealer in Osaka Prefecture said the news came “out of the blue.” He said he is usually informed by carmakers beforehand when a recall is to be announced, but he had not heard “anything this time.” “I don’t know what my customers will say,” he said.

fraud
scandals
nissan
carmakers
carlos ghosn


Renault-Nissan-Mitsubishi alliance seen surviving the arrest of Carlos Ghosn

Abstract: The arrest Monday of Nissan Chairman Carlos Ghosn, who is widely credited with turning around the struggling Yokohama-based automaker and forming one of the world’s most powerful auto groups, has sent shock waves through the industry and left observers wondering what will become of the firm’s cross-border alliance. The fate of the alliance between Renault SA, Nissan Motor Co. and Mitsubishi Motors Corp., which sold over 10 million vehicles worldwide in 2017, may appear unstable without the longtime charismatic leader at the helm, but analysts interviewed by The Japan Times said the three companies will likely try to maintain their current relationships since they can’t afford to scrap established joint cost reductions and development initiatives amid rising competition. Also, while Ghosn may have been the face of Nissan, his departure’s impact on business overall could be limited, as in recent years he did not appear to have been heavily involved in daily operations. On Monday, it was revealed that an internal probe carried out by Nissan discovered alleged misconduct by Ghosn and Representative Director Greg Kelly. The two executives were accused of conspiring to underreport Ghosn’s salary for a number of years and using company assets for personal purposes. The Tokyo Public Prosecutor’s Office arrested Ghosn and Kelly on Monday for allegedly underreporting some ¥5 billion between 2011 and 2015. The news left its mark on the Tokyo Stock Exchange. Nissan shares tumbled 5.45 percent to close Tuesday at ¥950.7, while Mitsubishi Motors plunged 6.85 percent to ¥680. Nissan CEO Hiroto Saikawa told a news conference Monday night that he will propose to remove Ghosn, 64, from the chairman position at a board of directors meeting Thursday. Seiji Sugiura, a senior analyst at Tokai Tokyo Research Institute, said the path forward remains unclear, as Ghosn may deny the allegations. Renault, where Ghosn holds the CEO and chairman positions, will also hold a board meeting to discuss the allegations, local reports said Tuesday evening. Still, Sugiura said the three-way partnership is likely to end up mostly unscathed. “Nissan, Renault and Mitsubishi all see merits of the alliance, which is formed in a quite complicated way with overlaps of various management members,” he said.Rather than reviewing this complex system, it’s more rational to keep it, he said. During the news conference Monday evening, Saikawa stressed that the incident will not shake up the alliance. Sugiura also noted the industry trend in which automakers have been expanding loose partnerships with rivals to survive growing competition with not only carmakers but also tech firms due to new technologies, such as autonomous driving and connected vehicles. Company officials have said the firms have been increasingly enjoying the benefits of the partnership, with the cost-saving synergy logging a record €5.7 billion (about ¥730 billion) in fiscal 2017. The alliance also says the firms have reduced costs for research and development through unifying related functions, adding that similar logic applies to auto parts procurement and negotiations. A midterm strategy dubbed “Alliance 2022” says the firms aim to boost the synergy figure to €10 billion by 2022. The alliance’s “efforts to cut costs through joint platforms have been going quite well. I don’t think they would want to abruptly destroy it and let Nissan go on a separate path,” said Arifumi Yoshida, an auto analyst at Citigroup Global Markets Japan Inc. Recently, Ghosn had been saying that he was thinking of reviewing the framework of the alliance to make it sustainable even after he departs the leadership position. The nearly two-decade old cross-shareholding alliance has steadily grown, but possible changes in the power balance have also attracted media attention in the past. Earlier this year, overseas media reported that Nissan was aiming to purchase more Renault shares from the French government. Another report said the two firms were discussing a merger. Nissan holds 15 percent shares of Renault while the French automaker owns 43.4 percent of Nissan. In that sense, it is natural that Ghosn’s arrest has clouded the future of the tie-up, Yoshida said. But the firms may not be willing to go through the trouble of drastically reviewing the framework without Ghosn, he added. Still, some degree of uncertainty remains with Mitsubishi Motors, which joined the alliance in 2016 when Ghosn gave a helping hand to the Tokyo-based automaker after it found itself mired in a fuel-efficiency scandal. Mitsubishi Motors, still in the early stages of its revival, is taking advantage of the alliance and “it must have been expecting Ghosn’s leadership,” Yoshida said. The fact that Ghosn and Mitsubishi Motors CEO Osamu Masuko were close allies also helped form the partnership. Regardless of the tumultuous road ahead, Sugiura said Nissan’s sales are unlikely to be damaged by the Ghosn news. “I don’t think consumers buy Nissan’s cars because of Ghosn. … I think the news will hardly impact Nissan’s sales performance,” Sugiura said. As for Nissan’s business itself, it is true that Ghosn has been the face of the company, but the impact is expected to be minimal, analysts said. Yoshida said Ghosn has been a busy business leader, so his involvement with the Nissan’s operation must have been quite limited.

scandals
nissan
carmakers
mitsubishi motors
renault
carlos ghosn


Honda apologizes after dealership mocks rival Nissan on Twitter over Ghosn scandal

Abstract: A prominent Nissan marketing catchphrase was turned on its head after a rogue Honda dealership took aim at the rival automaker on Twitter over the arrest of Nissan Chairman Carlos Ghosn, forcing Honda to apologize Tuesday. Honda Motor Co. apologized a day after the official Twitter account of one of its dealerships mocked Ghosn’s impending arrest over financial misconduct allegations. “We believe that we have made everyone who saw our tweet feel uncomfortable and we are deeply sorry for that,” Hajime Kaneko, a spokesman for Honda Motor Co. told The Japan Times by phone, confirming the authenticity of the questionable tweet. As news about Ghosn’s alleged misconduct dominated the headlines Monday evening, the account of Honda Cars Osaka Higashi tweeted a photo of Ghosn with a comment that appeared to spoof a catchphrase used in a series of Nissan commercials featuring Japanese rock superstar Eikichi Yazawa in 2015. “So you did it, Nissan, Carlos Ghosn has been arrested!” (Yatta ze Nissan Carlos Ghosn taihō!) the tweet said. やっちゃえ日産 やっちまったなホンダ pic.twitter.com/aZ847yOO9o — 獅子の魂@ブルーブラッド (@Nekodamashi_Leo) November 19, 2018 Honda’s Kaneko said that the account belonging to its Osaka Higashi dealer in Higashi-Osaka, Osaka Prefecture, posted the tweet at around 6 p.m., about 30 minutes after the news emerged but deleted it by 8 p.m. The dealer’s Twitter account had apparently been deleted since the contentious tweet. Kaneko said the firm warned its workers, including those at subsidiaries and affiliated firms, not to post similar comments about Nissan, as such practice could hurt Honda’s image. “We’re now more cautious in instructing (workers about the use of social media),” so they don’t publish these kinds of harmful comments anymore, Kaneko said. He also explained that the distributorship agreement between Honda Cars Osaka Higashi and the parent firm is the pair’s only tie-up and that the two do not have any capital relationship. Kaneko said the Nissan scandal would not have any impact on Honda’s sales and that the firm had its own measures to gain and maintain the trust of its customers. “Having effective corporate compliance is an obvious thing to us,” so it’s unlikely Honda will become embroiled in a scandal similar to the one involving Nissan, he said. “We’ve been doing our best to make it work on a daily basis,” he added.


Trump dilemma: Preserve Saudi alliance or declare prince a murderer

Abstract: WASHINGTON - The Saudi assassination of a U.S.-based journalist has put President Donald Trump in an intractable bind. Does he preserve a close U.S. ally and accept whatever Riyadh says about the murder? Or does he risk a rupture and embrace the conclusion of the Central Intelligence Agency that Saudi Crown Prince Mohammed bin Salman, the country’s de facto leader, ordered the killing? The U.S. president has refrained from attacking Prince Mohammed ever since Jamal Khashoggi, a veteran Saudi journalist who had been writing articles critical of Riyadh for The Washington Post, was killed and dismembered in the Saudi consulate in Istanbul on October 2. With Riyadh under international pressure, the Saudi prosecutor announced the arrest of 21 suspects and charges against 11, saying five will face the possible death penalty. At the same time, Washington announced sanctions on 17 Saudis allegedly involved, including two top aides of the prince. Neither side though named the mastermind of the operation. But, according to the Post and The New York Times, the CIA is certain that it was Prince Mohammed himself. That puts the U.S. president in a bind. He has formed a deep alliance with the Saudis over a mutual dislike for Iran and a shared interest in keeping global oil prices steady. Trump’s son-in-law Jared Kushner has sealed the relationship through a close personal connection with the prince, known as “MBS.” For that reason, until now, Trump has appears loathe to finger Prince Mohammed for Khashoggi’s murder, saying he hasn’t seen the evidence. He said on Sunday that he will likely only be briefed on the CIA conclusions by Tuesday “Trump has only two options,” said Michele Dunne, a Middle East expert at the Carnegie Endowment for International Peace. “He can agree with the intelligence evaluation and go along with what Congress wants to do, which means indicating publicly or privately that the U.S. will no longer work with MBS.” Or, she said, he can go against all that and try to protect the White House’s relationship with the prince. In either case, the risks are high. Severing relations with the son of King Salman bin Abdul-Aziz al-Saud Salman is an extreme step, but would not necessarily mean a complete bilateral rupture, said Dunne. “Saudi Arabia is not MBS, and MBS is not Saudi Arabia.” Yet it risks spurring changes in the hierarchy of the Saudi royal family, with the outcome unpredictable for Saudi-U.S. relations. On the other hand, if Trump refuses to condemn Prince Mohammed, an angry Congress could take action that would damage the relationship, such as freezing arms sales to the Middle East giant. Senior Republican Senator Lindsey Graham, who is close to the president, does not mince his attacks on the prince over Khashoggi’s death. “I believed from day one that 15 people, 18, whatever the number was, they don’t get on two airplanes, go to Turkey and chop a guy up in the consulate who’s a critic of the crown prince without the crown prince having known about it and sanctioned it,” Graham told NBC’s “Meet the Press” on Sunday. The White House appears divided. Kushner has been quiet about the case and his friend the prince. But on Friday, Kirsten Fontenrose, a White House official who advocated a tough stance, resigned her position, according to the New York Times. Trump himself has waxed hot and cold on the issue. One day he denounces it as “one of the worst cover-ups” in history and a “total fiasco.” The next he stresses the importance of the alliance and repeats that Prince Mohammed has personally denied to him that he ordered the assassination. Suzanne Maloney of the Brookings Institution think tank said Trump’s equivocating is risky for the relationship. “The Saudis aren’t getting the signal that this kind of activity is damaging,” she said. “The signal that they’re trying to send is that business can go on as usual with the senior leadership.” However, she said, a direct, public accusation against the prince will not work either. “You wouldn’t go out in public and say that your crown prince needs to go!” The best alternative is to make the point behind the scenes, and make it clear to the Saudis that they have gone too far. “That’s what a genuinely competent administration would do,” she said.

u.s .
murder
washington
saudi arabia
riyadh
donald trump
mohammed bin salman
jamal khashoggi


French universities to offer more courses in English to attract foreign students

Abstract: PARIS - France wants to boost the number of foreign students at its universities by more than half over the next decade and will offer more courses taught in English to attract them. Prime Minister Edouard Philippe, announcing the plan on Monday, said increasing the number of foreigners studying in the country would help build French influence overseas. Home to centuries-old universities such as the Sorbonne in Paris and some leading business schools, France is the world’s top non-English speaking student destination, but it ranks behind the United States, Britain and Australia. The number of foreign students at French universities fell by 8.5 percent between 2011 and 2016 and the country has seen increased competition from Germany, Russia, Canada and China, the prime minister’s office said. “Many countries are already building global attractivity strategies, linking studies, the job market, tourism, which explains the influence of Asia or monarchies in the Gulf,” Philippe said in a speech unveiling the strategy. “In this field just as in other economic ones, the world’s balance of power is shifting. That’s why we need to welcome more foreign students.” Under the plan, France will simplify student visa regulations but will also increase tuition fees for students outside the European Economic Area in order to be able to provide better facilities. However, fees will still be much lower than in Britain and other neighboring countries. From March 2019, foreign graduates with a French master’s degree will be able to get a residence visa to look for work or set up a business in France. “We are constantly compared, audited, judged among 10 other possible destinations. In an age of social media, no one can rest on its reputation only,” Philippe said. French officials said current fees of around €170 ($195) a year for a bachelor’s degree in France or €243 for a masters’ — the same as those paid by French students — was interpreted by students in countries like China as a sign of low quality. From September 2019, non-European students will be charged €2,770 annually to study for a bachelor’s degree and €3,770 a year for masters and PhDs. “That means France will still subsidize two thirds of the cost of their studies,” Philippe said. “And the fees will remain well below the €8,000 to €13,000 charged by the Dutch or the tens of thousands of pounds paid in Britain,” he said. Some of the extra revenue will be used to boost the number of scholarships offered by the foreign ministry. The number of courses taught in English, which have already been increased fivefold since 2004 to 1,328, will be boosted further, Philippe said. More French classes will also be on offer for foreign students and student visa applications will be made available online.

france universities english students french languages


Licensed private lodgings top 10,000 in Japan, concentrated in cities

Abstract: The number of licensed private lodgings for tourists in Japan topped 10,000 in early November, but the facilities were concentrated in urban areas, the Japan Tourism Agency said Tuesday. Since a new law legalizing “minpaku” lodgings took effect in June, private home rentals in Japan have continued increasing by over 1,000 per month from 2,210 in the first month on the back of a growing number of foreign tourists. As of late October, there were 3,444 lodgings in central Tokyo’s 23 wards, followed by 1,211 in Sapporo and 1,055 in the city of Osaka. Lodgings in the three popular tourist destinations accounted for nearly 60 percent of the total number of 9,726 in Japan at the time, according to the agency. On the other hand, the number of private lodgings registered in rural areas remained small, with only five in Akita, six in Fukui and eight in Yamagata prefectures. “More foreign tourists are traveling to rural areas and we see potential demand” for private lodgings there, an agency official said. The agency is planning to promote private home rentals in the countryside by introducing cases in which such accommodation helped revitalize areas, the official said. The central government, which aims to boost tourism as a pillar of its growth strategy, expects private lodgings to make up for hotel room shortages ahead of the 2020 Tokyo Olympics and Paralympics. About 23.47 million tourists visited Japan in the January to September period, up 10.7 percent from a year earlier. Japan aims to welcome 40 million foreign visitors by 2020.

tourism
japan tourism agency
inbound tourism
minpaku


As foreign labor system evolves, education has to play catch-up

Abstract: Japanese-language education is becoming more important for children of foreign residents in Japan at a time when the government is planning to introduce a new visa system to increase the number of foreign workers. Elementary and junior high schools accept children with almost no conditions regardless of nationality. When it comes to high school education, however, they must pass entrance exams, including those on the Japanese language. In many cases, foreign students give up on advancing to high school because of the language barrier. Language education for foreign students is often inadequate and depends on nonprofit organizations and volunteer teachers. In one of its classes, the nonprofit Multicultural Center Tokyo is currently teaching Japanese to 10 students aged 15 and older from China, the Philippines and Nepal. A boy from China initially attended a night junior high school but left because he was uncomfortable with the teaching methods. After attending a Japanese-language school at the center, the boy, 17, now goes to high school and aims to someday find a job in Japan. Weng Yuxiang, a 25-year-old student at Sophia University in Tokyo, learned Japanese at the center and now serves as an intern there. “Children have no other choice but to depend on their parents,” he said. “When I came to Japan, I felt anxious because I didn’t know the Japanese entrance examination system.” “Entry into high school is very important for expanding options” for foreign children who will live in Japan for many years, said Noriko Hazeki, representative of the center. “We want to offer as many opportunities as possible for them to be in touch with Japanese society,” she said, stressing the value of Japanese-language education at the center. There were 2.2 million foreign residents in Japan at the end of 2017, excluding permanent residents with special status, an all-time high and up around 580,000 from five years earlier, according to the Justice Ministry. The number of children who come to Japan with their parents has been on the rise. The education ministry reported that 34,335 foreign children needed Japanese-language education as of May 2016. But less than 70 percent of foreign children of elementary and junior high school age attend public schools, according the education ministry. Some children have lived in Japan for more than 10 years without acquiring adequate Japanese-language proficiency. Public educational institutions that accept foreign children are in short supply, as are Japanese-language teachers. Although some elementary and junior high schools teach Japanese to foreign students separately from regular classes, the shortage of opportunities to learn the language remains serious. As of November 2017, there were only 28 NPOs across Japan providing Japanese-language education to foreign students. Some children have to travel more than one hour each way to attend classes. Japan “urgently” needs to address the challenge of teaching Japanese to foreign children now that the population of non-Japanese has increased sharply, Hazeki said. “Japanese-language education has a very long way to catch up (with actual needs).”

children education language volunteers students


Japan's justice minister apologizes for erroneous data on foreign interns, blaming Excel mishap

Abstract: Justice Minister Takashi Yamashita apologized Tuesday over errors to data related to foreign technical interns and how they were presented. However he denied claims by opposition lawmakers that the mistakes were intentional and aimed at facilitating ongoing debate over a controversial bill that will introduce more blue-collar foreign workers to the country from April. Yamashita also said he has set up a project team within the ministry to examine the operations of the Technical Intern Training Program and recommend improvements to any problem areas identified. “The mistakes in compiling data, based on interviews (by security officers) of interns who fled their jobs, that came to light recently shouldn’t have happened and I express my sincere apologies,” he told a news conference. “People have pointed to problems involving the Technical Intern Training Program ever since its introduction (in 1993), including some cases of violation of labor-related laws and regulations, such as nonpayment of wages to interns and paying them lower than the minimum wage, as well as the disappearance of interns,” Yamashita noted. He claimed the errors arose due to incorrect data calculations in the Excel spreadsheet software. The data were from a survey of interns who had abruptly left their jobs before November last year, when a new law on proper implementation of placements under the Technical Intern Training Program came into force. The Technical Intern Training Act is designed to reinforce the supervision and management of organizations that train interns. It also introduced punishments for human rights violations against trainees. According to copies of interview records the ministry showed to some lawmakers, many complained of long working hours and low pay. The records included a case where an intern was paid ¥100,000 per month for 100 hours of work per week at a farm — 40 hours more than he was told beforehand. The Justice Ministry had earlier said that about 87 percent of interns who left their jobs said they were seeking better wages, but corrected that to instead say that about 67 percent had, in fact, fled due to low pay, after opposition Diet members pointed out that the records did not contain any wording that indicated the interns were seeking better pay. Yamashita said the expression had been used by the ministry around the summer of 2015 to explain the circumstances of fleeing interns. He went on to say that it was then copied and pasted onto future documents, including those shown to a group of Diet members in June and at the ongoing extraordinary parliamentary session — where the bill to expand the acceptance of foreign workers in Japan to include blue-collar workers, in job areas where there is a serious labor shortage, is being discussed. “I am sorry that (the ministry) has shown to lawmakers and others documents that include incorrect data and expressions, and that I gullibly believed such inappropriate documents and as a result gave incorrect explanations in the Diet,” the minister said, adding that he will make any corrections as needed. The project team, which held its first meeting Monday, is headed by Parliamentary Justice Vice Minister Hiroaki Kadoyama and includes members of the minister’s secretariat as well as the Immigration Bureau.

immigration
visa
trainees
takashi yamashita


Local governments in Japan prepare to accept more foreign workers

Abstract: As the Diet plans to start substantive deliberations on a bill to expand acceptance of foreign labor, local governments are beginning to prepare for the expected influx of foreign workers. Addressing labor shortages is a pressing matter for local governments. The Chiba Prefectural Government, which is facing a shortage of caregivers, is pinning its hopes on Vietnamese nationals, who among the various groups of non-Japanese working in the prefecture have established a good reputation as a source of manpower. During a visit to Vietnam, Chiba Gov. Kensaku Morita was scheduled to inspect a facility that provides Japanese language education and sends technical interns to Japan, as well as hold a meeting with the mayor of Ho Chi Minh City. Speaking to reporters at Narita International Airport in Chiba Prefecture before his departure Thursday, Morita noted that while the central government decides the outline of programs, it is difficult to work out the details of the policy. Morita added that deciding those details is a task for local governments. He said that he hopes “to pave the way” for an exchange of memorandums and other agreements with the Vietnamese government after the Chiba Prefectural Government “thinks hard” and makes progress. The Yamagata Prefectural Government is conducting a survey to understand issues relating to foreign workers, hoping to promote their employment. The survey covers 2,000 companies in the prefecture within a variety of industries, including the manufacturing, construction and nursing care sectors. After understanding issues relating to foreign workers, such as the need for training and education, as well as procedures for immigration and skills certification, the prefectural government will consider moves to address them. The measures will be included in the prefectural government’s draft budget for fiscal 2019. Meanwhile, the Yokohama City Government plans to subsidize part of the school expenses and rent for nursing care trainees from Vietnam who are on Japan’s technical intern training program. The city government has exchanged memorandums with three municipalities, as well as junior colleges and other institutions, in Vietnam. While moves by local governments to secure foreign workers are expected to accelerate, many officials from those authorities have expressed concerns. Some cited worries about a scramble between local governments over foreign workers, while others voiced apprehension about inadequate progress in constructing systems to accept such workers.

chiba
foreign workers
local governments
yamagata


Japan looks to make power harassment prevention mandatory at the workplace

Abstract: The labor ministry said Monday that companies should be legally required to take steps to prevent so-called power harassment, or abuse of authority at work by superiors against their subordinates. The ministry made the proposal at a meeting of a subcommittee of the Labor Policy Council, which advises the labor minister. The ministry aims to submit related legislation to the ordinary Diet session starting early next year. The ministry defines power harassment as behavior by those taking advantage of their superior position in a way that goes beyond the necessities of conducting business and causes physical or psychological pain. The ministry hopes to require companies to stipulate a ban and penalties on power harassment in their work regulations or other rules, prepare consultation systems and take appropriate follow-up measures. The ministry also sought a review to the law for securing equal employment opportunities between men and women, in order to strengthen measures against sexual harassment, calling for the prohibition of dismissing employees who come forward with claims of such harassment at work. The ministry also said guidelines set under the law should clearly stipulate how companies must respond to cases in which workers suffer sexual harassment from clients and other people outside the company. As for the law to promote greater female participation in the workplace, the ministry aims to expand the scope of companies currently obliged to compile action plans, from those with at least 301 workers to those with 101 or more workers.


Nissan's Carlos Ghosn suspected of using firm's overseas houses for free without reporting benefit as income

Abstract: Nissan Motor Co. Chairman Carlos Ghosn is suspected of having used multiple residences owned by the automaker without reporting that benefit as part of his income, sources familiar with the situation said Tuesday, as details begin to emerge regarding allegations against him over financial misconduct. The new details — over his use, without charge, of properties in the Netherlands and three other countries — were revealed the day after a dramatic fall from grace by the 64-year-old, who has been a towering figure in the automotive industry. Tokyo prosecutors believe the costs shouldered by Nissan should have been reported in securities reports as part of the remuneration he received from the company, according to the sources. The revelation came after Nissan released a statement Monday saying it had found “significant acts of misconduct” by Ghosn, such as “personal use of company assets.” Ghosn, who is also chairman of Renault SA and Mitsubishi Motors Corp., was arrested Monday on suspicion of violating the Financial Instruments and Exchange Act by understating his pay package in Japan by a total of about ¥5 billion over five years from 2011. In the five-year period, the prosecutors believe Ghosn actually received a total of nearly ¥10 billion in salary, but Nissan’s annual securities reports show that his remuneration amounted to about ¥4.98 billion. Prosecutors and Nissan officials have struck a plea bargaining agreement under which the authorities could decide either not to indict, or to pursue lesser charges or seek lighter penalties, if suspects or defendants cooperate in investigations, according to the sources. It is believed to be the second time the system has been used since Japan’s revised criminal procedure law entered into force in June this year. In July, prosecutors elected not to indict Mitsubishi Hitachi Power Systems Ltd. after reaching a plea bargaining deal with the company over a case involving bribery by one of its employees of a Thai public servant in relation to a local power plant project. On Monday, Nissan said it intends to dismiss Ghosn, one of Japan’s highest paid executives, and Representative Director Greg Kelly, who allegedly conspired with the chairman, at a board meeting to be held Thursday. Nissan said Ghosn’s wrongdoing and Kelly’s “deep involvement” were uncovered by an internal investigation conducted over the past several months following a whistleblower report. One analyst said the dramatic arrest of the two top executives seems to have been well prepared in advance. “It looks like a coup d’etat, orchestrated by insiders who are against” the leadership of Ghosn and Kelly, the analyst said. Kelly, a former lawyer who entered Nissan’s North American arm in 1988, had tremendous influence within the automaker as a confidant of Ghosn, according to company officials. At a news conference Monday, Nissan CEO Hiroto Saikawa said Kelly “continuously acted as a close aide of Ghosn” and “controlled the company” backed by the chairman’s authority. Kelly, 62, became a corporate officer in 2008 before eventually assuming the post of one of the firm’s three representative board members. The Tokyo prosecutors have not disclosed whether Ghosn and Kelly have admitted to their allegations. The violation of the financial law could entail a punishment of up to 10 years in prison, a fine of up to ¥10 million or both. Under the law, a company could face a fine of up to ¥700 million. In 2010, Japan began requiring listed firms to disclose how much they were paying board members if their remuneration exceeded ¥100 million. Ghosn has been well-regarded for turning around Nissan, which was on the verge of bankruptcy in late 1990s, through a capital alliance with Renault. Known as an aggressive cost-cutter, he was appointed chief operating officer of Nissan in 1999 and became president the following year. The Tokyo District Public Prosecutors Office’s special investigation squad has raided Nissan’s headquarters in Yokohama as part of the investigation.

nissan
carlos ghosn
houses
plea bargain
overseas


Miyazaki finds solution to IT labor crunch thousands of kilometers away

Abstract: MIYAZAKI - Like many of Japan’s smaller cities, Miyazaki has been hit by a growing labor crunch, a trend highlighted by the mere 56.8 percent of high school graduates that chose to remain in the prefecture to work — third-worst among the 47 prefectures. In the hard-hit information technology sector, the city has been encouraging firms to run businesses there to help energize the area, said Tsugunobu Ogino, president of KJS Co., a Miyazaki-based IT firm that makes e-learning systems. “But they are struggling to find engineers, since many move to Tokyo,” he said. Now, the city in the southern Kyushu region may have found an unexpected solution, one thousands of kilometers away: Bangladesh. The South Asian nation faces a scenario that is almost the complete inverse of Japan — there are simply not enough jobs for its ample working population. “From our hiring experience, (Bangladeshi engineers) can finish jobs really quickly,” said Ogino, who has hailed the workers as diligent and fast studies of Japanese. His firm started hiring Bangladeshi workers in May last year and now has two full-time and two part-time engineers from the country. Today, turning to the South Asian nation is not altogether unusual for small and midsize IT firms in Miyazaki, with more firms welcoming engineers from the country under a program hosted by the quasi-government Japan International Cooperation Agency. The project, known as the Bangladesh-Japan ICT Engineers’ Training Program, dubbed B-JET, is expected to help ease the labor shortages in Miyazaki and provide jobs for young Bangladeshis, serving as a win-win situation for both countries. For years the Bangladeshi government has been focusing on fostering IT human resources in a bid to bolster its economy. But “even college graduates with outstanding academic records cannot find jobs,” said Akito Takahashi, director of JICA’s South Asia division. Since 2014 Ogino’s KJS has been working with the Bangladeshi government to provide e-learning materials for engineers, and officials there asked him how young Bangladeshis could get jobs. After consulting with the University of Miyazaki, the city office and other local businesses, a plan was formed to bring Bangladeshi engineers to Miyazaki, Ogino said. The problem, however, was how to help them adapt to life in Japan when many companies simply do not have the ability or knowledge to aid foreign workers. That’s where JICA has come in. Its B-JET program provides free Japanese language and business manner training for three months to a select few before they come to Japan. In addition, the University of Miyazaki has created language education material specifically for those who will be working as engineers in Japan. After they undergo training in Bangladesh, they come to Miyazaki, where they are given an additional crash course in Japanese and survival tips at the university that gives them valuable time to adjust to the new environment before actually starting work. The B-JET program, which kicked off in November last year and runs through 2020, selects 90 to 120 students every year, dispatching Bangladeshi engineers to regions throughout Japan. “It’s difficult for small and midsize companies in the countryside to go out and look for workers,” said Takahashi. “So we think this kind of initiative is effective in spurring job mobility.” Since JICA offers language training and better prepares workers for settling in Japan, companies are also relieved of the burden of what would likely be an arduous hiring process. The workers’ skills are also guaranteed to be top notch, having gone through the rigorous screening process — the latest program saw 2,668 applicants and only 20 engineers have been accepted. “The fact that they have been selected for this program proves that they are very good. I wasn’t really worried,” said Yuichiro Sakurada, who heads Miyazaki-based Future Junction, which runs an online matching service for real estate experts. In fact, Sakurada — who first tried to outsource the operations of his online service with Japanese vendors — was so impressed when he visited Bangladesh in December to meet B-JET participants that he decided to hire an engineer. “It has turned out well . . . he was fresh out of college, so it took some time to gain experience, but his work is solid,” Sakurada said of his new employee, adding that he was now looking into hiring several more workers from the country. For their part, the Bangladeshi engineers appear satisfied with their experiences. “From childhood, we grew up with Japanese products, cars, games and computers,” said Arif Uddin, a 26-year-old engineer at KJS. Japan has a very good image among the Bangladeshi people, he added. Despite difficulties with some ultraspecific Japanese business terminology, the language has not really been an issue since programmers share the same programming languages. Uddin said adjusting to life in Japan has gone quite smoothly for him. As a Muslim, one of Uddin’s chief concerns had been access to halal food. But because most Japanese products are clearly labeled and access to halal food online is but a click away, it hasn’t been a big issue for him. “I studied the language and learned about everyday life of Japan (through the B-JET program), so I knew what to expect a little bit,” said Marzia Hajera, another engineer from Bangladesh who works at Skycom Corp. in Miyazaki. “People in Miyazaki and at my work are very kind. They help me when I don’t know what to do,” Hajera said, adding that she is happy to see more fellow Bangladeshi people coming to Miyazaki.

bangladesh
engineers
foreign workers
jica
miyazaki
kjs


Exports of Fukushima-brand alcohol hit record in fiscal 2017

Abstract: Exports of sake, liquor and other alcoholic beverages produced in Fukushima Prefecture reached a record high of about 296,000 liters in fiscal 2017, or 3.2 times that of fiscal 2012, when the Fukushima Trade Promotion Council, in charge of supporting business activities among local companies and municipalities, began monitoring the figures. The total value of alcohol exports was ¥363.37 million, up 16 percent from the year before. The Fukushima Prefectural Government plans to further promote the safety and attraction of local alcohol, aiming to rebuild its reputation after the nuclear meltdowns at the Fukushima No. 1 nuclear power plant in March 2011. In fiscal 2017, the amount of sake exported rose 11.9 percent from a year earlier to 179,000 liters, worth ¥204.69 million. Other alcohol, including whiskey, plum wine, and shōchū (spirits) jumped 23 percent to 117,000 liters, worth ¥158.68 million. The United States imported 118,000 liters — 77,000 liters of sake and 41,000 liters of other alcohol, accounting for 40 percent of the prefecture’s alcohol export. France imported 53,000 liters — 2,000 liters of sake and 51,000 liters of other alcohol — accounting for 18.1 percent. South Korea imported 39,000 liters of sake, accounting for 13.2 percent. Out of all the sake produced in Fukushima, 43.1 percent was exported to the U.S. To take advantage of the trend and the popularity of Japanese cuisine in America, the prefecture will launch an antenna shop in New York to sell Fukushima-brand sake by the end of March. The prefecture will also release about three PR videos with English subtitles on YouTube to promote local sake to English-speaking consumers. Fukushima aims to increase its alcohol exports to 500,000 liters, worth ¥700 million, by the end of fiscal 2020. It also plans to reinforce sales by focusing on five countries and regions including the U.S., France, where sake is becoming increasingly popular, and Hong Kong, where there are a number of Japanese restaurants. However, out of the 58 breweries in the Fukushima Prefecture Sake Brewers Cooperative, only 24 had exported their sake abroad. To achieve the prefecture’s goal, the next thing they will need to do is to increase the number of sake exporters. “It was the result of each maker’s efforts to improve the taste,” Yoshihiro Ariga, chairman of the cooperative, said in referring to the record exports in fiscal 2017. But he also said further support will be needed. “It costs a huge amount of money and effort to export sake,” Ariga said, urging municipalities to provide further assistance to small breweries. According to the Finance Ministry, 23,482,000 liters of sake were exported in 2017, breaking the record for an eighth consecutive year.


Survey finds Japanese less active, prefer more family time and fewer working hours compared to three decades ago

Abstract: Japanese prefer spending more time with their families and less time in office meetings and working late compared with 30 years ago, but are not necessarily hoping for longer vacations, according to a survey by Citizen Watch Co. The online survey, which was conducted on Sept. 25-26 on 400 adults 20 years old or older, shows that people seem to have become “inactive” on the back of the long sluggish economic situation, according to an expert studying the relationship between people’s lives and time. The Japanese watch company compared the results with those of a similar survey conducted in 1989, when Japan’s asset-inflated bubble economy was at its peak. The collapse of the bubble economy was followed by a prolonged recession known as the “lost decade.” In the latest survey, workers said they thought the time they spend in office meetings was “just about right” at 40 minutes, about half of the amount that respondents answered in 1989. They also said they prefer spending less time wining and dining with clients. Time spent on office automation equipment like computers more than doubled to 2 hours and 53 minutes from 1 hour and 17 minutes in 1989. The percentage of men who said they do not use such equipment at all dived to 2 percent from 22.8 percent. “The era of using a pen and paper in the work area has ended,” Citizen said. The amount of monthly overtime has decreased to 12 hours and 39 minutes from nearly 16 hours, and in a further sign that more people seem to prefer spending less time at work, daily family time increased 11 minutes to 1 hour and 49 minutes. Regarding family life, the time in which couples felt like newlyweds shortened to around 15 months from 18 months, while the right amount of summer vacation is now said to be 8.2 days, shorter than the 9.0 days preferred 30 years ago. “People probably think it is pointless to take so many vacation days. There’s less time spent going out for drinks and it’s become harder to spend compared to the past,” said Yoshio Arai, a professor at the University of Tokyo. “Time spent having fun has probably shortened and I have the impression that people have become inactive as a whole.”


Dollar firmer above ¥113.50 in late Tokyo trading

Abstract: The dollar was firmer above ¥113.50 in Tokyo trading late Tuesday after concerns over U.S.-China trade friction receded somewhat. At 5 p.m., the dollar stood at ¥113.58-59, up from ¥113.23-23 at the same time Monday. The euro was at $1.1311-1311, down from $1.1361-1362, and at ¥128.48-48, down from ¥128.63-69. With its topside versus the yen limited in early trading after U.S. President Donald Trump suggested plans to raise tariffs on Chinese imports, the dollar weakened to around ¥113.40 toward noon. The greenback rose to around ¥113.50 in afternoon trading thanks to a solid performance by the Nikkei 225 stock average. In late trading, the U.S. currency moved narrowly around ¥113.50 before briefly rising above ¥113.60 following a media report that the United States and China have reached a mutually satisfactory trade agreement, traders said. With some market players being skeptical about the media reports in the absence of follow-up reports, the dollar failed to stay above ¥113.60, an official of a bank-affiliated securities firm said. The official noted that the dollar could extend its current upward trend and test ¥114 next week. But an official of a major life insurer said that “dollar purchases are unlikely to grow as long-term U.S. interest rates are not rising.”


Tokyo stocks advance further on futures-led purchases

Abstract: Stocks continued to rise Tuesday, lifted by futures-led buying. The Nikkei 225 average closed 140.40 points, or 0.64 percent, higher at 21,952.40, after retaking 22,000 for the first time since Nov. 12 on an intraday basis. It gained 165.45 points Monday. The Topix, which covers all first-section issues on the Tokyo Stock Exchange, closed 11.96 points, or 0.73 percent, higher at 1,644.16 after rising 3.24 points Monday. Both indexes finished higher for the third consecutive session. After opening firmer following a strong rally on Wall Street, the TSE lost much of its earlier gains later in the morning due to selling on a rally, market sources said. In afternoon trading, futures-led purchases gave renewed strength to the market, pushing the Nikkei briefly above the 22,000 line. Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., said, “A wide range of issues attracted small-lot buying from individual investors in Japan.” Tokyo stocks easily attracted purchases on declines as they were increasingly seen as undervalued following the recent drops, an official of a midsize securities firm said of the afternoon gains. Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management Co., indicated that the yen’s weakening against the dollar improved investor sentiment. But “it’s difficult (for the Nikkei) to end above 22,000 until (investors) see the outcome of the summit” between U.S. President Donald Trump and Chinese President Xi Jinping later this week, Ichikawa added. Rising issues outnumbered falling ones 1,509 to 526 in the first section, while 80 issues were unchanged. Volume edged down to 1.325 billion shares from 1.339 billion Monday. Line surged 12.94 percent following a news report that the free messaging app provider will offer Chinese visitors to Japan smartphone-based financial settlement services starting next year in collaboration with major Chinese information and technology firm Tencent Holdings Ltd. Other major winners included semiconductor-related Tokyo Electron and mobile phone carrier SoftBank Group. By contrast, discount store operator Don Quijote closed 3.79 percent lower due to selling after recent jumps. Also on the minus side were daily goods manufacturer Kao and drugmaker Takeda.


Line and China's Tencent link up to push cashless payments in Japan

Abstract: Line Corp. said Tuesday it has teamed up with Tencent, China’s largest messaging app provider, to allow Chinese travelers in Japan to make cashless payments via smartphone. Line, Japan’s messaging app giant with 78 million users, is stepping up its bid to become a major cashless payment platform by targeting Chinese tourists, who represent the biggest group of foreign travelers to Japan. During a Tokyo event, Line also said it will offer a banking service with Mizuho Bank. Line will own 51 percent of the planned joint firm and aims to launch services in 2020. Tencent operates WeChat, a messaging app with 1 billion users, and provides a smartphone payment service called WeChat Pay, a widely used platform in China that uses QR codes. “Demand by inbound tourists will surely surge from this point on, and Line Pay will enable stores to be ready for that,” Hisahiro Chofuku, chief operating officer of Line Pay, said during a news conference. Line said WeChat Pay users will be able to purchase items with WeChat Pay at stores in Japan that accept Line’s mobile payment platform known as Line Pay starting next year, but the exact timing is undecided. Some large stores popular among Chinese tourists already accept WeChat Pay, but many smaller retailers do not, so Line will aim to spread Line Pay and WeChat Pay to such outlets, Chofuku said. “More Chinese people are visiting Japan in recent years,” said WeChat Pay Vice President Freedom Li. “I am sure WeChat Pay will bring value and help Japanese retail stores. “With this strategic partnership, we’d like to contribute to promoting cashless and mobile payment in Japan through inbound tourism,” he added. Japan has been lagging in terms of cashless payments compared with other nations, including China and South Korea, and the government is aiming to boost the ratio of such payments to 40 percent of all settlements by 2027, from 20 percent in 2016. Line also said it has partnered with South Korea’s Naver Corp., Line’s parent company, to enable Naver users to make cashless payments. Naver operates Naver Pay, a smartphone-based service that has about 24 million users. In addition, while Line Pay services in Taiwan, Indonesia and Thailand — where Line is dominant — have been limited to local use, customers from those places will be able to make payments with the app in Japan starting next year. Combining Japan, Taiwan, Indonesia and Thailand, the number of Line Pay users totals about 40 million. With hundreds of millions of potential customers in Asia, “we think there are hardly any reasons not to accept Line Pay now,” Chofuku said. Line has been eagerly promoting its Line Pay service over the past several months. It allows users to make payments by scanning QR codes, plastic cards or smartphones equipped with FeliCa chips. In June, the firm said it would boost the number of Line Pay-ready stores to 1 million this year, and Chofuku said Tuesday that goal has already been met.

china
line
mizuho bank
tencent
wechat pay


Carlos Ghosn allegedly shifted investment loss of ¥1.7 billion to Nissan; CEO Saikawa set to double as chairman

Abstract: Ousted Nissan Motor Co. Chairman Carlos Ghosn is suspected of shifting some ¥1.7 billion ($15 million) of losses from personal investments to the automaker in 2008, adding to allegations of financial misconduct against him, sources said Tuesday. According to the sources, the Securities and Exchange Surveillance Commission was aware of the alleged misconduct in relation to Ghosn’s derivatives trading and notified the bank involved in the transaction of the possibility that he had committed an aggravated breach of trust. The SESC told The Japan Times on Tuesday it does not comment on specific cases. Nissan shouldered the losses incurred amid the global financial crisis in 2008 after Ghosn could not secure adequate collateral, the sources said. He was arrested last week for allegedly violating the Financial Instruments and Exchange Act by underreporting his remuneration by around ¥5 billion over five years to March 2015. He received nearly ¥10 billion from the firm during that period. According to the sources, the former Nissan chairman admitted not having included in the securities reports part of the remuneration he was set to receive when he retires. “There is no need to include them as their payments have not been settled,” Ghosn was quoted by the sources as saying. Ghosn is also suspected of using one of Nissan’s business jets for private trips, the sources said. The 64-year-old allegedly traveled aboard one of Nissan’s leased planes for nonbusiness purposes. The jet, which was set aside for Ghosn’s dedicated use, flew to countries where the automaker has no major bases. Destinations included Beirut, where Ghosn allegedly used for free a residence the Nissan group spent several hundred million yen to purchase, the sources said. After the home was renovated four or five years ago, Ghosn reportedly visited the site almost every month. According to a private website that shows routes of planes around the world by capturing their flight signals, the Nissan jet has flown to Lebanon several times since last month. The jet traveled from Lebanon on Nov. 19, when Ghosn was arrested upon his arrival at Tokyo’s Haneda airport. The plane, manufactured by Gulfstream Aerospace Corp. and bearing the registration number N155AN, is a high-end model priced in the billions of yen and boasts one of the fastest and longest distance flight capabilities available in a business jet. Ghosn was ousted as chairman last week by the Nissan board of directors along with Greg Kelly, a former Nissan representative director, who is suspected of conspiring with Ghosn. Nissan plans to appoint CEO Hiroto Saikawa to double as its chairman at a board meeting next month, sources with knowledge of the situation said Tuesday. The board plans to meet Dec. 17, the sources said, where three independent directors will nominate a candidate for chairman from among the six other directors. Ghosn and Kelly remain on the board. Saikawa had been slated to be named Nissan’s chairman on an interim basis at an emergency board meeting Thursday but the plan has been put on hold over concerns that it would anger alliance partner Renault SA, of which Ghosn is still chairman and CEO. The leadership vacuum increasingly appears to be turning into a power struggle. Both Ghosn and Kelly are currently in detention but have yet to be charged. They have denied the allegations against them, according to investigative sources. The Wall Street Journal reported Monday that Ghosn has concluded a contract with renowned U.S.-based law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP. The firm representing major U.S. financial institutions will defend Ghosn against allegations of financial misconduct in Japan, the newspaper said. Details of the firm’s role are unknown. Brad Karp, chairman of the law firm, and Michael E. Gertzman, a partner of the firm, will take charge of Ghosn’s case, according to The Journal. Meanwhile, the Tokyo Stock Exchange plans to probe Nissan over alleged financial misconduct by the former chairman, according to informed sources. The TSE will examine the matter in detail, including Nissan’s internal management system, based on the exchange’s listing rules. It also plans to conduct hearings with Ernst & Young ShinNihon LLC, the automaker’s auditor. French Finance and Economy Minister Bruno Le Maire has said he believes it is preferable for the tripartite alliance to continue to be led by a person from Renault. Ghosn, sent to Nissan from Renault as chief operating officer in 1999, turned around the Japanese automaker’s fortunes, dragging it from the brink of bankruptcy through drastic cost-cutting measures. Renault, which owns 43.4 percent of Nissan, is expected to push for one of its own executives, rather than Saikawa, to succeed Ghosn. Nissan holds a 15 percent stake in the French automaker and a 34 percent stake in fellow alliance member Mitsubishi Motors Corp. Japanese industry minister Hiroshige Seko told a news conference Tuesday that the government will not comment on the makeup of Nissan’s new management team, given that it is not a shareholder of the company. On Monday, the board of Mitsubishi Motors also voted unanimously to dismiss Ghosn as its chairman. The Brazilian-born executive, who also holds Lebanese and French citizenship, is also suspected of having used company funds to purchase and renovate lavish homes spread across four countries, and to have shifted ¥1.7 billion in personal investment losses to Nissan, according to the sources.

scandals
nissan
carmakers
investments
renault
carlos ghosn
hiroto saikawa


China bars U.S. family members from leaving country in bid to force bank exec to return and face charges, NYT reports

Abstract: BEIJING - China on Monday said that it has barred three reported U.S. citizens — a woman and her two grown children — from leaving the country because they are suspected of “economic crimes.” According to The New York Times , Chinese-born mother Sandra Han and her children, Cynthia and Victor Liu, were prevented from leaving the country after they arrived in June. The children say police are preventing them from returning home to compel their father, a former executive at a Chinese state-owned bank, to return to China to face criminal charges, according to the Times. Their mother is allegedly being held in a secret site known as a “black jail,” the Times reported. The siblings told American officials and family associates that they were prevented from flying home despite not having been charged with a crime, the newspaper said. China’s Foreign Ministry on Monday defended the decision. “As we understand it from the relevant authorities, these people you have mentioned all have legal and valid identity documents as Chinese citizens,” Chinese Foreign Ministry spokesman Geng Shuang told a regular news briefing. “They are suspected of having committed economic crimes and have been restricted from leaving China by Chinese police.” Chinese law does not recognize dual citizenship. While China is known to bar naturalized foreign citizens who are former Chinese nationals from leaving, it is rare that one of those being held was born in the United States. The U.S. State Department issued a travel advisory in January, warning its citizens about the use of “exit bans” to compel American nationals to resolve disputes or compel family members or colleagues to cooperate with Chinese authorities. U.S.-born Victor, 19, was set to start his second year at Georgetown University while his sister, Cynthia, 27, was heading back to work with consulting firm McKinsey & Company, according to the Times. They have unsuccessfully tried to leave three times and have been moving between cities and living with an uncle, the paper reported. The siblings claim they are innocent and are being used to pressure their father, Liu Changming, a wanted man in China. A former executive at the Bank of Communications, Liu is accused of helping to carry out one of the country’s biggest bank frauds, in which $1.4 billion in illegal loans were issued to property developers. He fled China in 2007 and his children say he is estranged from the family, cutting off ties in 2012. The U.S. State Department said it was in “close contact” with Victor and Cynthia Liu. An official said: “U.S. citizen siblings Victor and Cynthia Liu have been unable to leave China since June 2018 due to an exit ban. “U.S. officials, including the Secretary of State, regularly raise the issue of exit bans with the Chinese government.” The official added: “We routinely call for a more transparent process and fair treatment for U.S. citizens.”