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Carlos Ghosn press conference speaking publicly

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  • Carlos Ghosn, the fugitive former Nissan executive facing charges of financial malfeasance in Japan, painted a picture of a corporate plot between his former employer and Japanese prosecutors in his first public comments on the case Wednesday.
  • Ghosn gave a lengthy press conference in front of international media during which he criticized his November 2018 arrest and accusations that he underreported his income and misused corporate funds, accused his critics of „character assassination.“
  • The automotive executive is on the run from Japan after having escaped house arrest there on December 31, 2019, later resurfacing in Beirut, Lebanon, where he asserted that he was escaping „injustice and political persecution.“
  • Follow full coverage of Carlos Ghosn’s international escapade here.

Carlos Ghosn railed against his former employer and colleagues, Japanese prosecutors, and the media in a lengthy press conference on Wednesday morning, his first public comments since he fled to Lebanon from Japan last year.

Ghosn criticized his November 2018 arrest and accusations that he underreported his income and misused corporate funds, accused his critics of „character assassination.“

„As you can imagine today is a very important day for me,“ Ghosn said, „one I have looked forward to every single day for more than 400 days since I was brutally taken for my world as I knew it, and ripped from my family, my friends, my communities, from Renault-Nissan, and Mitsubishi, and the 450,000 women and men who comprise those companies.“

The automotive executive is on the run from Japan after having escaped house arrest there on December 31, 2019, later resurfacing in Beirut, Lebanon, where he asserted that he was escaping „injustice and political persecution.“ Ghosn is facing multiple charges of financial misconduct stemming from his time as head of the Renault-Nissan alliance. He denies the charges.

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Ghosn laid out the sequence of events that led to his downfall as he recalls them. He cited his efforts to shepherd the addition of the automaker Mitsubishi to the Renault-Nissan alliance in 2016, a decline at Nissan in 2017, and a falling out between him and members of Nissan’s board of directors.

Ghosn described in detail the day of his arrest at an airport in Japan, calling the ordeal „staged,“ and saying he was told by authorities that there was a problem with his visa. It was there that he first encountered a prosecutor, Ghosn said, adding that he asked for permission to call Nissan so the company could send an attorney.

„But obviously, I didn’t know that Nissan was behind it and it was staged way before between the prosecutor and the company,“ Ghosn claimed. He has denied

He described his treatment in custody and criticized Japanese authorities for preventing him from seeing his wife. During his time in Japan, Ghosn had been rearrested on several occasions before he was released on a multimillion-dollar bail agreement and placed on house arrest.

„I was not a human anymore. I was something between a human and animal and object,“ Ghosn said.

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Rob Carrick: What the Bank of Canada rate hike means for investors and savers who want to park money safely – The Globe and Mail

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The benefit of parking cash in a high-interest savings account ETF was demonstrated this week after the latest increase in the Bank of Canada’s overnight rate.

The central bank raised its trendsetting rate by a quarter of a percentage point Wednesday. Almost immediately, the yield on HISA exchange-traded funds increased by a similar amount. For example, the gross yield on the Horizons High Interest Savings ETF CASH-T was 5.18 per cent late this week, up from 4.93 per cent late last month. CASH has a management expense ratio of 0.11 per cent, so its net yield is now 5.07 per cent.

Changes in the overnight rate do not directly influence returns from guaranteed investment certificates, but there’s an indirect effect that right now is working in favour of GIC investors. The Bank of Canada is worried about inflation – that’s why it increased the overnight rate. Inflation fears are also weighing on the bond market, where rates have been moving higher as well lately. Yields on Government of Canada bonds influence rates on GICs, which have been creeping higher lately for terms of one and two years.

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As of late this week, the number of alternative banks, trust companies and credit unions offering 5 per cent for one year had grown to seven, and the number offering 5 per cent for two years was four. The best three-year rate was 4.95 per cent. GIC issuers have been reluctant to raise rates on longer terms, but this could change if bond yields keep rising.

HISA ETFs accounted for two of the top 10 sellers last month in ETF land, even though they are under review by the federal Office of the Superintendent of Financial Institutions. These funds hold their assets in accounts at big banks that pay rates of return that are superior to what’s offered to retail depositors. Regulators at OSFI are looking into what would happen to banks if investors were to pull all their money from HISA ETFs at once. OSFI may order changes that will lower returns on HISA ETFs.

As a hedge against this outcome, some ETF providers recently introduced funds holding government treasury bills. T-bill yields have been rising lately as a result of the same inflation concerns that drove the Bank of Canada rate increase this week. T-bill ETF yields would benefit if this continues.

HISAs for investors are also available in a mutual fund format. Rates on these products have been stuck in the 4.05 to 4.35 per cent range in recent months.

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Indigo shakeup: Heather Reisman retiring, 4 other board members stepping down

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Indigo Books and Music Inc. says founder Heather Reisman will retire as executive chair and as a director this summer, while four other members of its board have also stepped down.

The company says director Chika Stacy Oriuwa indicated she resigned “because of her loss of confidence in board leadership and because of mistreatment.”

In addition to Oriuwa, Indigo says Frank Clegg, Howard Grosfield and Anne Marie O’Donovan have also stepped down as directors. No explanation for their departures was given.

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Click to play video: 'Indigo CEO Heather Reisman talks about creating a happier planet in her new book ‘Imagine It!’'
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Indigo CEO Heather Reisman talks about creating a happier planet in her new book ‘Imagine It!’

 


Indigo wished the departing directors well and thanked them for their contributions.

The retailer says Reisman will retire as executive chair and from the board effective Aug. 22.

Reisman stepped down as chief executive of Indigo last year as part a transition that saw Peter Ruis, who had been the retailer’s president, promoted to chief executive.

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Canadian banks raise prime rate to 6.95% after Bank of Canada hike

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Big banks follow suit after surprise quarter-point hike

Canadian banks announced they were raising their prime lending rates after the Bank of Canada surprised markets by hiking it benchmark interest rate on June 7.

Royal Bank of Canada, TD Canada Trust, Canadian Imperial Bank of Commerce (CIBC), Bank of Montreal, National Bank of Canada and Bank of Nova Scotia all said they were increasing the prime rate by 25 basis points to 6.95 per cent from 6.70 per cent, effective June 8, 2023.

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Desjardins Group and Equitable Bank also announced it would raise its Canadian prime rate by the same amount.

The Bank of Canada surprised markets and observers when it raised its benchmark policy rate by a quarter percentage point to 4.75 per cent earlier in the day.

The central bank has raised its rate nine times, and 4.5 percentage points, since March 2022, and the commercial banks’ prime rate has moved in lockstep from 2.7 per cent to 6.95 per cent.

Listen to Down to Business for in-depth discussions and insights into the latest in Canadian business, available wherever you get your podcasts. Check out the latest episode below:

 

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