Ghosn Ousted as Chairman of Nissan on “Acts of Misconduct”

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Ghosn Ousted as Chairman of Nissan on “Acts of Misconduct”

Ghosn Ousted as Chairman of Nissan on “Acts of Misconduct”Carlos Ghosn was detained in Japan and an investigation is on. The head of Nissan, Mitsubishi Motors and Renault is being investigated on “acts of misconduct”. This misconduct has been going on for many years. Misuse of company assets and under-reporting compensations are some of the allegations against him.

Further, as iPhone sales are said to be waning, the world market saw a selloff, especially in the tech sector. Apple has cut down orders for its iPhone, XS, XR and XS Max models. The share prices have come down by 20 percent.

Nissan is the sixth largest company in the car-making industry. Ghosn is the chairman of Nisan. The chief executive Hiroto Saikawa says that he feels “indignation, despair and resentment” while speaking at a news conference.

Nisan Motor Company fell down by more than 5 percent with the arrest of Ghosn and his removal as CEO of the company to follow. He will also be removed from Mitsubishi as CEO.

Shares of Nissan dropped by 5.5 percent in Tokyo, while Mitsubishi shares dropped by 7 percent. Renault shares saw a drop of 3.5 percent.

The dollar was trading at a two-week low.

In Italy, the government bond yields were on a one-month. The banking sector was the worst hit as it was touching a two-year low.

In Europe, the market was affected by the tech news of the arrest of Ghosn as the stocks were in the deep red in all sectors.

In Japan, the Nikkei was down by 1.1 percent, with stocks of Nissan Motors leading the downfall. The Shanghai and Hong Kong markets were further down by 2 percent.

On Monday, the Nasdaq was down by 3 percent while the Dow was down by 1.6 percent, while the S&P 500 was down by 1.7 percent.

 Brent crude was trading at $66.39 a barrel, as it slipped by 0.6 percent.

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