Tag Archives: Nissan

Car Ghost

Yes, the news is full of him, the news is all about the great escape now, but what set it all in motion? You see, the numbers do not add up, not to the degree that we see at present.

Some might see it as a setting where it all comes from a strategic partnership among those automotive manufacturers through a complex cross-shareholding agreement where the alliance of Renault, Nissan and Mitsubishi has set a 10% market share ownership for the last 10 years and to comprehend this, consider the amount of car brands you know on a global scale, whilst we see that three brands have a 10% market share. As such in 2003 Fortune identified him as one of the 10 most powerful people in business outside the U.S. that is not a small matter, to get on such a short list a person needs to have pull on several levels. So when I see that he was arrested at Tokyo International Airport on 19 November 2018, on allegations of under-reporting his earnings and misuse of company assets. I was not surprised, I did not blink and more important, I shrugged it all off with the flair of ‘whatever’. The fact that Renault an French officials at some point cut ties and made him surrender his CEO and Chairman position of Renault was the first moment I took notice, this is a rather large setting, as the man was part Lebanese I wondered if Hezbollah ties were involved, knowing the DGSE does not tend to show the hand it holds and would not surrender such knowledge until it was common knowledge. 

Ghosn was re-arrested in Tokyo on 4 April 2019 over new charges of misappropriations of Nissan funds. This time around, I had a few more runs on his name and more importantly a run on a finance hub on the dark web, my searches went dark (almost literally) and whatever exists, there was no way to get a handle on it (for me at least). Now, I already had access to the NY Times who gave us “Nissan said it was cooperating with Japanese prosecutors and that its investigation into Mr. Ghosn began after a whistle-blower said he had been misrepresenting his salary and using company assets for personal purposes“, all whilst France.24 gave us “Renault uncovered 11 million euros in questionable expenses by him, leading to a French investigation and raids“, so this is not his income, or his bonus, these are two places where multi million expenses were found and whilst some might digress on the fact that it came from a whistleblower, it seems that two places have in he first an incapable CFO, in the second the fact that this was not raising alerts on where that money was and more important there is an optional Hezbollah link with close to €16 million missing. All this whilst we see no explanation to ‘donations to nonprofit organizations‘, isn’t that how Hezbollah gets loads of its revenue? So whatever Carlos Ghosn states as to ‘political enemies’ might have a ring of truth, they would be anyone opposing the terrorist actions of Hezbollah. So when I see ‘Renault says an internal audit with partner Nissan found 11 million euros in questionable expenses at their Dutch-based holding‘, I merely wonder how this could have been going on for so long, this is not something that happened overnight, there is a trail and some players never woke up (apparently). So whilst I have absolutely no feelings on some CEO, I am actively hostile to anyone supporting and financing the actions of Hezbollah. 

Here is where I need to make sure that you realise that the Hezbollah link is assumed and implied, yet there was a lack of intelligence that is until Ghosn escaped to Lebanon, eve now as the Guardian gives us (at https://www.theguardian.com/business/2019/dec/31/carlos-ghosns-escape-from-japan-was-aided-by-lebanese-officials), we see “Carlos Ghosn’s flight from criminal charges in Japan to Lebanon was aided by Lebanese state officials who were instructed by political leaders to smooth his arrival“, it is one way of stating that Hezbollah OK’d it all. And whilst another Guardian article gives us “A private plane was waiting to whisk the former corporate titan to Istanbul, Turkey. From there he appears to have boarded a Bombardier Challenger private jet for a flight to Lebanon, where he arrived before dawn on Monday“, All whilst no one asks the questions how a person apparently handing over his passports as part of his bail condition got out of the country, and I have less faith in “News of the escape came as surprise to the Japanese authorities – who have charged Ghosn with falsifying records about his personal pay in order to enrich himself“, when state players (Lebanon) goes out on a limb to this degree, and as he was able to get not on one, but two jets one in Japan (who has decent security) and then in Turkey (an Iranian puppet, and they love their Hezbollah HVA’s) we see a shifted picture and it is not merely an executive with too much money, you see, he is still a registered Brazilian as well, and there we see: “Article 77(I) determines that extradition must not be permitted when it involves Brazilians, unless the acquisition of nationality takes place after the fact that motivates the extradition request“, as such the extradition to Lebanon was about more than just moving house. Yet the Washington Post adds fuel to the fire, there we get “In an interview with the Associated Press published Thursday, Lebanon’s justice minister, Albert Serhan, said that Ghosn had entered the country legally on a French passport. “Lebanese authorities have no security or judiciary charges against him, he entered the border like any other Lebanese using a legal passport,” Serhan said.” (at https://www.washingtonpost.com/world/2020/01/02/accused-serious-crimes-he-smuggled-himself-out-japan-carlos-ghosn-may-escape-extradition-lebanon-too/), in addition, France would not extradite to Japan, implying the mess is a lot larger and there the DGSE and Hezbollah situation makes sense, if there was something, fleeing to France would be hazardous, not only does he have a DGSE marker, there is every chance the CIA would want him as well, and they have ways to get to braziliams, getting to Lebanese HVA’s is a lot less likely, a person like Ghosn would be protected to the highest political level possible. We also see “If Mr. Ghosn comes in France, we will not extradite Mr. Ghosn, because France never extradites its nationals. So we will apply to Mr. Ghosn, like everyone, the same rules of the game,” French junior economy minister Agnès Pannier-Runacher told TV station BFM on Thursday“, and this is from Junior economy minister, not from a senior justice member, they would ‘no comment‘ the issue for two distinctive reasons. 

Even now as the case escalates in Turkey, the BBC reports “According to Turkish media, seven arrests have been made in connection with the case – four pilots, a cargo company manager and two airport workers” (at https://www.bbc.com/news/world-europe-50972149), the given information is open as arrests do merely imply, but give no specific intelligence, merely an implied issue, when these people get convicted it is a larger issue, yet Hezbollah will see this as the cost of living, an HVA like Carlos Ghosn bringing in millions, with what he knows of the car industry trumps those lives and the fact that that the Guardian gives us “A policeman leaves the Beirut residence of former Nissan chairman Carlos Ghosn on 31 December” whilst the image is a person with three stars, that is not a policeman, that is someone in authority. In the meantime, we forget that he has surrendered his passports as part of the deal so when we see that his lawyer gives us that “he still had all three of his client’s passports in his possession” implies a larger set of contributing people in a larger time frame, this was orchestrated and this was planned. Even as his lawyer gives us: “I wanted to prove he was innocent,” said Hironaka, who last saw Ghosn on Christmas Day. “But when I saw his statement in the press, I thought he doesn’t trust Japan’s courts“, my take on it is that someone found something and Ghosn knew the gig was up and Japan will cooperate with the USA on the drop of a hat (especially when it is terrorist linked), as such Ghosn needed to get away and from all we see he did not go to Brazil, there is a larger play (but that is my take on the matter). Then we get two parts that optionally bear links to one another, there is “A Lebanese foreign ministry official told Reuters that Ghosn entered the country legally on a French passport and using his Lebanese ID with normal security procedures. The French foreign ministry press office said it had no immediate comment“, as well as “a person resembling Ghosn was recorded by Lebanese officials as entering the country at Beirut airport under a different name“, this now implies a fake passport, whilst that is partially a problem for Ghosn, we also see ‘using his Lebanese ID‘, not his passport (according to the quote) so now we see a planned move from Japan from a person who claims “I have escaped injustice and political persecution“, all whilst he has broken fiscal and financial laws (according to the whistle blower) and all whilst his actions are one that a person does seeking to escape justice, all whilst this is in a state of so described “discrimination is rampant and basic human rights are denied“, all whilst we have seen that in Japan the standard of life for a convicted criminal is better than most european countries give their unemployed and homeless people, as for the evidence on that see the Abashiri Prison Museum, where the prison meals can actually be bought (two meal optons each less than $9) and they outdo most average restaurtants, interesting is it not?

There are still a lot of unknowns and some dark web sources are not that reliable, but one thing is certain, to arrange two jets, a fake passport and the trip takes doing, there will be a trail, I merely wonder what the press (is allowed) get to print and state on the larger screens, and that is where we get to Le Parisien where we see “he had not hesitated to impose a new head for the group’s intelligence unit, in the person of Rémi Pagnie, formerly of the DGSE (Directorate General for Security) indoor)” (Le Parisien, Nov 2019). An act from 2005, yet I believe that such an act requires scrutiny, not in regards to the DGSE, but in regards to the stage in France, there is a much larger setting (maybe why Ghosn did not go to France), it is seen in Le Journal Du Dimanche (a French source that I do not know, as my French is really really bad), the source (at https://www.lejdd.fr/Economie/Les-nouveaux-secrets-dans-la-pseudo-affaire-d-espionnage-chez-Renault-293909-3109724) give several question marks that go back to 2011 and also include: “Even if he denies it today, Carlos Ghosn would then have given instructions “complete silence” on this aspect while ordering “to continue the investigations”. A special financing network, via a company in Dubai, was then set up” calls for a much larger level of scrutiny, this was going on since 2011 and I wonder why no action had taken place and why Carlos Ghosn was allowed to roam free to this degree, I do not know the French source, but I found several sources raising questions regarding the inactivity and lack of investigation regarding Carlos Ghosn from at least two sources and as Dubai is validated the inactions of the CIA are also in question, especially as there is an optional implied money link towards Hezbollah, and in that regard, if Carlos Ghosn was acquitted from that, the lack of reporting on that is equally an issue as this would show a larger support to the statements of Carlos Ghosn, not merely on Japanese grounds , but almost global. That is not supported, but it leads to questions if the French source could be vetted for “It was still Carlos Ghosn who gave the green light in mid-December to dismiss the three suspected French executives. Another revelation, the offices where the layoffs took place were “soundproofed”“, soundproofing requires plausible deniability on a few levels, the issues if true gives rise to an optional persecution of Carlos Ghosn, the opposite opens Renault for almost titanic settlement with the three allegedly guilty executives, this mess keeps on growing and growing and the inactions are almost unbelievable, especially when you consider that his positions at Renault would not be given up until early 2019, almost 8 years later, and we see a lack of questions on several fronts and close to no reporting other then the absolute minimum. It took me two hours (delays as Google Translate needed to help me with French) to find this and I still see the seven hour old report from the BBC stating “Mr Ghosn, who was also boss of French car-maker Renault, has been under investigation in France but no charges have been laid“, all whilst there is a larger play in all this and it is not money. And there is one more part that flagged me. When we consider “He had been under house arrest in Tokyo awaiting trial but managed to evade police surveillance” whilst the BBC gives us “According to Turkish media, Mr Ghosn’s private jet landed at Istanbul’s Ataturk airport at 05:30 (02:30 GMT) on Monday, having flown from Japan’s Kansai airport in Osaka“, and when we consider that Osaka and Tokyo are a little over 500Km apart, he went unnoticed for such a long time? The more I see, the more questions I have and I am only in my second hour looking at the presented evidence. 

As I personally see it this Car Ghost is trying to evade a lot more than is so called look on injustice. When we see stories like “At a halfway house in Hiroshima – for criminals who are being released from jail back into the community – 69-year-old Toshio Takata tells me he broke the law because he was poor. He wanted somewhere to live free of charge, even if it was behind bars” we see more than a setting of persecution, we see an implied solution for poor people and they accept and prefer jail? That is uncanny, even in the west on a few lines, so in all there is a larger setting and even as a happy go unlucky Carlos Ghosn is setting out to be, his lifestyle might be a lot higher than what the other end gets, still his response and the actions connected to it should raise more questions, and they are speculated on by many, yet I see a lack of questions that go all the way back to 2011, interesting, is it not?

 

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Two Issues in play

There is a larger issue in all this, part of it is Wall Street, the gig is up (to some extent) yet no calls are being made to investigate the Analyst game by aspiring new Wall Street kings, and moreover no one is asking questions.

We start with the impact that Apple has had and the Financial Post is giving us (at https://business.financialpost.com/investing/us-stocks-wall-st-pulled-lower-by-apple-trade-worries) “Shares of Apple Inc fell 3.5 per cent after the Wall Street Journal reported the company had cut production orders in recent weeks for all three iPhone models launched in September“, as well as “Other market leaders — including the ‘FANG’ stocks — also fell sharply, underscoring the view that their leadership was on shaky ground. Shares of Facebook were down 5.1 per cent, Amazon.com was down 4.3 per cent, Netflix was down 4.9 per cent and Alphabet (Google) fell 3.4 per cent“. Now, we can go two ways in this, yet I am concentrating on the mere logical view. It is not the part of loss that is concerning me, it is as I said in ‘Annual medical bill $864,685‘ (at https://lawlordtobe.com/2018/11/17/annual-medical-bill-864685/) “Consider the $2365, whilst their opponent is offering a decently close solution for $1499 (Google) and $1599 (Huawei) all top end phones and the next model is 33% cheaper, in an economy where most people are turning around pennies (just look at Debenhams). It was a really bad market moment; one could argue that Apple believed their marketing whilst it was nowhere near realistic“, when we consider this part, which is the basis application of common sense in a day and age of hardly being able to get by and we see such drops in stock levels, is that because there is underperformance, or a more clear image of overestimation by certain analysts clearing an optional path of short selling? When we consider the definition of short selling as: “The trader sells to open the position and expects to buy it back later at a lower price and will keep the difference as a gain“, is my speculation on a market set to implode that far from the actual truth? Has the entire FAANG group resorted to hiring mentally challenged Business Intelligence enabled accountants, or is someone spiking the Wall Street environment?  Is my thought on this that far out or synch with reality? When we see SBS reporting with ‘Nissan chairman arrested in Japan for financial misconduct‘, and we are given: “Besides being chairman of Nissan, the 64-year-old is also CEO of Renault and leads the Nissan-Renault-Mitsubishi alliance“, “Nissan CEO Hiroto Saikawa expressed “despair,” but also suggested that Ghosn had accrued too much power and eluded proper oversight“, as well as “Saikawa gave few details about the nature of the improprieties, including refusing to confirm reports that Ghosn under-reported his income by 5 billion yen, or around $60 million (AUD), over five years from 2011. He said an ongoing investigation limited what details could be shared, and refused to be drawn on whether other people were involved, saying only: “These two gentlemen are the masterminds, that is definite.”“. As we consider the impact of Representative Director Greg Kelly and Carlos Ghosn, we might think that the entire matter is contained, yet is it? The fact that Automotive is a clear element on Wall Street, when we see this and we do not see another part, how wrong have the analysts been getting it? The fact that numbers on Wall Street would not fluctuate to the degree needed as the numbers were spiked by a major players is interesting to consider yesterday’s news (at https://www.zdnet.com/article/nuance-spins-off-automotive-segment-into-new-publicly-traded-company/). You see, just like I found the issue in the Harbour or Rotterdam two decades ago, I looked into another direction. When we consider “Other automotive brands such as Honda, Volkswagen, Ford, Hyundai, Audi, Porsche, Nissan, Kia, Chevrolet, Harley Davidson, Ferrari are ranked by their brand value among the top 100 brands in the world!“, so if we see the SBS part with: “years of financial misconduct including under-reporting of income and inappropriate personal use of company assets“, which looks weird as this is merely an internal part (criminal or not), is there a decent chance that the entire matter is larger and as such, would a provider like Nuance not be hit as they are a component in the Nissan (and Renault, and Mitsubishi)?

In all this, when we consider The actions of one, and the impact on another, yet we see that expectations were ‘firmly’ in the wrong place, at what point will we start asking the damaging questions to analysts who were ‘overly’ positive? So when we see: “Wall Street was looking for earnings of 32 cents a share on revenue of $525 million. Shares of Nuance were down slightly after hours“, were we shown a realistic stage? This gets us to the Sydney Morning Herald, where we see: “Since the FANG outperformance run peaked on August 30, the group has underperformed the S&P 500 by 16.25 per cent. That is their worst underperformance since the first half of 2014 when they underperformed by around 20 per cent“, is it truly an underperformance, or is it set towards unrealistic overestimation and as such, is the foundation of short selling not done on the word of analyts? So in that light, would it not become more and more prudent to ask the analysts certain questions? The fact that certain Nissan events were not on their radar, what else did they not see and as such, would that not have impacted the numbers at Nuance in a similar, yet there unfairly?

What else is there?

Well, that can be seen in one way as these players all need power to be available and energy is becoming an issue in the US. What happens when we put the (big) mouth of Senator Lindsey Graham (R-SC) to the test? As he was ‘kind’ enough to use Bloomberg to state that the current crown prince of the Kingdom of Saudi Arabia Crown Prince Mohammed bin Salman was “unstable and unreliable”, would it be an idea to ask his royal highness to kindly consider that Oil is a sellers’ market and that it is important to consider the long term future of the kingdom of Saudi Arabia, as such, it is important to consider the value of oil and I personally believe that it should be raised to $73 per barrel, in light of this cutting oil production by 12% would be essential.

So when Lindsey gets the news that his lack of diplomacy is cutting oil and raising prices, at what point will he ever feel safe again as the American people will react to the mere stage of commerce, it is a sellers’ market plain and simple. It is a sellers’ market because the buyer is always open to get it somewhere else, and in all that there is merely Iran left. How does it all flow now? Let’s not forget that these are not my rules, they are the consequences of Wall Street. At what point will people wake up?

The Kingdom of Saudi Arabia is a monarchy, it is one where the monarch of that nation makes decisions that decide what would be the best track for the people of THEIR nation (which is Saudi Arabia). In a time where the life of a journalist does not matter, Turkey showed that and both the EU and America remained largely quiet, so let’s face it, we do not care about Jamal Khashoggi, yet that person has received more pushed and powered visibility than for example Matteo Messina Denaro (I chose him as I grew up being a huge Diabolik comic fan), so when we see his actions and his absence from the press for the longest time, why would we care about Jamal Khashoggi? Because a knave speaking for Iran direted others to do so? We keep on getting the news, the media, the mention of tapes, yet how clearly has the evidence been investigated? The media stays silent, mostly playing on innuendo as much as possible.

You see, it the Crown Prince succeeds in getting the stage of Neom Started, Saudi Arabia will have started and aspired to something never seen before in the history of this world, all the things that America claimed to have done will be seen active in Saudi Arabia, it is optionally the biggest blow to American ego and optionally their economy too and they are finally scared, like the UK was when the 70’s peace accords had a chance, they pushed Egypt in another direction. Now we see the stage where there is so much anti-Saudi news, that it is sickening to me, especially as the acts of Turkey and Iran are smothered. How much news have you see on the 214 journalist jailed in Turkey? most of them all convicted, the last one a week ago, we were given “A court sentenced Turkish journalist Ali Unal to 19 years in jail on Wednesday on a charge of being a leader in the network accused of carrying out a failed coup in July 2016“, Jamal Khashoggi got 60 million hits in Google Search this morning, it is that far whacked out of balance and the industrial next generation all technological marvel that could be Neom, including the Bridge that links the Sinai (Sharm-El-Sheik) to Saudi Arabia, opening even more options to commerce and growth for Egypt and the Sudan? A mere 2.8 million, a project that is well over $500 billion in investments for technological and financial opportunities; that got less than 3 million hits. I reckon that Saudi Arabia also needs additional PR and digital PR on a much larger scale.

I think that America (as well as the European Union) needs to wake up and smell the coffee and they need to do it fast. As they whinge like little children, they are optionally giving additional fields of economy to India, China and Russia to move into a market where the oil revenues will be pressed for a different directions, so as these people are merely trying to bait infighting within the Saudi Royal family, they should start to realise that one of them wakes up and decides to close the tap by 20% and merely adjust the vision towards 2035, at that point whatever comes next will no longer have any America and even less Wall Street, at what point will the American administration have to forfeit on 21 trillion of debts they can no longer pay? Let’s not forget that the entire FAANG group can vacate and move anywhere globally, at what point will we see the news: ‘NASDAQ shuts down!‘  leaves us with the question: ‘is my speculation so outlandish?’ You see, the needs for the next technology is no longer in America and the difference between global and global minus America is not that big, at that point the politicians of the European Union will fold like little bitches and accept whatever deal will keep them employed and on their gravy train; they are that predictable.

The nice part is that there is every chance that I will be around when that happens, getting to tell the economic and financial editors of all the major newspapers: ‘I told you so!‘ and the blatant attacks, the media toolkit against the current crown prince of Saudi Arabia makes my speculation more and more likely. You see, it was merely a week ago, when CNBC gave us (at https://www.cnbc.com/2018/11/15/trump-duped-saudis-into-tanking-oil-prices-analysts-say.html) ‘Oil analysts say Trump fooled Saudis into tanking crude prices‘, with the quote: “Oil market analysts say it now appears that Trump hoodwinked Saudi Arabia, fooling the U.S. ally into pushing the oil market into oversupply and sparking a roughly 25 percent drop in crude prices. That accomplished Trump’s goal of driving down energy costs for Americans“, it is optionally a decent tactic, but at present it can backfire, the KSA can take a step back and let it all fall to pieces as the Saudi government can survive a few years in the up scaled oil prices, yet the US and European economies will start to collapse as they have no infrastructure left, so when we see Bloomberg giving us ‘The Oil Price Is Now Controlled By Just Three Men‘, whilst we know that America has pissed of the other two to the largest degree; if truly three man control the price, the names are given to us as Presidents Donald Trump, President Vladimir Putin and Crown Prince Mohammed Bin Salman. That whilst America needs to import to survive making them actually pretty weak. So at what point do the people in Wall Street wake up and realise that the oil morning special is served at $91+, whilst there are 3-4 months of extreme cold ahead? At what point will they realise that oil is a sellers’ market, not a buyers one and the oil companies can wait, they can watch it all collapse and pick up cheap labour for a mere apple and an egg (quite literally so).

In the end, America can start making a deal with Iran and Russia for oil, yet at what cost will that come? Which concession will the American people have to agree to? I am pretty sure that this moment will become the nightmare scenario for Israel as well as the others get to cater to Iran, and the oil setting makes that an optional reality; the amount of concessions Turkey will get will give the EU something to cry about to a much larger extent; apart from the nightmare that the Italian budget is becoming at present.

There were a few games on everyone’s desk and at least three of them have been handled so badly that the impact needs to be felt in the US, even if it was for the mere reason to get them to wake up and smell the coffee that they spilled and the cost of living that they helped raise soon enough.

Oh, and when the Italian economy stops stagnating and turns to recession again, the mere impact of a 5% oil price rise would be enough to stop Italian traffic in its track, how much will be possible there when that happens? Consider that Italy has the highest fuel prices costing €1.65 per litre. When that goes up by 10%, how many people would be able to afford a car? More importantly, the Italian economy has misjudged this super high price for taxation, so when that falls away, how much of the Italian infrastructure is also likely to collapse?

It is a mere side thought, because France and Spain will be in similar distress on a few stages there too, not to mention the impact in Greece. It would decimate the Mediterranean economy to a much larger degree, yet Wall Street will trivialise it and when there is no more trivialisation left, who will they blame?

Saudi Arabia, President Trump or themselves?

I will let you figure that part out.

 

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I know a Japanese joke

An Englishman, and Irishman and a Japanese industrial walk into a bar, which could be the start of a joke, yet there is a very serious issue behind it. You see, when we see (at https://www.theguardian.com/politics/2016/oct/31/nissan-assurances-over-brexit-cannot-be-published-says-business-secretary) on how “the stark warning from Haruki Hayashi, president of the Japanese chambers of commerce in Britain and the European CEO of Mitsubishi, who said businesses needed more than “general reassurances” if his country’s investment presence in Britain was to be maintained” needs to take a little lesson from a firm called ‘Hypocrisy Inc.‘, when we see (at http://www.thisismoney.co.uk/money/news/article-2230999/Nissan-sells-UK-cars-Switzerland-tax-ruse.html), which is from 2012 “Nissan Motor Manufacturing, which has received tens of millions of pounds in Government grants to build cars in the UK, is a contract manufacturer for another Nissan company based in Rolle, Switzerland. The Swiss company buys the raw materials and owns the finished cars. It pays the UK business a fee that is slightly higher than the manufacturing costs, limiting the amount of profits that are declared in Britain

In addition, this is a game that Japanese car makers have been playing on a global scale, including Australia, getting millions in grants, getting what was calculated as a $2,000 discount per manufactured car, whilst shipping tens of thousands for sale overseas. The comedy team Kim Carr and Bill Shorten (the honourable BS) from the Australian Labor party were on that merry-go-round, that whilst in week 3 of the new government blaming the Liberal party for ‘losing‘ the automotive industry. I discussed this in May 2016 (at https://lawlordtobe.com/2016/05/22/tuesday-evening-quarterback/), the UK is facing a similar situation, basically, Japanese firms are trying to strongarm a better deal, which is business minded and all fine, yet the Brexit scaremongering thing is getting on my nerves because I am fed-up with this category of ‘wanker‘ (or is the term ‘tosser‘ more correct?) that they represent. For those people I state, there was no Brexit in Australia, Japanese firms will do whatever they can to broker an increased profit any way possible, Brexit is just their latest excuse (whilst we admit that some raised items are a valid concern, there is still no certainty whether the set changes will actually impact). In interesting side that was not mentioned in this comes from Reuters (at http://www.reuters.com/article/britain-eu-nissan-support-idUSL8N1CY3QI). “The support that the UK government has promised carmaker Nissan in return for building new models in Britain could prove expensive, but the Japanese carmaker’s complex structure makes it hard to estimate“, so like Australia, whatever grant the Japanese receive, could be seen as legalising slave labour, for that is basically the setting when the grants add up to work whilst having no cost for the manpower employed. The Reuters article lights up a few additional issues, yet it also gives view that the Bremain group is still playing and pulling lines to scare the population in making them believe that Brexit was a bad idea and as such trying to swing a way to undo Brexit.

So whilst you contemplate those elements, think back to my September article (those who read it) ‘For Only the Messenger‘ (at https://lawlordtobe.com/2016/09/05/for-only-the-messenger/), where we see the Japanese Prime Minister making demands, whilst we also have the added information that he is making demands for companies that funnel sales through Switzerland, so that paying taxation is kept to an unrealistic minimum. Having cars built in the UK, whilst the grants exceed the cost of labour, whilst in addition, sales are funnelled through Switzerland giving them a 10% taxation option, gives voice to the findings of Reuters. The prestige of having cars build in the United Kingdom does not seem to bring the bacon home, the cost for this prestige is a lot more than the UK governments bargained for. So, when I see the quote “The strong intervention from the Japanese came as the business secretary, Greg Clark, claimed the government’s letter to Nissan cannot be published because of commercial sensitivity“, or is it actually a simple reason? Mainly that any person with an abacus or calculator could work out that government administrations have been giving in to car makers for too long a time at way too high a cost to both the consumer and the taxpayers?

This debate on Japanese demands is actually interesting, because the French political left is now more and more on the side of Frexit, so with Frexit now a realistic issue for 2017, we see that 128 million consumers could fall out of reach to these car makers, should they push for certain options. If Japan wants to play around and endanger an optional 18% European consumer base, that’s fine by other car builders. In my view, the push for non-taxability at any cost could be the more expensive one for Japan in the end and with their economy even more on the edge than America is, it is a gamble that they could actually end up losing. The question becomes, how scared are the UK politicians at present and have they done the clear and correct calculations on what the costs are, because paying for people to be employed is not what job creation is about.

We see similar issues with Honda, from the Wall Street Journal (at http://www.wsj.com/articles/honda-net-profit-jumps-39-1477896050), where we see net profits to $1.7 billion for the last quarter, whilst we see that tax breaks are on the clear side of delivery here. The Wall Street Journal also states “The party may grind to a halt once those tax incentives go away“, in my view the question should be, why on earth are we giving tax breaks to any player making 1,700 million dollars of net profit on a quarter?

In addition, when I see “net profit is expected to increase by ¥25 billion yen to ¥415 billion yen as a result of lower costs“, I ask here: ‘How much tax breaks represent the annual 25 billion in increased profit?‘, which is a question we should all ask, especially when we see unrealistic demands from an industry, where a single player in this industry is expected to be making 2 billion a month more. Would you not agree?

This all intersects with the exit strategies from the EU. Brexit is actively an issue, Frexit is currently a realistic change, yet the silent player in this is now Italy with a December 4th vote coming up. This vote is regarding a constitutional referendum regarding the appointment and powers of the Parliament of Italy. In the background however, the changes could also simplify any referendum on leaving the EU if that becomes an issue. The Italeave group is currently not that big, yet grew when Brexit became a reality, also the right wing groups are not that strong at present in Italy, a change that could become a lot more intense when Frexit becomes real, because it would push Germany as they, together with Italy would be the only two anchors leaving the Euro in a somewhat stable state. As I stated before, two currencies will not be able to do that, making Germany and Italy run for the hills soon and fast. Beware! I stated when Frexit becomes a reality! So there is no given, merely an increased level of likelihood, which is no less threatening.

This now strikes back to the Japanese side, because with these changes over the coming two years, any change the Japanese market makes will have other consequences as well. Consider that they suddenly get that ‘special offer’ from Slovenia or Poland. What will happen when France and the UK are out of that single market? They could make a deal together where the UK and France markets support one another whilst pushing other markets to the left. Suddenly certain Japanese dignitaries will need to explain to certain bosses of the Japanese International Trade that their hand of poker backfired, that whilst they only had 3 of the 5 cards to play. That should make for interesting newscasts in Tokyo, I just hope that NHK News will be airing those news cycles with English subtitles.

Are my thoughts realistic?

Well, that is part of the issue. The other part is that politicians on a global scale are always willing to give away the kitchen sink to be able to boast that they secured 100,000 jobs. The fact that nobody is asking what the costs were makes it even easier for them to do this. Yet overall, the consideration of cost is actively being pushed to the foreground by others, giving me a stronger case, but is it strong enough? I honestly cannot tell, but time will tell as we see the publications of concessions given to the car industry.

The question now becomes, who offered what and for what reason, because at this stage, the Bremain group and especially those with political power are eager to make certain promises (within the office they hold), whilst knowingly undermine the continuation of Brexit at the same time, so that hurdle is one we will see a few times more soon enough. So when we get back to the statement that several newspapers reported on ‘Japanese companies have already begun receiving offers to relocate elsewhere in the EU‘, isn’t it interesting that no one is making any claim that they made the offer and no one is making any report on where they might go to. In this place where ‘leaking’ reports is at the core of scaremongering, that fact does not see the light of day. The clarity is, is that the only place where there is a clear benefit to go to apart from the UK, is the Netherlands, because in the end, manufactured cars need to get delivered somewhere, so as the infrastructure goes down, the costs go up by a fair bit. That part is not given consideration to the extent it needed to have. As 50% of the created cars go into export, consider when the factory is in (for example) Germany, what additional jumps would be needed to get the cars to the same location? Sweden has a similar deal, however with out of control weather 3 months a year and additional issues with extreme cold and an additional delivery distance of 1100 miles, what costs would Japan face in addition?

Just questions that impact the decision, there might be answers, or not. What matters is that people are suddenly demanding decisions, taking away the rights that the British voters had. Is it not interesting that this all happens, whilst Wall Street is in absolute fear that Donald Trump might win? The reason to mention this (at http://www.wsj.com/articles/investors-consider-a-brexit-times-10-trump-win-1478111985) is very applicable as the Japanese profit needy corporations rely on stability, something we see here “In the past week or so, the Vix index of volatility has risen from around 13 to just under 20 points; the S&P 500 has fallen for six trading days in a row, for the first time since February 2015; and the Stoxx Europe 600 has fallen for seven days, for the first time since February“, under these conditions, Japanese car makers will resettle somewhere else?

So these three men were in the bar, the Englishman orders an English Chapter 6, the Irishman a glass of Paddy and the Japanese gentleman ordered tea. As all three look at the tea, the Japanese states: ‘If you are not drinking alcohol, then neither am I!‘ (a reference to Awamori)

 

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