Lunchtime Business Break

By Gus Kubiak

MITSUBISHI MOTOR COMPANY OUSTS GHOSN AS CHAIRMAN

The Japanese automaker has ousted chairman Carlos Ghosn a week after revelations of financial misconduct broke.

Ghosn, who was also the chairman of Nissan, was sacked last week after his arrest by Japanese authorities.

Mitsubishi was brought into the Nissan-Renault Alliance in 2016, with Nissan holding a 34% stake in the company and controlling two executive positions on its board.

Renault has so far not taken any action against Ghosn, who is still chairman and CEO of the French auto firm.

PUBS HIRING MORE PEOPLE AS INDUSTRY SHRINKS

A new report form the Office of National Statistics (ONS) shows that pubs are hiring more people despite the industry shrinking significantly.

The increase in staff could be because more pubs are serving food.

It is well known that pubs have been closing at high rates across the UK, with statistics showing that 1 in 4 pubs has closed since 2008, leaving about 39,000 pubs across the UK.

Jobs in the hospitality sector remain low paying, often paying below what the Living Wage Foundation considers a liveable wage, £10.55 in London, and £9.00 across the rest of the UK.

ITALY TO BACK DOWN OVER BUDGET ROW WITH EU

Italy appears to be backing down on budget plans that would take its deficit up to 2.4% of GDP.

The European commission told Italy to revise its new budget plans and to deal with its growing debt, but so far the populist government of Italy was unwilling to come to a deal.

The draft budget included radical measures such as a universal basic income and a raise in the retirement age.

The government declared its budget would “end poverty”.

EU rules say that countries should keep their deficit at less than 3% of their GDP and their total national debt under 60%.

Italy currently has the second highest national debt rate in the EU, at 132% of GDP.

SIGNS GERMAN ECONOMY COOLING

The signs are all there that the strongest economy in the Eurozone may be cooling.

The LFO Institute said German businesses reported their third straight month of decline in morale in November.

Uncertainty related to the future of Britain’s relationship with the European Union as well as contentious deliberations over Italy’s proposed budget likely contributed to the cooling effect on the euro zones strongest economy.