NEWS
NATIONAL NEWS
Compiled by Hannah Monkcom
OFF WITH THEIR HEADS Toshiba’s boss Hisao Tanaka was forced to resign from the Japanese conglomerate in July over a 152bn yen (£780m) accounting scandal that the government said threatened to undermine investors’ confidence in the country. In their report into the scandal, investigators said: “Within Toshiba, there was a corporate culture in which one could not go against the wishes of superiors.” The losses are Toshiba’s first for six years and compare with a 137.8bn yen profit in the same period last year. The scandal has forced Toshiba, which employs more than 200,000 people worldwide, to embark on a round of restructuring that includes selling its shares in affiliates. The firm has said it will sell its image sensor business to Sony and is expected to announce an overhaul of its home appliance, TV and computer units later this month. Toshiba shares have been down by as much as 5.9%, their lowest level in almost a year. In one of the most damaging corporate scandals in Japan in recent years, regulators said managers had started setting unrealistic performance targets for the firm’s new businesses, such as smart meters and electronic tollbooths, after the global financial crisis seven years ago. The accounting irregularities continued after the March 2011 Fukushima disaster, amid concerns Toshiba would sustain losses in its nuclear division.
POUND SLIDES
VW PAYS BACK
Volkswagen could have to pay back billions of pounds to European governments in tax credits after admitting it had found “irregularities” in the levels of carbon dioxide emitted by 800,000 of its cars. Shares in the embattled carmaker fell by as much as 10% in Frankfurt as investors responded to the latest admission from the company, which is already reeling from revelations that it rigged nitrogen oxide emissions tests. VW estimated the “economic risks” of the latest discovery at €2bn (£1.4bn). This works out at €2,500 per car, far more than the €609 per car put aside for the cost of the 11 million cars involved in the diesel emissions scandal, which was €6.7bn in total.
The Bank of England has signalled that interest rates will stay on hold for a while longer, leaving them unmoved for at least seven years in total, and perhaps even eight. A more uncertain global outlook has prompted the central bank to reconsider where interest rates should be in the months to come. Policymakers kept interest rates at a record low this month, as they voted 8-1 in favour of maintaining the Bank Rate at 0.5%, with Ian McCafferty, an external policymaker, the only dissenter. In a balanced assessment of the economy, policymakers noted that domestic momentum in the economy remained “resilient” and confidence high. Low inflation meant real income growth this year was likely to be the “strongest since the crisis”, they said, noting that investment intentions remained “robust”.
“I know a man who gave up smoking, drinking, sex, and rich food. He was healthy right up to the day he killed himself.” 20