Defying gravity? What could bring U.S. stocks down to earth - Reuters

NEW YORK (Reuters) - The U.S. stock market’s relentless drive higher has caused some nail-biting on Wall Street that the rally is about to end. Geopolitical risks – such as the latest escalation of U.S. tensions with Iran - are just one on a list of worries for 2020.

FILE PHOTO: Traders work at the New York Stock Exchange (NYSE) in New York, U.S., December 31, 2019. REUTERS/Bryan R Smith

Stocks ended 2019 with their best year since 2013, with the benchmark S&P 500 .SPX rising nearly 29%. That's put the S&P index at just under the 3,260 level that a Reuters poll forecast the index would achieve at the end of 2020.

Some investors are now increasingly nervous that the year-end “melt-up” in shares will turn into a scary melt-down.

Here are some of the risks preoccupying Wall Street as the 2020 gets under way:

(GRAPHIC: S&P 500 vs other assets - here )

PROMISED PROFIT REBOUND FLAILS

The stock market’s stunning 2019 gains came despite a lackluster year for corporate profit growth, but performance may suffer if earnings lag in 2020.

Fourth-quarter reporting season starts in the coming days and results are expected to be anemic, with S&P 500 earnings seen down 0.3%, according to Refinitiv data.

But analysts expect S&P 500 earnings to rise 9.7% in 2020. There are some skeptics, notes Chuck Carlson, chief executive at Horizon Investment Services in Hammond, Indiana, who said bears are “still having some negative thinking that corporate profits aren’t going to be all that great (in 2020) because the economy is probably going to be a little softer.”

Indeed, data on Friday showed the U.S. manufacturing sector contracted in December by the most in more than a decade.

(GRAPHIC: S&P 500 earnings by quarter since 2015 - here )

U.S.-CHINA RELATIONS SOUR

An initial U.S.-China trade agreement provided a year-end boost for stocks, but any hitch in the Phase 1 deal between the world’s two largest economies could rattle markets.

“The rivalry between the U.S. and China hasn’t gone away,” Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a recent note.

“Investors will be alert for any sign that tensions are re-emerging, or either side is dissatisfied with the implementation of the Phase 1 agreement,” Haefele said.

LESS FED SUPPORT

Some point to the Federal Reserve as a trigger.

“When the Fed injects money, funds generally flow to the best-returning market,” said analysts at Bianco Research in a recent note. “The big question is, what happens when the Fed ends T-bill purchases and repo support,” said Bianco.

In October, the Fed announced that it would start buying about $60 billion per month in Treasury bills to ensure “ample reserves” in the banking system, a program that would continue at least until the second quarter. The Fed would also continue to support the short-term lending markets by offering daily operations in the market for repurchase agreements, or repo.

“Be wary of a correction in the first half as Fed balance sheet increases wane,” said Andrew Brenner, head of international fixed income at NatAlliance Securities, in a note.

(GRAPHIC: Repo and balance sheet expansion - here )

VOLATILE U.S. POLITICAL LANDSCAPE

Markets will increasingly focus on the U.S. presidential race as Democratic primaries begin next month and the general election in November draws closer.

Several prominent investors have warned of steep stock declines should a progressive candidate secure the Democratic nomination and defeat President Donald Trump. Of particular concern is if Democrats sweep the presidency and both houses of Congress, paving the way for major policy overhauls.

Investors currently see little market risk from the impeachment of Trump. That could change if U.S. senators in Trump’s own Republican party begin defecting against him in significant numbers in the Senate trial.

OVERLY OPTIMISTIC INVESTORS

As the market soared in 2019, so did investor bullishness about equities despite rising valuations, a potential sign to be wary.

According to the AAII Investor Sentiment Survey, bullish sentiment rose in the Dec. 19 reading to its highest level since October 2018, just before the market endured a year-end swoon. Such bullishness has since pared back to around historical averages.

“Some of the sentiment readings have turned pretty aggressively,” said Horizon’s Carlson. “While we may not be there yet, that would be something to watch as we go into the early part of 2020, is ‘are we getting a little too excited or too ebullient on this market.’”

(GRAPHIC: Investor optimism vs stock returns - here )

GEOPOLITICAL TENSIONS AND AN OIL SHOCK

Stocks were hit on Friday and investors moved into safe-haven assets after a U.S. air strike in Baghdad killed Iran’s most prominent military commander.

“Geopolitics has come back to the table and this is something that could have major cross asset implications,” said Salman Ahmed, chief investment strategist at Lombard Odier Investment Management in London.

Slideshow (2 Images)

Oil prices spiked Friday and a surge in the commodity remains a concern. Aside from the situation in Iran, Barry Bannister, Stifel’s head of institutional equity strategy, said Saudi Arabia may look to boost oil prices as it seeks to list ARAMCO on a larger exchange.

December saw WTI CLc1 rise more than 10% and Brent LCOc1 advance nearly 6%. With the dollar index .DXY falling 3% in the fourth quarter, continued weakness could result in a further climb in crude prices, and stagflation may result if the dollar continues to weaken while crude prices continue to accelerate.

Beyond flaring Middle East tensions, Haefele of UBS notes that risks regarding Britain’s exit from the European Union have “abated, though not quite disappeared, and while his “base case is that a hard Brexit is avoided, this will likely remain a concern for investors in coming months.”

Additional reporting by Megan Davies, Dan Burns and Chuck Mikolajczak in New York, Sujata Rao in London; editing by Megan Davies and Nick Zieminski

Our Standards:The Thomson Reuters Trust Principles.

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2020-01-06 06:06:00Z
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3 Top Pipeline Stocks to Buy in January - Motley Fool

Pipeline stocks delivered decent performances overall in 2019. The average one in the Alerian Energy Infrastructure ETF -- an exchange-traded fund that holds 36 of North America's largest pipeline companies -- generated a 22% total return. While that fell a bit short of the S&P 500's more than 30% total return, it was a solid showing for the yield-focused sector. 

Several top pipeline stocks, however, underperformed last year even though they delivered strong results. Among those notable underachievers were master limited partnerships Energy Transfer (NYSE:ET), Plains All American Pipeline (NYSE:PAA), and MPLX (NYSE:MPLX). They stand out as the most compelling pipeline stocks to buy this January because of their appealing combination of yield and growth at bottom-of-the-barrel valuations.

Image source: Getty Images.

A big-time yield and growth prospects for a rock bottom price

Units of Energy Transfer declined by about 3% last year. Though on a more positive note, the midstream giant generated a positive 6% total return after adding in its distribution, which currently yields an eye-popping 9.4%. That payout's on solid ground, since Energy Transfer generates enough cash to cover it by a comfortable 1.98 times.

Last year's slump in the company's unit price doesn't make much sense, given that it was on track to grow its earnings by 16%. It now trades at a rock-bottom valuation of around 8 times earnings. For comparison's sake, most pipeline stocks sell for more than 10 times earnings.

With more growth coming down the pipeline in 2020, Energy Transfer looks as attractive as ever since it could use its rising cash flow to boost its big-time payout or repurchase its deeply discounted units. That upside potential makes it one of the best energy stocks to buy these days.

The performance didn't match the underlying results

Plains All American's unit price slumped about 8% last year. Even after adding in its distribution, which currently yields 7.8%, the total return was a negative-2% on the year.

That lackluster return came even though Plains All American is on track to grow its earnings by 15% this year, thanks to recently completed pipeline projects and the strength of its supply and logistics business. The company expects to cover its high-yielding distribution with cash by a comfortable 2.06 times, and it now trades at less than 8 times its earnings. 

While Plains All American expects to grow at a much slower rate in 2020, the company sees a reacceleration ahead in 2021 due to the upcoming completion of several more pipeline projects. That should enable the oil-focused pipeline company to continue increasing its high-yielding payout, making it a great income stock to buy for the long haul this month.

No reward for a monster year

MPLX was the worst performer in this group, as its units tumbled 16% last year. While the addition of its high-yielding distribution -- which is currently up to an eye-popping 10.6% -- helped cushion the blow, the MLP's total return was still a negative-8% on the year.

Again, that lackluster performance didn't match the company's results. Its cash flow rocketed nearly 50% through the third quarter because of the success of its expansion program and the acquisition of an affiliated MLP. Because of that, MPLX was able to generate enough cash to cover its big-time payout by a comfortable 1.54 times.

While MPLX won't grow quite as fast in 2020 as it shifts gears to focus on its highest return expansion opportunities, it has enough fuel to grow at a healthy rate over the next few years. It should be able to continue increasing its high-yielding payout, making it an excellent income-stock to buy this month.

High yields for lower prices

All three of these pipeline stocks unperformed in 2019, even though they delivered strong earnings growth. Now they enter 2020 with dirt cheap valuations and higher yields. That makes them the top options for investors seeking to pipe some income into their portfolio this year.

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2020-01-05 13:13:00Z
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Carlos Ghosn: Disgraced Nissan executive's despair over Japanese justice may have prompted escape - The - The Washington Post

Issei Kato Reuters Former Nissan Motor Chairman Carlos Ghosn sits inside a car as he leaves his lawyer's office after being released on bail from Tokyo Detention House, in Tokyo, Japan, March 6, 2019.

TOKYO — As the months went by, former Nissan boss Carlos Ghosn became increasingly convinced that he had no chance of a fair trial in Japan, with anger at his arrest giving way to despair and then a decision to flee the country, his lawyer said.

It all came to a head with an emotional video call with his wife on Christmas Eve, lawyer Takashi Takano said, during which Ghosn lost hope of ever being able to lead a normal family life.

The lawyer’s impassioned defense of Ghosn and scathing attack on Japan’s legal system has divided opinion here, even as the country’s justice minister broke a week of silence to defend the treatment of the flamboyant business executive.

Justice Minister Masako Mori called Ghosn’s departure “presumably illegal,” unjustifiable and “extremely regrettable,” adding there was no record of him leaving the country.

In her first statement after a week-long New Year’s holiday here, she promised a thorough investigation, and directed the Immigration Services Agency to tighten immigration procedures at departure.

[Carlos Ghosn walked out of his home alone, security camera footage shows]

Ghosn has said he was fleeing political persecution and a rigged justice system.

Takano described how Ghosn would ask his lawyers the same question again and again as the months went by: could he expect a fair trial in Japan. Their answer was always no — no criminal defendant in Japan can expect a fair trial. Still, they argued, the evidence against him was weak, and there was still a good chance they would establish his innocence.

Prosecutors enjoy considerable powers in Japan, and once they decide to accept a case, conviction rates are around 99 percent. But more than any other lawyers in this country, Ghosn’s defense team had a track record of getting people off the hook.

“Please trust us,” Takano would tell Ghosn.

“Apparently, his doubts and concerns began to grow,” Takano said, alleging prosecutors were slow to respond to requests for the disclosure of evidence, imposed minute restrictions on how evidence would be disclosed, and even eliminated some of the evidence, all the while leaking “as much as they liked” to the Japanese media.

In his regular meetings with his lawyers, Ghosn’s frustration showed in his face as he asked questions, Takano said. But over time the questions became fewer, as anger gave way to despair.

AP

AP

Junichiro Hironaka, center, lawyer for Nissan's former chairman Carlos Ghosn, speaks to the media in Tokyo Jan. 4, 2020.

Ghosn was accused of four charges of financial misconduct while running Nissan, including underreporting his income and using company money for his own benefit. But he says he was the victim of a conspiracy between prosecutors, officials and Nissan to block his plans to deepen the company’s merger with its French partner Renault.

Even Renault, initially supportive, said its internal investigations had found evidence of unethical practices. Nevertheless, Japanese business executives accused of far more serious crimes have been let off or given little more than a slap on the wrist, and many foreign executives here see Ghosn’s treatment as an example of double standards.

But stresses on his family life may also have played a role in his decision to flee.

Under the terms of his bail, Ghosn was forbidden by the court from meeting his wife Carole, or even speaking to her for seven months, on the grounds they might conspire to tamper with evidence.

“This is a criminal punishment,” Ghosn complained to his lawyers. “When am I ever going to be able to lead a normal family life?”

[Opinion: My husband, Carlos Ghosn, is a victim of Japan’s ‘hostage justice’ system]

On Christmas Eve, Ghosn was allowed a one-hour video call with Carole, in a lawyer’s office, the first in a month. They talked about their children, relatives and friends, their lives and their memories, Takano said.

“There was no shortage of things to talk about,” Takano said. “Just when the time had come for them to stop after an hour, he spoke to the display: ‘My relationship with you cannot be replaced by children and friends. You are my indispensable presence. I love you.’”

The lawyer said he was deeply moved.

“I have never felt such strong despair over Japan’s legal system as I did at that time. I felt something nearly close to a sense of wanting to kill. I said to him ‘Carlos, I am very sorry. Truly, the Japanese system is shameful. I will do our utmost to improve this situation as soon as possible,’” he said.

Ghosn didn’t respond.

On Dec. 25, just a day after his video call. Ghosn learned that his trial, initially expected to begin April, could be delayed further, possibly into 2021, lawyers and friends say. That news played a part in his decision to flee, his friend Ricardo Karam said, a suggestion supported by another of Ghosn’s defense lawyers, Junichiro Hironaka,

“I wonder if he was strongly shocked in those two days,” he told the Asahi newspaper.

Four days later, at noon on Sunday, Dec. 29, Ghosn strolled out of his home, alone, never to return, Japan’s NHK reported.

Although surveillance cameras had been installed outside the property, the system was only designed to prevent him holding unauthorized meetings and not to keep him under house arrest, and footage was only handed over to the court once a month, Takano says.

Concerned that Ghosn could tamper with evidence, Nissan had hired a private security firm to track him when he left his home, Reuters and Japan’s Sankei newspaper reported.

But on Dec. 27, Ghosn’s lawyers filed a criminal complaint to Tokyo police about the surveillance, and it was withdrawn, lawyer Hironaka told the Asahi newspaper.

Ghosn bypassed immigration at Osaka’s Kansai airport by hiding in a large black case typically used to carry audio gear, according to the Wall Street Journal, while his name was not included on the plane’s passenger manifest.

Maya Alleruzzo

AP

A private security guard watches journalists through a closing garage door after a vehicle arrived at the house of ex-Nissan chief Carlos Ghosn in Beirut, Lebanon, Jan. 4, 2020.

On Sunday, Tokyo prosecutor’s office said Ghosn’s escape constituted a crime. It also defended the country’s legal system, arguing that although conviction rates are high, defendants are given a proper chance to present their case and courts reach judgments strictly on the basis of the evidence.

Ghosn was initially detained for more than 100 days, released on bail and then rearrested in April shortly after he announced plans to speak to the press. He was finally released on bail again for a further amount of nearly $5 million, after convincing the court he was not a flight risk.

[Former Nissan, Renault boss Carlos Ghosn rearrested on fresh charges in Japan]

Takano said he learned of Ghosn’s escape only through news reports.

“Initially, I felt a strong anger, a sense of having been betrayed. Yet, looking back how he has been treated by this country’s legal system, my anger went in a different direction,” he said. “Indeed I was betrayed. But it is not Carlos Ghosn who betrayed me.”

But Takahiro Saito, deputy chief of the Tokyo District Public Prosecutor’s Office, defended the decision to detain Ghosn for so long, and oppose bail, arguing he had “significant influence” inside Japan and around the world, and there had been a realistic danger he would destroy evidence.

“The defendant Ghosn had abundant financial power and multiple foreign bases. It was easy for him to flee,” Saito said in a statement.

Many Japanese people see Ghosn’s escape as something of a national embarrassment. Takano’s defense of Ghosn had received hundreds of thousands of views by Sunday, 11,000 likes but many angry comments directed at Ghosn and the lawyer.

Read more:

Accused of serious crimes, he smuggled himself out of Japan. But Carlos Ghosn may escape extradition from Lebanon, too.

Carlos Ghosn might not be as safe in Lebanon as he thought

Ex-Nissan boss Carlos Ghosn flees to Lebanon, slams Japan’s justice system

Today’s coverage from Post correspondents around the world

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2020-01-05 12:44:00Z
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Japanese authorities vow to tighten immigration rules after Carlos Ghosn's escape - CNN

Ghosn left Japan "illegally by unjust methods," said Justice Minister Masako Mori, the country's top judicial official. She said that authorities have no official record of Ghosn's departure from Japan, and that prosecutors are investigating the case.

Mori also said she has ordered the country's immigration department to "further tighten" rules for leaving the country "so that the same situation won't be repeated."

Mori's statement — along with a similar one published Sunday by a Tokyo prosecutor — marked the first time Japanese authorities addressed Ghosn's stunning escape last week. Government offices in the country had been closed all week for the New Year holiday.

Ghosn — the former chairman of Nissan and Mitsubishi Motors, and former chairman and CEO of their alliance partner, Renault — had been awaiting trial in Japan on charges of financial wrongdoing. As a condition of his release on bail, Ghosn was required to stay in Japan. But the case was upended after Ghosn revealed that he had fled Japan for Lebanon to escape what he called a "rigged" justice system.

Mori defended the country's justice system on Sunday, adding that it assured "fundamental human rights" and set out to "find out the truth of the case."

She also said that Ghosn's bail has been "canceled," and confirmed that the Japanese government asked Interpol, the international police agency, to issue a "red notice" for Ghosn. Lebanon said last week that it had received that notice, confirming that Ghosn is wanted by police.

Takahiro Saito, Tokyo's deputy chief prosecutor, said in his own statement Sunday that Ghosn "deliberately ignored" Japan's justice proceedings by fleeing the country, even though his bail barred him from overseas travel. Saito added that Ghosn's escape "could be a criminal act."

"Ghosn broke his own promise to attend the court and run away from Japan," Saito said. Both he and Mori called the event "regrettable."

Ghosn was arrested in November 2018 and has since faced a litany of charges, including allegations that he understated his income for years and funneled $5 million of Nissan's money to a car dealership he controlled. He was ousted from his posts at Nissan and Mitsubishi Motors following his arrest in November 2018, and later resigned from Renault. He has denied the charges against him.

Ghosn's Japanese lawyer, Junichiro Hironaka, said Saturday that the defense team would resign after contacting Ghosn this week. Hironaka had earlier told reporters that Ghosn's escape was a "complete surprise."

Authorities, meanwhile, have been scrambling to figure out how Ghosn pulled off the escape. Prosecutors in Tokyo raided the home where he had been staying last Thursday. Ghosn has denied reports that his family were involved in helping him flee.

Last week, a Turkish company that charters private jets confirmed that two of its planes were used "illegally" to transport Ghosn without the knowledge of company management. That company, MNG, said it has filed a criminal complaint.

-- Yoko Wakatsuki reported from Tokyo, Akanksha Sharma reported from Hong Kong and Amy Woodyatt wrote from London.

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2020-01-05 12:11:00Z
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Ghosn's escape inexcusable, Japan says - Fox Business

Government compliance attorney Seth Berenzweig discusses former Nissan CEO Carlos Ghosn’s flight from Japanese justice.

By YURI KAGEYAMA AP Business Writer

Continue Reading Below

TOKYO (AP) — Japan's justice minister on Sunday called the flight of former Nissan Chairman Carlos Ghosn as he awaited trial on financial misconduct charges inexcusable and vowed to beef up immigration checks.

Justice Minister Masako Mori said she had ordered an investigation after Ghosn issued a statement a few days ago saying he was in Lebanon.

She said there were no records of Ghosn's departure from Tokyo.

She said his bail has been revoked, and Interpol had issued a wanted notice. Departure checks needed to be strengthened to prevent a recurrence, Mori said.

FLIGHT RECORDS OF GHOSN ESCAPE FALSIFIED TO HIDE AUTO EXEC'S TRAVEL, JET FIRM SAYS

A private security guard watches journalists through a closing garage door after a vehicle arrived at the house of ex-Nissan chief Carlos Ghosn in Beirut, Lebanon, Saturday, Jan. 4, 2020. (AP Photo/Maya Alleruzzo)

While expressing deep regret over what had happened, Mori stopped short of outlining any specific action Japan might take to get Ghosn back.

Japan does not have an extradition treaty with Lebanon.

"Our nation's criminal justice system protects the basic human rights of an individual and properly carries out appropriate procedures to disclose the truth of various cases, and the flight of a suspect while out on bail is never justified," she said in a statement.

CARLOS GHOSN ON JAPAN ESCAPE: 'MY FAMILY HAD NO ROLE'

Mori's statement was the first public comment by a Japanese government official after the stunning escape of Ghosn, once a superstar of the auto industry.

Tokyo prosecutors issued a similar statement Sunday. They had opposed Ghosn's release on bail, arguing he was a flight risk.

A motorbike passes a private security guard standing outside of the house of ex-Nissan chief Carlos Ghosn in Beirut, Lebanon, Saturday, Jan. 4, 2020. (AP Photo/Maya Alleruzzo)

First arrested in November 2018, Ghosn was out on bail over the last several months, and more recently had moved into a home in an upscale part of Tokyo.

He has repeatedly said he was innocent. His statement from Beirut said he was escaping injustice.

Japan's justice system has come under fire from human rights advocates for its long detentions, the reliance on confessions and prolonged trials.

CLICK HERE TO READ MORE ON FOX BUSINESS

The conviction rate is higher than 99%. Even if Ghosn had been found innocent, the prosecutors could have appealed, and the appeals process could have lasted years.

Ghosn's trial was not expected to start until April at the earliest.

During that time, he had been prohibited from seeing his wife, and was only allowed a couple of video calls in the presence of a lawyer.

CLICK HERE TO READ MORE ON FOX BUSINESS

Ghosn had been charged with underreporting his future compensation and breach of trust in diverting Nissan money for his personal gain.

Although the details of his escape are not yet clear, Turkish airline company MNG Jet has said two of its planes were used illegally, first flying him from Osaka, Japan, to Istanbul, and then on to Beirut, where he arrived Monday and has not been seen since.

He promised to talk to reporters Wednesday.

His lawyers in Japan said they knew nothing, were stunned and felt betrayed by his action.

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2020-01-05 11:18:42Z
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Manager at Turkish jet operator told authorities he helped Ghosn escape because of threats: newspaper - Reuters

ISTANBUL (Reuters) - A manager at Turkish jet operator MNG Jet has told authorities that he assisted unwittingly in the escape of ex-Nissan boss Carlos Ghosn from Japan because he had been threatened by a former acquaintance, Hurriyet newspaper reported on Saturday.

Turkish authorities have arrested five suspects, including MNG Jet operations manager Okan Kosemen, on charges of migrant smuggling as part of an investigation into Ghosn’s transit through Turkey en route to Lebanon.

Hurriyet said Kosemen told authorities that a former acquaintance from Beirut had asked him for assistance on what he called a matter of “international significance” and had told him that his family would be harmed if he refused.

The paper did not name the acquaintance who allegedly made the threat.

“I was scared. I took a man from one jet and put him into the other one at the airport. I did not know who he was,” Hurriyet quoted Kosemen as saying in his statement to authorities.

Reuters could not immediately verify the statement.

Officials from MNG Jet and the prosecutor’s office were not immediately available for comment.

A lawyer for Koseman has said he will not make any statement about the issue at the moment.

The private jet operator said on Friday that Ghosn used two of its planes illegally in his escape from Japan, with an employee falsifying lease records to exclude his name from the documents.

The former Nissan Motor Co boss has become an international fugitive after he revealed on Tuesday he had fled to Lebanon to escape what he called a “rigged” justice system in Japan, where he faces charges relating to alleged financial crimes.

Writing by Ezgi Erkoyun; Editing by Frances Kerry

Our Standards:The Thomson Reuters Trust Principles.

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2020-01-04 13:09:00Z
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Ghosn lawyer says former Nissan boss 'betrayed' him - Al Jazeera English

A lawyer for former Nissan boss Carlos Ghosn has said he felt betrayed by his client's escape from Japan but still understood his act, claiming it resulted from Japan's inhumane justice system.

The international tycoon, who faces multiple charges of financial misconduct that he denies, jumped bail and fled to Lebanon in late December to avoid a Japanese trial.

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"First, I was filled with a sense of strong anger. I felt betrayed," Ghosn's lawyer Takashi Takano wrote in his blog, stating that he had not been informed about the plan in advance.

"But anger was turning to something else as I recalled how he was treated by the country's justice system," Takano said.

Ghosn is thought to have taken a private jet from Kansai Airport in western Japan, heading for Istanbul. It is believed he headed from there to Beirut.

"I can easily imagine that if people with wealth, human networks and ability to take action have the same experience (as Ghosn), they would do the same thing or at least consider doing so," Takano said.

Ghosn's high-profile arrest in November 2018 and his long detention under severe conditions were widely considered draconian compared with the West.

Suspects in Japan can be detained for weeks or even months before trial, with limited access to their lawyers, and around 99 percent of trials in the country result in a conviction.

Critics including rights groups such as Amnesty International have derided Japan's system as "hostage justice", designed to break morale and force confessions from suspects.

When safely in Lebanon, Ghosn pressed this point again, saying he "would no longer be held hostage by a rigged Japanese justice system".

Another lawyer for Ghosn, Junichiro Hironaka, on Saturday also said that harsh bail conditions - notably the restrictions on contact with his wife Carole - appeared to have motivated the tycoon's escape.

"He did not know when he can meet his wife ... and there was no prospect for a change in his bail conditions," Hironaka told reporters.

"I guess these things were really tough for him," the lawyer said.

A Tokyo court banned Ghosn from contacting his wife despite several petitions from his legal team describing the measure as "cruel and a punishment".

He was later permitted to speak to her via video conference only.

While Japanese prosecutors have launched an investigation, the circumstances of Ghosn's Hollywood-like flight from Japan are still unclear.

Citing three sources familiar with the matter, Reuters news agency reported on Saturday that Ghosn left his Tokyo residence after a private security firm hired by Nissan stopped monitoring him.

Nissan had hired a private security company to watch Ghosn, who was on bail and awaiting trial, to check whether he met any people involved in the case, the sources said.

But his lawyers warned the security company to stop watching him as it would be a violation of his human rights, and Ghosn was planning to file a complaint against the company, the sources said.

The security company stopped its surveillance by December 29, the sources said.

Ghosn faces four charges - which he denies - including hiding income and enriching himself through payments to dealerships in the Middle East.

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2020-01-04 12:58:00Z
52780536767721