CEO turned fugitive speaks

Plus: Court kills vax mandates | Thursday, January 13, 2022

Open in app View in browser     Axios Closer By Hope King and Nathan Bomey ·Jan 13, 2022 Hello! Hope and Nathan here — the weekend is in sight. Today's newsletter is 645 words, a 2½-minute read. 🔔 The dashboard: The S&P 500 closed down 1.4%, ending a two-day streak of gains. Biggest gainer? Biotechnology company Biogen (+5.3%). The company's stock recovered after falling yesterday following negative regulatory news impacting its Alzheimer's drug Aduhelm. Biggest decliner? Software maker ServiceNow (-9.1%) ¯\_(ツ)_/¯     1 big thing: Ghosn's electric prediction Photo illustration: Shoshana Gordon/Axios. Photo: Hasan Shaaban/Bloomberg via Getty Images   Former Nissan boss and international fugitive Carlos Ghosn predicts a major reordering of the power center in the auto industry, he tells Nathan in an exclusive interview. Why it matters: Ghosn was once one of the automotive industry's most powerful leaders — among the first major execs to invest in electric vehicles. His comments now come during a major inflection point in the sector's transition to EVs as companies battle for positioning. Driving the news: "I'm being solicited a lot by mainly small and startup companies which are trying to create for themselves a road into this new industry," he says. The once-globe-trotting citizen of Lebanon, Brazil and France spoke on Zoom from his home in Beirut. Ghosn tells Axios he's not interested in leading a major automotive company anymore, even if his charges disappear. But he's happy to consult on electric vehicles and self-driving cars. "I'm trying to help companies get rid of the past," he says. Ghosn had high praise for Tesla and Elon Musk, marveling at the company surpassing $1 trillion in market capitalization. The big picture: Ghosn predicts traditional automakers like Nissan, GM and Ford won't be able to keep up with startups, which "don't have the rigidity of mind." Catch up fast: Japanese authorities and Nissan in late 2018 alleged that Ghosn underreported his compensation, a crime in Japan. He's denied any wrongdoing. A year later, Ghosn escaped house arrest in an elaborate plot. He tucked himself inside a musical equipment box to flee authorities en route to Lebanon. What's next: If Ghosn can't get Japan to drop charges or if Interpol doesn't withdraw its "red notice" seeking his detainment, he may spend the rest of his life in Lebanon. Read the rest.     2. Charted: Housing inequality worsens Data: Zillow analysis of data from the Home Mortgage Disclosure Act (HMDA); Map: Baidi Wang/Axios A new report out today provides more evidence that the pandemic is impacting Black Americans disproportionately, Hope writes. What's new: The gap between denial rates for Black mortgage applicants and white applicants grew by 10 percentage points between 2019 and 2020, analysis of the latest federal Home Mortgage Disclosure Act data from Zillow shows. By the numbers: Lenders denied roughly 20% of Black mortgage applicants in 2020, which was nearly double the denial rate for white applicants.  What to watch: Housing costs are soaring while mortgage rates are climbing back to where they were at the start of the pandemic, as employment and wage gains for Black Americans have stalled. Continue reading.     3. What's happening 💸 More than half of 900 global CEOs surveyed said they expect pressure on prices to last well into next year. (WSJ) 👩‍🎓 Navient agreed to cancel student loans for 66,000 borrowers and provide relief to 400,000 more as part of a $1.85 billion settlement agreement over predatory lending claims. (Press release)     A message from Axios Hyper-relevant news and analysis for your industry     What's new: Axios Pro: Deals is here. Why it matters: Axios Pro delivers deeper news and analysis for serious professionals who care about PE, VC and M&A. You'll get exclusive reporting you won't find anywhere else. Start your 14-day free trial.     4. Biden employer vaccine mandate blocked Photo: Robert Alexander/Getty Images   The Supreme Court ruled against the Biden administration's COVID-19 vaccine-or-test requirement for large employers, Axios' Oriana Gonzalez reports. At the same time, the justices allowed a similar mandate for health care workers at facilities that receive Medicare or Medicaid funds. Details: Congress has "indisputably given" the Occupational Safety and Health Administration the power to regulate occupational dangers, but not the power to regulate public health more broadly, the 6-3 opinion reads. Liberal Justices Stephen Breyer, Sonia Sotomayor and Elena Kagan dissented. Continue reading.   Share Axios and earn rewards If you like this newsletter, your friends may, too! Refer your friends and get free Axios swag when they sign up. Be a good friend and share   5. TikTokers taking it to the bank Data: Forbes, Wall Street Journal; Images: Getty; Table: Thomas Oide/Axios Hope writes: Charli D'Amelio is bringing home more than some top CEOs, per the WSJ. Why it matters: TikTok — now more popular than Google — has propelled creators like D'Amelio, 17, into a new class of business empires driven by follower count. By the numbers: D'Amelio, TikTok's top account with 133.4 million followers, earned $17.5 million last year, according to Forbes.      6. What they're saying "I think everybody is preparing at this point for Omicron to be in the rearview mirror and that travel will be much more restored for the summer than it was for any of the last two summers." — Glen Hauenstein, Delta Air Lines president on this morning's earnings call     A message from Axios Hyper-relevant news and analysis for your industry     What's new: Axios Pro: Deals is here. Why it matters: Axios Pro delivers deeper news and analysis for serious professionals who care about PE, VC and M&A. You'll get exclusive reporting you won't find anywhere else. Start your 14-day free trial.   Like this email style and format? Bring the strength of Smart Brevity® to your team — more effective communications, powered by Axios HQ.   Axios thanks our partners for supporting our newsletters. If you're interested in advertising, learn more here. Sponsorship has no influence on editorial content. Axios, 3100 Clarendon B‌lvd, Suite 1300, Arlington VA 22201   You received this email because you signed up for newsletters from Axios. Change your preferences or unsubscribe here.   Was this email forwarded to you? Sign up now to get Axios in your inbox.   Follow Axios on social media: