Liquid assets accumulate at hand
March 18, 2021 (Thursday) Clear
・Prime Minister Yoshihide Suga announced on the 17th that the state of emergency will be fully lifted by the 21st.
In Tokyo, Kanagawa, Saitama, and Chiba, where the emergency has been declared, hospital bed utilization rates have fallen.
・The spring labor-management negotiations of 2021 reached a concentrated response day on the 17th.
Toyota <7203> [Closing price 8,308 yen] Nissan Motor <7201> [Closing price 596.3 yen] The union responded with full amount to wage demands.
Even amid the new coronavirus situation, signs of a recovery in earnings emerged, with a focus on boosting employee morale and attracting talent.
Toyota's response is 9,200 yen per month, Nissan Motor 7,000 yen per month.
Hitachi <6501> [Closing price 5,410 yen] 1,200 yen (down 300 yen from the previous year), Sharp <6753> [Closing price 1,851 yen] 1,000 yen (500 yen lower).
・Mizuho FG <8411> [Closing price 1,639.5 yen] on the 17th,
announcing that it will establish an external expert third-party committee to investigate the causes of frequent system failures at Mizuho Bank under its umbrella.
・The spring wage increases, with responses from major manufacturers on the 17th, lack vigor.
Underlying factor is concerns about prospects for corporate performance due to the COVID-19 crisis.
・Secretary of State Antony Blinken said on the 17th that regarding China’s incursions into territorial waters around Okinawa and the Senkaku Islands and pressure on Taiwan
he would “clearly state his concerns in explicit terms” at the face-to-face U.S.-China talks to be held in Alaska on the 18th.
The United States and China remain at odds over designating the talks as a “strategic dialogue.”
・The risk to semiconductor supply chains extends across many fields, including smartphones and PCs.
Following a large-scale blackout in Texas in February, Samsung Electronics’ local smartphone semiconductors plant halted operations, giving the world a 5% share in production.
The shortage of semiconductors is accelerating, beginning to impact electronic device production.
・LINE <4689> [Closing price 611.0 yen] On the 17th, it announced that an employee at a Chinese subsidiary, which handles system development, had accessed personal information of users in Japan.
IT (information technology) services are expanding, with increased outsourcing overseas, necessitating rapid establishment of rules to support global expansion.
・Household and corporate liquidity are accumulating.
Bank of Japan <8301> [Closing price 42,000 yen] 17th, money circulation statistics,
In 2020, the so-called financial surplus indicating households’ savings capacity reached a record high for the first time in about 10 years, and “cash on hand” also surpassed 100 trillion yen for the first time.
The COVID-19 crisis led to a tendency to curb consumption and capital expenditure, contributing to the growth of excess funds.
・Insurance companies began to move toward shrinking office space.
Meiji Yasuda Life Insurance will reduce its headquarters space by about 30–40% from FY2021 onward.
Aioi Nissay Dowa Insurance will also halve the usable area of its headquarters divisions.
A challenge is how effectively to utilize prominent headquarters buildings by opening them to other companies.
・Okasan Securities Group <8609> [Closing price 458 yen] On the 17th, it announced the integration of its face-to-face brokerage subsidiary Okasan Securities with its online brokerage Okasan Online Securities, to be completed by October.
In addition to efficiency, the integration aims to provide customers with a seamless, unified service through consolidated functions.
By the end of March, it plans to make Securities Japan (Tokyo, Chuo), which has strengths in independent financial advisory (IFA) services, a subsidiary to bolster its sales capabilities.
・Financial Services Agency and Bank of Japan <8301> [Closing price 42,000 yen] From 2021, strengthen cooperation in inspections and assessments of financial institutions.
For major banks, flexibly review the timing of BOJ examinations, and jointly study issues such as cybersecurity measures.
Aiming to reform a siloed structure and ensure financial system stability.
・The European Union (EU) plans to issue a digital “vaccine certificate” recognizing those vaccinated against COVID-19 or recovered from infection, allowing free movement within the region.
The new system is to be established by this summer to help revive the economy ahead of the tourist season.
・Global COVID-19 infection numbers (deaths) as of 4:00 PM on March 17, according to Johns Hopkins University: Worldwide total 120,697,000 (97,38 deaths)
United States 29,549,008 (1,286) Brazil 11,603,535 (2,841) India 11,438,734 (188) Russia 4,360,033 (437) United Kingdom 4,282,203 (110) France 4,168,411 (400)
Italy 3,258,770 (502) Spain 3,200,024 (141) Turkey 2,911,642 (71) Germany 2,603,064 (251) Colombia 2,309,600 (125) Argentina 2,210,121 (200)
× ![]()
