March 19, 2021 (Friday) Cloudy then sunny

・On the 18th, the government will fully lift the states of emergency for COVID-19 by the 21st deadline.

To prevent further spread, five measures will be taken, including expanded testing for variants.

・Bids involving Japanese and French and Chinese companies for the Pacific optical submarine cable have been nullified.

While Chinese companies showed the lowest price, Japan, the United States, and Australia pointed out security concerns.

In submarine cables, the plan of Facebook by the United States and Hong Kong to join the project was also pressured to withdraw.

The divide between the United States and China is casting a shadow over global telecommunications infrastructure development.

・Hiroshima High Court on the 18th ordered the suspension of operation of Ikata Nuclear Power Plant Unit 3 (Ehime Prefecture, Ikata City) of Shikoku Electric Power.

It overturned the court's January 2020 provisional ruling and issued a decision to permit restart.

Unit 3 is expected to restart by the end of October.

Meanwhile, the Mito District Court on the 18th ruled that the operation of Japan Nuclear Power Development's Tokai No. 2 Nuclear Power Plant (Tokai Village, Ibaraki Prefecture) should not be allowed.

・The European Union (EU) will increase pressure on China over human rights abuses.

At a ambassador-level meeting on the 17th, a plan to impose sanctions on Chinese authorities was decided.

In addition to pressuring China to respect the human rights of minority Uighurs, there is also a desire to align with the Biden administration in the United States.

If imposed, asset freezes within the EU and travel restrictions within the region would occur.

・Toshiba <6502> [Close 3,795 yen] At the extraordinary shareholders meeting held on the 18th, the proposal proposed by shareholders was approved.

A third party was appointed to investigate due to irregularities in the 2020 meeting procedures.

Even among institutional investors who opposed many shareholder proposals, approval can be forthcoming depending on the content.

・The momentum of the variant virus continues to surge.

In Europe and Central/South America where the variant virus is spreading, new infections are increasing significantly.

In Japan, the number of reports of detected variant viruses reached about 400 as of the 17th.

・The record-breaking cold wave and widespread power outages hit Texas in the southern United States, with ripple effects spreading.

Chemical plants concentrated along the Gulf of Mexico were temporarily shut down, delaying resin supply.

Due to material shortages, Toyota <7203> [Close 8,650 yen] also paused some plants.

Materials market is also soaring, affecting a wide range of industries such as housing. In addition to semiconductor shortages, U.S. supply chain vulnerabilities are becoming evident.

・The government, in response to lifting the state of emergency on the 21st, is exploring the reopening timing of domestic travel support program "Go To Travel."

Travel crossing prefectural borders is expected to resume no sooner than after the long holidays in May.

・The U.S. Federal Reserve (FRB) on the 17th signaled it will keep the zero-interest-rate policy for at least the next three years, temporarily dispelling expectations of tightening.

Although inflation is forecast to surpass 2% within the year, Powell emphasized that it is “not the goal of policy.”

It will accept temporary economic overheating to accelerate job recovery through experimental policy management.

・Bank of Japan <8301> [Close 43,900 yen] On the 19th, at the Monetary Policy Meeting, will begin steps toward policy adjustments to further prolong monetary easing.

One focal point, the long-term interest rate guidance, will be considered to widen the allowable fluctuation range to around plus/minus 0.25% from the current level.

・The Nationwide Banks Association on the 18th announced it will raise ATM interbank transfer fees.

From October, the fixed fee that has remained at a fixed rate for over 40 years will be uniformly set at 62 yen.

・eGuarantee <8771> [Close 2,164 yen] From the fiscal year ending March 2021, the dividend payout ratio will be raised from around 30% to 50%.

Due to credit anxiety from the COVID-19 pandemic, guarantee requests have surged, strengthening profitability and financial health.

・U.S. and South Korea governments held, on the 18th in Seoul, the 2 Plus 2 foreign and defense ministers meeting for the first time in five years, showcasing unity among Japan, the United States, and Korea against threats from North Korea.

・Deterioration of U.S.-Russia relations accelerates.

Following President Biden's critical remarks about Russia,

The Russian Foreign Ministry on the 17th announced it would temporarily recall Ambassador Antonov to Russia to discuss U.S. policy.

The heightened confrontation could cast a shadow over U.S.-Russia cooperation in nuclear disarmament and Afghanistan peace talks.

・The U.S. Federal Communications Commission (FCC) on the 17th announced it has begun procedures to revoke the U.S. license of China’s state-owned telecommunications giant China United Network Communications (China Unicom).

Security concerns could not be cleared.

・Emerging economies such as Brazil and Turkey have stepped up rate hikes.

While financial easing had been used as a stimulus, the resulting currency depreciation and rising import prices drive inflation, forcing a shift in monetary policy.

・Taiwan's Central Bank held its regular board meeting on the 18th, revising the 2021 annual real GDP growth forecast from 3.68% year-on-year to 4.53% year-on-year.

With robust investment especially in semiconductors and exports near record highs, policy interest rate remains at the current 1.125% for four consecutive meetings.

・Global coronavirus case counts (new deaths day-over-day) as of 4:00 PM on 3/18, compiled by Johns Hopkins University: World total 121,212,000 (10,253 deaths)

United States 29,607,483 (1,173) Brazil 11,693,838 (2,648) India 11,474,605 (172) Russia 4,368,943 (420) United Kingdom 4,287,996 (141) France 4,169,274 (16)

Italy 3,281,810 (431) Spain 3,206,116 (228) Turkey 2,930,554 (73) Germany 2,610,769 (91) Colombia 2,314,154 (130) Argentina 2,218,425 (195)

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