Cabinet approval rating remains flat at 45%
March 29, 2021 (Monday) Rain followed by sunshine; final trading day with rights attached
- The government has begun considering a complete suspension of new projects for exporting coal-fired power plants.
- It will stop offering low-interest loans from government-affiliated financial institutions.
- In line with the decarbonization emphasis of the U.S. and Europe, it will halt the increase of coal-fired power generation with high greenhouse gas emissions.
- The domestic first issuance of the "digital securities" legalized in 2020 is expected within the month.
Sumitomo Mitsui Trust <8309> [closing price 4,006 yen] develops digital securities backed by bonds issued by a credit card using blockchain (distributed ledger) technology.
Sales to individual investors will also be considered in the future.
For individuals, investment options will increase beyond stocks and bonds.
- Nihon Keizai Shimbun and TV Tokyo <9413> [closing price 2,534 yen] conduct public opinion polls from 26 to 28.
Support for the Suga Yoshihide administration remains at 45%, unchanged from the previous poll in February.
52% answered that the government’s full解除 of the state of emergency for COVID-19 on the 21st was “too early.”
41% said “appropriate,” and 13% said “too late.”
- More companies are starting to manufacture rapid antigen test kits for COVID-19 infection detection.
Fujifilm <4901> [closing price 6,605 yen] begins mass production from April and will sell in Japan and Europe.
As concerns of a fourth wave rise due to the renewed outbreak, it will supplement existing PCR tests and bolster the COVID-19 testing system.
Until now, antigen test kits were generally for symptomatic individuals.
- Sony <6758> [closing price 11,435 yen] on the 28th publicly unveiled its EV prototype, “VISION-S,” in Japan for the general public for the first time.
The car is equipped with sensors to monitor internal and external conditions to assist driving.
In Japan, it plans to start on-road testing within the year. Inside the car, a display will allow entertainment such as movies.
- Chiefs of staff from 12 countries including Japan and the United States issued a joint statement on the 28th condemning the Myanmar military for using force against unarmed civilians.
The situation is mired, but the international community’s options are limited.
- In the Suez Canal, two large escort tugs will enter the scene on the 28th to assist in the refloating of the stranded container ship.
- The United Kingdom is gradually lifting its lockdown measures against COVID-19.
Vaccinations are progressing, and both infections and deaths are trending downward.
- Global COVID-19 infections (with day-to-day death changes) as of 4:00 PM on March 28, compiled by Johns Hopkins University: worldwide 126.727 million people (9,994 deaths)
United States 30,218,682 (74,1) Brazil 12,490,362 (3,438) India 11,971,624 (312) France 4,569,164 (191) Russia 4,460,348 (382) United Kingdom 4,343,066 (58)
Italy 3,512,453 (380) Spain 3,255,324 (0) Turkey 3,179,115 (151) Germany 2,782,925 (88) Colombia 2,375,591 (145) Argentina 2,301,389 (133)
- Domestic COVID-19 infections: confirmed cases 468,825 (new infections +1,785 by 8:00 PM on the 28th), deaths 9,078 (+29)
Hokkaido 20,816 (+74) Tokyo 119,974 (+313) Kanagawa 47,737 (+64) Chiba 29,323 (+92) Saitama 32,463 (+114)
Kyoto 9,413 (+26) Osaka 50,957 (+323) Hyogo 19,603 (+93) Fukuoka 18,921 (+23) Aichi 27,189 (+86) Miyagi 5,637 (+134) Ibaraki 6,651 (+51) Okinawa 9,240 (+68)
- The EV charging infrastructure in Japan is stagnating.
Although the number of charging station locations has risen to about 60% of fuel stations, there are still gaps.
Until concerns about running out of charge while away from home are eliminated, widespread EV adoption tied to decarbonization is unlikely.
In Europe, including Norway, a favorable cycle is starting where generous EV promotion leads to more charging points.
- China and Iran have signed a 25-year cooperation agreement on economics and security.
Iranian President Rouhani announced this on the official website.
Their aims, in terms of trade, human rights, and the nuclear deal, align even as the two countries clash with the United States.
- On the 27th, Myanmar’s military held a parade in Naypyidaw to commemorate the military.
Security forces clashed with protesters nationwide, firing on them; Reuters reports more than 90 dead nationwide.
- The government will issue an electronic certificate showing that COVID-19 vaccination has been completed.
A system is envisaged that can be managed via a smartphone app for overseas travelers.
- Universities increasingly engage in remote online classes, challenging new forms of education.
Education reform is expected to accelerate as a result of the COVID-19 measures.
- Investment in digital content is booming.
Blockchain technology enables converting unique digital assets such as art and music into single, globally unique items.
Individuals speculate on these scarce digital assets due to their rarity.
Some items, though potentially dubious in value, trade at high prices, giving a bubble-like appearance.
Non-fungible tokens (NFTs) are digital assets.
By issuing content on the blockchain via NFT发行 support companies’ sites, the uniqueness is proven.
Driven by expanding cryptocurrency money supporting NFT surges, many individuals purchase NFTs with cryptocurrency to resell for profit.
- The Chinese Ministry of Foreign Affairs announced on the 27th that it will impose sanctions on U.S. and Canadian lawmakers.
In retaliation for sanctions China imposed over human rights issues in Xinjiang, this is a countermeasure against those sanctions.
- More than 80% of 100 regional banks are actively pursuing partnerships with other banks or IT and other non-banking sectors, according to Nikkei.
With shrinking population and low interest rates worsening business conditions, banks are pressed to cut costs through system consolidation and to explore new areas like digital services.
- On various e-commerce sites, schemes tempting customers into accidental or unnecessary orders are widespread.
Known as "dark patterns," regulation is progressing in the U.S. and Europe, while most are deemed legal in Japan, causing delays in response.
Nikkei survey confirmed dark patterns on 60% of major domestic sites.
- The Financial Services Agency and Tokyo Stock Exchange will, from fiscal 2021, require listed companies to disclose information related to climate change.
This will be explicitly stated in the soon-to-be-updated Corporate Governance Code.
- China will establish a specialized carbon dioxide (CO2) emissions trading exchange in Shanghai, aiming to start trading in June.
- New COVID-19 infections continue unabated.
In Japan, as of 8:00 PM on the 26th, 2,027 new infections were confirmed.
Infections are rapidly spreading in inland areas as well, heightening concerns about a fourth wave.
- Regarding the Suez Canal incident where a large container ship stranded in the canal, Shogei Shipping Co., owner of the vessel in Imabari, Ehime, revealed on the 26th that
it intends to refloat and move away from the bottleneck by the night of the 27th Japan time.
- WeWork, the U.S. coworking company, announced on the 26th that it would go public in the U.S. stock market in the second half of 2021 through a SPAC deal.
The estimated enterprise value at the time of listing is about $9 billion (roughly 990 billion yen).
The company had abandoned an IPO in 2019 amid management difficulties, and with SoftBank Group (SBG) <9984> [closing price 9,238 yen] leading, it has restructured management and is rebuilding.
- On the 25th, U.S. President Biden criticized North Korea for launching a short-range ballistic missile, calling it a violation of United Nations Security Council resolutions.
Unlike former President Trump, who showed little concern about missiles within Japan's reach, Biden clearly emphasizes cooperation with Japan.
- The U.S. Federal Reserve (Fed) on the 25th announced that it will lift the restrictions on stock buybacks imposed on U.S. big banks by the end of June.
Going forward, it will continue to review each bank’s buyback plans based on the results of the stress tests as before.
With a steady economic recovery, U.S. financial regulation is moving from a "crisis mode" toward normalization.
- As the music streaming market expands, competition for music rights is heating up.
Not only major music companies, but also investment funds are entering the fray amid a global cash glut.
Attention from companies and investors is focused on the profits derived from copyrights.
- Since the full liberalization of electricity retail, new power providers have faced crossroads.
The number of operators has grown to 700, and competition for customers has intensified; on the 24th, major player F-Power (F-Power, Minato-ku, Tokyo) went bankrupt.
Dai-ichi Life Research Institute reports liabilities totaling 46.4 billion yen, making it the largest bankruptcy case of the year.
- Global COVID-19 infections (day-to-day deaths) as of 4:00 PM on March 26, compiled by Johns Hopkins University: worldwide 125,492,000 (11,690 deaths)
United States 30,079,282 (1,541) Brazil 12,320,169 (2,777) India 11,846,652 (257) France 4,484,659 (452) Russia 4,442,492 (386) United Kingdom 4,332,922 (63)
Italy 3,464,543 (460) Spain 3,247,738 (676) Turkey 3,120,013 (157) Germany 2,744,608 (185) Colombia 2,359,942 (125) Argentina 2,278,115 (146)
- Funds are flowing back into the real estate investment trust (REIT) market.
On the Tokyo stock market on the 26th, the Tokyo Stock Exchange REIT Index, which indicates overall REIT activity, recovered to the 2000 level at the close for the first time in about a year.
Foreign investors bought mainly office type REITs.
- On the 28th, the Tokyo Stock Exchange announced that it will continue to calculate the TSE Mothers Index after market reorganization from April 2022.
- Regarding the accident in the Suez Canal where Shogei Shipping Co. (Imabari, Ehime) owns a large container ship that ran aground,
Egypt’s Canal Authority Director General Rabia stated on the 27th that 321 ships are stranded.
The damage is estimated at about $9.6 billion per day, affecting international logistics. There is no oil leakage.
- Pirate piracy in manga has expanded again.
Since the closure of the notorious pirate site Manga Village three years ago, new pirate sites have appeared one after another.
The estimated damage from the pandemic in December last year was ¥34.9 billion, ninefold in less than a year.
- The container ship stranded in the Suez Canal in Egypt, and the disruption of maritime routes continued for several days.
If energy transport such as oil and LNG between Europe and Asia stalls, the world economy will be affected, including a rise in oil prices, which could also impact Japan’s automotive industry.
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