The Most Lucky Day

March 31, 2021 (Wednesday) Clear; Day of Great Forgiveness

Global without Passc to avoid repetition (1) Signs of an impending crisis: skewed wealth and rising discontent; facing it

In the early 20th century, despite global advancement due to technological innovation and changes in industrial structure, dissatisfaction with widening inequality and the rise of emerging nations laid the groundwork for two major wars.

With the United States and China in sharp dispute, the goddess of peace and order once called "Pasque" in ancient Rome no longer smiles.

The COVID-19 pandemic has caused individual wealth to decline for the first time in 90 years.

In 2020, per capita GDP fell in 85% of countries compared with the previous year. The drop exceeds that of the 1930s during the Great Depression.

Surging stock prices have continued, widening the gap between those with financial assets and those without.

Global without Passc to avoid repetition (1) Signs of an impending crisis: skewed wealth and rising discontent; facing it

In countries that failed to cope effectively with the pandemic, skepticism toward liberalism and democracy is taking root.

History often rhymes. The COVID-19 crisis has made people feel the crisis, and many recognize they have stepped into an unstable period in a historical sense.

　　

- NTT <9432> [Closing price 2,955.0 yen] supplies renewable energy to Seven-Eleven Japan <3382> [Closing price 4,584 yen]

Seven-Eleven Japan builds a dedicated solar power plant to decarbonize its stores and will sell electricity under a 20-year contract.

- The Standing Committee of the National People's Congress of China (the NPCSC) on the 30th unanimously approved revisions to Hong Kong's electoral system that would exclude pro-democracy voices.

The hollowing-out of the "one country, two systems" framework that has guaranteed Hong Kong high autonomy has become even more clear.

- Renesas Electronics <6723> [Closing price 1,202 yen] on the 30th held a press conference about its Nak a factory in Hitachi-naka City, Ibaraki Prefecture, which is currently halted due to a fire.

President Hidetoshi Shibata stated that it would take about 3–4 months from the fire for production to return to pre-fire shipment levels.

In response, Toyota <7203> [Closing price 8,362 yen] and Nissan Motor <7201> [Closing price 612.6 yen] are considering production cuts, as the shortage of automotive semiconductors worsens.

- The ripple effects of potentially large losses tied to the U.S. investment firm Archegos Capital Management are spreading among financial institutions.

Mizuho Financial Group <8306> [Closing price 615.5 yen] said on the 30th that losses of about $300 million (about 33 billion yen) could occur.

Investment companies managing assets for the wealthy are increasing, but they are not covered by U.S. financial regulation and using borrowed funds can amplify leverage, presenting challenges.

- Amazon Japan (Tokyo, Meguro) will from April require sellers on its marketplace to enable buyers to track delivery statuses.

If sellers do not comply, Amazon will bar shipments from those sellers on its platform.

The aim is to prevent delivery problems, but the higher operating costs could significantly affect small and medium-sized enterprises.

- Xiaomi Corp. (China) announced on the 30th its entry into the electric vehicle (EV) sector.

An initial investment of 10 billion yuan (about 1100 billion yen) will be made.

As decarbonization policies spread, the EV market is expected to grow globally.

The entry of a major smartphone player could alter the balance of power in the market.

- The Suez Canal in Egypt, where a large container ship had been stranded and was able to resume operations on the 29th, on the 30th, ships that had been blocked, including container ships and bulk carriers, began passing through the canal one after another.

At one point, more than 400 ships were queued; the Suez Canal Authority is accelerating traffic to normal levels by increasing capacity to twice the usual rate.

- The Cabinet Office survey on corporate behavior for fiscal year 2020, released on the 30th, showed that 59.7% of listed companies plan to increase the number of employees over the next three years.

This is the lowest level in seven years. Amid the spread of COVID-19, companies have been cautious about expanding employment.

- The Government Pension Investment Fund (GPIF) is drawing market interest over whether it will invest in yuan-denominated Chinese government bonds.

As the representative bond index used by GPIF included Chinese government bonds from the end of October this year, consideration is being given to including them.

Within the government, there are concerns that pension funds directed to China could provoke public backlash, revealing internal conflict.

- The Cabinet Office on the 30th released a report on fixed asset stock for 2020, showing domestic private-sector equipment assets valued at 736.2589 trillion yen, down 0.03% year-on-year.

Investments were restrained due to the expansion of COVID-19, marking a 28th period (7 years) decline.

- In the afternoon of the 30th, the yen briefly fell to the 110 yen per dollar level in the Tokyo foreign exchange market, a roughly year-long low not seen since March 2020.

With expectations that COVID-19 vaccinations will spread in the United States, hopes for a quick economic recovery rose.

- Hon Hai Precision Industry (Foxconn) <2317> in Taiwan reported on the 30th that its FY Oct-Dec 2020 quarterly net profit fell 4% year-on-year to 45.9 billion TWD (about 1770 billion yen); full-year net profit for 2020 was 101.7 billion TWD, down 12% from the previous year.

The company remains reliant on iPhone-related revenue, and with high labor costs in China continuing, profitability remains under pressure.

- Global air pollution has become a serious issue. Swiss research firm IQAir estimates that the global economic losses from air pollution in 2020 amounted to $2.9 trillion (about 320 trillion yen).

Among the world's cities, Delhi has the worst air pollution.

- Global COVID-19 infection numbers (and death tolls from the previous day) as of 4 PM on 3/30, according to Johns Hopkins University: World total 128.765 million cases (7,891 deaths)

United States 30,331,794 (701) Brazil 12,573,615 (1,660) India 12,095,855 (271) France 4,615,295 (360) Russia 4,477,916 (290) United Kingdom 4,351,796 (23)

Italy 3,544,957 (417) Spain 3,270,825 (189) Turkey 3,240,577 (154) Germany 2,794,949 (174) Colombia 2,389,779 (124) Argentina 2,322,611 (162)

From here, published in [Koro Asa Premium]