Vaccination for the elderly begins domestically
April 13, 2021 (Tuesday) Cloudy; rain expected in the afternoon
・A headwind is blowing against Chinese emerging companies.
In the market for high-tech companies, the STAR Market, in 2021, 88 companies canceled their listing procedures.
On the 10th, the Chinese government levied a hefty fine on Alibaba Group, signaling a crackdown on high-tech firms;
the background includes ongoing U.S.-China tensions under the Biden administration.
Tighter controls could become an obstacle to innovation.
・Vaccination of elderly people against COVID-19 began domestically on the 12th.
For 36 million people aged 65 and over, the current supply is not enough.
The completion of elderly vaccination, initially expected by mid-June, is likely to slip to after July.
・The government plans to expand funding for resource development to reduce the risk of supply disruption for essential minerals like rare earths used in electric vehicles (EVs).
Within the year, the Japan Oil, Gas and Metals National Corporation (JOGMEC) will be able to invest the majority in mining exploration and development.
This aims to ease the burden on private enterprises and secure critical resources to support decarbonization.
・Japan's research on photodynamic therapy, touted as the “fifth cancer treatment method,” is entering full-scale development in Japan.
Kansai Medical University will establish the world's first institute in this field in April 2022.
In addition to cancers in the mouth and neck already treated domestically, aims to apply it to breast cancer and other cancers.
・Iran's government on the 12th accused Israel of involvement in a power-system malfunction at a nuclear facility in Natanz, central Iran.
As Iran's nuclear activities expand, relations between the two countries have rapidly tense.
Clouds are darkening over the nuclear agreement targeted by the Biden administration.
・Toshiba <6502> [Closing price 4,530 yen] Activist investors, who are “shareholders with a voice,” would come to occupy a larger share of the shareholders.
According to QUICK and FactSet, six of the top ten shareholders are activists.
In total, their stake accounts for a little over 30% of the shares.
Toshiba issued new shares in 2017 at 2,628 yen per share. CVC is expected to offer 5,000 yen per share, about 90% higher, as an acquisition price.
・Microsoft announced on the 12th that it would acquire U.S. medical transcription and speech-recognition company Nuance Communications for $19 billion (about 2.15 trillion yen).
By obtaining Nuance's hospital and physician client base along with its AI technology, Microsoft aims to strengthen its healthcare cloud services.
・On the 12th, the government’s Growth Strategy Council began discussions on measures to attract data centers domestically.
Consideration of support measures to expand data-center investments by domestic and foreign operators in Japan.
By dispersing the concentration of facilities in large cities, aiming to improve security by storing more data domestically.
・Bank of Japan <8301> [Closing price 34,000 yen] Will start a support program on the 16th to assist financial institutions actively lending for COVID-19 response and other lending needs.
Based on the use of the BoJ's funding measures, banks will be encouraged to add to the current account interest rate to support corporate cash flow.
If the short-term rate is lowered by 0.1%, the extra interest will be increased to help with sudden yen appreciation or other shifts.
・The two-year dispute over automotive batteries between Korea's LG Chem and SK Innovation ended on the 11th.
SK agreed to pay 2 trillion won (about 200 billion yen) in settlement, exceeding the annual battery business sales.
・The Indian Automotive Industry Association (SIAM) on the 12th reported that new-vehicle sales for fiscal year 2020-21 (Apr 2020–Mar 2021) fell 6% year-on-year to 3.28 million units.
The decline marks the second consecutive year. Impacts from lockdowns and other COVID-19 countermeasures contributed.
・The UK government on the 12th eased the lockdown measures for COVID-19.
From March, for the third time, pubs and shops began to reopen.
The easing is driven by nearly half of the population having been vaccinated and declines in deaths and infections.
The gap with other European countries like Germany and France, which are lagging in vaccination, is clear.
・Middle Eastern oil exporters’ economies are reviving as crude prices recover.
The International Monetary Fund (IMF) on the 11th projected a current-account surplus for 2021 after two years.
Among oil-producing countries leading in COVID-19 vaccination, recovery in non-oil sectors such as tourism is providing a tailwind.
・Worldwide new coronavirus infection numbers (daily deaths) as of 4/12 4:00 PM, compiled by Johns Hopkins University; global total 136.056 million cases (8,649 deaths)
United States 31,197,872 (283) India 13,527,717 (904) Brazil 13,482,023 (1,803) France 5,119,586 (696) Russia 4,589,209 (333) United Kingdom 4,384,610 (7)
Turkey 3,849,011 (237) Italy 3,769,814 (331) Spain 3,347,512 (0) Germany 3,012,158 (98) Poland 2,574,631 (245) Colombia 2,536,198 (281)
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