Olympic Opening Countdown

April 14, 2021 (Wednesday) Rain with occasional clouds; also thunder

・On the 13th, the government decided to release processed water accumulating on the site of Tokyo Electric Power Company Holdings' Fukushima Daiichi Nuclear Power Station into the sea, <9501> [closing price 348 yen].

TEPCO Holdings will begin releases in about two years after obtaining approval from the Nuclear Regulatory Commission.

If there is reputational damage, TEPCO will provide compensation commensurate with the actual damage.

・Olympic Countdown: The 100 Days of Truth (Part 1)

With the Tokyo Olympics postponed by the COVID-19 crisis, 100 days remain until the opening.

As infections rekindle, efforts to shape a "with COVID" Olympics continue.

No country or region has clearly opposed the event.

The U.S. Olympic & Paralympic Committee has expressed its intention to participate in Tokyo.

Australia and Canada, which had indicated they would skip sending a team before last year's postponement decision, also plan to participate this summer.

Concerns about mutated viruses remain high.

“Make the ‘Tokyo Model’ a legacy.” A phrase repeatedly spoken in public by Tokyo 2020 Organizing Committee President Seiko Hashimoto since taking office in February.

Whether the accumulated scientific trials will garner sympathy from participating countries is the key to the event’s success.

・Chinese automakers and suppliers: Guangxi Automobile Group to supply small commercial electric vehicles (EVs) to Japanese companies.

SGHD <9143> [closing price 2,478 yen] Under its umbrella, Sagawa Express will adopt 7,200 vehicles for domestic deliveries.

The EVs to be supplied are light commercial vans with a range of at least 200 km. Actual deliveries began in September 2022.

・Osaka Prefecture on the 13th confirmed 1,099 new COVID-19 infections. The first time exceeding 1,000. The severity of cases and hospital bed occupancy remain tight at over 95%.

On the 13th, governors of Aichi and Saitama prefectures announced requests to apply preventive measures nationwide.

・The Biden administration is strengthening the semiconductor supply chain by deepening collaboration with industry.

On the 12th, leaders from 19 semiconductor manufacturers and other companies discussed stable procurement strategies.

President Biden’s push to expand domestic production, motivated by the risk of growing reliance on Taiwan, aims to lead the world again.

・On the 13th, the government decided to release processed water accumulating at the Fukushima Daiichi plant into the sea.

The processed water contains radioactive tritium (hydrogen-3).

The government says it will dilute to below international standards before discharge, so there is no problem.

The plan is to dilute the seawater to more than 100 times and reduce the radiation level to below 1,500 becquerels per liter.

Even if people drank 2 liters daily, the health impact would be far below the national standard of 60,000 becquerels, i.e., 1/40 of that level.

・Public Competition Authority (JFTC) on the 13th conducted on-site investigations of four companies for suspected violation of the Antimonopoly Act (unreasonable restraint of trade): Kansai Electric Power <9503> [closing price 1,094.5 yen], Chubu Electric Power <9502> [closing price 1,335.0 yen], Kyushu Electric Power <9504> [closing price 1,292 yen], among others.

・Southeast Asia's ride-hailing giant Grab on the 13th announced it would go public on NASDAQ via SPAC merger within the year.

The combined enterprise value is about $39.6 billion (about 4.3 trillion yen), potentially the largest SPAC listing to date.

・U.S. inflation accelerates.

U.S. Labor Department released on the 13th: March consumer price index rose 2.6% year over year, the highest in 2 years and 7 months since August 2018.

In addition to the rebound from the economy slowed by the COVID-19 crisis, demand was boosted by substantial fiscal stimulus.

March’s rise surpassed market expectations (QUICK/FactSet consensus 2.5%), accelerating from February’s 1.7%.

Some forecasts expect inflation to exceed 3% through summer. Month-on-month rise was 0.6%; it accelerated from 0.4% in February, marking the highest since August 2012.

・Japan Bank for International Cooperation began capital support for restaurant and hospitality sectors where business activity remains restrained due to the spread of COVID-19.

Providing capital in a way that eases financial burdens for already indebted companies.

The burden is uniform regardless of size or performance, with private-sector coordination principles set aside for now.

・SBI Holdings <8473> [closing price 3,170 yen] Launching a 100 billion yen fund to invest in startups in advanced fields such as fintech.

Over 100 large financial institutions and regional banks will participate, making it the largest VC fund in Japan.

Invested companies' technologies will be showcased to investors, and business model digital transformation will be supported as well.

・Investment Trusts Association on the 13th said that the net asset value of publicly offered investment trusts for 2020 was 151.0137 trillion yen, a two-year high and a record.

This marks a two-year high and a record, propelled by rising U.S. and Japanese stock markets; assets under management increased by 41.9% from the end of FY2010.

・Taiwan’s 19 major companies posted March revenues totaling 1 trillion 1299 billion Taiwan dollars (about 4.35 trillion yen), up 21.5% year over year.

About 70% of companies posted double-digit growth; the total revenue for the 19 companies has shown double-digit growth for five consecutive months as of March.

・China General Administration of Customs on the 13th reported that in January–March 2021, trade statistics (in US dollars) reached record highs for both exports and imports.

Exports were driven by masks, computers, vaccines, and other COVID-19 related goods.

Exports rose 49% year over year to $709.9 billion; imports rose 28% to $593.6 billion.

・Tensions rise between Russia and Ukraine.

With peace talks stalled, Russia has gathered 40,000 troops near the Ukrainian border to support pro-Russian armed forces.

There are no signs of de-escalation.

・U.S. Centers for Disease Control and Prevention (CDC) and the U.S. Food and Drug Administration (FDA) on the 13th advised pausing the use of Johnson & Johnson's COVID-19 vaccine due to rare but serious blood clots observed after vaccination.

Six reports of blood clots with low platelet counts, one resulting in death after hospitalization.

・Global COVID-19 statistics (new cases and deaths) as of 4/13 4:00 p.m., compiled by Johns Hopkins University: Global total 1,366,7 million cases (9,356 deaths).

United States 31,268,125 (467), India 13,689,453 (879), Brazil 13,517,808 (1,480), France 5,128,140 (385), Russia 4,597,400 (270), United Kingdom 4,388,296 (15).

Turkey 3,903,573 (243), Italy 3,779,594 (358), Spain 3,370,256 (197), Germany 3,024,604 (296), Poland 2,586,647 (60), Colombia 2,552,937 (267).

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