Raising capital gains tax on the wealthy?!

April 23, 2021 (Friday) Clear

- The U.S.-hosted Summit on Climate Change opened online on the 22nd.
Ahead of the meeting, major countries announced CO2 emission targets for 2030: Japan aims to cut emissions by 46% from the 2013 level, and the United States by 50-52% from the 2005 level.
A key challenge is how to ensure the targets are effective.

- The government on the 22nd declared a state of emergency for Tokyo, Osaka, Kyoto, and Hyogo prefectures.
The period is from 4/25 to 5/11. It is expected to request closures of restaurants serving alcohol and encourage the closure of large shopping facilities excluding essential goods sections.
Events will be held with no spectators in principle, and reductions in train and bus services will also be considered.

- Watami, a izakaya chain <7522> [closing price 922 yen] plans to receive financing support from Nippon Life Insurance Company.
In mid-May, it will mainly raise about 10 billion yen in subordinated loans with lower repayment priority than regular loans and with capital characteristics.

(Nikkei, front page)

- Nidec <6594> [closing price 13,970 yen] is intensifying its push in drive motors for electric vehicles (EVs).
On the 22nd, Nissan Motor <7201> [closing price 550.0 yen] announced that Ken Kajima (age 59), who had been invited, will also serve as Chief Executive Officer (CEO).
Until now, Shigeaki Nagamori (age 70) has shouldered the CEO role. Nagamori will remain in the chairman position with executive powers.
For the year ending March 2022, the group is expected to report a record operating profit of 180 billion yen, with net sales of 1.7 trillion yen and net income of 140 billion yen.
President Seki says, “We will achieve sales of 20 trillion yen by the fiscal year ending March 2023.”
In the next five years, it plans to invest 150 billion yen in capital expenditure and research and development.

- The spread of the novel coronavirus has worsened the finances of employee health insurance associations in large corporations.
In the 2021 budget survey of about 1,400 associations nationwide, 78% are projected to be in the red.
The actual insurance premium rate needed to balance the finances is expected to exceed the threshold of 10% for the first time.

- Central banks of advanced economies are beginning to review the large-scale monetary easing they have continued to implement in response to the coronavirus.
The Bank of Canada decided on the 21st to reduce its purchases of government bonds.
Wary of rising housing prices, other central banks are cautious about asset price overheating, including stocks, and face difficult decisions on how long to continue easing measures.

- The European Central Bank (ECB) on the 22nd decided to continue its unprecedented monetary easing.
The global economic recovery is progressing, but the outlook is clouded by uncertainties such as the spread of the novel coronavirus (crisis voiced by President Lagarde).

- Credit Suisse Group's management is faltering.
A large loss from dealings with clients led to an annualized net loss of 252 million Swiss francs for the January-March 2021 quarter.
Associated with the U.S. investment firm Archegos Capital Management, a loss of 4.4 billion Swiss francs was recorded.
Net income swung from a profit of 1.31 billion Swiss francs year‑over‑year to a loss in the period, marking the first red ink in five years for the quarter.
Archegos-related assets have been disposed of by 97%, but an additional loss of about 0.6 billion Swiss francs is expected in April-June.

- Air pollution is worsening again in Asian countries.
While there were improvements in some areas due to measures against COVID-19, signs of deterioration are appearing in places like China that controlled infections.

- Global COVID-19 infection counts (daily change in deaths) as of 4/22 4:00 p.m., compiled by Johns Hopkins University: World total 114.8 million cases (14,165 deaths)
United States 31,862,389 (932) India 15,930,774 (2,104) Brazil 14,122,795 (3,472) France 5,436,229 (333) Russia 4,673,699 (392) Turkey 4,446,591 (362)
United Kingdom 4,411,068 (20) Italy 3,904,899 (364) Spain 3,446,072 (262) Germany 3,222,888 (258) Argentina 2,769,552 (291) Poland 2,718,493 (739)