Formal restructuring of domestic airlines
May 14, 2021 (Friday) Clear weather Mini SQ
- The governments of Japan and the United States will intensify pressure, working together to push China to actively reduce greenhouse gas emissions to levels comparable with developed countries.
First, within the framework of international treaties, aim to rectify the current situation where China is treated as a developing country and given favorable terms.
Beyond security and human rights issues, decarbonization is also becoming a new axis of confrontation with China.
- Amazon.com in the United States is considering building new power plants to procure renewable energy for its data centers in Japan.
They are consulting with trading houses and power companies, and if realized, it would become the company’s first dedicated domestic power plant.
- Hokkaido-based airline AIRDO (Air Do, Sapporo) and Kyushu-based Solaseed Air (Miyazaki) are considering a corporate merger under a joint holding company structure.
Aiming for realization in autumn 2022. This would be the first major reorganization of domestic airlines sparked by the pandemic.
- Samsung Electronics of Korea announced on the 13th that it will construct a new semiconductor manufacturing building near Seoul.
It will begin operation in the second half of 2022, handling leading-edge foundry production and memory production.
The projected investment exceeds 2 trillion yen.
- In the Tokyo stock market, the Nikkei Stock Average fell for the third straight day, closing down 699.50 yen (2.49%) at 27,448.01 yen.
There were moments when it briefly dropped beyond 700 yen. Over the three days since the 11th, the decline totaled 2,070 yen.
- The government will expand the area covered by the “priority measures to prevent the spread” equivalent to a state of emergency to Gunma, Ishikawa, Okayama, Hiroshima, and Kumamoto.
They communicated to ruling and opposition party leaders that the period would be about one month from May 16 to June 13.
- Inflation accelerating in the United States is unsettling markets.
Along with the rapid rebound in demand as the economy reopens, shortages of labor and raw materials are driving prices up rapidly.
In the market, high inflation is expected to persist, and long-term U.S. interest rates may rise as bets on an unwinding of monetary easing grow.
Major global stock indexes are broadly down, and investor sentiment is cooling.
- The Ministry of Economy, Trade and Industry aims to raise the share of decarbonized power sources that do not emit CO2 during generation to about 60% by fiscal 2030.
Currently 44%, with nuclear power maintaining about 20% and renewables rising to the upper 30% range.
- The Ministry of Defense, Tokyo Metropolis, and Osaka Prefecture summarized the outline of large-scale vaccination sites for the new coronavirus.
Targeting residents aged 65 and older in seven prefectures: Tokyo, Chiba, Saitama, Kanagawa, Osaka, Kyoto, and Hyogo.
Vaccination appointments will be made not by phone, but via the internet and the LINE app.
Residents of Tokyo wards and Osaka City will be able to start booking from the 17th.
- The government will, by this autumn, compile a new cybersecurity strategy that emphasizes awareness of cyberattack risks.
It will position cyberattacks as a national risk and call for protecting critical infrastructure.
Prepare for a scenario where digitalization of society accelerates the impact of damages due to the coronavirus.
- Measures against the spread of the novel coronavirus are directly impacting retailers and dining-out businesses, significantly affecting due to the economic outlook.
The Cabinet Office reported on the 13th that in April’s Economy Watchers Survey (the “fortune-telling of the local economy”), the current conditions DI fell 9.98 points from the previous month to 39.1.
The DI deteriorated for the first time in three months, with the magnitude of decline the largest since March 2020. The survey period was from April 25 to the end of the month, surveying 2,000 people nationwide.
Manufacturing declined by 3.8 points to 47.6, showing a smaller drop compared to the overall average.
The forward-looking index fell by 8.1 points to 41.7, marking two consecutive months of decline.
- The Ministry of Finance reported on the 13th that the current account surplus for fiscal 2020 was 18.2038 trillion yen, down 3.8% from fiscal 2019.
The surplus being down dramatically is different from the situation during the Lehman Brothers shock when it dropped by 60%.
On the other hand, overseas, the United States is likely to expand its current account deficit further due to active fiscal spending.
- U.S. financial institutions are starting to move toward office reintegration for all employees.
Goldman Sachs and Blackstone plan to resume office work by June.
In Europe, there are moves to allow a combination of remote work with in-office work.
- SBI Holdings <8473> [Close 2,763 yen] Tsukuba Bank <8338> [Close 172 yen] Capital and business alliance.
Fukui Bank (Fukui City) announced on the 14th that it will become a subsidiary of Fukui Bank <8362> [Close 1,649 yen].
Aomori Bank <8342> [Close 2,243 yen] would merge with Michinoku Bank <8350> [Close 1,059 yen], with Tsukuba Bank and Fukui Bank as banks receiving public funds.
They were compelled to reorganize to strengthen corporate support that would be difficult to repay domestically after the pandemic.
- U.S.-originated stock market turmoil spreads to the world.
Rising price pressures increase, and overvalued U.S. tech stocks decline.
This triggers selling in Asia and Europe, particularly in high-tech shares.
- The U.S. Federal Reserve (FRB) has not changed its view that the rise in prices is temporary.
Sticking to the path due to slow job recovery, they reject premature calls to tighten monetary policy.
Widening gap between market expectations and the Fed’s view could intensify inflation concerns.
- Bitcoin, a representative cryptocurrency, plunged on the 13th, briefly below 46,000 dollars.
The daily drop exceeded 10,000 dollars, and the decline was close to 20%.
Tesla CEO Elon Musk’s decision to halt Bitcoin payments citing environmental concerns was a factor in the mood.
- The Chinese government begins regulating vehicle travel data.
Strictly restricting the export of road traffic data and vehicle location information abroad.
Also見 aimed at restraining U.S. EV giant Tesla.
- Alibaba Group on the 13th reported a net loss of 5.4 billion yuan (about 91 billion yen) for January–March 2021 (net loss vs. a profit in the same period last year).
The quarterly net loss is the first since the company’s listing in 2014. The 18.2280 billion yuan antitrust fine imposed by authorities weighs heavily.
- In Shenzhen, Guangdong Province, major city officials including the mayor were replaced in a mass turnover.
Behind the mass replacement, concerns about handling real estate issues are also cited.
In big cities like Shenzhen, soaring real estate prices worry the government as potential obstacles to industrial innovation and the financial system.
- As of 4 p.m. on May 13, the number of COVID-19 cases and deaths worldwide, according to Johns Hopkins University: 1,604.61 million people (13,770 deaths).
United States 32,814,943 (837) | India 23,703,665 (4,120) | Brazil 15,359,397 (2,494) | France 5,882,882 (184) | Turkey 5,072,462 (232) | Russia 4,894,044 (347)
United Kingdom 4,457,742 (11) | Italy 4,131,078 (262) | Spain 3,592,751 (108) | Germany 3,575,768 (276) | Argentina 3,215,572 (496) | Colombia 3,048,719 (490)
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