BOJ unrealized gains 15 trillion 4444 billion yen
May 28, 2021 (Fri) Clear weather Mercury retrograde (5/30–6/23)
・The government will consult experts on extending the state of emergency declared for Tokyo and eight other prefectures until June 20.
Continue to implement current measures to prevent infection.
・Pressure from the stock market and others to decarbonize is increasing on oil majors.
At Exxon Mobil's shareholder meeting on the 26th, two environmental activists recommended by “shareholders that speak up” were appointed to the board.
Decarbonization money is also gaining even more influence.
87 companies worldwide, including BlackRock, have expressed that their asset management firms will aim for net-zero greenhouse gas emissions by 2050 in the companies they invest in.
Total assets under management have grown to $37 trillion (¥4000 trillion), four times since last December, accounting for about 40% of global investment funds.
For companies, decarbonization efforts are an urgent task.
・Sony Group <6758> [Close: 10,800 yen] In Malaysia, a major base of the TV business, significantly automate the factory.
Aiming to strengthen the competitiveness of a business structure that integrates product design and production, with a target to reduce production costs by 70% compared to 2023 fiscal year.
Strengthen the business foundation through production innovation.
・There is persistent pessimism about hosting the Tokyo Olympics and Paralympics domestically and internationally.
Amid such views, attention is on the “Host City Agreement” concluded between the International Olympic Committee (IOC) and Japan.
The agreement outlines rights and procedures regarding possible cancellation, with the contents overwhelmingly favorable to the IOC.
Experts point out that if Japan requests a cancellation, the IOC could demand substantial compensation.
Only IOC has the authority to cancel; Japan does not have that power.
・Prime Minister Yoshihide Suga on the 27th held a videoconference with EU President Ursula von der Leyen and European Commission President Jean-Claude Juncker? (Note: likely Ursula von der Leyen and Charles Michel)
He stated he would “strongly oppose” attempts by China to alter the status quo in the East and South China Seas.
The EU confirmed that it will be involved in China policy.
・Google CEO Sundar Pichai said on the 26th that the company will begin a service to lease quantum computers to external companies and organizations within five years.
To address privacy concerns of consumers, the company will use AI and other tools to reduce the collection of personal data while maintaining services.
・The government will broaden the target reservations for large-scale COVID-19 vaccination centers operated by the Self-Defense Forces from around 11:00 a.m. on the 28th.
Because there are vacancies for the Tokyo venue, from 31 to 6/6, not only Tokyo residents but also residents aged 65 and over in Saitama, Chiba, and Kanagawa prefectures will be able to reserve earlier.
・NTT East and NT T West <9432> [Close: 2,925.0 yen] to cut the rental charges for fiber optic lines lent to major mobile carriers by 40–50% by summer 2021.
Rooftops of buildings with growing need for base station installations will be targeted due to advancements in high-speed communication standard “5G.”
KDDI <9433> [Close: 3,665.0 yen] SoftBank <9434> [Close: 1,408.5 yen]
Rakuten Mobile <4755> [Close: 1,249 yen] can achieve cost reductions, helping to restrain increases in consumer 5G plan rates.
・Ministry of Land, Infrastructure, Transport and Tourism will substantially revamp the aviation operation management system.
New communication technologies will enhance monitoring standards, enabling aircraft to fly more fuel-efficient routes and altitudes.
A new system will be introduced in March 2022 for air traffic control over Japan.
Combining with ongoing operations over the Pacific, fuel consumption for aircraft originating from and arriving in Japan will be reduced, promoting energy conservation.
・Bank of Japan <8301> [Close: 31,500 yen] On the 27th, for the fiscal year 2020 results,
the unrealized gains (valuation gains) from holding listed investment trusts (ETFs) minus book values stood at 15,444.4 billion yen as of the end of March 2021.
Rapid expansion to 50x the previous year, marking a new record for the first time in three years.
As of the end of March, ETFs held were valued at 51,509.3 billion yen, book value 3,606.46 billion yen.
・Valuation-based overpricing indicators are being watched with caution.
Results for January–March 2021 (including April–June) showed substantial profit increases in Japan, the US, and Europe, but stock market reaction remained subdued.
Because prices had risen ahead of actual economic recovery to a degree that raises concern of a disconnect, even with earnings recovery, valuations remain elevated.
・U.S. video game retailer GameStop’s stock, which drew attention earlier in January due to coordinated “short squeeze” by individual investors via social media, surged again.
As of the 26th, it was about 37% higher than the previous Friday, the highest in about two and a half months.
There is also a note that individuals are moving funds back into volatile stocks as cryptocurrency prices plummet.
・U.S. space tourism company Virgin Galactic Holdings, Inc. stock price surged.
After successful test flight of the spacecraft on the 22nd, the stock rose 28% from the previous trading day on the 24th, and closed at $27 on the 26th, a one-and-a-half month high.
Expectations for private-sector space travel are driving stock price gains.
・World and regional new coronavirus case numbers (deaths) as of 4:00 p.m. on May 27, compiled by Johns Hopkins University: World total 168.41 million (12,747 deaths)
U.S. 33,190,267 (1,009) India 27,369,093 (3,847) Brazil 16,274,695 (2,398) France 5,683,143 (145) Turkey 5,212,123 (166) Russia 4,968,421 (398)
United Kingdom 4,486,168 (9) Italy 4,201,827 (121) Germany 3,667,085 (267) Spain 3,657,866 (54) Argentina 3,622,135 (532) Colombia 3,294,101 (514)
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