"Meme stock" surges
June 4, 2021 (Friday) Rain Mercury retrograde (May 30 – June 23)
- Countries and regions around the world are rushing to expand measures against declining birthrates and child-rearing support.
In Japan, on the 3rd, the House of Representatives passed and enacted an amendment to the Childcare and Care Leave Act to make it easier for men to take parental leave.
In the United States, the Biden administration unveiled measures totaling $1.8 trillion over ten years.
The global decline in birth numbers accelerated by the COVID-19 crisis is the background.
Measures to alleviate financial anxiety surrounding childbirth are crucial.
- Finance Ministry drafted a plan to virtually lift the ban on information sharing within banking and securities groups for client companies, and presented it to financial institutions.
Banking groups would be able to provide not only loans but also M&A advisory, new stock and corporate bond issuance, and other securities services.
Companies would find it easier to receive comprehensive financial services from a single financial institution.
Details of the system would be finalized in fiscal 2021, with a cabinet office ordinance to be revised and applied.
- Ant Group, under Alibaba Group, will separate its consumer finance business.
Chinese financial regulators announced on the 3rd that they approved the operation of a consumer finance subsidiary.
Regulators have been wary of Ant’s independent financial services and had pressured for full regulatory acceptance and necessary licensing.
- Zensho Holdings <7550> [Closing price 2,724 yen] Base Up (bear) to be implemented annually through 2030.
Labor unions and management agreed. The annual wage rise, including regular raises, would be about 2%.
As part of a mid-term plan to secure top talent, an unusually long-term agreement is being pursued.
Zen-Sh0’s average salary in fiscal year 2019 was 6.18 million yen, Yoshinoya Holdings <9861> [Closing price 2025 yen] 7.06 million yen, Toridoll Holdings <3397> [Closing price 1,740 yen] 7.33 million yen, all lower.
- COVID-19 vaccine distribution at workplaces and universities begins on the 21st.
Initially, facilities with 1,000 or more employees that have an on-site occupational physician will be targeted.
Municipalities, which administer vaccination, will contract with local authorities to receive vaccine supplies.
Costs will be borne entirely by the government.
Small and medium-sized enterprises will be encouraged to establish joint vaccination sites through chambers of commerce and industry associations.
- CDC states that a single dose of COVID-19 vaccine reduces infection risk by about 80%.
However, for variants, one dose is less effective. It is essential to proceed with the second dose reliably.
- On the 3rd, the government presented plans for decarbonization in homes and buildings.
When the government or local authorities build public buildings, solar power installations should be implemented in principle to increase renewable energy adoption.
The installation of solar panels on new homes was not mandated, but energy-saving standards such as better insulation would be required.
For large buildings like office towers, consideration is being given to raising energy efficiency standards to promote decarbonization.
- Ministry of Economy, Trade and Industry will draft decarbonization roadmaps for high-emission sectors.
Target sectors are electricity, gas, steel, chemicals, cement, oil, and pulp and paper, with a plan to be formulated within fiscal 2021.
Financing for companies following the roadmaps will be supported.
- A new strategy for the digital industry revealed by METI.
Semiconductors, data centers, and cloud services are positioned as the “digital industrial backbone,” and it states that private sector support will be expanded and treated as a national project.
From the perspective of national security, a plan to jointly build semiconductor factories with overseas foundry manufacturers to increase domestic semiconductor production capacity.
Also mentions upgrading existing plants.
- On Hong Kong's stock market, influence of mainland Chinese investors is rising.
Net buying in the Stock Connect framework for the year-to-date has already reached 70% of total for 2020.
Tech stocks, which attract individual investors, are influenced by funds flowing from the "north money" from the mainland.
From the north, Shanghai and Beijing investors flood in like a flood, shaking the market; the money is called “north money.”
Behind this is a surge of investment funds that can invest in Hong Kong stocks.
As China–US tensions and Western concerns over Xinjiang cotton rise, Chinese companies may benefit from “buying support.”
- In the United States, meme stocks—stocks popular among individual investors driven by social media—have surged.
On the 2nd, AMC Entertainment Holdings surged about 95% from the previous day. As of the 2nd, AMC stock was about five times higher than before the spike on 5/21.
- Nvidia in the U.S. closed at $671.13 on the 2nd, up 3% from the previous day, an intraday high.
The management’s confidence about Arm’s acquisition by a British AI giant was well-received as the UK competition regulator investigates the deal.
- Brazilian real rose.
In the foreign exchange market on the 3rd, at one point 1 real traded around the mid- to high-20s yen, the highest in about a year since mid-June 2020.
With recovery from the COVID-19 crisis and rising resource prices, Brazil benefits from higher real values as it exports oil and iron ore.
- Huawei, China’s largest telecom equipment maker, is moving to build its own OS ecosystem.
Starting with smartphones on the 2nd, by the end of 2021 aims to have 300 million devices using its OS, including other companies’ products.
- The Chinese National Bureau of Statistics revised total population to exceed 1.4 billion in 2017.
Measurement was advanced by two years. Xi Jinping’s leadership has intensified its sense of crisis about aging and low birthrates.
- The European Union will begin implementing a system allowing digital IDs for use across the region.
Protecting user privacy while enabling government and private services to be used digitally, increasing convenience.
Cross-border access to uniform services within the region is expected to deepen European integration.
- World COVID-19 case numbers (new deaths) as of 4:00 PM on 6/3, summarized by Johns Hopkins University: Global total 171.68 million (126,396 deaths)
United States 33,307,424 (620) India 28,441,986 (2,887) Brazil 16,720,081 (2,507)
United Kingdom 4,510,597 (12) Italy 4,223,200 (62) Argentina 3,852,156 (587) Germany 3,698,004 (164) Spain 3,687,762 (66) Colombia 3,459,422 (511)
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