Okinawa is a prolongation as well
June 17, 2021 (Thursday) light rain then sunny; Mercury retrograde (May 30 – June 23)
• On the 17th, the government will consult experts on lifting the state of emergency affecting nine prefectures excluding Okinawa, where the deadline is approaching, with 20-or-so sections involved.
Regarding the serving of alcohol at restaurants, the advisory proposal is to permit it until 7:00 PM in areas under heightened measures such as Tokyo.
We will continue to request shortening business hours to 8:00 PM.
The shift from urgent measures in Tokyo and other areas to fully lifting infection-prevention measures is aimed at ensuring a safe and secure Tokyo Olympics and Paralympics starting in July.
• As of the 16th, 11.98 million people were eligible for workplace vaccination based on national applications.
This corresponds to up to 300,000 doses per day, significantly accelerating the national vaccination pace.
Businesses are rushing to vaccinate, hoping to curb the spread of infection and return to normal economic activity as soon as possible.
• G7 Restart from the brink (Part 4): China unyielding in encirclement
In 2021, the year of the Chinese Communist Party’s 100th anniversary, the world faced a new crossroads.
At this summit, the G7 aligned their stance with China’s human rights and Taiwan issues being criticized.
Viewed as a new threat to democracy, they built an encirclement strategy.
The Chinese Communist Party is pursuing “preserving space for survival” at all costs.
• International Energy Agency (IEA) outlines a roadmap to net-zero greenhouse gas emissions by 2050.
Key pillars include expanding renewable energy and reducing fossil fuel consumption.
Oil production will first halt in high-cost regions, increasing the Middle East’s share, a looming reality.
While pursuing net-zero emissions, challenges such as new investments and technology development remain, and energy security risks must also be overcome.
• China's National Bureau of Statistics reported on the 16th that retail sales in May rose 12% year over year.
A rebound from last year’s COVID slump is strong, but dining and home electronics sales remain lackluster.
An increasing number of “couch potatoes”—young people with weak consumer appetite—also contribute to concerns; the Chinese Communist Party is growing wary.
• U.S. President Biden and Russia’s President Putin held their first talks in Geneva on the afternoon of the 16th (evening in Japan).
They sought progress on nuclear disarmament and climate change, among other topics.
U.S.-Russia relations are at their worst since the Cold War; the results of the talks will significantly affect international dynamics.
• After lifting the government’s state of emergency and “Priority Measures to Prevent the Spread,” a plan proposes temporary limits on large events to cap attendance at 10,000 people.
The period would be about one month after the lifting, with a standard of “capacity within 50% and up to 10,000 people.”
If, after one month, infection conditions have not worsened, attendance could rise to “50% of capacity or 5,000 people, whichever is larger.”
• The Tokyo Olympics and Paralympics Organizing Committee has started final arrangements to hold the Tokyo Games with spectators.
For each venue, authorities will discuss a cap of either 50% of capacity or 10,000 people, whichever is smaller.
• As momentum grows in the U.S. to crack down on corporate monopolies and oligopolies.
On the 15th, President Biden nominated Lina Khan, 32, an associate professor at Columbia University, to head the Federal Trade Commission (FTC), who has advocated stricter regulation.
This could mark a historic shift in competition policy.
Under Khan’s FTC, the approach of letting large tech companies ride on consumer protection claims may be curtailed, making antitrust interventions more likely.
• Regarding the vaccination rollout for seniors aged 65 and over by local governments, all municipalities expect to complete by the end of July.
• Publicly listed banks resume share buybacks.
For the fiscal year ending March 2021, plans to authorize buybacks total about 100 billion yen.
This marks a move to leave the cautious stance adopted during the COVID-19 crisis and take steps forward.
However, regional banks with weak financial bases cannot move quickly; capital inspections reveal a clear dichotomy in the banking sector.
• SoftBank Group (SBG) [Closing 8,009 yen] is increasing borrowings from foreign financial institutions.
By the end of March 2021, foreign banks held positions ranking 2nd to 4th, following the leader Mizuho Bank (8,500億円 in assets).
Foreign banks strong in securities-based activities demonstrated their presence through loans secured by SBG’s holdings in Alibaba Group and other stocks.
Domestic players show a mixed picture.
2nd: JPMorgan Chase (8,293億円), 3rd: BNP Paribas (France) with Macron, 4th: Goldman Sachs (U.S.) (5,932億円).
Mizuho Bank maintains its lead, but the amount is down 7%. SMBC بين 4th-5th place with 4,770億円 (down 28%).
Mitsubishi UFJ Bank falls to 8th with 2,777億円 (down 35%).
• In emerging Asian markets, concerns about capital flight are rising again.
Besides the COVID-driven slow pace of economic recovery, markets are beginning to price in future rate hikes in advanced economies, widening interest rate differentials with emerging markets.
• Bank of America (BofA) released on the 15th a June Institutional Investor Survey: 72% believe current inflation is temporary.
The share of investors expecting continued growth and rising prices has peaked, suggesting a cooling of expectations for rapid post-COVID economic rebound.
• Korean game company Krafton will IPO on the Korea Exchange in July.
Raising about 500 billion yen, with a market capitalization exceeding 2 trillion yen.
Krafton is expanding beyond domestic confines, aiming for global expansion to attract large capital inflows.
• Labor shortages are severe in the United States.
Restaurants and retailers struggle to hire even when they post vacancies.
Three barriers—generous unemployment benefits, etc.—continue to hinder workers' reintegration into the workforce.
•日本電産 Nikon? [6594] Closing 12,505 yen; expanding hiring in China where EV demand is surging.
In Suzhou, Jiangsu Province, the drive motor development center will increase staff to about 250 by March 2022 (about 50% more than current).
In Dalian, Liaoning Province, a new motor factory began full operation in June, aiming for about 5,000 employees by 2025 (40% growth including existing plants).
Pursuing rapid management to win customers.
Strengthening manufacturing and development in China will be a milestone in aiming for the world’s top market share.
• As of 4:00 PM on June 16 (local times 10636 deaths worldwide) The Johns Hopkins University tally: Worldwide total 176.64 million cases (106,360 deaths)
United States 33,486,093 (340) India 29,633,105 (2,542) Brazil 17,533,221 (2,468) France 5,806,255 (76) Turkey 5,342,028 (84) Russia 8,176,051 (374)
United Kingdom 4,596,994 (10) Italy 4,247,032 (63) Argentina 4,172,742 (586) Colombia 3,802,052 (599) Spain 3,745,199 (62) Germany 3,725,328 (135)
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