Freedom disappears
June 30, 2021 (Wednesday) End of month, cloudy
- Toyota <7203> [ Closing price 9,740 yen ] and 11 other major companies will jointly begin using a next-generation high-speed communication quantum computer in a practical test.
IBM of the United States will soon operate a "commercial machine" in Japan to accumulate insights and cooperate toward practical industrial applications.
Toyota and Mitsubishi Chemical <4188> [ Closing price 926.5 yen ] are assuming use in developing new materials and other applications.
- The Ministry of Economy, Trade and Industry is adjusting to exclude the rebuilding of future nuclear power plants from the energy basic plan to be formulated toward this summer.
This makes it harder to chart a path toward a decarbonized society by 2050.
If all electricity is sourced from renewable energy by 2050, electricity costs could rise about fourfold. Large expenses are expected for building the transmission grid.
On the other hand, if renewable energy covers 50% and nuclear power 10%, costs could rise by about double, according to forecasts.
- China at a crossroads: the 100-year Communist Party era (Part 2) cannot stop its "wolf warrior" diplomacy—outward hardline stance and internal vigilance
For President Xi Jinping who wants a third term confirmed at the 2022 Autumn Party Congress, rising public discontent is seen as a sign that could undermine the regime.
Overly inflaming nationalism carries the risk of losing control.
How to deal with China at this turning point. The world faces a choice.
- The Foreign Ministers' Meeting of the Group of 20 (G20) nations opened on the 29th in Matera, southern Italy.
Discussing expanding vaccine aid to developing countries, climate change issues, and international cooperation for sustainable development.
- Regarding COVID-19 vaccines,
There is a spread of "heterologous vaccination" in Europe and elsewhere, where the first dose is from AstraZeneca (AZ) and the second from Pfizer or other vaccines, i.e., different types are used.
It is expected not only to avoid rare thrombotic side effects of AZ but also to boost immune responses and address vaccine supply shortages.
- To prevent unemployment due to the pandemic, the government’s subsidies to preserve employment are becoming clearly structured.
The May unemployment rate worsened to 3.0%, but it is still far lower than the 5% level seen after the 2008 Lehman Shock.
However, more than 2.1 million people are not currently working but are on leave.
Policy shifts toward workforce reallocation to growth sectors pose a challenge.
- Toshiba <6502> [ Closing price 4,765 yen ]
At the shareholders’ meeting on the 25th, the appointment of Naoyama Osamu (former chairman of Chugai Pharmaceutical) and others was rejected; soon they will begin appointing additional directors.
An extraordinary shareholders’ meeting will be held to obtain shareholder approval or disapproval.
- It has been one year since the Hong Kong National Security Law, which restricts political activity and freedom of speech, was enacted in Hong Kong.
Police authorities have already arrested more than 100 people under the law for subverting the government or colluding with foreign forces to harm national security.
Prominent activists have been incarcerated one after another, erasing freedom from society.
- A report by the British think tank, the International Institute for Strategic Studies (IISS), on cyber capabilities ranks Japan in the lowest tier, "Group 3 (lowest)."
Group 2 is below the UK, China, and Russia. It is pointed out that information gathering and offensive capabilities are weaker due to constitutional constraints.
- Using the Antitrust Law (Unfair Competition Prevention Law) to curb monopoly by large U.S. IT companies faces difficult hurdles.
In Washington, D.C., the U.S. Federal Court in Washington on the 28th dismissed many of the plaintiffs’ claims in the FTC’s lawsuit against Facebook.
The limitations of current law are becoming apparent, potentially accelerating discussion on legal reforms.
- On the 29th, the Ministry of Internal Affairs and Communications announced that about 15.7 million people switched to cheaper mobile plans offered this spring by major carriers.
Household total monthly burden is reduced by about 430 billion yen annually, equivalent to about 2,200 yen per month on average.
This accounts for about 10% of all mobile contracts.
- Overseas companies’ listings on the Tokyo Stock Exchange rise in likelihood.
On the 29th, for overseas equities to be treated as domestic, an overseas company listed on the Tokyo Stock Exchange’s market first; more than 30 overseas entities are considering it.
The United States is far away, and Tokyo Stock Exchange emerges as a practical option for companies wishing to avoid the politically unstable Hong Kong.
On the 29th, Omnico Plus System Limited <7699> [ Closing price 1,440 yen, IPO price 950 yen ] listed on the Tokyo Stock Exchange Mothers market.
The listing of overseas firms on JDR is the second example since Tech Point <6697> [ Closing price 2,010 yen ] in 2017. It will be the first for an Asian company.
- SOMPOHD <8630> [ Closing price 4,125 yen ] on the 29th,
A capital and business alliance with Wejo (a UK startup that collects vehicle data with investment from General Motors (GM) in the U.S., etc.
SOMPOHD will analyze the driving data it collects in the Japanese market going forward and develop services related to connected cars.
- Suruga Bank <8358> [ Closing price 338 yen ] clouding anew.
Following the dissolution of the partnership with electronics retailer Nojima <7419> [ Closing price 2,778 yen ],
At the general meeting of shareholders on the 29th, the "victims’ defense group" attended, and the loan fraud involving investments in rental apartments faced debate and confusion.
By August, a negotiating team will be formed to push Suruga Bank to resolve the issues.
- Real estate investment trusts (REITs) focusing on infrastructure begin in China.
Nine companies listed simultaneously, with a market capitalization of 32 billion yuan (about 5.55 trillion yen).
China seeks to infrastructure investment through private money.
- Global REIT prices rise.
Rising real estate prices and rents make them attractive as inflation-resistant assets.
Compared to stocks, late entry into the market was pronounced.
Global REIT market capitalization reached an all-time high of about $2.1745 trillion (about 240 trillion yen) on June 10, and remained high at about $2.1337 trillion as of the 25th.
Year-on-year increase in market capitalization as of the end of 2020: U.S. 17%, U.K. 14%, Japan 13%.
- The number of new coronavirus infections worldwide (new deaths) as of 4:00 p.m. on June 29, according to Johns Hopkins University data: World total 181.43 million (6,675 deaths)
U.S. 33,640,572 (148) India 30,316,897 (907) Brazil 18,448,402 (618) France 5,832,490 (44) Turkey 5,414,310 (58) Russia 5,408,744 (601)
U.K. 4,771,367 (3) Argentina 4,423,636 (574) Italy 4,258,456 (28) Colombia 4,187,194 (648) Spain 3,792,642 (10) Germany 3,734,830 (60)
From here, appear in [Corona Morning Premium]
http://www.koronoasa.com/info/
Sat 7/3 [Corona Morning Seminar] July Special Edition The God of Good Fortune of the Market will be in attendance (Tokyo, Yakushi-bori)
https://www.directform.jp/form/f.do?id=9960c1d1dfddab9
Thu 7/22 [Corona Morning Seminar] Special Lecture Web-Only Talk by Hideaki Sakurai (Download)
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