Nikkei Average rebound starts, “do not eliminate all means” due to exchange rate fluctuations that have gone too far, says Kanda Treasurer

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Sharing Perception with the U.S. “Without Eliminating Any Means” on Exchange Rate Fluctuations - Kanda Treasurer
Treasurer Kanda Masato of the Ministry of Finance told reporters within the Ministry on the morning of the 20th that “we will take appropriate measures against fluctuations that have gone too far” with regard to foreign exchange rates. Mr. Kanda emphasized that “we are communicating extremely closely with the US currency authorities, and we share the perception that excessive fluctuations are unfavorable.”

Hedging against the appreciation of the yen is recommended, in preparation for a slowdown in the US economy - BoFA
Bank of America (BoFA) strategists anticipate that the US economy will converge into the world economy and slow down, and recommend dollar/yen option transactions that anticipate that they will prepare for increased exchange rate volatility and the appreciation of the yen.

If the Bank of Japan cancels negative interest rates, an expanded view of management centered on yen bonds - Mr. Suzuki of Fukoku Life
Executive Officer Suzuki Yoshiyuki, Executive Officer and Financial Planning Department Manager of Fukoku Life Insurance, stated that if the Bank of Japan cancels the negative interest rate policy, a further rise in ultra-long-term interest rates can be expected, so there is a possibility that management centered on yen bonds will expand.

Market speculation surrounding the Bank of Japan shifts from yield curves to negative interest rate policies
Investors' interest in the Bank of Japan's monetary policy is shifting from the already flexible yield curve control (long and short interest rate operation, YCC) to the possibility that negative interest rates will end. The end of negative policy interest rates, which will be the last in the world, means a major transformation for Japan, which has continued to stimulate the economy with large-scale monetary easing measures for over 10 years. The exchange rate will increase in the future, and stock prices in sectors other than banks will fall in the stock market, and there is a possibility that the flow of funds entering and leaving Japan will also change.

Microsoft discusses Nintendo acquisitions in the past and finds out in court documents
paddy $Microsoft (MSFT.US)$Will be in 2020 $Nintendo (7974.JP)$It became clear on the 19th that they were temporarily discussing the acquisition within the company. Rice by Microsoft $Activision Blizzard (ATVI.US)$There is a possibility that evidence materials from the US Federal District Court used to deliberate on the propriety of the acquisition were mistakenly disclosed on the internet while containing confidential information.

The trade deficit continued for 2 consecutive months, and the 93.4 billion yen deficit narrowed 66% in August
According to the August trade statistics bulletin announced by the Ministry of Finance on the 20th, the trade balance after deducting the import value from the export value was in deficit of 93.4 billion yen. The deficit has been in the red for 2 consecutive months, but the deficit narrowed by 66.7% compared to the same month of the previous year.

Demand for power semiconductors, booming investment generation AI Renesas and Rohm increase production one after another
Semiconductor companies actively invest in power semiconductors that control electric power. $Renesas Electronics (6723.JP)$In addition to introducing high-efficiency products using silicon carbide (SiC) to the market in 2025, $Rohm (6963.JP)$Ya $Mitsubishi Electric (6503.JP)$Production also increased one after another. In addition to electric vehicles (EVs), demand for data centers is rapidly increasing with the advent of generative AI (artificial intelligence).

Investment capital inflows into shipping stocks continue, and the Baltic Shipping Index has recovered to a level for the first time in 4 months◇
$Nippon Yusen Kabushiki Kaisha (9101.JP)$、 $Mitsui O.S.K. Lines (9104.JP)$、 $Kawasaki Kisen Kaisha (9107.JP)$Investment funds are steadily flowing in to major shipping companies, etc. The high price of Yusen since listing has been updated every day. The day before, it was bought at a much higher price across the board, and “shipping” showed an increase of over 4% in terms of gain/fall rate by industry, making it by far the top of the 33 industries.

Sony G to unify customer IDs for sales promotion and service improvements by fiscal year 26
$Sony Group (6758.JP)$Customer IDs will be unified throughout the company by 2026. Change the IDs that were different for each business company or product group such as games and electronics into one. Sales promotion measures are implemented according to actual usage conditions of individual customers, and useful for improving services. It will lead to the promotion of collaboration beyond business from customer information of over 100 million people around the world and the deepening of profit opportunities.

Global debt surges to record high of 307 trillion dollars - ratio to GDP also rises
According to the International Finance Association (IIF), which represents the world's major banks and financial institutions, global debt increased by 10 trillion dollars (about 1470 trillion yen) in the first half of 2023. The ratio to the global economy, which had been declining for nearly 2 years due to high inflation, has risen again. In a report released on the 19th, the IIF announced that debt had increased by 100 trillion dollars over the past 10 years, reaching a record high of 307 trillion dollars. It is said that the United States, Japan, the United Kingdom, and France led the increase.

Standard land prices recovered, spread to rural areas and rose by over 40% nationwide
The Ministry of Land, Infrastructure, Transport and Tourism announced the 2023 base land price (today's statement on page 2 overall) on the 19th. The rate of increase in land for all uses has risen to 44.7% nationwide, doubling from 20 when it sank due to the novel coronavirus disaster. A wave of land price recovery is spreading to rural areas, with domestic investment, visitors to Japan, and redevelopment as a tailwind.

Prime Minister Kishida says priority item Liberal Democratic People Seko “needs 20 trillion yen” on the 25th due to economic measures
Prime Minister Fumio Kishida has a policy of showing priority items to relevant cabinet ministers on the 25th of the week for economic measures to be compiled in October. In response to this, the government and ruling party will begin full-scale consideration of specific countermeasures. The focus is on scale in the policy of preparing a 2023 supplementary budget plan to support financial resources. Spending pressure is intensifying, as voices have been raised from the Liberal Democratic Party that it should be “on a scale of tens of trillions.”

Japan, the US, and Europe strengthen bank supervision in '24, focus on liquidity and interest rate risks
Based on the turmoil between the US and European banks in March, which caused cash flow bankruptcy due to rising interest rates, financial authorities around the world have taken the direction of strengthening supervision. The Basel Banking Supervisory Committee, which determines international rules for banks, will compile a report by the end of the year, conduct additional verification work, and show concrete measures for new supervision in 2024.

“White Diamond” scramble Toyota Tsusho takes the lead in EV material procurement network
Lithium is widely used in electric vehicle (EV) and smartphone batteries, and is also called a “white diamond” because of its color and rarity. $Toyota Tsusho (8015.JP)$The right to obtain lithium at Olaros Salt Lake was acquired in 2012. The current production capacity is 17,500 tons per year, but we plan to raise it to 42,500 tons by the end of 23. In light of current global demand, it is said that approximately 6% can be covered.