Nikkei Average falls to start with Bank of Japan Deputy Governor revises YCC at securities conference to “enhance sustainability of mitigation”

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Summary of Prime Minister Fumio Kishida's remarks to the press corps on the 25th
Check out the summary of what Prime Minister Fumio Kishida told the press corps.

Bank of Japan Governor “Cooperate with the government to keep a close eye on market trends and the impact on economic prices”
Bank of Japan Governor Ueda Kazuo attended a meeting co-hosted by the four Osaka Economic Groups held in Osaka on the 25th. In a meeting with the attendees, it was stated that “it is important for exchange rates to move stably in line with economic and financial fundamentals (basic conditions).” Furthermore, he said, “While cooperating closely with the government, I would like to keep a close eye on exchange market trends and their impact on the economy and prices.”

Bank of Japan Deputy Governor Says YCC Amendment “Enhances Sustainability of Mitigation” at the Securities Conference
Bank of Japan Vice Governor Uchida Shinichi said hello at the National Securities Conference held in Tokyo on the 25th. Regarding the July revision of the long and short interest rate operation (yield curve control = YCC), it was stated that “it aims to increase the sustainability of monetary easing.” On top of that, he emphasized maintaining the current monetary easing policy, saying “it is necessary to continue easing tenaciously.”

The total amount of “COVID-19 savings” nearing its end is 59 trillion yen, expected to support consumption
The accumulation of “COVID-19 savings” accumulated due to behavioral restrictions due to the novel coronavirus disaster is coming to an end. If the household savings rate falls below the level before the spread of the infection in the April-6 fiscal year, we will enter a phase of collapse. While the total amount of money of 59 trillion yen is expected to have the effect of stimulating consumption, there is also a possibility that it will stagnate due to life defense due to high prices.

Nissan is not considering additional investment in the English plant and Europe will turn brand new cars into EVs
$Nissan Motor(7201.JP)$President and Chief Executive Officer (CEO) Makoto Uchida revealed on the 25th that they are not considering additional investment at the Sunderland plant in northern England. The new electrification target of turning all new European car sales into electric vehicles (EVs) in 2030 showed recognition that it can be achieved with conventional investment plans.

Murata Manufacturing - 3 days of continuous growth, tens of billion yen EV expectations for Thai plant, active investment in smartphone recovery
$Murata Manufacturing(6981.JP)$continued to increase for 3 days. The morning edition of the Nihon Keizai Shimbun dated 26th reported that the company has completed a new factory for electronic components used in smartphones etc. in Thailand. It will be in operation from November, and tens of billions of yen will be invested to make it fully operational by 2028. Profit is expected to decrease by 30% in the 24.3 fiscal year due to the slump in the smartphone market, but it seems that smartphone recovery and electric vehicle (EV) growth are expected in the medium to long term. It is planned to increase the competitiveness of main products, which hold a 40% global market share through “contrarian” investments.

S&P downgrades Toshiba to “double B negative”
The US rating company S&P Global Ratings is on the 25th $東芝(6502.JP)$It was announced that the long-term rating of was lowered by 2 levels from “double B plus” to “double B negative.” It was determined that finance would deteriorate due to the establishment of a TOB (public tender offer) for Toshiba by Japan Industrial Partners (JIP) and others.

Mitsui & Co., Ltd. reverses aviation fuel decarbonization battle in Europe and joins joint venture to mass produce edible oil raw materials in '26
$Mitsui(8031.JP)$It was announced on the 25th that mass production of regenerative aviation fuel (SAF) will begin. A joint venture was established with the energy company Gulp (Portugal), and Mitsui & Co., Ltd. will invest 25% of the shares. The investment amount is 100 million euros (approximately 16 billion yen). A factory will be set up in Portugal, mass production will begin in 2026, and a system capable of producing 250,000 kiloliters per year will be established.

Hedge funds reduce leverage on US stocks, the fastest since the market price plummeted in 2020
While Wall Street was hit by cross-asset sales last week, hedge funds increased bets to anticipate stock depreciation. One of the indicators showing market positioning was the most drastic decline since the market price plummeted in March 2020