Daily Briefing · 2026-09-27

Concerns are mounting over risks to crude oil supplies passing through the Strait of Hormuz, with fears of rising oil prices and adverse effects on the global economy. At the US-China summit, agreement was reached on establishing a framework for AI dialogue, but there was no mention of the Taiwan issue, leaving the concrete impact on economic relations unclear. The content of this summit was conveyed to Japan through a phone call between Prime Minister Takaichi and President Trump, and attention is focused on the impact on Japan's diplomatic and economic policies. Former Foreign Minister Iwaya of the Liberal Democratic Party visited Beijing together with representatives of Japanese companies, seeking to improve Japan-China relations through economic exchange. The Russian Foreign Minister criticized European military support for Ukraine, in what is seen as a move aimed at easing sanctions and gaining an advantage in negotiations, with attention also being paid to the impact on defense-related companies. Domestically, the rush of October price increases is in full swing, with food, daily necessities, energy and other essentials being raised in price all at once, and household spending burdens are expected to increase significantly. Meanwhile, rice prices are falling, and although discount campaigns are following one after another in the food service industry, declining income among agricultural workers is having a negative impact on the economy. In the railway sector, difficulties in increasing train frequency continue on lines with a congestion rate of 177%, putting pressure on the profitability of the transport industry. Niigata's Toki Air has again postponed the timing of resuming operations, and it is expected that loan repayments to Chiba Prefecture will not proceed as scheduled. In Bangkok, the capital of Thailand, approximately 4200 people have evacuated due to flooding caused by heavy rain, with infrastructure damage, a slowdown in economic activity, and increased recovery costs expected. A suicide bombing occurred in northwestern Pakistan, killing 12 people, raising concerns about worsening security conditions leading to a deteriorating investment environment and slowing economic activity. In Paris, an estimated 800,000 people gathered for the Pope's Mass, and while tourism benefits are expected, concerns have also been raised about the cost burden of security and traffic restrictions. In the consumer sector, the market for alternative coffee, developed in anticipation of a coffee supply crisis in 2050, is growing rapidly, intensifying competition between existing farmers and emerging companies. Major pachinko operator Dynam has seen improved sales at existing stores, with the expansion of its crane game business contributing to improved profitability. Japan-Korea cultural exchange events are boosting tourism demand and consumer activity, bringing positive effects to the food service and tourism industries.