Daily Briefing · 2026-10-03

The U.S. September jobs report came in significantly below market expectations. This has caused expectations for Fed rate hikes to recede, with effects spreading to the yen exchange rate and stock prices. With the U.S. midterm elections one month away, Iran-related tensions and high prices are emerging as major points of contention. Depending on the election results, there could be significant effects on economic policy and market sentiment. Next, energy and price trends. The G7 decided through the IEA to release 100 million barrels of oil reserves over four months. The aim is to curb energy prices and ease inflationary pressure. In the eurozone, September consumer prices rose 3.8%, the highest level in three years. Energy price increases driven by the situation in the Middle East are further intensifying inflationary pressure. Japan is strengthening cooperation with Qatar and working to ensure freedom of navigation in the Strait of Hormuz. For Japan, which is highly dependent on crude oil imports, this move is directly linked to stable energy supply. Next, topics in the financial industry. The Financial Services Agency is considering administrative action against Prudential, including a possible business suspension order. Concerns have been raised over deteriorating management conditions and declining investor confidence. Three regional banks in the Tohoku region have begun discussions toward a merger in April 2028. The move is expected to improve management efficiency and strengthen regional financial functions. Corporate developments. Tesla's third-quarter new vehicle sales fell 2.1% year-on-year. This is seen as a reaction to the rush in demand ahead of the elimination of tax incentives. Sagawa Express will raise parcel delivery rates by an average of 13%. The company expects to improve operating revenue in response to rising logistics costs. In the restaurant industry, Sugakiya has made Dom Dom a subsidiary. The company aims to improve profitability through strengthening its management base and a diversification strategy. Finally, geopolitical risks. Two F-16V fighter jets sold by the United States have arrived in Taiwan. This is leading to strengthened Taiwanese defense capabilities and expanded orders for the U.S. defense industry. China's Premier Li Qiang reiterated that the Taiwan issue is an "inviolable red line." The risk of instability in U.S.-China trade relations continues. Meanwhile, a class-action lawsuit over a driver's license image leak is proceeding, raising concerns over corporate liability and rising personal data protection costs. Suspected virus infections are spreading aboard cruise ships, raising concerns about financial impacts on related companies.