Daily Briefing · 2026-10-12

Workman achieved both increased revenue and increased profit while balancing price cuts with profit assurance. Strengthened product planning capabilities, store efficiency improvements, and logistics optimization appear to have contributed to this result. Next, news related to geopolitical risk. On the Russia-Ukraine situation, President Trump announced that an agreement had been reached to halt attacks on energy facilities. However, there are precedents of similar agreements breaking down in the past, and the impact on markets remains uncertain. Related to this, Russian IT company Yandex suffered data center damage due to a Ukrainian drone attack. Multiple services, including ride-hailing and food delivery, were suspended, directly impacting business operations. On the Korean Peninsula situation, North Korea launched a missile, which fell outside Japan's exclusive economic zone. While there was no direct damage, regional security risks have increased, spreading concerns about worsening investor sentiment and rising defense spending. In addition, North Korea's continued fortification of the border area could lead to increased South Korean defense spending. On the Middle East situation. Riyadh International Airport in Saudi Arabia was attacked by Houthi forces, killing 12 people and injuring more than 300. Saudi Arabia's transportation hub functions have been halted, raising concerns about damage to the tourism and aviation industries. Regarding the Gaza situation, one year has passed since the ceasefire agreement, but attacks are continuing, raising concerns about loss of life as well as delays in regional economic recovery. On international sanctions developments. Ukraine, in response to the partial easing of US sanctions against Russia, has called on European countries to strengthen cooperation. Efforts to maintain economic pressure continue. On the topic of semiconductor talent. With TSMC's expansion into Taiwan, high-salary talent is flowing out to Taiwan, raising concerns among domestic companies about rising recruitment costs and declining competitiveness. In the logistics industry, the hiring of foreign drivers is expanding to resolve labor shortages. While labor cost reductions are progressing, rising education and training costs and risks remain challenges. In the agricultural sector, the global boom in ube (purple yam) is spreading worldwide, increasing income for producing farmers in countries such as the Philippines, and rapidly expanding the related market. In the field of international justice, US sanctions designations against the International Criminal Court raise concerns about the deterioration of the court's finances and increased dispute-resolution costs for member states. On developments regarding China. Premier Li Qiang emphasized that the Taiwan issue is an inviolable "red line," and risks of instability in trade relations continue. Between Japan and Europe, ministerial-level dialogue confirmed the protection of key shipping routes, with positive effects expected for trade flows, while vigilance toward geopolitical risk continues. On natural disasters, a landslide occurred in Nepal, with infrastructure destruction and surging rescue costs expanding economic losses. Finally, in the cruise ship industry, suspected infections among passengers and crew have occurred, and concerns continue about expanding financial losses for related industries.