Daily Briefing · 2026-10-29

It has shown a stance of carefully assessing inflation trends. Meanwhile, Canada's central bank raised its policy interest rate by 0.25% for the first time in about 3 years, bringing it to 2.5%. Balancing inflation control with rising borrowing costs remains a challenge. In energy markets, European natural gas futures prices rose to their highest level since 2022 against the backdrop of the Middle East situation. The energy cost burden on industry and consumers is expanding. In response, the UK government has included energy price payments for 20 million households in its budget proposal, signaling a policy of prioritizing household support. On the security front, a ballistic missile is presumed to have fallen from North Korea, drawing attention to its impact on Japan's defense-related budget and economic uncertainty. In geopolitics, President Zelensky expressed hope for progress in peace talks with Russia. Through negotiations in the UAE, a path toward regional economic recovery may be opening up. In Israel, the right-wing bloc led by Prime Minister Netanyahu is projected to win more seats than previously expected, and continuity of economic policy is anticipated due to the continuation of the administration. In Spain, a high-speed rail collision occurred, killing 68 people. Railway operators are facing economic losses from the service suspension, insurance claims, and the burden of infrastructure repair costs. In South America, former Brazilian President Bolsonaro arrived in Florida, in the United States, raising concerns about rising investment risk as a factor of political instability in the country. In corporate news, South Korea's SK Hynix recorded a 7.3-fold year-on-year increase in operating profit, marking a new record high. Expanding demand for generative AI is driving the semiconductor market. On the diplomatic front, German Chancellor Merz visited Japan and expressed hope for expanded cooperation in the semiconductor and AI fields. The two countries are strengthening cooperation as "Premium Partners." In the energy sector, the Ministry of Economy, Trade and Industry and Siemens Energy signed a memorandum on wind power cooperation. Asia's first base is expected to be established in Hokkaido. Domestically, reservations for the new Pajero exceeded the fiscal year target, improving the outlook for achieving sales and profit plans. Meanwhile, Chidoriya Honke, a long-established Japanese confectionery maker founded in the Edo period, has filed for bankruptcy. Total liabilities have reached approximately 1 billion yen. In Osaka, the release date for books and magazines has been delayed by one day, resulting in lost sales opportunities for distributors and publishers and increased logistics costs.