JAPAN: New Econ Min Talks On Energy, Rare Earths & US Relations
Reuters reports comments from the newly-appointed Minister of Economy, Trade and Industry, Ryosei Akazawa, on a broad range of topics.
- On energy, Akazawa says the Sakhalin II gas project in Russia "plays an extremely important role in energy security". Adds that the "Asian LNG market is expected to be tight [and the ] procurement price for Japan will soar if Sakhalin II supplies are to be replaced."
- Last week, US Treasury Secretary Scott Bessent said he had told then-Finance Minister Katsunobu Kato that the US expects Japan to stop its imports of Russian energy. Progressing with Sakhalin II could risk a US blowback.
- On rare earths constraints: Akazawa says "China's rare earth moves potentially have a major impact", and that the export controls "could mean Japan can't make cars."
- On US relations, Akazawa says new PM Sanae Takaichi will keep the Japan-US Agreement promise and build up US investment projects over the next 3.5 years. Adds that US President Donald Trump "is trying to change the world order" and Japan "needs to think more about trading with allies". Says "predictability in the world is decreasing with Trump's actions."
- Akazawa was Japan's lead negotiator with the US as the previous administration of PM Shigeru Ishiba sought a trade deal with Washington to avoid the worst of the US 'reciprocal' tariffs. As such, may be viewed as having a significant insight into the US' trade stance vis-a-vis Japan, as well as a strong relationship with US officials such as USTR Jamieson Greer and Commerce Sec Howard Lutnick.
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MNI: UK SEP CBI INDUSTRIAL TRENDS TOTAL ORDERS -27
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BOE: ILTR usage increases - but not enough to offset STR fall last week
- ILTR usage of GBP2.352bln is a smaller take up than the previous two weeks but replaces the GBP1.337bln rolling off and hence sees the total programme usage increase to GBP35.7bln from GBP34.7bln last week (which was also a record).
- However the reduction in the STR usage last week was greater than today's increase in ILTR usage so repo-led balances are expected to fall again this week after a GBP1.9bln fall last week.
DENMARK: PM Calls Airport Drone Incident "An Attack" Amid Ministerial Reshuffle
Prime Minister Mette Frederiksen has said that the drone incident at Copenhagen Airport on the night of 22 September was "an attack", saying they were the "most serious" incidents to affect critical infrastructure "to date". Speaking to reporters, Frederiksen said the incident, which also saw drones flying near Oslo Airport in Norway, resulting in the grounding of flights, must be seen in the light of other incidents affecting NATO member states in recent weeks. These include mass drone incursions in Poland and Romania, airspace incursions in Estonia, and cyberattacks on airports in the UK, Belgium, and Germany. The PM said she "cannot deny in any way that it was Russia" behind the incursion at Katsrup.
- For the PM, the incursion comes at an inopportune moment as her centre-left Social Democrats are engaged in a ministerial reshuffle. TV2 reports "Tax Minister Rasmus Stoklund will become the new Minister of Immigration and Integration, taking over the position from Kaare Dybvad Bek. Dybvad Bek will become Minister of Employment, while Ane Halsboe-Jørgensen will become Minister of Taxation."
- Stoklund is viewed as sitting on the right of the party and taking on the immigration portfolio could prove better placed to head off attacks from the right-wing nationalist Danish People's Party, which has recovered support in recent months.
- The next election is not due until Oct 2026 at the latest. Nevertheless, two of the past four Voxmeter polls have shown the right-leaning 'blue bloc' ahead of the Social Democrat-led 'red bloc', potentially spurring action from Frederisken to bolster party support.
