Marketplace Morning Report: Could Japan's Rice Crisis Be Easing?
Release Date: June 26, 2025

In this episode of Marketplace Morning Report, hosted by David Brancaccio and reported by the BBC World Service, a range of global economic and business stories are unpacked to provide listeners with a comprehensive overview of the latest developments. Here's a detailed summary of the key discussions, insights, and conclusions from the episode.

1. Easing of Japan's Rice Crisis

Reporter: Katie Silver
Timestamp: 01:04 - 02:56

Japan, a nation with a high per capita rice consumption, has been grappling with elevated rice prices. Recently, there’s encouraging news for Japanese consumers as the price of a 5-kilogram bag of rice has fallen to its lowest level in two months. Katie Silver reports that the national supermarket has observed signs that the rice shortage is beginning to ease.

Katie Silver [01:37]: "The price of the five kilo bag has dipped below 4,000 yen to 3,900 yen. That's about 27 USD. It's the first time we've seen it below the 4,000 yen mark since early March."

Despite this improvement, rice prices remain significantly higher—approximately double—compared to two years prior. The surge in prices was influenced by several factors:

• Targeted Pricing: Prime Minister Shigeru Shiba aimed to reduce rice prices to around 3,000 yen, holding the current 4,000 yen level accountable.

  Katie Silver [01:37]: "He is reported to have said that he wants to see prices around the 3,000 yen mark and that 4,000 quote unquote can't be right."

• Market Influences: Poor harvests in 2023, increased rice demand from tourists due to a weakened yen making Japan a more affordable destination, and the depreciation of the yen that made imported rice more expensive all contributed to the price hike.

Katie Silver notes that the most significant price increases occurred in May, marking the largest rise in over half a century.

2. China's Summer Davos and U.S. Tariff Uncertainty

Reporters: Suranjana Tiwari & Aditi Raskina
Timestamp: 02:56 - 04:24

Business leaders in China are convening for the annual economic forum, Summer Davos, amidst growing concerns over the impending expiration of a 90-day pause on reciprocal tariffs imposed by the United States. These tariffs on goods from most countries are set to resume on July 9, adding a layer of uncertainty to global trade dynamics.

Aditi Raskina [03:25]: "He promised when he announced them back in April, 90 deals in 90 days and a complete reshaping of the global economic order. Instead, we've had just one trade deal and a whole lot of uncertainty."

The impact of U.S. tariffs has led businesses to adopt various strategies to mitigate risks. Aditi Raskina from DHL Global Forwarding highlights that many organizations have already established alternative sourcing and manufacturing options, fostering a sense of optimism despite the looming deadline.

Katie Silver [03:52]: "Most organizations have lived through the tariffs the first time around and have already created scenarios where they have alternative sourcing and manufacturing options."

However, the uncertainty persists as businesses await further developments, making the upcoming tariff expiration a focal point of the forum's discussions.

3. Global Market Updates

Timestamp: 04:24 - 07:25

a. Defense Contractors and European Markets Defense contractors have experienced a surge in their share prices following NATO members' commitment to allocate 5% of their GDP to defense spending by 2035. Additionally, European stock markets have shown resilience, buoyed by indicators that the Israel-Iran ceasefire is holding steady.

b. Nvidia's Market Valuation Tech giant Nvidia has recently ascended to become the most valuable company globally, surpassing industry leaders Apple and Microsoft with a staggering valuation increase of $3.76 trillion.

c. Zimbabwe's Land Compensation Deal Zimbabwe is making strides towards resolving its long-standing land reform controversies. Approximately 300 former white farmers have agreed to accept compensation for land seized during initiatives that began over two decades ago. The compensation package includes 10-year bonds with annual interest payments.

Aaron Ganye [05:35]: "Although the offer could have been better, I decided that it was reasonably fair."

Yet, not all stakeholders are satisfied. Dion Taron leads over a thousand farmers who have rejected the government's offer, citing concerns over the reliability of government bonds and deeming the deal unfavorable.

Dion Taron [05:58]: "It's a terrible deal."

On the other hand, beneficiaries of the land reform, predominantly black farmers, are witnessing success. Aaron Ganye, a 25-year-old tobacco farmer, shares his positive experiences and advocates for compensations based on the value of inherited infrastructure.

Aaron Ganye [06:51]: "Yeah, I'm very happy. I think we have taken farming to another level. Now we are living a good life through farming. We are doing more than what the white guys were doing."

The situation remains delicate, with calls for compromise to ensure Zimbabwe can finally settle its land disputes and foster agricultural growth.

4. North Korea's New Beach Resort

Reporter: Nick Qureshi
Timestamp: 07:25 - 07:52

In a surprising move, North Korea is set to open a new beach resort in Wonsan Khalma on its east coast. Spearheaded by leader Kim Jong Un, the resort aims to bolster tourism within the isolated nation. The facility boasts a four-kilometer sandy beach and accommodations capable of hosting around 20,000 guests. Scheduled to open to domestic tourists on July 1st, the resort represents North Korea's efforts to diversify its economy and attract visitors despite ongoing international sanctions.

Conclusion

This episode of Marketplace Morning Report provides listeners with a nuanced understanding of significant economic developments across the globe—from Japan's alleviating rice crisis and China's navigation of U.S. tariff uncertainties to pivotal market movements and land reform progress in Zimbabwe. Additionally, North Korea's venture into tourism underscores shifting economic strategies in unexpected regions. These stories collectively highlight the intricate and interconnected nature of today's global economy.