Record stocks welcome Japan’s first female prime minister

Summary

Marketplace Morning Report (October 21, 2025)

Record Stocks Welcome Japan’s First Female Prime Minister

---

Overview

In this episode, Marketplace Morning Report covers a historic development in Japanese politics and its immediate impact on global markets: Sanae Takaichi has been sworn in as Japan’s first female prime minister. The show also explores responses from the financial world, Japan’s economic and geopolitical challenges, significant environmental business news from Brazil, and how shifting U.S. government policy affects American steel towns. The news is presented with the crisp, global perspective typical of the BBC World Service.

---

Key Discussion Points and Insights

---

1. Japan’s First Female Prime Minister and Market Reaction

• Host: William Lee Adams

• Guest: Nick Marsh (ABC)

• [00:17] Sanae Takaichi is inaugurated as Japan’s first woman prime minister, drawing both political and financial excitement.

• The Nikkei 225 index surged up to 1.5%, reaching a record high—directly reflecting investor optimism.

• Takaichi is characterized as a conservative, influenced by Margaret Thatcher, and is facing acute domestic and international challenges: Japan’s aging population, cost of living, and relations with China and South Korea.

Notable Quote

• William Lee Adams [00:22]:
  “A historic moment in Japan as it swears in its first woman Prime Minister, Sanae Takaichi. Applause from her peers there, but also, it seems, from investors too.”
• Nick Marsh [01:09]:
  “From an economic perspective, it would probably be inflation... food prices have really shot up and wages haven't gone up to match that.”
• Nick Marsh [02:02]:
  “Takechi is seen as someone who takes a bit of a harder line on China and also on South Korea. Interestingly, that’s going to be music to the ears of the White House.”

Timestamps

• [00:17] - Introduction of Takaichi as Japan’s first female PM, market response
• [01:04] - Assessment of Takaichi’s domestic economic priorities
• [01:53] - Discussion shifts to regional geopolitics, focus on China, US, and South Korea

---

2. Australian Rare Earths Surge and Brazil’s Oil Drilling Approval

• Host: William Lee Adams

• Correspondents: Ione Wells (BBC, Brazil)

• [02:48] Australian mining shares soared after PM Albanese inked an $8.5 billion supply deal with the U.S.—companies like Aerofura Rare Earths and VHM Limited gained approximately 30%.

• [03:18] In Brazil, Petrobras receives approval for oil exploration near the Amazon River, stirring controversy and opposition from environmental groups. Some worry about dire consequences for biodiversity and Brazil's global climate image, with COP30 approaching.

Notable Quote

• Ione Wells [03:27]:
  “Some fear that the proximity to the Amazon river and rainforest, coupled with sea currents, could mean any oil spills would have disastrous impacts on the Amazon's biodiversity.”

Timestamps

• [02:48] - Australian rare earths market jump after major U.S. deal
• [03:18] - Petrobras oil drilling approval near Amazon; environmental and political implications

---

3. Shift in U.S. Environmental Policy Hits Ohio Steel Town

• Host: William Lee Adams

• Reporter: Aaron Delmore (BBC, U.S.)

• [03:49] Under President Trump, federal spending on green tech is dialed back, pausing funding for hydrogen power conversion at a major steel plant in Middletown, Ohio—Vice President J.D. Vance’s hometown.

• Residents like Heather Gibson face increased pollution and frustration over stalled upgrades, pointing to the impact of inconsistent federal policy.

• Local leaders express disappointment that anticipated benefits from their high-profile political figures aren’t being delivered.

Notable Quotes

• Heather Gibson [04:26]:
  “This is that smell times 5,000, though, and it's just not good. It's not good.”
• Scotty Robertson [05:45]:
  “The hope is that he [JD Vance] would make sure that...policies...would lift Middletown families up. However...we’re finding that’s actually not the case.”
• Heather Gibson [06:22]:
  “...when one administration comes in and says, this is what we're doing, the next administration should not be able to come in and wipe it all clean because they don't like that idea. I'm sorry, I don't agree with that. And this is why we can't get anywhere in America.”

Timestamps

• [03:49] - Impact of U.S. political changes on funding for green tech
• [04:11] - Resident’s struggle with worsening pollution
• [05:45] - Local pastor’s perspective on political expectations and realities
• [06:21] - Resident’s frustration about policy inconsistency

---

Memorable Moments

• [00:17-02:47] The “historic moment” of Japan’s first female PM, combined with immediate, positive financial market reaction.
• [03:49-06:43] A gripping on-the-ground portrait from Ohio, as lived experience and political shifts collide—Lucy Gibson’s sooty air filters and Scotty Robertson’s remarks cut through the day’s headlines with emotional resonance.

---

Summary Timestamps

| Segment | Speaker(s) | Timestamp | |-----------------------------------------------------|----------------------|-----------| | Japan’s new PM, market surge, domestic challenges | Adams, Marsh | 00:17-02:47| | Australian rare earths, Brazil drilling controversy | Adams, Wells | 02:48-03:49| | U.S. green policy reversal impacts Ohio town | Adams, Delmore, Gibson, Robertson | 03:49-06:43 |

---

Takeaway

This episode ties together global market optimism in response to leadership change in Japan, supply chain developments in Australia, environmental flashpoints in Brazil, and the real-world impact of shifting U.S. policies. The tone is brisk and informative, with a focus on economic repercussions and the human stories behind headline news, making the episode essential listening for those needing a compact, international financial news update.

Transcript

[MultiCare Announcer]

For 140 years, MultiCare has been in Washington prioritizing long term solutions, partnering with local communities and expanding access to care. Together, we're building a healthier future. Learn [e-mail].

[William Lee Adams]

Japan stocks hit an all time high as the country's first female prime minister takes office. Live from the UK this is the Marketplace Morning Report from the BBC World Service. I'm William Lee Adams. Good morning. A historic moment in Japan as it swears in its first woman Prime Minister, Sanae Takaichi. Applause from her peers there, but also, it seems, from investors too. Japan's Nikkei 225 index surged as much as 1.5% to a record high. But the Conservative leader who's known to admire the former British Prime Minister Margaret Thatcher, will have to tackle an aging population and the rising cost of living in the country. ABC's Nick Marsh joins me now. Nick Hai.

[Nick Marsh]

Hello.

[William Lee Adams]

The new prime minister has a big to do list. What's top of the agenda?

[Nick Marsh]

From an economic perspective, it would probably be inflation. Historically, Japan has been a country with very low inflation, which also means low economic growth. And that's a different, more long term structural problem that Japan faces. But over the past year or so, food prices have really shot up and wages haven't gone up to match that. So people in Japan are basically thinking about these bread and butter issues. How the new prime minister is going to be able to deal with that is a different matter. We know that she's a big fan of tax cuts, of increased fiscal spending, low interest rates. That doesn't really go well with the idea of combating inflation.

[William Lee Adams]

Taki will also have to deal with China, which is increasing its assertiveness in the region as how large does that loom?

[Nick Marsh]

It looms very large indeed, not least because China is, as we know, locked in a trade war with the United States, which has always been a close ally of Japan. In fact, Japan is the largest foreign investor in the United States. So you know, Japan follows US Economic fortunes incredibly closely. Takechi is seen as someone who takes a bit of a harder line on China and also on South Korea. Interestingly, that's going to be music to the ears of the White House. We're going to see a little bit more next week when Donald Trump is in Tokyo to meet Takaichi, which is pretty interesting. First couple of weeks for the new prime minister.

[William Lee Adams]

Nick, thanks so much for joining us on marketplace.

[Nick Marsh]

Pleasure, William.

[William Lee Adams]

Let's do the numbers over in Australia. Shares in rare earth soared after Prime Minister Anthony Albanese signed an 8 and a half billion dollar deal to boost supplies to the US miners. Aerofura Rare Earths and VHM Limited each gained around 30. The Brazilian oil giant Petrobras says it's been given the green light to start drilling for oil near the mouth of the Amazon river off the coast of the world's largest tropical rainforest. The BBC's Ione Wells reports from Sao Paulo.

[Ione Wells]

The company says it demonstrated that it had a robust environmental protection structure in place. Oil exploration in the region has been supported by Brazil's President, Lula da Silva. However, the plans have been opposed by many environmental organizations. Some fear that the proximity to the Amazon river and rainforest, coupled with sea currents, could mean any oil spills would have disastrous impacts on the Amazon's biodiversity. Others have pointed out it could undermine Brazil's climate leadership. Ahead of hosting the COP30 climate summit in the Amazon in November.

[William Lee Adams]

Ione Wells. The Biden administration invested hundreds of billions in climate and green tech. But under President Trump, the federal government is now pulling back those funds. It's affecting communities across the U.S. including Vice President J.D. vance's hometown. Here's the BBC's Aaron Delmore.

[Aaron Delmore]

Look at it already, right? So that's what, a couple days worth.

[Heather Gibson]

Heather Gibson used to change her air filters a few times a year. Now it's every two weeks.

[Aaron Delmore]

And this won't even, no matter how hard you, it won't come off. It's soot.

[Heather Gibson]

From her home in Middletown, Ohio, we can see a plant that makes coke, a fuel used in the steel making process derived from coal.

[Aaron Delmore]

My grandparents lived in Kentucky back then. In the 70s, they could burn coal in their fireplace. You would wake up in the morning and there'd be that, just that sweet smell of coal. And I love that smell because it takes me back. This is that smell times 5,000, though, and it's just not good. It's not good.

[Heather Gibson]

The coke process, just a few hundred feet away, fuels Middletown Works, a steel plant owned by the country's second largest producer, Cleveland Cliffs. Environmentalists hoped this would be a blueprint for converting steel plants from coal to hydrogen powered furnaces all across the US thanks to partial funding from a $500 million grant from the Biden administration. But the Trump administration has moved to axe many of the Biden era green initiatives and put the funds for this plant upgrade on pause. To the surprise of some who expected more from the town's most famous resident, this facility behind me dominates the town of Middletown, Ohio. But it's no longer what the town is best known for. That's because it's where Vice President J.D. vance was born and raised as and it's also where he set the memoir that made him famous. Scotty Robertson is a pastor in town and is running for Middletown City Council. I asked him whether residents thought J.D. vance's political power would benefit them.

[Scotty Robertson]

The hope is that he would make sure that the policies that came from the administration would be policies that, by and large would lift Middletown families up. However, the reality of this new administration, for a few months now, we're finding that that's actually not the case.

[Heather Gibson]

Cleveland Cliffs declined to comment, but earlier this year, the firm's CEO said the plant upgrade couldn't move forward because of a lack of available hydrogen. The federal government had already put the grant money on ice. I asked Heather why, if residents wanted better air, they didn't vote for it.

[Aaron Delmore]

Unfortunately, these days we all vote with our emotions and not much else. I know that different presidents have different agendas, and I totally understand that. But when one administration comes in and says, this is what we're doing, the next administration should not be able to come in and wipe it all clean because they don't like that idea. I'm sorry, I don't agree with that. And this is why we can't get anywhere in America.

[Heather Gibson]

I'm the BBC's Erin Delmore for Marketplace.

[William Lee Adams]

And I'm William Lee Adams with the Marketplace morning Report from the BBC World Service.

[Debra Goldstein]

Hello, I'm Debra Goldstein, host of the game show the Big Fib.

[Lisa]

And I'm the sound effects robot, Lisa.

[Debra Goldstein]

Each week we bring you a hilarious podcast where human child contestants have to figure out who's an actual expert and who's a liar.

[Lisa]

Liar, pants on fire.

[Debra Goldstein]

Just listen to these great reviews on Apple Podcasts.

[Lisa]

User Addikini says, I love this podcast. Lisa is my favorite. User Ichabod says, lisa is so funny.

[Scotty Robertson]

Oh, my God, they're right.

[Lisa]

And user Icewolf says, more Lisa.

[Scotty Robertson]

More, more, more, more.

[Debra Goldstein]

Interesting selection. Who picked?

[Lisa]

Not me. Okay, I guess I am the liar. It was me. And oh, look at that. My pants are on fire. Camera. My pants are on fire.

[Debra Goldstein]

For more fun facts and a few fibs, follow the Big Fib on Apple podcasts or on gzmshows.com oh, my poor pants.