49,313.44TAIEX · Oct. 8 close · −0.99% (market closed Oct. 9)

DailyDrop.

31.910U.S. dollar to NT dollar · overseas quote, early Oct. 10 · −0.03%
TAIEX49,313.44▼0.99%10/8USD/TWD31.91▼0.03%10/10S&P 5007,811.54▲0.59%10/9WTI$91.63▲0.15%10/9Gold$4,219.90▲1.51%10/9
Politics · Diplomacy · SecurityPress ✓ 5 outlets · Coast Guard Administration press release, Ministry of Foreign Affairs statement; contents of the speech await release by the Presidential Office

National Day gala moves to New Taipei for the first time, President Lai urges parties to review the general budget quickly; 4 China Coast Guard ships enter Kinmen restricted waters for about 2 hours

King Mswati III of Eswatini is visiting Taiwan for the 20th time, and the National Day ceremony takes place today (10/10) in front of the Presidential Office. The budget appeal at the gala and the standoff at sea are the two main threads on the eve of National Day.

The National Day gala was held on the evening of the 9th at Banqiao First Stadium in New Taipei City, the first time New Taipei has hosted it. In his address, President Lai Ching-te singled out Legislative Yuan Speaker Han Kuo-yu and lawmakers of all parties, asking them to support the central government's general budget and supplementary budget and to finish reviewing them as soon as possible; CNA, the Liberty Times and FTV all reported the remarks. President Lai said the general budget is the key to whether policy can move forward, and noted that last year's budget review saw major delays. In the audience, Premier Cho Jung-tai took the initiative to shake hands with Han Kuo-yu, who shook back, and the mood in the hall was relaxed; but the budget's path through the Legislative Yuan has not changed as a result, and one handshake does not equal consensus between the ruling and opposition camps. President Lai's speech also mentioned wage growth and easing the burden on families for child care and long-term care. Separately, CNA previewed before the gala that President Lai's National Day address today will focus on three themes: economic achievements, people's livelihoods and contributions to the world. That is pre-event reporting; what the address actually says must wait for the Presidential Office's release.

On the diplomatic front, King Mswati III of Eswatini began a visit to Taiwan with a delegation on the 9th, running through the 17th, his 20th visit since he took the throne in 1986. President Lai welcomed him with a military ceremony that day and hosted a state banquet at the Presidential Office (CNA, Liberty Times). Foreign Minister Lin Chia-lung said that when President Lai visited Eswatini in May, he flew both ways on a special aircraft sent by the king, which he described as tangible support for Taiwan's breakthrough of its diplomatic isolation. The Ministry of Foreign Affairs said the king will also attend the National Day ceremony and reception, and witness the signing of a Taiwan-Eswatini mutual legal assistance in criminal matters agreement. That agreement has not yet been signed, and its provisions must wait for the ministry's release. Eswatini is one of Taiwan's diplomatic allies, and each visit by the king helps raise Taiwan's international visibility.

On the eve of National Day, the sea was also restless. The Coast Guard Administration's Kinmen-Matsu-Penghu Branch said that at about 9:10 a.m. on the 9th, four China Coast Guard ships, in two groups, entered Kinmen's restricted waters from the east and southwest of Liaoluo. Taiwan coast guard cutters shadowed them one-on-one at close range and broadcast warnings in Chinese and English; at 11:13 a.m. all four ships had left, about two hours in all (reported by CNA, the Liberty Times, FTV, Mirror Media and others, with details from the Coast Guard Administration press release). The Coast Guard Administration noted that the National Day period is one when China is more likely to carry out gray-zone harassment and cognitive warfare, so it keeps round-the-clock surveillance. The Liberty Times separately reported, as an exclusive, that Chinese military aircraft approached Taiwan's southwestern airspace and the armed forces drove them off by radio; only that paper has reported it, so we list it as unverified. Seen together: the domestic focus is whether the budget clears the Legislative Yuan, and the external focus is diplomatic allies and defense security. DailyDrop reminds readers that a National Day speech is often read as a triple signal to Beijing, to the United States and to the home audience, but whether those signals exist depends on the words of the text, not on pre-event speculation. Readers heading out today should also note that roads around the Presidential Office have staged traffic controls from the 10th to the 12th, and weather reports point to local rain in the north and on windward slopes in the east.

Open the story and DailyDrop's take
By the numbers
4 shipsChina Coast Guard vessels that entered Kinmen restricted waters on the morning of the 9th and left about 2 hours later (Coast Guard Administration; CNA, Liberty Times)
20th visitThe number of visits to Taiwan by the King of Eswatini since he took the throne in 1986 (Ministry of Foreign Affairs; CNA)
About 2 hoursFrom the start of one-on-one close shadowing and radio warnings by Taiwan coast guard cutters until the ships left (Coast Guard Administration)
World · Middle EastPress ✓ 4 outlets · casualty figure is the Saudi civil aviation authority's account

Riyadh airport attack kills 3, EU aviation safety agency widens Saudi airspace warning; oil eases after Trump's remarks

Saudi civil aviation authorities said on the 9th that Yemen's Houthis claimed an attack on Riyadh airport that killed 3 Saudis (Reuters, AP); the Liberty Times reported that an airliner caught fire inside the airport and flights were urgently grounded. The European Union Aviation Safety Agency then widened the area covered by its warning on Saudi airspace (Reuters). Earlier, PTS reported that Houthi air raids on the 6th and 7th killed 3 people in all; the papers do not say whether the two casualty figures refer to the same victims, so we do not add them up. On U.S.-Iran tensions, Trump said earlier that he would not attack Iran before the election, and Iran's president replied that U.S.-Iran peace talks can succeed only if there is no pressure or threat (Liberty Times); the Liberty Times also reported that Iran is “deeply skeptical” of Trump's statement. Reuters and CNA reported that oil eased after Trump's remarks and most Asian stocks closed higher. But the cost is already showing up on corporate books: Delta Air Lines cut its profit forecast on the 9th, saying about US$6 billion in higher fuel costs outweighed the gains from higher fares (Reuters). West Texas Intermediate crude closed Friday at about US$91.63 a barrel, up 0.15%; gold was about US$4,220 an ounce on Friday, up 1.51% (DailyDrop market data). For Taiwan, oil prices and route risk will show up first in fuel surcharges, transport costs and consumer prices; China Airlines and EVA Air will also have to see whether insurance premiums and detour costs rise on their Middle East and Europe routes, which the papers have not yet reported. Another thing to watch is U.S. diesel: Reuters reported that Trump's measures to boost diesel supply have not yet brought prices down.

Open the story and DailyDrop's take
Word of the day
Gray-zone tacticsSECURITY

Ways of applying pressure that fall between peace and war without direct use of force, such as repeated activity by coast guard ships, militia vessels or aircraft around another country. A single incident rarely escalates into conflict, but over time the accumulation can change what counts as normal in those waters and skies.


World · JusticePress ✓ 5 outlets · the U.S. sanctions were officially announced

Hours after Pillay wins Nobel Peace Prize, U.S. announces sweeping sanctions on International Criminal Court

The Norwegian Nobel Committee announced on the 9th that the 2026 Nobel Peace Prize goes to South African jurist Navi Pillay, honoring her work in international justice (Reuters, AP). PTS reported that she once investigated whether Israel committed genocide in Gaza; the Liberty Times quoted her as saying the prize is dedicated to survivors of international crimes, and reported that she once called on China to disclose the truth about June 4.

In a Reuters exclusive and in AP reporting, the United States announced, hours after she won, sweeping sanctions on the International Criminal Court, barring dealings with the court. U.S. officials said the Trump administration will not allow the ICC to prosecute Americans; the court's deputy prosecutor responded that the sanctions aim to undermine the court's operation and its work will continue. Note that the sanctions were in the works before the prize; the two events simply fell on the same day, and the U.S. side did not say the sanctions were a response to the award.

Open the story and DailyDrop's take
Markets · Wall StreetPress ✓ 3 outlets · prices are DailyDrop market data

Wall Street closes higher Friday, AI stocks prop up earnings-season expectations; PIMCO warns 10-year Treasury yield could hit 6%

U.S. stocks closed Friday (10/9) with the S&P 500 at 7,811.54, up 0.59%; the Nasdaq at 27,366.17, up 0.64%; and the Dow Jones Industrial Average at 51,654.95, up 0.83%; the 10-year Treasury yield was about 5.244% (DailyDrop market data). Reuters reported that U.S. consumer confidence worsened further in October (preliminary data); Reuters and CNA reported that AI-related companies will account for most of the third-quarter profit growth in U.S. stocks. News that SpaceX had bought spectrum, threatening wireless carriers, sent U.S. and European telecom shares lower, with Deutsche Telekom briefly plunging about 7% (Reuters). PIMCO's Ivascyn told the Financial Times that the U.S. 10-year Treasury yield could rise to 6%, which would be the first time since 2000 (Reuters, CNA). That is one fund manager's warning, not a forecast, and certainly not a verdict. The higher the yield, the costlier it is for companies and households to borrow, and the greater the valuation pressure on growth stocks. Taiwan's stock market is closed for the National Day holiday and reopens on the 12th (Monday); TSMC's investor conference is scheduled for the 15th (reported by the Liberty Times). By then, Taiwan stocks will have to price in, all at once, the U.S. stocks, yields and oil prices of the holiday period.

Open the story and DailyDrop's take

Politics · DiplomacyPress ✓ 2 outlets · Ministry of Foreign Affairs response; the criminal case is not yet decided

Foreign ministry handles two overseas heads on the same day: Geneva office chief found to have bullied staff, to be reassigned; former Guam office chief indicted for corruption, absent without leave, to be dismissed

The Ministry of Foreign Affairs said on the 9th that Li Kuan-te, head of the Geneva office, was found to have engaged in workplace bullying, and the ministry will subsequently adjust his post (PTS, CNA). In the other case, Chen Ying-lien, former head of the Guam office, was indicted on corruption charges and, according to reports, has been absent without leave and has not returned to Taiwan; the ministry said the most severe penalty, dismissal, will be imposed (PTS, CNA). The substance of the charges against Chen Ying-lien remains for the court to hear, and the presumption of innocence still applies.

The two cases belong to different categories, administrative responsibility and criminal prosecution, and should not be conflated. The former is a workplace-bullying finding inside a government agency; the latter is an indictment by prosecutors; the procedures and standards of the two differ. For overseas missions, where staff are far from home and the supervisor holds great power locally, whether internal complaint and oversight systems work is a question the ministry has to answer. DailyDrop will watch whether the ministry explains the investigation report behind the bullying finding and the complaint channels, as well as the timetable for dealing with the absence without leave.

Open the story and DailyDrop's take
In brief
  • Lin Yun-ju and Cheng I-ching lose eight championship points in the WTT Grand Smash mixed doubles final and finish runner-upLiberty Times
  • 50 accidents on national freeways on the first day of the holiday; Highway Bureau urges drivers to avoid north-south peak hoursLiberty Times
  • High-speed rail adds all-unreserved-seating trains for the holiday, carrying 180,000 passengers so farPTS
  • Publicly funded flu vaccine: 1.91 million people vaccinated so far; COVID vaccine: 655,000PTS
  • Fire at Green Island landfill burns for over 5 hours, now under controlPTS
  • Seven-storey apartment building suddenly collapses in Turkey; 14 found in the rubble, 5 deadPTS
  • Supreme Administrative Court rejects appeal; China Youth Corps finally ruled an affiliated organization of the KuomintangPTS
  • U.S. State Department trafficking report again places China in the worst tier, and says transnational fraud threatens national securityLiberty Times
Seven minutes every morning, one front page

Unverified — what we could not confirm

“Chinese military aircraft approached Taiwan's southwestern airspace on the eve of National Day.” So far reported only as an exclusive by the Liberty Times; the Defense Ministry's full report for the day has not been seen. The Kinmen coast guard incident the same day, by contrast, was confirmed by several outlets and the Coast Guard Administration press release.
“The U.S. sanctioned the International Criminal Court because Pillay won the prize.” The two events fell on the same day, but reports say the sanctions had long been in the works, and the U.S. did not say they were a response to the award. Coinciding in time does not mean causation.
“The EU-China deal has been settled: China's hybrid car exports to Europe will be cut in half.” “Cut in half” is the EU commissioner's wording, relative to a projected volume, over 4 years; China has not published the contents, and EU internal approval is still needed; the summit on the 15th and 16th is where it will be discussed.

Influencer watch

  • 賴清德總統 press conference · 10/9President Lai urged Speaker Han Kuo-yu and all parties to pass the general and supplementary budgets (CNA).
  • 蔡英文前總統 press conference · 10/9Tsai Ing-wen: avoid unnecessary provocation; restraint should not be mistaken for weakness (CNA).
  • Donald Trump press conference · 10/8Trump said the US will not attack Iran before the midterm elections (Bloomberg TV).

Statements as posted, not fact-checked.

Glossary · dotted words — economics, law, security and science terms explained in the context of the story. The list grows every day.
INSIDENational Day gala moves to New Taipei for the first time, President Lai urges parties to review the general budget quickly; 4 China Coast Guard ships enter Kinmen restricted waters for about 2 hoursPolitics · Diplomacy · SecurityRiyadh airport attack kills 3, EU aviation safety agency widens Saudi airspace warning; oil eases after Trump's remarksWorld · Middle EastHours after Pillay wins Nobel Peace Prize, U.S. announces sweeping sanctions on International Criminal CourtWorld · JusticeWall Street closes higher Friday, AI stocks prop up earnings-season expectations; PIMCO warns 10-year Treasury yield could hit 6%Markets · Wall StreetForeign ministry handles two overseas heads on the same day: Geneva office chief found to have bullied staff, to be reassigned; former Guam office chief indicted for corruption, absent without leave, to be dismissedPolitics · Diplomacy