Listen: US, Japan And China discussed on Bloomberg Daybreak: Asia
"Ed. All right, Bryan. Thank you, President Trump indicating half of accepting the government border security deal and then going on to build a wall legislation being finalized. Hopefully, we'll be out later tonight with a vote tomorrow. Tokyo Electric Power companies used a robot to touch melted nuclear fuel inside a wreck reactor Fukushima Daiichi for the first time, they say, most helpful diagnostic tool. They've used today with UK house of Commons vote tomorrow, Prime Minister Theresa may says she is not trying to delay a vote on her deal, but working toward an early Brexit March twenty nine US vice-president Mike Pence in Europe, saying all NATO nations. Need to be careful. He says China and Russia are waiting to up their influences with any show of weakness in the Washington Post. He has reported in the President Trump is installed a room sized simulator game at the White House it replaces the one used by Barack Obama. It's a golf simulator fifty thousand of his own money. The report says the manufacturer. One of the systems out. There says that because you don't have to chase. The little baller can be played in an hour. In San Francisco in San Francisco, I'm Ed Baxter. This is Bloomberg. I wonder how big the the nineteenth hole is right. Julia. Leave that one alone. Thanks so much. Ed. Let's get back to yes. Because Japan wisdom, tree investments on the line from. Yes. But we've got these talks happening between lighthizer Steve nation. Lou. In Beijing at the start of these talks between the US and China, what sort of impact do you think potential resolvable impasse here could mean for Japan? Oh, hugely important. I mean, just remember Japan and China linked at the hip in terms of the economic codependence, and you put that number, you know, as much as team percent of Tokyo's company's profits, come directly palm business with the People's Republic of China and TV uncertainty over trade and tariff has created a, you know, a huge loss of opportunities. You know, you'll find that executives have cut back their capital spending the commitment to the people probably go China, if we were to get the green light would get a clean roadmap and for a healthy U S China relationship. Japan's equities are going to benefit tremendously. So is that the catalyst then that we need to get a resumption of global growth right now, we seem to have been kind of stuck. A little bit in the quicksand here. And I'm wondering if there is at least some kind of framework sketched out in the part of the negotiations this week whether that could jump start the global economy. Do you think that's too much? I think you're absolutely right. I think that China will lead the Knicks global cyclical upcycle, and you know, the trade talks, I'm portent because they create some hopefully, they will create some some political stability much more important is what happens to the private sector because private entrepreneurs over the last six months, you know, pulled their orders, they didn't know where to invest they pulled the old us everything was put on hold because of the China US trade war if that gets resolved speak. It's open and you'll see China growing eight percent again. And what about in terms of what some we've heard from some of the Japanese corporates the manufacturers like feno Cutler profit forecasts. But I guess the previous Al was saying, you know, overall, it's not really affecting Japanese corporates what we are seeing between the US and China. No. I completely disagree with that. I think that, you know, the uncertainty, you know, with the China US trade war, you know, has led to you know. Animal spirits of entrepreneurs across Asia. Right. Really pulling and putting on hold their capital expenditure plans, and as a result of that. When you look at a company like when you look at other Japanese machinery and robotics companies their orders from Asia. All sixty seventy percent because of this uncertainty that has been created by the uncertainty of the of the US, China trade war. So in terms of the auto space, which is very important for Japan. Not just US China trade, but kind of globally where we stand with the potential of tariffs in in the auto space. I mean what what is your outlook? Here. I am hopeful, you know, that you know, we will get to an agreement that averts, you know, terrorists. Punitive tariffs would be a very bad for Japan. I mean, specifically, you know, if the US were to impose a twenty five percent tariff on Japanese car exports that would cut Japanese car companies profits by as much as forty percent. So you better hope, you know, that reason would prevail. And I'm very hopeful. Because you know, they put me in the US. Japan relationship. There are many many bargaining chips that prime minister Ave can offer to President Trump. And you know, as a result of that. I think the risk of terrorism imposed on Japanese companies is actually very very little. Yes. But I just wanna ask you a fun question. We've only got about twenty seconds or so have you Mary condo your house, and what sort of significance is there of the nations of her success in Japan and globally? It's interesting. The answer is no I'm a collector buck clean it up. And maybe I'll do this. This Valentine's Day. All right. Well, we'll see. How you go with that? Yes. We call. Thanks so much the yes Japan wisdom, tree investments on the line from Tokyo for us here on Bloomberg daybreak Asia. It is Valentine's Day."