1 00:00:03,200 --> 00:00:06,600 Speaker 1: Global business news twenty four hours a day at Bloomberg 2 00:00:06,640 --> 00:00:09,720 Speaker 1: dot com, the radio, plus Globo laps and on your radio. 3 00:00:10,000 --> 00:00:14,120 Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters 4 00:00:14,120 --> 00:00:16,480 Speaker 1: on Katherine Cowdery and Bloomberg. Taking Stock is brought to 5 00:00:16,520 --> 00:00:19,119 Speaker 1: you by Sector Spider E T S Why by a 6 00:00:19,160 --> 00:00:21,560 Speaker 1: single stock and you can invest in the entire sector. 7 00:00:21,960 --> 00:00:25,200 Speaker 1: Visit sector spdrs dot com or call one eight six six. 8 00:00:25,280 --> 00:00:28,920 Speaker 1: Sector A T S stocks extended this week's advance. In 9 00:00:29,040 --> 00:00:31,960 Speaker 1: light pre holiday trading, The smp f I funded posted 10 00:00:32,000 --> 00:00:35,559 Speaker 1: its biggest weekly game since March. Banks, technology and consumer 11 00:00:35,600 --> 00:00:38,800 Speaker 1: discretionary shares led the way. Federal reserved her Janet yellin 12 00:00:38,840 --> 00:00:42,520 Speaker 1: sudden remarks at Harvard University that an improving economy would 13 00:00:42,520 --> 00:00:45,600 Speaker 1: probably warrant another rate increase in the coming months, and 14 00:00:45,680 --> 00:00:49,240 Speaker 1: that sent the dollar higher, weighing on commodity producers, which 15 00:00:49,280 --> 00:00:51,880 Speaker 1: at the markets every fifteen minutes down. Industrial average A 16 00:00:52,040 --> 00:00:54,959 Speaker 1: rose forty five points a quarter percent to close out 17 00:00:54,960 --> 00:00:58,240 Speaker 1: the week at seventeen thousand, eight hundred seventy three. Smp 18 00:00:58,280 --> 00:01:00,200 Speaker 1: f i've founded up nine points four time of a 19 00:01:00,280 --> 00:01:03,000 Speaker 1: percent to two thousand ninety nine. Then as that game 20 00:01:03,080 --> 00:01:05,160 Speaker 1: thirty two points two thirds of a percent to close 21 00:01:05,200 --> 00:01:09,040 Speaker 1: at forte less Texas Centermedia Crude oil up three cents 22 00:01:09,040 --> 00:01:12,600 Speaker 1: of barrel to one spout, goal down nine dollars ten 23 00:01:12,600 --> 00:01:16,280 Speaker 1: cents ance to twelve thirteen sixty, the tenure treasury down 24 00:01:16,319 --> 00:01:18,320 Speaker 1: six thirty seconds with the yield of one point eight 25 00:01:18,360 --> 00:01:23,880 Speaker 1: five And that's a Bloomberg business flash. Yourmous ranted taking 26 00:01:23,920 --> 00:01:27,320 Speaker 1: start with Kathleen Hayes and Pim Fox on Bloomberg Radio. 27 00:01:28,280 --> 00:01:32,959 Speaker 1: Kuroshima a beautiful city in western Hanshu, the largest island 28 00:01:32,959 --> 00:01:35,520 Speaker 1: of Japan, of course, best known as the first city 29 00:01:35,520 --> 00:01:38,280 Speaker 1: in history to be targeted by a nuclear weapon, when 30 00:01:38,280 --> 00:01:42,000 Speaker 1: the United States Army Air Force dropped an atomic bomb 31 00:01:42,040 --> 00:01:44,920 Speaker 1: on the city at eight fifteen am August six nine, 32 00:01:46,120 --> 00:01:49,800 Speaker 1: nearly seventy one years later, President of Rock Obama used 33 00:01:49,800 --> 00:01:51,880 Speaker 1: the backdrop of the city's Memorial Peace Park to call 34 00:01:52,040 --> 00:01:55,440 Speaker 1: for call for a world without such weapons. He did 35 00:01:55,440 --> 00:01:59,080 Speaker 1: not apologize for America's use of atomic weapons during the war, 36 00:01:59,120 --> 00:02:01,520 Speaker 1: but he did express more for the human toll of 37 00:02:01,520 --> 00:02:03,760 Speaker 1: that war. And of course, this is part of his 38 00:02:04,160 --> 00:02:07,600 Speaker 1: trip to Japan to be part of the G seven 39 00:02:07,720 --> 00:02:11,560 Speaker 1: Summit of global leaders are very happy now to welcome 40 00:02:11,560 --> 00:02:13,920 Speaker 1: to the show to talk about the significance of his visit. 41 00:02:13,960 --> 00:02:16,160 Speaker 1: What was or wasn't accomplished at the G seven meeting, 42 00:02:16,360 --> 00:02:19,320 Speaker 1: Scott Seaman a senior analyst for you a Eurasia for 43 00:02:19,440 --> 00:02:23,360 Speaker 1: Asia excuse me, at the Eurasia Group. Scott, welcome, Thank you. 44 00:02:23,680 --> 00:02:27,040 Speaker 1: How significant is this to Japan, to the Japanese into 45 00:02:27,040 --> 00:02:31,320 Speaker 1: relationships between the two countries. I think it's hugely significant. 46 00:02:31,639 --> 00:02:33,639 Speaker 1: You know, I picked up on one thing in particular. 47 00:02:33,720 --> 00:02:37,919 Speaker 1: There was an older Japanese gentleman who I believe was 48 00:02:38,280 --> 00:02:41,919 Speaker 1: the leader of one of the groups of survivors from 49 00:02:41,919 --> 00:02:45,000 Speaker 1: the atomic bomb and Uh. I think the simple statement 50 00:02:45,040 --> 00:02:48,040 Speaker 1: that he started with was that he never expected to 51 00:02:48,080 --> 00:02:52,600 Speaker 1: see the US president visit Kidroshima in his lifetime. UH. 52 00:02:52,639 --> 00:02:55,359 Speaker 1: And there was there was no demand of an apology, 53 00:02:55,360 --> 00:02:57,720 Speaker 1: and of course the US made it clear that they 54 00:02:57,720 --> 00:03:01,560 Speaker 1: were not prepared to offer one. But overall, I think 55 00:03:01,600 --> 00:03:05,680 Speaker 1: this adds uh, you know, some closure uh to the 56 00:03:05,680 --> 00:03:09,400 Speaker 1: war and and certainly shows how far the two countries 57 00:03:09,440 --> 00:03:12,160 Speaker 1: have come since then. Scott of money, if you could 58 00:03:12,240 --> 00:03:16,760 Speaker 1: speak to the issues facing the G seven leaders and 59 00:03:17,000 --> 00:03:23,880 Speaker 1: what will Prime Minister Snobe be well for for Abe, 60 00:03:23,919 --> 00:03:27,720 Speaker 1: I think this this was an opportunity, certainly for him 61 00:03:27,880 --> 00:03:31,600 Speaker 1: to UH talk about the global economy. He wanted to 62 00:03:31,720 --> 00:03:34,400 Speaker 1: use this meeting as a way to tee up a 63 00:03:34,440 --> 00:03:37,320 Speaker 1: decision that we think he's very likely to make, and 64 00:03:37,360 --> 00:03:40,720 Speaker 1: that's to postpone a consumption tax hike that they've had 65 00:03:40,720 --> 00:03:45,880 Speaker 1: planned for some time that would be implemented next spring. UH. 66 00:03:45,920 --> 00:03:47,960 Speaker 1: He has not been keen on going ahead with that, 67 00:03:48,240 --> 00:03:50,640 Speaker 1: and one of the things that he wanted to accomplish 68 00:03:50,640 --> 00:03:54,400 Speaker 1: at this summit was to really highlight the theme that 69 00:03:54,520 --> 00:03:57,840 Speaker 1: the global economy UH is not doing well. And one 70 00:03:57,840 --> 00:04:00,400 Speaker 1: of the things that Japan can do to cont tribute 71 00:04:00,400 --> 00:04:03,760 Speaker 1: to efforts to UH to to kind of spurred growth 72 00:04:04,440 --> 00:04:08,240 Speaker 1: is to hold off on its own tax increased plans. 73 00:04:08,280 --> 00:04:11,760 Speaker 1: So UH, in terms of geopolitics, that's one of the 74 00:04:11,760 --> 00:04:14,760 Speaker 1: things that takes place when that's the G seven. You know, 75 00:04:14,920 --> 00:04:16,599 Speaker 1: when it's the heads of state meeting, you know, the 76 00:04:16,600 --> 00:04:18,920 Speaker 1: finance ministers meet, the central bankers meet, they can hammer 77 00:04:18,920 --> 00:04:24,040 Speaker 1: out more the nets of volts on on economic policies. UH. 78 00:04:24,440 --> 00:04:26,720 Speaker 1: If we were to go back twenty years ago or so, 79 00:04:26,920 --> 00:04:29,920 Speaker 1: we would be hammering on the Japanese for their currency 80 00:04:30,080 --> 00:04:33,880 Speaker 1: right for for keeping it too weak versus our dollar. 81 00:04:34,240 --> 00:04:36,640 Speaker 1: That mantel kind of shifted to China with the the 82 00:04:36,760 --> 00:04:40,080 Speaker 1: US focus. But uh, the g one of the taught 83 00:04:40,120 --> 00:04:44,400 Speaker 1: geopolitical issues is between China and Japan and the disputed territories. 84 00:04:44,720 --> 00:04:47,520 Speaker 1: Did anything come out of this that moves that forward 85 00:04:47,680 --> 00:04:52,560 Speaker 1: that they'd intensifies that struggle? I don't, Well, they're there 86 00:04:52,600 --> 00:04:55,880 Speaker 1: are a couple of different disputes, um. The one that 87 00:04:56,040 --> 00:04:59,680 Speaker 1: is is a bilateral dispute between China and Japan over 88 00:04:59,720 --> 00:05:03,360 Speaker 1: the Sankako Islands in the East China. See that that 89 00:05:03,400 --> 00:05:07,000 Speaker 1: has obviously been something that has really soured relations between 90 00:05:07,040 --> 00:05:10,400 Speaker 1: the two countries for several years now. Uh. And I 91 00:05:10,440 --> 00:05:14,479 Speaker 1: don't think that there was any particular effort during this 92 00:05:14,600 --> 00:05:18,000 Speaker 1: summit to to move ahead on on, you know, some 93 00:05:18,040 --> 00:05:20,560 Speaker 1: sort of reconciliation there. I think it's just kind of 94 00:05:20,600 --> 00:05:24,479 Speaker 1: a stable situation. But the bigger objective was really for 95 00:05:24,640 --> 00:05:28,280 Speaker 1: Abe and others to put a little more emphasis on 96 00:05:28,520 --> 00:05:31,680 Speaker 1: conflicts that are brewing in the South China see uh. 97 00:05:31,720 --> 00:05:35,560 Speaker 1: And Japan doesn't have a direct involvement in in territorial 98 00:05:35,920 --> 00:05:38,359 Speaker 1: disputes there, but certainly sees it as an area that 99 00:05:38,480 --> 00:05:41,880 Speaker 1: needs to remain stable because it's just such an important 100 00:05:41,960 --> 00:05:46,120 Speaker 1: area for for trade and transport. Well Scott, in that context, 101 00:05:46,120 --> 00:05:48,320 Speaker 1: I want to bring in a South Korea as well 102 00:05:48,360 --> 00:05:51,960 Speaker 1: as China. Are they concerned that the President's visit to 103 00:05:52,080 --> 00:05:56,080 Speaker 1: Japan could be taken by the Japanese as sort of 104 00:05:56,160 --> 00:05:59,320 Speaker 1: drawing a line underneath their efforts to come to grips 105 00:05:59,360 --> 00:06:03,320 Speaker 1: with their own wartime activities in places such as Korea 106 00:06:03,400 --> 00:06:07,640 Speaker 1: and China. Um. You know, that definitely was a concern, 107 00:06:07,800 --> 00:06:10,960 Speaker 1: And I think as I read the speech today that 108 00:06:11,000 --> 00:06:15,080 Speaker 1: the President gave at Hiroshima, it seemed as if there 109 00:06:15,200 --> 00:06:18,880 Speaker 1: was a great deal of thought put into trying to 110 00:06:19,080 --> 00:06:22,200 Speaker 1: make what he said as broad in terms of kind 111 00:06:22,200 --> 00:06:24,040 Speaker 1: of the time that it covered as well as as 112 00:06:24,080 --> 00:06:27,040 Speaker 1: kind of the geographic space that it covered. Um No, 113 00:06:27,160 --> 00:06:30,640 Speaker 1: I mean Obama did not want to kind of feed 114 00:06:30,680 --> 00:06:35,520 Speaker 1: into UH the impression that people in other countries in Asia, 115 00:06:35,600 --> 00:06:38,159 Speaker 1: especially China South Korea had that maybe this was going 116 00:06:38,200 --> 00:06:43,320 Speaker 1: to be an event that would identify Japan as as 117 00:06:43,320 --> 00:06:45,840 Speaker 1: the victim of World War two rather than UH than 118 00:06:45,880 --> 00:06:49,359 Speaker 1: other countries. But I think the the what he said 119 00:06:49,480 --> 00:06:53,560 Speaker 1: seemed to include UH people who were victims of the 120 00:06:53,600 --> 00:06:55,479 Speaker 1: war as a whole. So I think that they took 121 00:06:55,560 --> 00:06:58,040 Speaker 1: great pains to make sure that they didn't single Japan 122 00:06:58,040 --> 00:07:00,560 Speaker 1: out as a victim. Just real quick, Well Abby, get 123 00:07:00,600 --> 00:07:04,800 Speaker 1: this this backing off of that consumption tax increase. Yes, um, 124 00:07:05,000 --> 00:07:09,120 Speaker 1: so the way I see it, the diet session ends 125 00:07:09,600 --> 00:07:13,440 Speaker 1: next Tuesday, June one. He's expected at a press conference 126 00:07:13,440 --> 00:07:17,960 Speaker 1: following that to announce a postponement of that tax hike. Uh. 127 00:07:18,000 --> 00:07:19,640 Speaker 1: And then it would just be a matter of getting 128 00:07:19,680 --> 00:07:23,240 Speaker 1: his government to change legislation around that next fall. Thank 129 00:07:23,280 --> 00:07:26,320 Speaker 1: you very much. Scott Seaman. He is senior analyst for 130 00:07:26,400 --> 00:07:29,840 Speaker 1: Asia for the Eurasia Group. Joining us from Washington, d C. 131 00:07:30,360 --> 00:07:33,760 Speaker 1: Home to Bloomberg and one oh five point seven h 132 00:07:34,000 --> 00:07:38,520 Speaker 1: D two. 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