WEBVTT - The State of US-Japan Relations

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

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<v Speaker 2>Welcome to the Daybreak Asia podcast. I'm Doug Chrisner. On

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<v Speaker 2>today's episode, we'll check in on US Japan relations as

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<v Speaker 2>the Biden administration's time and office comes to a close.

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<v Speaker 2>We'll be hearing in a moment from US Ambassador to Japan,

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<v Speaker 2>Rama Manuel. But let's begin with markets in the States.

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<v Speaker 2>On Friday, economist at some of the big banks in

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<v Speaker 2>the States began reducing their forecast on the number of

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<v Speaker 2>FED rate cuts after that blowout jobs report in December,

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<v Speaker 2>the American economy added the most jobs since March, and

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<v Speaker 2>the unemployment rate fell unexpectedly down to four point one percent.

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<v Speaker 2>Joining us now is James Abata. He is managing director

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<v Speaker 2>also the CIO at Center Asset Management. James joins us

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<v Speaker 2>from here in New York. Thank you for taking the

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<v Speaker 2>time to chat with us. Happy New Year to you.

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<v Speaker 3>I've been near it to you, Doug, Thank you.

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<v Speaker 2>I was struck by the fact that Bank of America,

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<v Speaker 2>among the big banks, no longer sees any rate cuts

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<v Speaker 2>this year. Do you think that's overdoing it just a bit?

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<v Speaker 3>I think so. My belief is that the FED has

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<v Speaker 3>been really following the market, and if you look at

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<v Speaker 3>two year Treasury note yields at this point in time,

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<v Speaker 3>there are about twenty five basis points lower than where

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<v Speaker 3>the Fed funds rate is today. So our expectations that

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<v Speaker 3>the Fed will move one more time twenty five basis

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<v Speaker 3>points and then, assuming no other surprises in terms of information,

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<v Speaker 3>see the Fed actually just stay at that four to

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<v Speaker 3>twenty five level for the foreseeable future until they see

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<v Speaker 3>Trump policies come to fruition. And what you really need

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<v Speaker 3>to see is a continuation of the labor market remaining

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<v Speaker 3>stable in this type of environment.

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<v Speaker 2>I think it's fair to say that the equity market

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<v Speaker 2>is looking at the longer end of the curve right now,

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<v Speaker 2>and that tenure was up to four seventy five Friday.

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<v Speaker 2>As we get closer to five percent, is there a

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<v Speaker 2>question in your mind as to whether or not we

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<v Speaker 2>could see maybe some corrective behavior on the part of

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<v Speaker 2>the equity market.

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<v Speaker 3>It's possible, but let's put everything in perspective. I mean,

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<v Speaker 3>just because there's stronger growth in the services side of

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<v Speaker 3>the economy, let's not forget that the ISM manufacturing index

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<v Speaker 3>has been in negative territory for over a year now,

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<v Speaker 3>so we have a dichotomy of fortunes between the manufacturing

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<v Speaker 3>sectors and the services sector. And going back to your

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<v Speaker 3>point with regard to long term bonds, I mean, the

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<v Speaker 3>move that we've had in yields has not been driven

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<v Speaker 3>by inflation per se, but really a normalization of the

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<v Speaker 3>term premium or simply the spread between long and short

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<v Speaker 3>term rates. I mean, eighty percent of the recent increase

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<v Speaker 3>in treasure yield has come from those rising term premium.

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<v Speaker 3>So I think despite the hysteria, I mean, the term

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<v Speaker 3>premium right now is still below the normal one to

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<v Speaker 3>two percent that existed from the nineteen nineties the global

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<v Speaker 3>financial crisis. So I think when you look at other areas,

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<v Speaker 3>you know, credit risk premiums and equity risk premiums are low.

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<v Speaker 3>But at this stage, you know, markets are priced for perfection,

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<v Speaker 3>both in credit and equities. But I don't think the

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<v Speaker 3>long term bond market, treasury market that is, is enough

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<v Speaker 3>yet to basically crystallize any type of significant ramifications on

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<v Speaker 3>the order of, let's say, in nineteen eighty seven crashes.

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<v Speaker 3>Things along those lines.

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<v Speaker 2>We're going to be hearing from some of the big

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<v Speaker 2>banks this week. They'll report earnings. City Group Goldman Sacks

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<v Speaker 2>on the list. How do you think the yield curve

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<v Speaker 2>in the way that it's been adjusted lately is going

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<v Speaker 2>to impact the results of the big banks?

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<v Speaker 3>Well, that's the point. I mean, obviously, it's the big

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<v Speaker 3>move that we've had in this term premium rising has

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<v Speaker 3>only occurred over the last several weeks. But when you

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<v Speaker 3>look out further, I would expect that the net interest

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<v Speaker 3>margin expectations of forecasts many of these major banks is

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<v Speaker 3>actually going to be quite healthy, and that's going to

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<v Speaker 3>go long way to type, let's say, offsetting the continuing

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<v Speaker 3>credit problems that we're seeing in the commercial real estate

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<v Speaker 3>and some of the emerging issues which are starting to

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<v Speaker 3>bubble up in certain segments of the consumers. So overall,

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<v Speaker 3>when you look at where we are this I think

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<v Speaker 3>Chairman Powell has done and to be fair to Chairman Powell,

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<v Speaker 3>I think he's done a reasonably good job, and he's

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<v Speaker 3>targeting back to getting monetary policy to the levels where

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<v Speaker 3>it was back in the nineteen nineties with stable inflation,

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<v Speaker 3>stable term premiums. And you know, more importantly, you know

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<v Speaker 3>with regard to you know, the unknowns with regard to

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<v Speaker 3>tariffs and other Trump policies. You know, the way the

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<v Speaker 3>executive branch is now, I mean, the executive branch has

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<v Speaker 3>unilateral authority to implement tariffs. This is not something that

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<v Speaker 3>needs to go to Congress. So he has to be

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<v Speaker 3>aware of, you know, shifting policies that can come out

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<v Speaker 3>of the Trump administration in any day.

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<v Speaker 2>So if they come to fruition, is it more likely

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<v Speaker 2>that the net impact is inflationary.

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<v Speaker 3>We have to get out of the mindset where growth

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<v Speaker 3>automatically equals inflation. And you know, the argument about whether

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<v Speaker 3>or not, you know, tariffs are inflationary, you know, is

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<v Speaker 3>not yet rooted in economic science to a certain degree.

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<v Speaker 3>And I think, you know, one of the key things

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<v Speaker 3>that we have to look at is potentially the contradictions

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<v Speaker 3>that we're going to see. You know, I think one

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<v Speaker 3>of the things that we always have to be aware

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<v Speaker 3>of is, you know, if Trump is genuine in the

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<v Speaker 3>sense that he wants to have labor reclaim a share

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<v Speaker 3>of economic wealth like he did with just siding with

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<v Speaker 3>the recent Long Shorman's union strike because of automation, Obviously

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<v Speaker 3>that's bad for corporate profits and it has a negative

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<v Speaker 3>impact on inflation. And you know, from that perspective. You

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<v Speaker 3>know what we have to really look at, I would

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<v Speaker 3>say in terms of a guidepost in terms of inflation

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<v Speaker 3>and markets and other things. I think the key thing

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<v Speaker 3>to watch is Trump's relationship with the nominated Treasury Secretary

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<v Speaker 3>Scott Bessen. He's a very thoughtful conservative and not impulsey,

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<v Speaker 3>and if that's a phrase, I think that's bad news

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<v Speaker 3>for financial assets and stock markets in general.

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<v Speaker 2>So we had some news over the weekend. The deadline

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<v Speaker 2>for Nipon Steel to abandon its bid for usteal has

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<v Speaker 2>been extended scifius. The Committee on Foreign Investment in the

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<v Speaker 2>US has given the companies now until June eighteenth. And

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<v Speaker 2>then I saw a report in the NIKE indicating that

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<v Speaker 2>Prime Minister Ishiba is planning to visit the US in

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<v Speaker 2>the first half of February to meet with then President

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<v Speaker 2>Trump and they may end up discussing this Nipon bid

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<v Speaker 2>for US steal. Is it too soon to talk about

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<v Speaker 2>the possibility that this dal may get done?

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<v Speaker 3>I actually, after I saw that news, crystallized in my

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<v Speaker 3>mind that the deal indeed will get done. Japan is

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<v Speaker 3>just too important of an ally of the United States. Furthermore,

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<v Speaker 3>the deal makes a lot of sense. The only other

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<v Speaker 3>alternative is either to just let us Steal continue to

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<v Speaker 3>operate and don't have the capacity to modernize many of

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<v Speaker 3>their last furnace mills. The other is in'saction with Cleveland Cliffs,

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<v Speaker 3>with would basically give in essence and monopoly to old

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<v Speaker 3>school steelmaking in the United States to one company who

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<v Speaker 3>doesn't really have the same financial resources and the commitment

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<v Speaker 3>to capital investment that Nipon does. So I think at

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<v Speaker 3>some point we're going to see this deal get done.

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<v Speaker 3>It's obviously been enmeshed in the political fight that we've

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<v Speaker 3>seen between President Biden and President elect Trump, both of

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<v Speaker 3>them wanting to obviously side with Union against the foreign purchaser.

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<v Speaker 3>But at the end of the day, the deal makes sense,

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<v Speaker 3>and Japan is too important of an ally, and I

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<v Speaker 3>think the deal will get done.

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<v Speaker 2>We were talking a moment ago about tariffs, obviously many

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<v Speaker 2>targeting China, and then there's this issue with TikTok. The

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<v Speaker 2>app as we know, is said to be shut down

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<v Speaker 2>in the US next week. Last Friday, the Supreme Court

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<v Speaker 2>seemed to signal it is unlikely to grant a reprieve

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<v Speaker 2>to TikTok from that US law banning the app unless

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<v Speaker 2>it is divested on the part of its Chinese owner

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<v Speaker 2>Bike Dance. What do you think the road ahead is

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<v Speaker 2>for US China relations?

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<v Speaker 3>You know, I'm not sure, and you know, the reality

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<v Speaker 3>is the majority owner of the controlling owner of TikTok

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<v Speaker 3>is not a Communist Party member. I don't really have

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<v Speaker 3>a strong opinion on how this is going to shake out.

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<v Speaker 3>I think, you know, if it was up to me,

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<v Speaker 3>and I'm an old person, maybe just put a simple

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<v Speaker 3>warning that if you want to become an imbecile watching

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<v Speaker 3>TikTok videos all day, God bless you. And that's enough

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<v Speaker 3>of a warning for people to, you know, to avoid

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<v Speaker 3>TikTok in itself.

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<v Speaker 2>What about in terms of the impact on US China relations.

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<v Speaker 2>I mean, obviously we were talking about the tear of

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<v Speaker 2>some moment ago. Do you think that this is going

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<v Speaker 2>to be four years now, as Trump comes into office

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<v Speaker 2>of further decoupling between these two powerhouses.

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<v Speaker 3>It's it's going to be interesting because what we have

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<v Speaker 3>to think about, right is that with regard to the

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<v Speaker 3>point that we've raised before, with regard to labor reclaiming

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<v Speaker 3>greater share in investment back into the United States, I mean,

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<v Speaker 3>the reason why we've had you always have to go

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<v Speaker 3>back to this. The reason why we've had an unprecedented

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<v Speaker 3>bull market, you know, since the nineteen nineties, and you know, really,

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<v Speaker 3>you know significantly since China's ascension into the WTO is

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<v Speaker 3>the fact that labor share of income in the United

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<v Speaker 3>States has declined significantly, as have tax rates as well

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<v Speaker 3>as interest costs. So you know, this is the real

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<v Speaker 3>key with regard to contradictions that we'll see you out

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<v Speaker 3>of President Trump because you know it's wealth no. I mean,

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<v Speaker 3>he measures the stock market as his barometer of success

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<v Speaker 3>and to the extent that you know inbound investment, higher

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<v Speaker 3>labor costs are not good for stock prices per se.

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<v Speaker 3>I think that's going to basically be a governor on

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<v Speaker 3>how aggressive he will be with regard to tariffs in

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<v Speaker 3>China and recognition that again, you know, he needs also

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<v Speaker 3>inbound investment. I think will likely see some type of

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<v Speaker 3>middle akin to what happened with Japan in the mid

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<v Speaker 3>nineteen eighties, whereby you'll see more inbound investment in the

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<v Speaker 3>United States by Chinese companies to compliment not the substitute,

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<v Speaker 3>but to compliment some of their own export activities.

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<v Speaker 2>Great insights. James, thank you so much for being with us.

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<v Speaker 2>James Abonte, Managing Director ce IO at Center Asset Management,

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<v Speaker 2>joining us here on the Daybreak Asia Podcast. Welcome back

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<v Speaker 2>to the Daybreak Asia Podcast. I'm Doug Prisner, the US

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<v Speaker 2>Ambassador to Japan. Ram Emanuel will be stepping down from

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<v Speaker 2>his post and he will return to the US January fourteenth,

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<v Speaker 2>as his time in Japan comes to a close. He

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<v Speaker 2>joined Bloomberg to reflect on the current state of relations

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<v Speaker 2>between Washington and Tokyo. Here's Emmanuel in conversation with Bloombergh,

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<v Speaker 2>sherry On and Heidi Stroud Watts.

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<v Speaker 1>So, how are you feeling?

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<v Speaker 4>A sense of accomplishment also a sense of kind of

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<v Speaker 4>you know, it's been three years almost to the day.

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<v Speaker 4>We've got a tremendous amount of setting what I believe

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<v Speaker 4>that the relationship has been reinvigorated, re energized and reformed

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<v Speaker 4>and better prepared for the future. And you hand your

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<v Speaker 4>paton off. But at the same as I jokingly say, well,

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<v Speaker 4>it's been three years for the Japanese, it's felt like thirty.

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<v Speaker 1>And you've actually said that, you said at the start

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<v Speaker 1>of your tenure that the next three years would be

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<v Speaker 1>very consequential for the next thirty. Right, how much has

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<v Speaker 1>been achieved and how much more could have been achieved?

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<v Speaker 1>Are there any areas that you would have lied to

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<v Speaker 1>have done more well?

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<v Speaker 4>I mean you hand off the baton. It's not like

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<v Speaker 4>you run a race and you hit an equilimbrium and

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<v Speaker 4>there's a finish line. The question is where was the

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<v Speaker 4>relationship beforehand? Where is it when you walk off exit

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<v Speaker 4>to the stage. And I think as a totality, whether

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<v Speaker 4>you look at diplomatic front the two trilts that we've

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<v Speaker 4>created with Japan, the United States, Korea, Japan, the United

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<v Speaker 4>States and the Philippines, you look at the security arrangement,

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<v Speaker 4>the cooperation, the type of exercises we do, and integration

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<v Speaker 4>in our forces. Everything has been re energized and reinmigrated

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<v Speaker 4>and better prepared to reflect a credibility of deterrence to

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<v Speaker 4>China and to North Korea. Taking one example, last week,

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<v Speaker 4>when North Korea shot off another ICBM, both the Republic

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<v Speaker 4>of Korea, the United States, and Japan were sharing intel

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<v Speaker 4>in real time, just one manifestation of a reflection of

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<v Speaker 4>that didn't exist three years ago. In the same way

0:12:39.559 --> 0:12:42.800
<v Speaker 4>that the President of the United States and the Philippine

0:12:42.800 --> 0:12:46.600
<v Speaker 4>president and the Japanese Prime Minister had a conference call

0:12:47.120 --> 0:12:51.040
<v Speaker 4>and discussing maritime issues in the South China. See, that

0:12:51.120 --> 0:12:53.760
<v Speaker 4>kind of coordination didn't exist. And one of the things

0:12:53.800 --> 0:12:56.760
<v Speaker 4>I think also changed in a subtle point. A lot

0:12:56.840 --> 0:12:58.440
<v Speaker 4>of times when you think of the terms, you think

0:12:58.440 --> 0:13:04.640
<v Speaker 4>about battleships planes having a trilateral with Korea, the United States,

0:13:04.640 --> 0:13:06.520
<v Speaker 4>and Japan, or one with the Philippines, Japan and the

0:13:06.559 --> 0:13:09.760
<v Speaker 4>United States. That also is de terms because China's whole

0:13:09.800 --> 0:13:14.520
<v Speaker 4>strategy is to isolate X country through our multilateral strategy

0:13:14.600 --> 0:13:17.000
<v Speaker 4>and our lattice work. China is the isolated party in

0:13:17.040 --> 0:13:17.840
<v Speaker 4>their own backyard.

0:13:18.000 --> 0:13:20.680
<v Speaker 1>We have seen the first administration of President Trump though,

0:13:20.760 --> 0:13:24.320
<v Speaker 1>how he engaged with these rogue nations, including North Koreas

0:13:24.400 --> 0:13:26.840
<v Speaker 1>King Youngman, is that going to be a threat to

0:13:27.160 --> 0:13:28.680
<v Speaker 1>everything that's been built so far?

0:13:29.000 --> 0:13:31.800
<v Speaker 4>Well, you know, I try to I hate using sports menaphors,

0:13:31.840 --> 0:13:35.160
<v Speaker 4>but as what I let me try this one is

0:13:35.840 --> 0:13:38.800
<v Speaker 4>that the Indo Pacific is a home game for China,

0:13:38.920 --> 0:13:40.880
<v Speaker 4>it's an away game for the United States. You want

0:13:40.880 --> 0:13:42.760
<v Speaker 4>to level the playing field a little of the competition

0:13:43.360 --> 0:13:46.120
<v Speaker 4>you have allies. The one thing China doesn't have anywhere

0:13:46.160 --> 0:13:53.360
<v Speaker 4>in the world, and specifically in their own backyard Australia, Japan, Singapore, Korea, Philippines, India.

0:13:53.800 --> 0:13:55.959
<v Speaker 4>They do not want to untether China. They want the

0:13:56.040 --> 0:13:59.319
<v Speaker 4>United States anchored here. That's a huge strategic advantage for

0:13:59.360 --> 0:14:02.679
<v Speaker 4>the United States. We can project our deterrens to credibility,

0:14:02.760 --> 0:14:05.680
<v Speaker 4>so China doesn't try to do something either through economic coercion,

0:14:06.040 --> 0:14:08.480
<v Speaker 4>political coercion, or military coercion.

0:14:09.320 --> 0:14:12.960
<v Speaker 5>Ambassora, you mentioned a number of countries that have vested

0:14:13.000 --> 0:14:15.680
<v Speaker 5>interests in this right. Do you think for countries like

0:14:15.720 --> 0:14:18.040
<v Speaker 5>Australia and some of the other I guess middle nations

0:14:18.120 --> 0:14:20.920
<v Speaker 5>around the region, is the alliance a sort of counter

0:14:21.080 --> 0:14:24.080
<v Speaker 5>alliance strong enough or do you think there needs to

0:14:24.080 --> 0:14:26.320
<v Speaker 5>be sort of more of an effort to work cohesively.

0:14:27.080 --> 0:14:29.680
<v Speaker 4>Well, you know, let me say this on the question

0:14:29.800 --> 0:14:32.320
<v Speaker 4>is you don't hit an equilibrium and that's it. It's

0:14:32.320 --> 0:14:35.360
<v Speaker 4>a work in project. You're always improving, you're always strengthening.

0:14:35.720 --> 0:14:38.680
<v Speaker 4>You have reciprocal agreements now between Japan and Australia that

0:14:38.720 --> 0:14:42.920
<v Speaker 4>didn't exist before. You have twelve coastcardships from Japan with

0:14:43.000 --> 0:14:46.040
<v Speaker 4>the Philippines another five. I think or six are on delivery.

0:14:46.800 --> 0:14:51.280
<v Speaker 4>You also have radar. You're constantly moving and improving your

0:14:51.400 --> 0:14:55.040
<v Speaker 4>deterrence and the credibility behind your deterrence and the effectiveness

0:14:55.080 --> 0:15:00.080
<v Speaker 4>on there. I do think when China began its wolf

0:15:00.120 --> 0:15:03.640
<v Speaker 4>warrior strategy on the diplomatic front and it's economic coercion

0:15:03.720 --> 0:15:07.480
<v Speaker 4>on the economic framework, all the countries in the region

0:15:07.600 --> 0:15:09.720
<v Speaker 4>realized and woke up to the fact that this was

0:15:09.800 --> 0:15:12.360
<v Speaker 4>not a benign China. This was a China that was

0:15:12.400 --> 0:15:15.600
<v Speaker 4>determined to crush their own sovereignty. That has helped in

0:15:15.600 --> 0:15:18.560
<v Speaker 4>the United States under President Biden, has effectively used that

0:15:18.680 --> 0:15:22.440
<v Speaker 4>threat to organize the region of like minded countries that

0:15:22.480 --> 0:15:25.120
<v Speaker 4>believe in the same set of principles to coordinate both

0:15:25.160 --> 0:15:29.480
<v Speaker 4>their security front, economic front, and their diplomatic slash political front.

0:15:29.720 --> 0:15:32.400
<v Speaker 4>And that's been done at an enhanced level and now

0:15:32.960 --> 0:15:35.600
<v Speaker 4>in China's own backyard, and they realize this. They are

0:15:35.600 --> 0:15:37.800
<v Speaker 4>the isolated party because of the mistakes they have made

0:15:37.840 --> 0:15:40.840
<v Speaker 4>in the policies they've adopted that have woken everybody up.

0:15:41.040 --> 0:15:43.400
<v Speaker 4>This is not a China that talks about win win.

0:15:43.600 --> 0:15:45.880
<v Speaker 4>The only thing they know is they win, you lose.

0:15:46.440 --> 0:15:50.240
<v Speaker 1>The Yui Shiba Cabinet we have a whole different political

0:15:50.320 --> 0:15:52.720
<v Speaker 1>landscape here in Japan as well. They're going to be

0:15:52.800 --> 0:15:56.120
<v Speaker 1>meeting with the new president, incoming President Trump. How do

0:15:56.160 --> 0:15:58.680
<v Speaker 1>you expect that relationship to shape up?

0:16:00.080 --> 0:16:02.280
<v Speaker 4>I mean the last person to ask that question.

0:16:03.320 --> 0:16:05.480
<v Speaker 1>I mean, I'm really curious about what sort of chemistry

0:16:05.520 --> 0:16:07.800
<v Speaker 1>we can expect. We saw the whole chemistry with a

0:16:08.160 --> 0:16:11.120
<v Speaker 1>former Prime Minister Abbe and President Trump, and you have

0:16:11.360 --> 0:16:15.560
<v Speaker 1>seen how governments here officials interacting Japan. Do you expect that?

0:16:15.840 --> 0:16:18.600
<v Speaker 1>And I guess a follow up to that is would

0:16:18.600 --> 0:16:21.920
<v Speaker 1>that have positive outcomes for the now delayed US seal

0:16:22.000 --> 0:16:23.480
<v Speaker 1>NIP and steel business relationship.

0:16:23.880 --> 0:16:26.280
<v Speaker 4>Here's what I think is it's not wrong to face

0:16:26.840 --> 0:16:30.800
<v Speaker 4>look at the two heads of state. As I saw firsthand,

0:16:30.920 --> 0:16:35.400
<v Speaker 4>President Biden and Prime Minister Kaushida have an incredibly warm

0:16:35.440 --> 0:16:40.120
<v Speaker 4>relationship that helped push both leaders farther than were their

0:16:40.160 --> 0:16:43.600
<v Speaker 4>comfort zones. That said, one of the things that people

0:16:43.800 --> 0:16:50.600
<v Speaker 4>lose sight of in the question, Japan has huge support

0:16:50.160 --> 0:16:54.160
<v Speaker 4>on the Hill Democrats and Republicans. That and having been

0:16:54.160 --> 0:16:56.720
<v Speaker 4>a congressman, haven't been a chief of staff that has

0:16:56.760 --> 0:16:59.440
<v Speaker 4>an impact on the construction of a national security visa

0:16:59.480 --> 0:17:02.720
<v Speaker 4>via country has a state too, but do not lose sight.

0:17:02.800 --> 0:17:07.080
<v Speaker 4>There's two countries that have huge bipartisan consensus, China on

0:17:07.080 --> 0:17:10.320
<v Speaker 4>one side, Japan on the other, and that will have

0:17:10.359 --> 0:17:13.800
<v Speaker 4>a big impact because by just one reference, in our

0:17:13.960 --> 0:17:19.160
<v Speaker 4>last three years, there have been one hun and eighty

0:17:19.160 --> 0:17:22.800
<v Speaker 4>plus members of Congress, two speakers have come through Japan.

0:17:23.280 --> 0:17:27.440
<v Speaker 4>And then second, you've had thirty governors. You've had an immense,

0:17:27.800 --> 0:17:32.080
<v Speaker 4>immense direct investment from Japan into the United States as

0:17:32.119 --> 0:17:33.639
<v Speaker 4>well as the United States in here. So you have

0:17:33.680 --> 0:17:35.920
<v Speaker 4>thirty governors who have a vested economic interest in good

0:17:35.920 --> 0:17:38.200
<v Speaker 4>relationship with Japan, and you have one hundred and eighty

0:17:38.240 --> 0:17:41.640
<v Speaker 4>members both Housing Seidate D and R who also want

0:17:41.720 --> 0:17:44.480
<v Speaker 4>to see our ally fully integrated into our strategy.

0:17:44.480 --> 0:17:47.320
<v Speaker 1>We're very more encouraging towards the Niplancio used still deal.

0:17:47.760 --> 0:17:50.640
<v Speaker 4>Well, look, here's the one thing I remarked to everybody,

0:17:51.400 --> 0:17:53.800
<v Speaker 4>and I think it's really kind of important. One is

0:17:53.840 --> 0:17:56.960
<v Speaker 4>the relationship is much deeper than a single business transaction.

0:17:57.440 --> 0:18:01.320
<v Speaker 4>Five years ago, Japan had the same words around to Shiba. Second,

0:18:02.200 --> 0:18:06.119
<v Speaker 4>the United States four months ago awarded a Japanese company

0:18:06.440 --> 0:18:08.959
<v Speaker 4>twenty billion dollar contract to replace all the cranes at

0:18:08.960 --> 0:18:13.200
<v Speaker 4>our ports. And get the Chinese cranes out. Second. Japan

0:18:13.359 --> 0:18:16.240
<v Speaker 4>is the only country that produces also a co production

0:18:16.359 --> 0:18:18.879
<v Speaker 4>on the Patriot Pac three. They've also a series of

0:18:18.960 --> 0:18:23.239
<v Speaker 4>other weapons systems. Nothing speaks more to trusted ally than

0:18:23.320 --> 0:18:27.240
<v Speaker 4>those examples. So is there a single economic transaction Tshiba

0:18:27.320 --> 0:18:30.439
<v Speaker 4>five years ago? Relationship is still strong. You look at

0:18:30.440 --> 0:18:33.960
<v Speaker 4>the nip on US deal today. The relationship is more

0:18:34.160 --> 0:18:38.240
<v Speaker 4>complex and deeper in the roots and friendship than just

0:18:38.320 --> 0:18:39.680
<v Speaker 4>a single economic transaction.

0:18:40.200 --> 0:18:43.520
<v Speaker 1>Ambassador, it was really great speaking to you, and thank

0:18:43.560 --> 0:18:45.800
<v Speaker 1>you very much for always joining us and always being

0:18:45.880 --> 0:18:49.520
<v Speaker 1>open to conversations with us. US Ambassador to Japan Ram Amamo.

0:18:51.240 --> 0:18:54.560
<v Speaker 2>Thanks for listening to today's episode of the Bloomberg Daybreak

0:18:54.760 --> 0:18:58.080
<v Speaker 2>Asia Edition podcast. Each weekday we look at the story

0:18:58.200 --> 0:19:02.480
<v Speaker 2>shaping markets, finance, and geopolitics in the Asia Pacific. You

0:19:02.600 --> 0:19:06.639
<v Speaker 2>can find us on Apple, Spotify, the Bloomberg Podcast YouTube channel,

0:19:06.800 --> 0:19:09.800
<v Speaker 2>or anywhere else you listen. Join us again tomorrow for

0:19:09.960 --> 0:19:13.399
<v Speaker 2>insight on the market moves from Hong Kong to Singapore

0:19:13.840 --> 0:19:17.600
<v Speaker 2>and Australia. I'm Doug Prisner, and this is Bloomberg