1 00:00:00,240 --> 00:00:07,200 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,400 --> 00:00:15,480 Speaker 2: This past weekend, history was made in Tokyo. Takaichi saks 3 00:00:15,680 --> 00:00:20,840 Speaker 2: must up. For the first time ever, the Liberal Democratic Party, 4 00:00:21,000 --> 00:00:25,840 Speaker 2: Japan's dominant conservative political machine, elected a woman to lead it. 5 00:00:26,560 --> 00:00:31,080 Speaker 1: So the winner was Sanaia Takaichi, and she is on 6 00:00:31,320 --> 00:00:35,120 Speaker 1: track to become Japan's first female prime minister. 7 00:00:35,520 --> 00:00:39,960 Speaker 2: Bloomberg's Paul Jackson covers Japan's government out of Tokyo. He 8 00:00:40,040 --> 00:00:43,839 Speaker 2: says Takeichi's victory all but guarantees her assent to the 9 00:00:43,840 --> 00:00:46,120 Speaker 2: Prime Minister's office in the coming days. 10 00:00:46,600 --> 00:00:50,920 Speaker 1: Generally speaking, the Prime Minister of japanan is the leader 11 00:00:51,120 --> 00:00:52,199 Speaker 1: of the LDP. 12 00:00:52,960 --> 00:00:57,440 Speaker 2: In many ways, Takeiichi is an unconventional leader in Japanese politics. 13 00:00:57,800 --> 00:01:01,440 Speaker 2: For starters, she's a woman in a country that consistently 14 00:01:01,520 --> 00:01:04,880 Speaker 2: ranks poorly for gender equality, but it goes beyond that. 15 00:01:05,520 --> 00:01:10,240 Speaker 2: She's a former heavy metal drummer and motorcycle enthusiast. She's 16 00:01:10,319 --> 00:01:13,000 Speaker 2: also a big fan of the late British Prime Minister 17 00:01:13,160 --> 00:01:17,399 Speaker 2: Margaret Thatcher and says she wants to be Japan's Iron Lady. 18 00:01:18,040 --> 00:01:22,320 Speaker 2: Takaichi is also known for her hardline nationalism, a tough 19 00:01:22,360 --> 00:01:25,720 Speaker 2: stance on China and close ties to the legacy of 20 00:01:25,760 --> 00:01:29,039 Speaker 2: former Prime Minister Shinzo Abe, And as Paul puts it, 21 00:01:29,240 --> 00:01:32,640 Speaker 2: her rise marks a more assertive Japan and sends a 22 00:01:32,680 --> 00:01:36,199 Speaker 2: clear message the country is shifting further to the right. 23 00:01:37,000 --> 00:01:41,840 Speaker 1: It's this idea that traditional Japanese values are being sacrificed 24 00:01:41,880 --> 00:01:44,280 Speaker 1: to some kind of global wokeness. 25 00:01:50,000 --> 00:01:53,760 Speaker 2: This is the Big Take Asia from Bloomberg News. I'm Wanha. 26 00:01:53,960 --> 00:01:56,320 Speaker 2: Every week we take you inside some of the world's 27 00:01:56,360 --> 00:02:00,320 Speaker 2: biggest and most powerful economies and the market's tycoon and 28 00:02:00,480 --> 00:02:05,040 Speaker 2: businesses that drive this ever shifting region. Today on the show, 29 00:02:05,240 --> 00:02:10,280 Speaker 2: Sinai Takeiichi. She's poised to become Japan's first woman prime minister, 30 00:02:10,880 --> 00:02:14,800 Speaker 2: but some Japanese women aren't thrilled about her politics, what 31 00:02:14,919 --> 00:02:18,440 Speaker 2: her rise to power means for Japan's economy and its 32 00:02:18,520 --> 00:02:27,880 Speaker 2: relations with the US. Japan's ruling parties election of a 33 00:02:27,919 --> 00:02:32,520 Speaker 2: conservative but pro stimulus leader sent shockwaves through global markets. 34 00:02:33,280 --> 00:02:37,160 Speaker 2: Japanese stocks soared on hopes of more government spending, while 35 00:02:37,200 --> 00:02:42,080 Speaker 2: currencies and bonds took a hit. Across Asia, markets rallied 36 00:02:42,440 --> 00:02:45,760 Speaker 2: as Sinai Takeiichi's win sets her to take the reins 37 00:02:45,960 --> 00:02:51,000 Speaker 2: as Japan's next Prime minister now Paul. Who is Sanai Takichi. 38 00:02:51,960 --> 00:02:57,280 Speaker 1: Well, she's the daughter of a salesman in Nada, one 39 00:02:57,320 --> 00:03:01,600 Speaker 1: of the ancient capitals of Japan, very much associated with 40 00:03:01,680 --> 00:03:06,200 Speaker 1: the introduction of Buddhism. It's the site of many ancient temples. 41 00:03:06,600 --> 00:03:09,720 Speaker 1: That's where she grows up. Her mother works for the 42 00:03:09,760 --> 00:03:15,040 Speaker 1: police force, and she's inspired by the example of Margaret Thatcher, 43 00:03:15,200 --> 00:03:18,720 Speaker 1: the first female prime minister in the UK. As she 44 00:03:18,760 --> 00:03:24,200 Speaker 1: grows up, she goes to university in Koba. There she 45 00:03:24,280 --> 00:03:27,560 Speaker 1: gets into biking. She's a bit of a biker. She's 46 00:03:27,600 --> 00:03:33,600 Speaker 1: also into heavy metal. She's very influenced by British rock 47 00:03:33,720 --> 00:03:38,200 Speaker 1: bands like Black Sabbath, Iron Maiden, and in fact she 48 00:03:38,280 --> 00:03:41,680 Speaker 1: gets into drumming as a heavy metal drummer. 49 00:03:41,760 --> 00:03:44,880 Speaker 2: At that time, she might be Japan's first heavy metal 50 00:03:45,000 --> 00:03:46,280 Speaker 2: drummer prime minister. 51 00:03:46,600 --> 00:03:51,360 Speaker 1: That's right. This eventually leads her to thinking about a 52 00:03:51,480 --> 00:03:56,800 Speaker 1: career in politics. She wins her first seat in parliament 53 00:03:56,880 --> 00:03:58,800 Speaker 1: in nineteen ninety three. 54 00:04:00,240 --> 00:04:02,960 Speaker 2: Now she is a protege of the late Prime ministration 55 00:04:03,120 --> 00:04:05,480 Speaker 2: zo Abbe, and said during the campaign that she wants 56 00:04:05,520 --> 00:04:09,600 Speaker 2: to be Japan's Iron Lady, reference to the UK's Margaret Thatcher. 57 00:04:10,160 --> 00:04:12,880 Speaker 2: What does this tell us, Paul about the kind of 58 00:04:12,960 --> 00:04:14,120 Speaker 2: leader she might be. 59 00:04:14,800 --> 00:04:19,040 Speaker 1: I think on the political and diplomatic side, she's going 60 00:04:19,120 --> 00:04:23,360 Speaker 1: to be wanting Japan to be more assertive, boost its 61 00:04:23,400 --> 00:04:29,720 Speaker 1: defense identity and also its influence in regional politics and 62 00:04:29,839 --> 00:04:35,600 Speaker 1: security issues. On the economic side, I think it's important 63 00:04:35,680 --> 00:04:40,680 Speaker 1: whenever we get these references to Margaret Thatcher to remember that, 64 00:04:40,920 --> 00:04:45,560 Speaker 1: you know, Margaret touch is very much neoliberal on the economics. Now, 65 00:04:45,560 --> 00:04:50,200 Speaker 1: this is very different from the LDP in Japan. It's 66 00:04:50,240 --> 00:04:54,359 Speaker 1: a big government with a lot of interventionist influence in 67 00:04:54,440 --> 00:04:58,719 Speaker 1: the economy. So in that respect, she differs very much 68 00:04:59,360 --> 00:05:02,839 Speaker 1: from my Margaret Thatcher, who is much more about smaller 69 00:05:02,880 --> 00:05:07,680 Speaker 1: government and reducing the footprint of the government in the economy. 70 00:05:09,240 --> 00:05:12,320 Speaker 2: Here's the thing about Takeichi. She is often labeled as 71 00:05:12,360 --> 00:05:15,919 Speaker 2: a hardline conservative, but her style leans more towards that 72 00:05:16,000 --> 00:05:18,840 Speaker 2: of a right wing populist in the style of Donald Trump. 73 00:05:19,480 --> 00:05:23,520 Speaker 2: She's challenging the establishment, calling out central bankers, and tapping 74 00:05:23,520 --> 00:05:28,839 Speaker 2: into public frustrations about immigration, over tourism and inflation. And 75 00:05:28,880 --> 00:05:32,960 Speaker 2: while Takeiichi's rise is historic for Japan, it's unclear whether 76 00:05:33,000 --> 00:05:36,240 Speaker 2: she'll bring about progress on women's issues and rights. 77 00:05:36,680 --> 00:05:40,640 Speaker 1: Now, she's a woman, and she does speak to some 78 00:05:41,520 --> 00:05:45,000 Speaker 1: of the kind of female fears and concerns and interests, 79 00:05:45,680 --> 00:05:50,839 Speaker 1: but you know, largely her policy front is very much 80 00:05:50,880 --> 00:05:56,360 Speaker 1: in line with a male conservative position. For example, one 81 00:05:56,400 --> 00:06:00,520 Speaker 1: of the hot issues in Japan in recent years has 82 00:06:00,600 --> 00:06:07,000 Speaker 1: been the surnames with families. Partners are obliged to take 83 00:06:07,040 --> 00:06:09,719 Speaker 1: the surname of the spouse. Now that you can choose 84 00:06:09,720 --> 00:06:13,200 Speaker 1: between the husband or the wife's name, but essentially you 85 00:06:13,320 --> 00:06:16,280 Speaker 1: have to choose that name and stick with it. So 86 00:06:16,640 --> 00:06:20,599 Speaker 1: there's been quite a movement to enable a husband and 87 00:06:20,640 --> 00:06:25,680 Speaker 1: wife to just stick with existing surnames after marriage. Now, 88 00:06:25,800 --> 00:06:31,000 Speaker 1: on this point, tac Ag is quite determined to stick 89 00:06:31,520 --> 00:06:36,000 Speaker 1: with the existing logic. No, no, no, you stick with 90 00:06:36,240 --> 00:06:40,320 Speaker 1: one surname, that's it. This seems for many women like 91 00:06:40,560 --> 00:06:45,360 Speaker 1: she's holding back women's rights on names. Obviously, in terms 92 00:06:45,440 --> 00:06:50,280 Speaker 1: of other subjects like gay marriage or rights for a 93 00:06:50,440 --> 00:06:55,839 Speaker 1: more diverse community, she's generally against going in that direction. 94 00:06:56,760 --> 00:07:00,320 Speaker 2: But Paul says she still has an opportunity to open 95 00:07:00,400 --> 00:07:02,400 Speaker 2: the door for women in politics. 96 00:07:02,960 --> 00:07:06,599 Speaker 1: Now, what we'll wait to see is how this cabinet 97 00:07:06,800 --> 00:07:09,600 Speaker 1: is made up. So she has a chance to make 98 00:07:09,640 --> 00:07:13,040 Speaker 1: a can of mission statement there by having a lot 99 00:07:13,120 --> 00:07:15,800 Speaker 1: of women in the cabinet. Five or more would match 100 00:07:15,880 --> 00:07:18,960 Speaker 1: the previous record. I think if she did, that would 101 00:07:19,000 --> 00:07:20,960 Speaker 1: reassure a lot of women. 102 00:07:21,320 --> 00:07:24,800 Speaker 2: And on the campaign trail, she made some progressive promises 103 00:07:24,960 --> 00:07:28,160 Speaker 2: that would bring more women into the workforce, which could 104 00:07:28,160 --> 00:07:30,360 Speaker 2: help turn around Japan's labor shortage. 105 00:07:30,720 --> 00:07:35,440 Speaker 1: She has mentioned some policies that would be favorable for 106 00:07:35,720 --> 00:07:41,360 Speaker 1: people dealing with childcare. She suggested that babysitting charges should 107 00:07:41,360 --> 00:07:45,559 Speaker 1: be made tax deductible. I think also she's offering tax 108 00:07:45,640 --> 00:07:50,440 Speaker 1: breaks to companies that set up daycare on site at 109 00:07:50,440 --> 00:07:53,600 Speaker 1: their companies. Again, that would be a huge help to 110 00:07:54,000 --> 00:07:55,600 Speaker 1: working mothers out there. 111 00:07:56,680 --> 00:07:59,360 Speaker 2: I mean, in the broader scheme of japan politics, is 112 00:07:59,400 --> 00:08:02,200 Speaker 2: she really that conservative at this moment in time or 113 00:08:02,280 --> 00:08:04,880 Speaker 2: are her views in some ways quite populist. 114 00:08:05,200 --> 00:08:09,240 Speaker 1: I think they are close to populist. I guess our 115 00:08:09,280 --> 00:08:12,520 Speaker 1: definition of that would be can you reach the boardroom 116 00:08:12,680 --> 00:08:17,760 Speaker 1: and can you reach the factory floor? And she probably 117 00:08:17,800 --> 00:08:21,680 Speaker 1: can in that respect. What we saw in her campaign 118 00:08:21,840 --> 00:08:26,200 Speaker 1: this time around compared with last year is she toned 119 00:08:26,240 --> 00:08:30,680 Speaker 1: down some of her economic policy messaging and kind of 120 00:08:30,760 --> 00:08:35,040 Speaker 1: gave us a softer view of who she was. I 121 00:08:35,080 --> 00:08:38,480 Speaker 1: think the idea there was to appeal to a wider 122 00:08:38,720 --> 00:08:42,559 Speaker 1: sway of the ruling party and to the public as well. 123 00:08:43,120 --> 00:08:46,120 Speaker 1: So it remains to be seen whether you know, she 124 00:08:46,200 --> 00:08:49,720 Speaker 1: comes into power and then takes off her cheap clothing 125 00:08:49,720 --> 00:08:53,280 Speaker 1: and there's the wolf, or whether she is going to 126 00:08:53,320 --> 00:08:58,280 Speaker 1: stick to a slightly slightly close to centrist line so 127 00:08:58,320 --> 00:09:02,080 Speaker 1: that she can achieve long devity in her position. Because 128 00:09:02,360 --> 00:09:06,480 Speaker 1: don't forget, this is a very fickle political machine we're 129 00:09:06,520 --> 00:09:10,560 Speaker 1: talking about. We've seen a host of prime ministers over 130 00:09:10,600 --> 00:09:14,280 Speaker 1: the years being thrown out within like a year. So 131 00:09:14,480 --> 00:09:19,239 Speaker 1: if she wants to really establish herself leave a legacy, 132 00:09:19,720 --> 00:09:24,200 Speaker 1: that really does show that her appointment is a watershed. 133 00:09:24,640 --> 00:09:28,680 Speaker 1: She does need to tap in to the common person 134 00:09:28,760 --> 00:09:32,000 Speaker 1: on the street as well as those people who are 135 00:09:32,040 --> 00:09:37,520 Speaker 1: fretting about the influx of foreigners and wanting more conservative views. 136 00:09:37,559 --> 00:09:43,480 Speaker 1: Also expressed, we've got an aging society, a shortage of workers, 137 00:09:43,880 --> 00:09:47,160 Speaker 1: which means the country kind of needs to draw on 138 00:09:47,640 --> 00:09:52,480 Speaker 1: foreigners coming in to help boost the labor force, and 139 00:09:52,559 --> 00:09:56,400 Speaker 1: this is an uneasy moment for the Japanese public. 140 00:10:00,640 --> 00:10:04,880 Speaker 2: How's Takaichi planning to tackle these hurdles, and where will 141 00:10:04,880 --> 00:10:09,240 Speaker 2: she steer Japan between China and the US. That's after 142 00:10:09,280 --> 00:10:22,720 Speaker 2: the break. Japan's Prime Minister in waiting, Sanai Takeichi, is 143 00:10:22,760 --> 00:10:29,320 Speaker 2: facing a host of challenges a sluggish economy, an aging population, economicstagnation, 144 00:10:29,679 --> 00:10:33,079 Speaker 2: and low wage growth. And among the litany of issues, 145 00:10:33,200 --> 00:10:37,600 Speaker 2: Bloomberg's Paul Jackson says, there's one clear priority for Takichi. 146 00:10:38,240 --> 00:10:44,359 Speaker 1: The first thing she must tackle is inflation. The backdrop 147 00:10:44,400 --> 00:10:47,440 Speaker 1: here is Japan spent like a couple of decades as 148 00:10:47,520 --> 00:10:52,360 Speaker 1: the poster child of falling prices deflation. They had terrible 149 00:10:52,400 --> 00:10:57,280 Speaker 1: problems kind of reigniting price growth. Now any other country 150 00:10:57,320 --> 00:10:59,760 Speaker 1: in the world, you're thinking, what would you want to 151 00:10:59,800 --> 00:11:03,320 Speaker 1: do that for, But in Japan it's this idea of 152 00:11:03,520 --> 00:11:08,880 Speaker 1: creating a cycle of growth through inflation. Get wages going up, 153 00:11:09,160 --> 00:11:13,080 Speaker 1: get growth going up. And this has been a central 154 00:11:13,280 --> 00:11:18,040 Speaker 1: LDP goal. And now we've had three years of inflation 155 00:11:18,320 --> 00:11:23,480 Speaker 1: over two percent. People are realizing that, Okay, wages are 156 00:11:23,520 --> 00:11:28,000 Speaker 1: going up, but my purchasing power is going down all 157 00:11:28,040 --> 00:11:32,080 Speaker 1: the time, and some of the basic expenses, namely food, 158 00:11:32,880 --> 00:11:37,520 Speaker 1: are going up way more than inflation. And the LDP 159 00:11:37,760 --> 00:11:43,040 Speaker 1: has tried all kinds of measures to subsidize gasoline prices, 160 00:11:43,160 --> 00:11:47,360 Speaker 1: subsidize electricity prices, so on and so forth, and the 161 00:11:47,440 --> 00:11:51,200 Speaker 1: result from your average voter is it's not enough. 162 00:11:52,000 --> 00:11:57,040 Speaker 2: During her campaign, Takeiichi pledged to revive key elements of Abinomics, 163 00:11:57,440 --> 00:12:01,240 Speaker 2: the economic policy of high public spending and cheap borrowing 164 00:12:01,840 --> 00:12:05,520 Speaker 2: that was championed by her mentor former Prime Minister Shinzo Abe. 165 00:12:06,080 --> 00:12:09,400 Speaker 2: But Paul says it's not clear that's the right strategy 166 00:12:09,440 --> 00:12:10,959 Speaker 2: for Japan right now. 167 00:12:11,280 --> 00:12:15,080 Speaker 1: Although there's a lot of popularity for the ebonomics approach 168 00:12:15,400 --> 00:12:19,960 Speaker 1: of reflating the economy spending low interest rates, if you've 169 00:12:20,000 --> 00:12:24,960 Speaker 1: got inflation, then what is that combination going to generate. 170 00:12:25,280 --> 00:12:29,040 Speaker 1: I'm afraid it's going to generate more inflation, right, That's 171 00:12:29,080 --> 00:12:32,160 Speaker 1: what the voters do not want. I think what she 172 00:12:32,320 --> 00:12:35,800 Speaker 1: needs to do is she needs to give more purchasing 173 00:12:35,920 --> 00:12:39,840 Speaker 1: power to consumers. Now, you could do this through pushing 174 00:12:39,920 --> 00:12:43,720 Speaker 1: up wages, but a government can't dictate how wages go up, 175 00:12:43,800 --> 00:12:46,760 Speaker 1: and so this has been one of her central arguments 176 00:12:47,280 --> 00:12:50,640 Speaker 1: criticizing the other candidates is they've all got all these 177 00:12:50,720 --> 00:12:54,880 Speaker 1: wage goals. She's saying, you cannot tell the private sector 178 00:12:55,280 --> 00:12:59,480 Speaker 1: to raise wages by certain amounts, so she's more of 179 00:12:59,520 --> 00:13:01,959 Speaker 1: the idea of, okay, we need some kind of cash 180 00:13:01,960 --> 00:13:07,040 Speaker 1: handouts and tax rebate so that people have more money 181 00:13:07,120 --> 00:13:11,440 Speaker 1: in their pockets now to deal with the cost of 182 00:13:11,480 --> 00:13:12,199 Speaker 1: living crunch. 183 00:13:13,200 --> 00:13:16,880 Speaker 2: A key function of abinomics was to stimulate the economy 184 00:13:17,000 --> 00:13:20,720 Speaker 2: by keeping interest rates low, but Japan has only just 185 00:13:20,760 --> 00:13:23,640 Speaker 2: emerged from a decade long period of stimulus and has 186 00:13:23,679 --> 00:13:28,160 Speaker 2: been raising interest rates to hold inflation down. Paul says 187 00:13:28,360 --> 00:13:32,160 Speaker 2: if Takei she follows through on her promise to expand spending, 188 00:13:32,679 --> 00:13:35,600 Speaker 2: it could put the central bank in a difficult position. 189 00:13:36,040 --> 00:13:40,280 Speaker 1: The Bank of Japan under Governor Ueda has been normalizing policy. 190 00:13:40,559 --> 00:13:45,080 Speaker 1: We've had interest rate increases, and we're kind of lined 191 00:13:45,200 --> 00:13:49,960 Speaker 1: up for an interest rate hike later this month. But 192 00:13:50,360 --> 00:13:54,280 Speaker 1: with Takaichi taking the helm, I think all those bets 193 00:13:54,280 --> 00:13:57,480 Speaker 1: are kind of off for now. Because she in the past, 194 00:13:57,880 --> 00:14:01,839 Speaker 1: just a year ago, she was saying raising interest rates 195 00:14:02,120 --> 00:14:06,640 Speaker 1: was stupid. That's a pretty harsh comment to make. Now 196 00:14:07,000 --> 00:14:10,200 Speaker 1: she's toned it down this time round, but in a 197 00:14:10,480 --> 00:14:14,760 Speaker 1: question asked by Kodo News last week, she specifically said 198 00:14:14,800 --> 00:14:19,640 Speaker 1: that she'd be against interest rates going up at this point. Now, 199 00:14:19,680 --> 00:14:23,400 Speaker 1: obviously the government doesn't dictate what the Bank of Japan does, 200 00:14:23,760 --> 00:14:26,840 Speaker 1: but you would expect there is going to be some 201 00:14:26,960 --> 00:14:29,480 Speaker 1: kind of political pressure on the Bank of Japan to 202 00:14:29,560 --> 00:14:34,200 Speaker 1: go cautiously and slowly going forward. And this is where 203 00:14:34,600 --> 00:14:38,760 Speaker 1: we've seen how the yen has weakened as expectations of 204 00:14:38,800 --> 00:14:41,360 Speaker 1: where interest rates go are kind of getting pegged back, 205 00:14:41,600 --> 00:14:45,360 Speaker 1: and of course that's also feeding into the stock prices 206 00:14:45,480 --> 00:14:46,040 Speaker 1: going up. 207 00:14:46,440 --> 00:14:50,120 Speaker 2: As Takaichi steps onto the world stage, Paul says one 208 00:14:50,160 --> 00:14:53,560 Speaker 2: of her first priorities will be building a relationship with 209 00:14:53,720 --> 00:14:57,880 Speaker 2: US President Donald Trump and strengthening the Japan US alliance. 210 00:14:58,600 --> 00:15:00,360 Speaker 2: And she appears to have made a good star. Art 211 00:15:00,760 --> 00:15:04,280 Speaker 2: Trump congratulate takei Ichi on her victory on social media, 212 00:15:04,760 --> 00:15:08,680 Speaker 2: calling her a highly respected person of great wisdom and strength. 213 00:15:09,680 --> 00:15:15,200 Speaker 1: Her first major diplomatic test will be the likely visit 214 00:15:15,960 --> 00:15:20,840 Speaker 1: of President Trump to Japan. Now, Japan has sealed a 215 00:15:21,240 --> 00:15:25,640 Speaker 1: trade deal with the US, and the key aspect of 216 00:15:25,680 --> 00:15:29,280 Speaker 1: that is bringing down auto tariffs from twenty five percent 217 00:15:29,680 --> 00:15:30,760 Speaker 1: down to fifteen percent. 218 00:15:31,000 --> 00:15:33,560 Speaker 2: I just signed the largest trade deal in history, I 219 00:15:33,560 --> 00:15:34,840 Speaker 2: think maybe the largest. 220 00:15:34,480 --> 00:15:38,600 Speaker 1: Deal in history. With that's something that rival South Korea 221 00:15:38,680 --> 00:15:42,760 Speaker 1: still hasn't achieved. So there's a positive there from that deal. 222 00:15:43,120 --> 00:15:47,960 Speaker 1: But then we also have this very complicated investment to 223 00:15:48,520 --> 00:15:52,280 Speaker 1: five hundred and fifty billion dollars of investment that Japan 224 00:15:52,360 --> 00:15:55,480 Speaker 1: has pledged to the US. But they don't seem to 225 00:15:55,520 --> 00:15:57,920 Speaker 1: be quite on the same page as to whether this 226 00:15:58,000 --> 00:16:01,040 Speaker 1: is actual money going straight to the US or whether 227 00:16:01,080 --> 00:16:06,960 Speaker 1: it's investment can loans or even just guarantees on investment loans. 228 00:16:07,280 --> 00:16:10,600 Speaker 1: So I think what we have here is potential for 229 00:16:10,960 --> 00:16:16,320 Speaker 1: problems on the implementation of that investment pledge part of 230 00:16:16,360 --> 00:16:19,680 Speaker 1: the trade deal. Now, what we heard taka She say 231 00:16:19,840 --> 00:16:23,960 Speaker 1: during the campaign was if there are issues with the 232 00:16:24,000 --> 00:16:29,680 Speaker 1: implementation of that investment, then there is the possibility that 233 00:16:29,840 --> 00:16:34,240 Speaker 1: parts of that agreement may need to be renegotiated. Now 234 00:16:34,320 --> 00:16:36,800 Speaker 1: I don't think Donald Trump is going to like that 235 00:16:37,000 --> 00:16:40,720 Speaker 1: very much. But to be sure, she's not going to 236 00:16:40,760 --> 00:16:43,760 Speaker 1: meet Donald Trump and be ripping up trade agreements. She's 237 00:16:43,840 --> 00:16:47,400 Speaker 1: going to be sticking to those trade agreements. And I 238 00:16:47,440 --> 00:16:50,480 Speaker 1: think she's going to be plugging in to that kind 239 00:16:50,480 --> 00:16:56,280 Speaker 1: of common populist conservative streak that Donald Trump has and 240 00:16:56,320 --> 00:17:00,800 Speaker 1: basically saying, hey, look, I'm kind of like you in Japan. 241 00:17:01,320 --> 00:17:02,400 Speaker 1: You can rely on me. 242 00:17:05,119 --> 00:17:09,320 Speaker 2: One other area that Trump and Takeiichi could align on China. 243 00:17:10,040 --> 00:17:14,800 Speaker 1: She's cautious about China's role. Her basic stance would be 244 00:17:15,320 --> 00:17:20,880 Speaker 1: in line with US view on containing China's growing influence 245 00:17:21,560 --> 00:17:25,640 Speaker 1: in the world and within Asia. So I think there's 246 00:17:25,680 --> 00:17:28,520 Speaker 1: a lot of parallels, a lot of common ground for 247 00:17:28,600 --> 00:17:34,000 Speaker 1: them to tap into. The idea that global supply chains, 248 00:17:34,520 --> 00:17:41,240 Speaker 1: supply networks, key security items for the global economy, namely chips, 249 00:17:41,320 --> 00:17:45,520 Speaker 1: stuff like that, That there should be a global network 250 00:17:45,600 --> 00:17:49,160 Speaker 1: of which the US is a central pillar. These are 251 00:17:49,280 --> 00:17:53,560 Speaker 1: all kind of themes that Takeiichi is on the same page. 252 00:17:55,280 --> 00:17:59,080 Speaker 2: Paul says, Takeichi's victory shows that Japan is falling in 253 00:17:59,160 --> 00:18:01,679 Speaker 2: line with a and that's sweeping the world. 254 00:18:02,240 --> 00:18:05,840 Speaker 1: I think this is a reflection of where the world 255 00:18:05,920 --> 00:18:11,480 Speaker 1: has been going in recent years. Donald Trump has created 256 00:18:11,680 --> 00:18:16,719 Speaker 1: a kind of playbook for right wing populists around the world, 257 00:18:17,320 --> 00:18:20,280 Speaker 1: appealing both to the boardrooms and the factory floor. As 258 00:18:20,280 --> 00:18:26,639 Speaker 1: a key element that the idea of multilateral consensus forget this. 259 00:18:26,920 --> 00:18:29,639 Speaker 1: It's about the deal. You know, what can you get 260 00:18:29,920 --> 00:18:33,320 Speaker 1: for your country? What can you get that the average 261 00:18:33,400 --> 00:18:37,960 Speaker 1: person can easily understand as a win, as something that's 262 00:18:38,080 --> 00:18:42,440 Speaker 1: positive for them, positive for their future, for their jobs, 263 00:18:43,000 --> 00:18:47,800 Speaker 1: and we're seeing these leaders emerging all over the world. 264 00:18:55,160 --> 00:18:58,280 Speaker 2: This is The Big Take Asia from Bloomberg News. I'm Wanha. 265 00:18:58,920 --> 00:19:01,640 Speaker 2: To get more from The Big Take and unlimited access 266 00:19:01,680 --> 00:19:04,600 Speaker 2: to all of Bloomberg dot Com, subscribe today at Bloomberg 267 00:19:04,640 --> 00:19:08,040 Speaker 2: dot com slash podcast Offer. If you liked the episode, 268 00:19:08,119 --> 00:19:10,520 Speaker 2: make sure to subscribe and review The Big Take Asia 269 00:19:10,640 --> 00:19:13,800 Speaker 2: wherever you listen to podcasts. It really helps people find 270 00:19:13,800 --> 00:19:16,280 Speaker 2: the show. Thanks for listening, See you next time.