Bloomberg Daybreak: Asia Edition One Week Left For Trade Talks
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Jul 25, 2025 Joining the discussion are Gearoid Reidy, a Bloomberg Opinion columnist focused on Japanese politics and economics, and Janet Henry, Global Chief Economist at HSBC. They dive into the recently announced US-Japan trade deal, which includes a mysterious $550 billion investment pledge, and discuss its potential political fallout for Japan's Prime Minister. Gearoid elaborates on the implications of new tariffs, while Janet analyses the impact of ongoing negotiations on the global economy and consumer spending amidst rising inflation. This hefty trade landscape presents both opportunities and uncertainties.
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Ishiba's Last Political Act
- Prime Minister Shigeru Ishiba's trade deal with the US may be his last act amid political challenges.
- The tariff threat gave him temporary leverage, which he lost by agreeing to the deal.
Market Relief Over Tariff Compromise
- Japanese markets showed relief as the trade uncertainty lifted after the deal.
- The 15% tariff agreement, although a compromise, is better than the previous 25% tariff threat.
Uncertainty Around $550B Investment
- The pledged $550 billion investment from Japan to the US is unclear in form and source.
- It likely includes financing for strategically important US projects but lacks transparency.