00:00We have a good relationship with Japan. We're very strong, very, very strong financially.
00:05They have a weakening yen, and they wanted a little bit of help, and we're always there for
00:11Japan. Japan's been very good to us, with the exception, of course, of Pearl Harbor.
00:16Mr. President, what is the U.S. getting out of that arrangement?
00:20Financial benefit. Financial benefit. It's also good for the world economy.
00:26Louise, I want to start with the news that we just had earlier this hour, jointly from
00:31Japan and the United States, talking about intervention in the yen. Some real shock and aura language
00:37there about putting a floor under the currency. Do you see this working?
00:43Well, hi, good morning. It's a lot of things happening at the same time for Japan, right?
00:50I think a lot of the weakness around the currency has got to do with, you know, structural underlying
00:56fundamentals. In particular, at this current stage, you know, the fiscal poised from the
01:03government. So I think so long as that stays unchanged, and so long as, you know, the Fed
01:09remains unmoved in its interest rate, then we should continue to see some of these currency
01:15weakness coming from Japan. So, you know, the intervention may work temporarily, but to
01:20the extent that markets continue to think that the Bank of Japan is behind the curve,
01:24I think that weakness will prevail.
01:27Yeah, the Bank of Japan moving at utterly glacial speed on tightening and showing no real
01:31urge to pick up the pace either. Is the pressure starting to build? When do you think we might
01:36see tightening?
01:40Well, our base case is still that the Bank of Japan would hike rates in December, which feels
01:45like an awfully long way away. But I think, you know, to the extent that we have, for instance,
01:51higher oil prices aggravating the terms of trade shock along with a weaker currency, to the extent
01:56that we have that, I think markets may start to think that the economy has a real risk of falling
02:00into stagflation. And so, you know, the bets against a faster BOJ rate highs will go up.
02:08The concern here is that, you know, faster rate highs may support the yen temporarily, but it
02:14will be quite negative for the economy that really hasn't been very strong domestically and organically.
02:19So, you know, the economy remains quite structurally vulnerable to the kind of terms of trade shock
02:24that could feed through quite quickly.
02:25¿Qué pasa con nosotros contened la situación?
02:25¿Qué pasa con dePM share en personas y en particular alrededor del niż ve constante oci voor?
02:26¿qué pasa?
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