:00:00. > :00:07.Now for the latest financial news with Aaron Heslehurst
:00:08. > :00:22.New best friends - Japan and Russia park their differences to build
:00:23. > :00:25.on trade - worth $33 billion a year and counting.
:00:26. > :00:28.Plus - the latest gauntlet thrown down to Brussels -
:00:29. > :00:31.Switzerland is set to pass a law giving local jobseekers priority
:00:32. > :00:51.Yes, we have that Friday feeling. If you are joining us for the first
:00:52. > :00:57.time, stay where you are, it's only eight minutes. It is a snapshot of
:00:58. > :01:02.all the business in the world and money. China is no longer America's
:01:03. > :01:04.biggest creditor. We start in Japan-
:01:05. > :01:07.where Prime Minister Shinzo Abe is hosting Russian President
:01:08. > :01:10.Vladimir Putin at a summit in Tokyo. He's the first G7 leader to host
:01:11. > :01:13.Mr Putin since sanctions were imposed over
:01:14. > :01:14.the Ukraine conflict. That's not the only
:01:15. > :01:17.reason it's a big deal. The two countries have never signed
:01:18. > :01:20.a peace treaty formally ending World War Two - because they are
:01:21. > :01:23.still in dispute over four islands in the Western Pacific -
:01:24. > :01:26.which Soviet forces occupied But the reality is they have
:01:27. > :01:35.a serious business relationship Trade between Russia and Japan has
:01:36. > :01:41.soared in recent years. It is now worth more
:01:42. > :01:46.than $33 billion a year. That's three times what
:01:47. > :01:50.it was ten years ago. Japan is cash-rich -
:01:51. > :01:52.and Russia is desperate for investment, particularly
:01:53. > :01:54.to its far eastern region. Japan says a string of such deals
:01:55. > :01:57.are ready to be signed - about 30 of them
:01:58. > :02:00.are on the table. At the moment it relies
:02:01. > :02:10.on the Arabian Gulf - but Russia has huge amounts
:02:11. > :02:14.and is on its doorstep. It also wants help with issues
:02:15. > :02:23.like cyber security. After talks on Thursday Mr Abe
:02:24. > :02:26.played down tensions over Syria TRANSLATION: We discussed bilateral
:02:27. > :02:47.issues as well as various international matters,
:02:48. > :02:49.how it is important that Russia plays a constructive role
:02:50. > :02:51.in these international matters and how Japan and Russia can work
:02:52. > :02:54.together to resolve I believe we had a very frank
:02:55. > :02:58.and deep discussion about visa-free visits to the islands by former
:02:59. > :03:00.residents and Japanese - Russian joint economic activity
:03:01. > :03:04.on the four islands under a special Dr Daragh McDowell,
:03:05. > :03:06.Principal Russia Analyst at global risk advisory firm,
:03:07. > :03:17.Verisk Maplecroft. Thanks for coming in at this
:03:18. > :03:22.horrible hour. Can you help me out? If you really want to be officially,
:03:23. > :03:29.Russia and Japan are really still at war. There are all these sanctions.
:03:30. > :03:33.How in the heck are they going to do all these trade and get around the
:03:34. > :03:39.sanctions? The first thing to note is the sanction regime in place in
:03:40. > :03:44.Japan is targeted against specific Russian firms and based on specific
:03:45. > :03:49.drilling technology. There is a wide area of trade that is open to Japan
:03:50. > :03:57.at this point and Russia. The really interesting thing here is that the
:03:58. > :04:05.hard facts of the deal and the symbolism of it. The future of the
:04:06. > :04:12.regime is in doubt. You are talking about the post Trump world we are
:04:13. > :04:16.in? There are two tracks going on. On one point, you are right to say
:04:17. > :04:25.that the Japanese and Russians have been quarrelling about the islands
:04:26. > :04:28.and that is no new issue. The economic and political environment
:04:29. > :04:32.of Asia is about to change with the fact that we now know the
:04:33. > :04:36.Trans-Pacific Partnership deal is effectively dead. There is a
:04:37. > :04:40.question over US security in the area and how the US is going to be
:04:41. > :04:44.involved in the region going forward. On the one hand, you have
:04:45. > :04:47.Japan trying to figure out its relationship with Russia which is
:04:48. > :04:52.another Pacific Power, how that will relate to Japan's placed with
:04:53. > :04:56.China's raising power. Russia tried to lay down its own markers in the
:04:57. > :05:00.Pacific region and as you rightly polled -- pointed out it is keen for
:05:01. > :05:07.investment. There is a number of areas now that the US is moving out.
:05:08. > :05:12.Is kind of like a perfect marriage. Japan has our lot of cash that it
:05:13. > :05:14.needs to import a lot of energy. Russia we know has lots of bat and
:05:15. > :05:25.pretty done close to It is about how you get it to Japan.
:05:26. > :05:29.The logistics can be more competent head of particular in East Siberia.
:05:30. > :05:33.There are a lot of synergies between the two states and there are reasons
:05:34. > :05:39.why they would co-operate very well. There is the issue of the World War
:05:40. > :05:46.Two peace treaty and that will be difficult to overcome. Neither Mr
:05:47. > :05:52.Abe Mr Putin will want to give up territory. In about 30 seconds, if
:05:53. > :05:56.you can. Do you think given that post Trump world we are going to
:05:57. > :06:00.face or a facing right now, are we going to see things like this? The
:06:01. > :06:05.trade deals that don't exist any more, where we see one country just
:06:06. > :06:11.dealing independently with another and making independent trade deals?
:06:12. > :06:14.We will be looking at this at Verisk Maplecroft very closely. This is
:06:15. > :06:21.something that we will be looking at. The economic and political order
:06:22. > :06:23.gets pulled away and countries find their way in the new environment. We
:06:24. > :06:33.appreciate your time. They go, you can get independent
:06:34. > :06:35.trade deals. You listening, UK? Listening up? You can get it done!
:06:36. > :06:37.I'm going to get in trouble now. We are also in Switzerland -
:06:38. > :06:40.where today parliament is expected to back legislation giving priority
:06:41. > :06:43.to local job seekers over those applying from across
:06:44. > :06:45.the European Union. The new law is the result of years
:06:46. > :06:49.of haggling after a referendum in 2014 in which the Swiss narrowly
:06:50. > :06:51.backed imposing quotas From Switzerland here's
:06:52. > :07:01.the BBC's Imogen Foulkes. It has taken almost three years for
:07:02. > :07:05.Switzerland to work out how to implement the tricky referendum of
:07:06. > :07:11.2014 in which voters narrowly backed the introduction of quotas on EU
:07:12. > :07:16.migrants. What Parliament has worked out is not quotas at all but in fact
:07:17. > :07:22.a piece of legislation in which Swiss employers will give preference
:07:23. > :07:26.to local workers, people already in the country, if unemployment in
:07:27. > :07:32.certain sectors or regions becomes unacceptably high. Some people here
:07:33. > :07:37.are calling that a bunch, a betrayal, of voters' wishes because
:07:38. > :07:42.probably, it won't really affect EU immigration at all. After all, Swiss
:07:43. > :07:49.unemployment is very low, just 3%. The problem is, Brussels has always
:07:50. > :07:54.said quotas is a violation of movement of people. -- free
:07:55. > :08:03.movement. It wants to stay in the free trade area. Unlike Brexit
:08:04. > :08:08.Britain, the Swiss are unlikely to want to give up their access to the
:08:09. > :08:11.free market. They see this as a pragmatic solution and right now, we
:08:12. > :08:12.will see whether Brussels will accept it.
:08:13. > :08:16.Let's go to Asia now - and new data suggests that Japan has
:08:17. > :08:17.overtaken China as the USA's biggest creditor.
:08:18. > :08:23.Leisha Chi has the story in Singapore.
:08:24. > :08:31.Great to see you, happy Friday! We were just talking about this Trump
:08:32. > :08:36.world we are about to live in and the trade deals, especially the
:08:37. > :08:42.Pacific one. Japan is still doing big business with America. That's
:08:43. > :08:45.right. Japan will have negotiating leverage, perhaps, given the fact
:08:46. > :08:52.they are now America's biggest creditor nation. This is the first
:08:53. > :08:55.time since 2008 that they have dethroned China in holding that
:08:56. > :08:58.title and this comes after Beijing has spent a really large portion of
:08:59. > :09:07.its foreign exchange reserves defending its own currency. The
:09:08. > :09:15.ownership of US Treasuries have fallen for a sixth straight month to
:09:16. > :09:26.1.1 trillion in October. Japan holds 1.1 3 trillion, that is not a huge
:09:27. > :09:29.difference but there you go. The currency has been falling a lot. We
:09:30. > :09:37.will see whether the further interest rate hike and whether the
:09:38. > :09:43.US dollar strength will pressure emerging currencies in China. Have a
:09:44. > :09:46.great weekend! We will talk to you on Monday. See you soon, CU said. --
:09:47. > :09:49.see you soon. Pressure on Yahoo has continued
:09:50. > :09:53.to grow after the internet company revealed that it was the victim
:09:54. > :09:56.of another huge hacking attack in 2013 - in which a billion user
:09:57. > :09:59.accounts were accessed. The company's shares closed down
:10:00. > :10:02.more than 6% on Wall Street on fears that a planned $4.8bn sale
:10:03. > :10:05.to telecoms firm Verizon According to reports in the US,
:10:06. > :10:09.Verizon is now trying to persuade Yahoo to amend the terms
:10:10. > :10:12.of the acquisition agreement Don't forget you can get in touch
:10:13. > :10:47.with me and some of the team A Royal Marine found guilty
:10:48. > :10:51.of murdering an injured Afghan