16/12/2016 World Business Report

Now for the latest financial news with Aaron Heslehurst

New best friends - Japan and Russia park their differences to build

on trade - worth $33 billion a year and counting.

Plus - the latest gauntlet thrown down to Brussels -

Switzerland is set to pass a law giving local jobseekers priority

Yes, we have that Friday feeling. If you are joining us for the first

time, stay where you are, it's only eight minutes. It is a snapshot of

all the business in the world and money. China is no longer America's

biggest creditor. We start in Japan-

where Prime Minister Shinzo Abe is hosting Russian President

Vladimir Putin at a summit in Tokyo. He's the first G7 leader to host

Mr Putin since sanctions were imposed over

the Ukraine conflict. That's not the only

reason it's a big deal. The two countries have never signed

a peace treaty formally ending World War Two - because they are

still in dispute over four islands in the Western Pacific -

which Soviet forces occupied But the reality is they have

a serious business relationship Trade between Russia and Japan has

soared in recent years. It is now worth more

than $33 billion a year. That's three times what

it was ten years ago. Japan is cash-rich -

and Russia is desperate for investment, particularly

to its far eastern region. Japan says a string of such deals

are ready to be signed - about 30 of them

are on the table. At the moment it relies

on the Arabian Gulf - but Russia has huge amounts

and is on its doorstep. It also wants help with issues

like cyber security. After talks on Thursday Mr Abe

played down tensions over Syria TRANSLATION: We discussed bilateral

issues as well as various international matters,

how it is important that Russia plays a constructive role

in these international matters and how Japan and Russia can work

together to resolve I believe we had a very frank

and deep discussion about visa-free visits to the islands by former

residents and Japanese - Russian joint economic activity

on the four islands under a special Dr Daragh McDowell,

Principal Russia Analyst at global risk advisory firm,

Verisk Maplecroft. Thanks for coming in at this

horrible hour. Can you help me out? If you really want to be officially,

Russia and Japan are really still at war. There are all these sanctions.

How in the heck are they going to do all these trade and get around the

sanctions? The first thing to note is the sanction regime in place in

Japan is targeted against specific Russian firms and based on specific

drilling technology. There is a wide area of trade that is open to Japan

at this point and Russia. The really interesting thing here is that the

hard facts of the deal and the symbolism of it. The future of the

regime is in doubt. You are talking about the post Trump world we are

in? There are two tracks going on. On one point, you are right to say

that the Japanese and Russians have been quarrelling about the islands

and that is no new issue. The economic and political environment

of Asia is about to change with the fact that we now know the

Trans-Pacific Partnership deal is effectively dead. There is a

question over US security in the area and how the US is going to be

involved in the region going forward. On the one hand, you have

Japan trying to figure out its relationship with Russia which is

another Pacific Power, how that will relate to Japan's placed with

China's raising power. Russia tried to lay down its own markers in the

Pacific region and as you rightly polled -- pointed out it is keen for

investment. There is a number of areas now that the US is moving out.

Is kind of like a perfect marriage. Japan has our lot of cash that it

needs to import a lot of energy. Russia we know has lots of bat and

pretty done close to It is about how you get it to Japan.

The logistics can be more competent head of particular in East Siberia.

There are a lot of synergies between the two states and there are reasons

why they would co-operate very well. There is the issue of the World War

Two peace treaty and that will be difficult to overcome. Neither Mr

Abe Mr Putin will want to give up territory. In about 30 seconds, if

you can. Do you think given that post Trump world we are going to

face or a facing right now, are we going to see things like this? The

trade deals that don't exist any more, where we see one country just

dealing independently with another and making independent trade deals?

We will be looking at this at Verisk Maplecroft very closely. This is

something that we will be looking at. The economic and political order

gets pulled away and countries find their way in the new environment. We

appreciate your time. They go, you can get independent

trade deals. You listening, UK? Listening up? You can get it done!

I'm going to get in trouble now. We are also in Switzerland -

where today parliament is expected to back legislation giving priority

to local job seekers over those applying from across

the European Union. The new law is the result of years

of haggling after a referendum in 2014 in which the Swiss narrowly

backed imposing quotas From Switzerland here's

the BBC's Imogen Foulkes. It has taken almost three years for

Switzerland to work out how to implement the tricky referendum of

2014 in which voters narrowly backed the introduction of quotas on EU

migrants. What Parliament has worked out is not quotas at all but in fact

a piece of legislation in which Swiss employers will give preference

to local workers, people already in the country, if unemployment in

certain sectors or regions becomes unacceptably high. Some people here

are calling that a bunch, a betrayal, of voters' wishes because

probably, it won't really affect EU immigration at all. After all, Swiss

unemployment is very low, just 3%. The problem is, Brussels has always

said quotas is a violation of movement of people. -- free

movement. It wants to stay in the free trade area. Unlike Brexit

Britain, the Swiss are unlikely to want to give up their access to the

free market. They see this as a pragmatic solution and right now, we

will see whether Brussels will accept it.

Let's go to Asia now - and new data suggests that Japan has

overtaken China as the USA's biggest creditor.

Leisha Chi has the story in Singapore.

Great to see you, happy Friday! We were just talking about this Trump

world we are about to live in and the trade deals, especially the

Pacific one. Japan is still doing big business with America. That's

right. Japan will have negotiating leverage, perhaps, given the fact

they are now America's biggest creditor nation. This is the first

time since 2008 that they have dethroned China in holding that

title and this comes after Beijing has spent a really large portion of

its foreign exchange reserves defending its own currency. The

ownership of US Treasuries have fallen for a sixth straight month to

1.1 trillion in October. Japan holds 1.1 3 trillion, that is not a huge

difference but there you go. The currency has been falling a lot. We

will see whether the further interest rate hike and whether the

US dollar strength will pressure emerging currencies in China. Have a

great weekend! We will talk to you on Monday. See you soon, CU said. --

see you soon. Pressure on Yahoo has continued

to grow after the internet company revealed that it was the victim

of another huge hacking attack in 2013 - in which a billion user

accounts were accessed. The company's shares closed down

more than 6% on Wall Street on fears that a planned $4.8bn sale

to telecoms firm Verizon According to reports in the US,

Verizon is now trying to persuade Yahoo to amend the terms

of the acquisition agreement Don't forget you can get in touch

with me and some of the team A Royal Marine found guilty

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