Japanese cars in stock market went ‘nuts’ after trade deal with Trump

Japanese cars in stock market went ‘nuts’ after trade deal with Trump

So, but then go and have a look at what the Japanese did yesterday. That’s right. Right. So, I I just want to show you something because this was nuts. If you think about this, because of the tariffs, make a car in Japan and then sending it to America was going to get whacked with what a 25% tariff when which meant Japanese cars in America were uncompetitive. Now that that trade deal’s been done and they’ve actually settled on a 15% tariff, just have a look at what happened to the Japanese car makers yesterday on the stock market. Mazda up by 3.7%. Subaru up 2.7%. This is today. This is actually now. This is on top of all of these stocks going up by 15% yesterday. So they went nuts. And these are stocks that barely move ever. So this is how important it was for all of these companies. Toyota being the biggest of these, but all of these other car companies were effectively going to be locked out of the American car market, which is so vital to them, unless they’ve been able to do this deal. And that’s the reason why right now with Donald Trump, these trade deals and for Australia are going to be so important for us. Americans still love their big cars. I’ll have you know, I just bought a very sensible Toyota RAV 4. Did you? That’s very sensible. Toyota, one of the leading car companies in the world, right? Let’s talk about green hydrogen because look, I’ve been talking to Twiggy Forest about this for the better part of a year, saying, “Hang on, come on. Green hydrogen’s not going to work.” We’re talking smoke and mirrors here. You know, it’s always never been going to happen. Well, he’s invested. He’s invested billions in it. But the reality was that making green hydrogen has always been uncompetitive with making blue hydrogen or brown hydrogen. In other words, you make hydrogen from gas, which Twiggy didn’t want to do. And basically that is cheaper than what it is from trying to make it from renewables. That’s right. And so as a result, that’s a lot of water as well. So there’s always that’s water, right? So the whole point about this is that from earlier this year they basically moth balled these plants. So what they’ve done today is they put out their quarterly and annual announcement of their production and basically said the Arizona plant, the Gladston plant and now they’re gone. But in actual fact, and you were shocked. Well, not shocked at all because they’d said it earlier this year that they were going to kill these things. So it again shows that even though you might have ideals about green hydrogen, how wonderful it is, but if these things do not stack up economically, and it goes to making green steel, for example, everybody’s talking about let’s make green steel and iron. Well, if it’s more expensive, guess what? If you’re building a building, you ain’t going to use it. So this is the whole point about the ideals versus the commercial reality. So that’s the idea. But there was record production for iron ore at Forscq today. And so from that point of view that was great for the shareholders mainly because prices for iron ore have been well down because the steel industry is changing and so as a result they’ve pumped up their production to try and keep their revenues high as well. Okay Ross, what about the share market as a whole today? Let’s have a look. So you can see in the corner of the screen the share market is down just a little at the moment if we have a look at it. Uh just only a few points. So neither here nor there but it has drifted off since the beginning of trade. If we go through some of the stocks that might have actually been of interest this morning, AGLZ, there’s fordscq. C up 4 and a.5% because a they’ve canceled out that green hydrogen project. So that’s good for the shareholders and b record production is also good for them. Where’s the Aussie dollar at the moment? Let’s have a look at that one. Aussie dollar sitting at 65 just under 66 US cents. So that’s higher than it has been for some time. Do not travel. There you go. To the US and buy coffees now. See you Ross. It’s great to see you.

Sky News business Editor Ross Greenwood discusses the trade deal America made with Japan on Wednesday.

Making a car in Japan and then sending it to America was going to be hit with the original 25 per cent tariff US President Donald Trump ordered, which meant Japanese cars in America were going to be uncompetitive.

Now, a trade deal has been secured where Japan has settled on a 15 per cent tariff.

This has seen car brands in the stock market rise, with Mazda up by 3.7 per cent and Subaru up by 2.7 per cent on Thursday.

“They went nuts,” Mr Greenwood said.