Marketplace Morning Report — Episode Summary

Episode: Japan posts strong export numbers
Date: February 18, 2026
Host: Nick Qureshi (BBC World Service), with reporting by Suranjana Tiwari, Samira Hussain, Luis Fajardo

Overview

This episode centers on Japan’s unexpectedly strong export performance ahead of the Lunar New Year, examining drivers of growth amid ongoing diplomatic tensions and trade shifts in Asia. The show also provides updates on UK inflation, Canada’s defense strategy, Bayer’s legal settlement over Roundup, Sri Lanka’s new digital nomad visa, renewed European flights to Venezuela, and the latest political turmoil in Peru.

Key Discussion Points & Insights

1. Japan’s Export Surge (00:31–04:15)

• Biggest Jump in Over Three Years: Japan’s exports rose significantly in January, primarily fueled by regional demand for goods ahead of the Lunar New Year.
• Exports to China Up 32%: Despite frosty diplomatic ties, Japan’s exports to China surged as vendors front-loaded shipments for the holiday season.
• Exports to EU Up 30%: Robust demand from the European Union contributed to the surge.
• Growth Despite Weakness: This export strength comes right after data revealed Japan’s economy had just barely returned to growth in Q4 2025, missing forecasts due to previously weak exports and capital expenditures.
• Quote:
  • “These numbers come from January and it shows that Japan's exports were boosted by the strong demand all around Asia for its products.” (Suranjana Tiwari, 01:06)
  • “Exports to China actually jumped 32%, which is why experts and economists are saying that this is because of the demand ahead of the Lunar New Year.” (Suranjana Tiwari, 01:28)
  • “Exports bound for the European Union were also up by 30%.” (Suranjana Tiwari, 01:37)

2. Chilling Effect on Tourism (01:59–03:13)

• Chinese Tourism Plummets: The number of Chinese tourists to Japan dropped by approximately 60.7% in January, attributed to diplomatic tensions over comments made by Japan’s Prime Minister regarding Taiwan.
• Trade Despite Tensions: While tourism falters, the trading relationship endures in other sectors, highlighted by strong export numbers.
• Quote:
  • “In January they're seeing a slump of 60.7% of Chinese visitors going to Japan.” (Suranjana Tiwari, 02:28)
  • “This just shows, you know, even though those exports are good, there are other areas of the trading relationship that there are still quite a lot of trade tensions going on.” (Suranjana Tiwari, 02:52)

3. U.S.–Japan Trade Relations and Investments (03:13–04:13)

• Investments Announced as Part of Trade Deal: Japan pledged $550 billion in investments in the U.S. as part of a major trade deal, following earlier impacts from U.S. tariffs.
• Focus of Investment: $36 billion now earmarked for three projects: a natural gas facility in Ohio, an oil export terminal in the Gulf of Mexico, and a synthetic diamond manufacturing facility.
• Political Framing: Former President Trump claimed the projects were only possible because of “tariffs.”
• Quote:
  • “Japan will be working with the Americans on a natural gas facility in Ohio, a deep water oil export facility in the Gulf of Mexico, and a synthetic diamond manufacturing facility.” (Suranjana Tiwari, 03:40)
  • “Donald Trump, posting on Truth Social, said the deal was excellent and that the scale of these projects are so large that they could not be done without one very special word, tariffs.” (Suranjana Tiwari, 04:00)

4. Global Economic Updates (04:16–05:42)

• UK Inflation Easing: Inflation fell to 3% from 3.4%, with drops in bread, cereal, and gas prices. (04:16)
• Canada’s Defence Industrial Strategy: New strategy aims for 70% of federal defense contracts to go to Canadian firms, up from 43%, with $366 billion at stake. (04:28)
• Bayer’s Roundup Settlement: Bayer offers over $10 billion to settle US lawsuits over the weed killer Roundup, linked (controversially) to cancer.
• Quote:
  • “Anyone who can prove they were diagnosed with non Hodgkin's lymphoma and were exposed to roundup before February 17th of this year can file a claim and receive a portion of the settlement.” (Samira Hussain, 05:25)

5. World News Roundup and Economic Context (05:42–08:00)

• Sri Lanka Launches Digital Nomad Visa: Aimed at attracting remote workers bringing in at least $2,000/month in foreign currency. (05:42)
• European Flights Resume to Venezuela: For the first time since US-led action against Maduro, with Spanish flights landing. (06:01)
• Peru’s Political Instability: Interim president ousted for corruption mere months after appointment, amid ongoing public distrust due to repeated scandals.
  • Despite the upheaval, Peru’s economy fares well—partly due to robust exports and foreign investment.
  • Quote:
    • “Peru is in an unusual situation... its economy is doing relatively well. Actually, Peru is one of the leading exporters, receiving a lot of investment both from the US and from China and from other places.” (Luis Fajardo, 07:11)
    • “What people definitely are arguing against is against this sense of corruption in the public sphere, of impropriety from the leaders in Peru... And time and time again they have been disappointed.” (Luis Fajardo, 07:28)

Notable Quotes & Memorable Moments

• On the Export Jump:
  “Exports to China actually jumped 32%... because of the demand ahead of the Lunar New Year.” (Suranjana Tiwari, 01:28)
• On Diplomatic Tension:
  “Even though those exports are good, there are other areas of the trading relationship that there are still quite a lot of trade tensions going on...” (Suranjana Tiwari, 02:52)
• On Investment:
  “The scale of these projects are so large that they could not be done without one very special word—tariffs.” (Reported by Suranjana Tiwari, quoting Donald Trump, 04:00)
• On Peru’s Situation:
  “People have really lost trust in a lot of Peruvian political institutions.” (Luis Fajardo, 07:51)

Important Segment Timestamps

• Japan export discussion: 00:31–04:15
• UK inflation & Canada defense: 04:16–05:05
• Bayer Roundup settlement: 05:05–05:42
• Sri Lanka visa, Venezuela flights, Peru politics: 05:42–08:00

Tone & Style

Throughout, the hosts offer clear, data-focused analysis with calm urgency, typical of a morning financial news format. The language is straightforward, with correspondents providing expertise and occasional quotes from policymakers and leaders.

Takeaways for Listeners

• Japan’s export boom is a positive surprise but contrasts with lingering political and economic challenges, especially in its tourism industry.
• Shifting global trade dynamics are evident through new major investment deals, evolving defense strategies, and legal settlements.
• Political developments in places like Peru and Sri Lanka reflect ongoing global trends of economic resilience amid governmental uncertainty and innovation.

The episode provides a brisk yet informative snapshot of economic currents shaping the headlines as 2026 gets underway.