December 12, 2019
In-depth: Global market wrap-up

In-depth: Global market wrap-up


time now for an in-depth look at the
market news on this Friday and for that I’m joined on the line by dr. kim
sehwang professor of economics at ey Woman’s
University dr. Kim thank you for making time today
good afternoon Devin so today the Finance Ministry released its latest
green book report on the economy showing production and consumption continuing to
rise but exports and construction investment are still contracting what
stands out to you in this report well today’s a green book gave a broadly
speaking negative picture on Korean economy that means Korean government
seriously sees the current economic situation they say that in the third
quarter of this year production and consumption is maintaining increasing
trend but export decreased by over 14 percent and construction investment
decrease over 3 percent and altogether these situations restrict Korean
economic growth and today’s Green Book evaluates Korean economy is on the
recession over a straight northeast right well of course outlooks for growth
in the Korean economy this year have been steadily going down but this week
the Korea Development Institute estimated growth for next year at 2.3
percent which would be an improvement what do you think of that outlook kt i
the the major economic think tank of government expects this year’s economic
growth will be 2% however they expects next year’s economic growth will be
slightly higher at 2.3 percent due to improvements in in domestic land and
export basically they see that the domestic demand and exports situation of
next year could be worse than this year and they also supports government the
expansionary fiscal policy but gave warning on increasing government that in
the near future right will switching gears President
Trump says he’ll hit China with big tariffs if they don’t end up signing
this phase 1 trade deal how do you see that playing out it looks at US China
trade deal is closed close but mr. Trump is not ready to sign
off soon negotiators to come to countries have been working to come up
with a written phase 1 trade deal but they gotta start over specifying China’s
agricultural imports items and quantity from the United States that made mr.
Trump government a little bit threat right
well despite the uncertainty there that you reference with China trade global
stocks did move higher this week Korean stocks too were less affected than one
might have expected the question everybody’s asking is how long can this
go on sluggish us-china trade negotiation
would be one of the largest burdens of global economy today so the possibility
of phase 1 deal is a good news to global equity market but at the same time mr.
Tom’s denial on it gave negative impact on the market so the mixture of negative
and positive finds sustained the global equity market this way and kospi of
Korea slightly gained this week because of that I think the situation goes on
until mr. Trump finally sign of the deal with China got it well another China
factor is the protests in Hong Kong which seem to be getting ever more
violent stocks there of course have taken a major hit but we have Alibaba
getting ready to do a secondary listing on the Hong Kong Stock Exchange what do
you think that’s going to do to that market Hong Kong is experiencing serious
economic and political instability related to democratic protest and
housing index of Hong Kong drop over 2 percent from the beginning of the week
but actually Hong Kong’s financial market works normally was all these
chaotic situation Hong Kong Spanish market particularly stock market
exchange is extremely important to Chinese economy because more than one
thousand Chinese huge and public corporations are enlisted in Hong Kong’s
stock market Alibaba is already invested in New York Stock Exchange but that will
they will do another IPOs in Hong Kong’s equity market and and soon or later and
that of course will give a positive impact on Hong Kong’s equity market
indeed that does seem likely dr. Kim all right we’ll have to leave it there for
today thanks so much for sharing your insights we appreciate it thank you very
much

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