Time now for an in-depth look at the market news on this Friday.
And for that, I'm joined on the line by Mr. Daniel Yoo, global strategist at Yuanta Securities.
Mr. Yoo, thank you for coming on today.
All three main indexes on Wall Street rising to yet new record highs. Korean stocks also started off higher. Tell us about the global markets and what happened here in Seoul.
KOSPI also up slightly by 0.2%, and Kosdaq up 0.5%
Samsung and semiconductor industry is leading
Also 2ndary battery industry stocks such as LG Chem and Samsung SDI also showing rising trend.
Global market continues to show strength upon US -China trade deal.
The UN Conference on Trade and Development is projecting the global economy to grow this year by 2.5 percent. A lot of that it says will depend on Asia and emerging economies. Korea is projected to do slightly better than last year at 2.3 percent. Tell us about that report, and do you think this is how it'll actually play out?
Global growth 2.5%
US growth 2~2.5%
China growth 5.8~6% this year.
All in all global growth will top 2.5% estimated. US recovery and China resilient.
4th Industrial revolution industries will lead.
Korea's growth will come in above 2%, but not sure how much more. 2.3% might be tough to beat due to lack of growth engine except Semiconductor industry turnaround.
The Bank of Korea held its firste policy meeting of the year, and as expected, kept the key rate at 1-and-a-quarter percent. It's also projecting the Korean economy to grow somewhere in the 2 percent rate. What do you make of this, and what effect if any will this have on investors?
I think Korea needs to use more aggressive fiscal policy to boost the economy.
Especially in the area of 4th industrial revolution industries.
Relative competitiveness to US and China is lagging behind I believe.
Existing competitiveness in areas in Semiconductor, auto, shipbuiliding and electronics will allow 2% growth. But raising to 2.3~2.5% might be difficult without proper boosting measures.
As for interest rate, another 1 time cut is possible given high level of consumer debts as % of GDP.
Alright, Mr. Yoo, that's where we'll have to leave it on this Friday.
Thanks so much for making time today.