time now for an in-depth look at the
market news this afternoon and for that I’m joined on the line by mr. Daniel you
global strategist at you wanta securities mister you thank you for
coming on today thank you for having me today
well now we have another factor in global stocks and that’s Trump
announcing new tariffs on steel and aluminum from Brazil and Argentina that
and some disappointing numbers for US manufacturing tell us about that
yes with those kind of news the US market has shown quite a bit about
crying yesterday the Dow was down point nine six percent the S&P 500 was down
point eight six percent Nasdaq was down over one point one percent as you said
the US President Donald Trump said that on Monday that he will immediately
restore tariffs on US billet aluminum imports from Brazil and Argentina in
terms of why he’s doing that is because he’s saying that these two countries
have massively divided their currencies and which is not good for US farmers and
because of that there the u.s. is putting tariffs on skills
aluminum well it’s I mean that is kind of bit about overstating the fact that
the Brazil economy was growing at only one percent this year and as you know
the Argentine is faced with a massive currency devaluation due to the IMF
bailout process that economy was actually shrinking in terms of the
growth so the level of the the the tap that it was put on I’m not sure whether
that is actually going to be a long-lasting factor probably what Trump
wants is that the currency to appreciate for the Brazil RIA and also the
argentine pesos because the currency was it has depreciated while over 30 percent
for any person for brazil and also for antenna as you know that the evaluation
has been quite and so we will see some of the things
that will happen and we think that we need to find the actual attractiveness
of the South American countries where the current currency wise I think that a
lot of these companies are making huge profits and also in terms of the PMI
numbers yes the US I Annette is M PMI numbers came in at below expectation and
it still remains to be below 50 but as for the IHS market a manufacturing PMI
numbers it was showing our very significant recovery and it showed fifty
two point six in November so it’s kind of mixed signals and we don’t think that
US economy is going to go to a possible recession in the future in any time soon
I think that a lot of these things are actually coming out as a political
measure rather than at actual economic numbers so we need to watch and see how
this plays out but it might only cause the temporarily volatility of the equity
market rather than and creating a massive decline in terms the prices got
it well the decline in stock so went beyond Wall Street here in Korea
continuing the decline we’ve been on since last week and in the region –
what’s the story in around the East Asian markets yes I just said kospi was
down point three eight percent and also the cost that was down point seven eight
percent and Korea confused to be a underperformer of global equity market
in the last several weeks as you know that the changes in MSCI index for the
emerging market resulting in two Koreas nestling versus net buying of China is
affecting the underperformance of the Korean le market as for the other Asian
market as you said the the effect is not necessarily for all the Asian countries
if you look at the China there is a concert twenties but nevertheless we had
seen today slightly recovery coming through as the Shanghai index was up
about 0.3% and the Shenzhen indexes up about 0.5% so we
think that the Chinese economy is also fairly stable whether some of the
numbers are coming out yesterday on the PMI numbers on both manufacturing and
service sector and both of the numbers were coming in well about 50 which means
is that the economy is expanding a bit so which is saying that the issues are
individually different the Korea probably faced with a very weak growth
rate and continuation of concern regarding the investment cycle we think
that the Korea is based with a lower growth rate than the intrinsic growth
rate so that is the issue but as for the overall ocean market and and including
China we think that the overall market seems to be fairly reasonably okay and
that the performance of the Chinese equity market should continue in the
future well mr. Yoo we’ve got about one minute
left but we got this figure out called the GDP deflator which is at its lowest
in 20 years a lot of concerns about low growth and low inflation explain that
figure and what the situation is yes as you said it is low growth low inflation
indicators so clearly there’s a concern about the labor changes whereas the the
birth rates are lowest and the long term growth rate potential is lowest but I
think that the biggest reasons why these deflation deflationary partner things
are happening is because the actual investment cycle seems to be negative
territories and that continues we need more aggressive boosting measures
including rate cut as well as the fiscal policy measures without that we would
see confuse more growth rate than expected alright mister you will have to
leave it there for today thanks so much for coming on we appreciate your
insights thank you very much