In-depth: Global market wrap-up


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 want to
securities mister you thank you for
joining us today thank you pardon me
today well we’re just a few days away
from that deadline set by the US for a
trade deal with China or it’s going to
impose more tariffs December 15th how
are the markets responding to that yes
the market seems to be quite volatile
actually taking us on Pleader
because until the beginning of this week
the markets been quite strong due to do
a lot of the economy numbers coming out
from the US as well as China and I don’t
think that the US will probably raise
taxes even though that the trade deal
might not be signed before that date of
December 15th because the additional tax
increase means that us will face quite
significantly higher inflationary
environment and right now it is the
correlations that are on 2% territories
high inflation means higher interest
rate and that means a recession coming
through price change so therefore we
don’t think that the US will be in a
position to raise the additional taxes
at this point in time and also though US
can continue to put pressure on China
with the current tax rates that already
applied on 15th of December no tax will
be raised but until the actual that date
market should be probably taking some
breeder and might be somewhat volatile
around the current territories and once
the knoteks was probably announced if it
is announced on the 15th of December the
market was to take the additional strong
gains in the future right well shares of
Saudi Arabia’s national oil company
Aramco will start trading this Wednesday
what effect do you think that might have
on the Korean financial markets well I
think it already did a quite a bit of
negative implications as you know that
the foreign investor war big major
necessarily in last several weeks
just a one-month period they sold over
four billion dollars of Korean equities
and that’s because of the two reasons
one is that the the Aramco listing is
expected to happen and they need to
raise money and also the the MSCI index
changes where the percentage of Korea
goes down while the China goes up so
those two factors have affected
negatively for the Korean equity market
and that has created a huge decline of
the Korean could you market by more than
four percent in the last several weeks
however though once the listing happens
this week we don’t think that there will
be any additional money going into this
listing even though the the Crown Prince
Mohammed bin Salman talking about the
fair value should be two trillion
dollars rather than the current 1.7 one
trillion dollars that is expected to get
listed if the additional money pours
into this then yes there could be
additional negative implication with
kospi but I think they already the money
has been raised and I don’t think that
that any additional nestling will come
through because of this listing on
Wednesday well now we have news that the
People’s Bank of China will soon start
testing a digital currency which will be
a first for a major economy how is this
similar to or different from
cryptocurrency and what effect might a
digital Chinese currency have globally
yes exactly the managing partner of HCM
capital said that China is developing
framework called the digital currency
electric payment or dcep this would
allow a central bank to issue a digital
currency to commercial banks and
third-party payment networks such as Ali
pay and WeChat pay several experts have
warned that the virtual currency could
increase the risk of fraud particularly
money laundering and terrorism financing
but many governments have not found a
way to regulate the space as soon as
that obviously China is the first one to
come out with this and the launch of the
China’s dista currency could push
many authorities globally on the world
to decide on how they want to use and
regulate such technology of of this the
new details have been revealed by the
China of all coming digital currency
which appear to confirm the speculation
that it will be fully centralized the
key factor about this essential ization
that a centralized digital currency in
China is a warring proposition given
that a social credit rating system
estimate to be fully live in 2020 creig
style on the its citizens for violations
as small as playing music so loudly on
train or combining this with the full
control over the world made citizens
powerless and this is an argument
Haitian that’s been made but in any way
China is well in position to try to do
this because it is trying to move away
from the dollar denominated global trade
to more of a ramen be denominated trade
percentage to be increased in the future
in any case this digital currency will
be one method to reduce the power of US
and dollar while raising the power of
the renminbi as well as the Chinese
government’s influence into the global
economy
fascinating that’s where we’ll have to
wrap it up for today though mister you
thank you for coming on we appreciate it
thank you very much

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