time now for an in-depth look at the market news this afternoon and for that
I'm joined on the line by dr. kim sihwan professor of economics at ey Woman's
University professor Kim thank you for coming on today well with the world
going into a recession because of the coronavirus say the IMF is projecting
the Korean economy to shrink this year by 1.2 percent what do you make of that
estimate and what kind of steps do you think could be taken that's right the
IMF has projected Korea will experience negative 1.2 percent economic loss for
this year that would be the first negative growth in last 20 years
because even in 2000 a global economic crisis creates economic cost stayed at
positive level they also projects that global economy will shrink by 3 percent
this year which would be the sharpest contraction since 1930s
Great Depression but I Neff has also noted that Korea's prompt responses to
CO vide 19 outbreak likely lessens the damages compared to other countries
regarding the policies under current situations there should be
straightforward expansion of a fiscal and monetary policy from government well
now with the ruling party in South Korea their victory in yesterday's election it
looks like they'll be able to speed up the measures they've been wanting to
take on the economy what do you think that'll look like yes as we have seen
from previous report before the general election of yesterday there have been
quite a few policies to support businesses and households like cashing
out emergency relief income from government now thanks to ruling party's
landslide victory implementing these emergency programs will be accelerated
and size of the relief packages and even larger but the the
concerns on increasing government that will be forgotten for a while
interesting and overnight on Wall Street stocks were down as the data coming out
show the extent of the damage from the coronavirus shutdown what's the story in
the global markets today in yesterday's market US stock replied 2.2% in SMP 500
with return actually in the last few days
yes market had a positive movements due to increasing hopes on recovery from the
shocks of Cove in nineteen and strong government stimulation packages but but
over two days quite a few data that reflects u.s. economic situation has
been released and it was found that the status of the US economy is worse than
expected like major banks profit decreased by 50
percent and industrial production decreased by over 5 percent and so on
well here in Korea stocks were down early in the morning but they recovered
nicely what happened in The Cosby and the KOSDAQ in only trading fashion of
today as you said Korean stock market was kind of mixed between Cosby and
co-star but market is finished with neutral written or written in Cosby in
the last moment trading fashion there was a huge sales of foreigners and that
made from positive to 0% return for today in Cosby markets and there was
positive return in cotton market with 2.2 percent returns for today it looks
bad ruling party's victory in in yesterday's election in its effect on
facilitating expansion package became positive factors in
today's market well and behind all this we have oil prices which have fallen to
an 18-year low despite the deal to cut production there's a fall of over 10
percent and gold meanwhile rising for a fourth day in a row
what do you see these two going from here even with production cut agreements
between aloe products producing countries or a price decrease to record
low level which is below $20 per barrel the demand for oil dropped by over 30%
after Kobe 19 outbreak and demand is decreasing further along was US oil
reserve increase so this weekend demand for oil and lower price of oil will be
continued until car about a virus outbreak is terminated and as long as
demand for a percept continues regarding the price of the
gold the gold price will stay strong alright professor Kim we'll have to
leave it there for today always appreciate your insights thank you thank
you very much