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In-depth: Global market wrap-up Updated: 2019-10-31 13:07:10 KST

Time now for an in-depth look at the market news today.
And for that, I'm joined on the line by Mr. Daniel Yoo, global strategist at Yuanta Securities.
Mr. Yoo, thank you as always for making time today.

Thank you.

So, as was expected, the Federal Reserve did go ahead and cut interest rates overnight by a quarter percent. How have the markets reacted and what's your outlook in the near term?

As expected rate cut is made.
Fed said it will be accommodative to the market. As long as inflation is not concern, Fed will keep the rate low.
Also, idea of insurance rate cut can be stopped was introduced by Fed.
Remembering the fed rate cut in 1998, 3 time rate cut, then no rate change for a year, then due to sharp rise of inflation, cut hike.
Market will go up…

Of course, the Bank of Korea this month also cut rates to a record-low level. It's actually lower than the Fed right now. How will this decision affect what the BOK does next?

Korea needs to lower that rate even more if fiscal budget is not signed timely.
Korea needs both monetary and fiscal policy.
515 trillion won budget for next year is still on hold due to ruling party and opposition party are fighting…
Korea's economic growth will remain at low of 2% territory.

Samsung Electronics saw its profits in the third quarter fall from a year ago by 55 percent. But we see the KOSPI strongly higher today. What's going on there?

Various 5G phones will be introduced next year.
China will commercialize 5G next year. Samsung will expand 5G line-up
10 nano Dram %, will rise to 80% by end of this year.
EVV 7 nano production efficiency is very stable. 4Q Dram sales growth actually occurred.
Operating profits 7.78 trillion, Sales 62 trillion.
Profits down 57% yoy, but up 17%
Over 60 trillion on sales is great number.
Despite weak LCD division, Dram business was actually did better even though profits showed decline from 3.4trn to 3.0trn
Capex 13 trillion in 4Q, total 29 trillion same as last year.

Alright Mr. Yoo. Thanks so much for sharing your insights today.
We appreciate it.
KOGL : Korea Open Government License
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