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 Sei-wan, Professor of Economics at Ewha Womans University.
Professor Kim, good afternoon. Hope you had a nice Chuseok holiday.
Let's start with the latest from the Fed and it's meeting this week. They say tapering, or reducing their asset purchases, may soon be warranted. Interest rates staying put, for now. But Powell says the tapering announcement could easily come in November. What's your takeaway from the Fed's meeting?
Now over to China and the unfolding situation at Evergrande, the huge real estate conglomerate. It's on the brink of default, and yesterday agreed to settle a domestic bond coupon payment. A lot of market watchers worried what an actual default would lead to, some even talking about a Lehman Brothers situation. Tell us about that, and your view, Professor?
You could say some of the fears over Evergrande have eased, and the Fed is still rather dovish on tapering, so U.S. stocks closed quite a bit higher on Wednesday, though we are still not back to where we were a week or a month ago. What's the story in the global markets?
And here in Korea, coming off a long holiday, stocks were lower today, many of the same issues at play. One name that has done well in the past couple of sessions is Korean Air, looking at a likely boost in earnings to come soon. Tell us about the domestic market.
Looking at the wider economy, the Asian Development Bank and the OECD are calling for Korea's GDP this year to grow by four percent. And for inflation, the ADB saying this year will be two percent. The BOK says two.one percent, and the OECD two-point two percent. How are those two figures GDP and inflation shaping as we approach the end of the year.