00:02you're listening to ai prism from seoul economic daily three data points reshaping the calculus
00:08on korea this week the fed just hiked for the first time since 2023 the 10-year treasury yield
00:15is pushing toward five percent and korean companies are rushing into shorter maturity bonds
00:20at the fastest pace in two years it's wednesday september 23rd here's why global investors are
00:26paying attention to korea today the federal reserve raised its policy rate by 25 basis points
00:32this month its first hike since july 2023 and investors are debating whether this is a one
00:38and done move like 1997 or the start of a new tightening cycle fed chair kevin warsh has
00:45modeled himself on alan greenspan who navigated a similar single hike scenario in 1997 without
00:51further tightening but persistent middle east conflict in a strained u.s fiscal position
00:56make a repeat of that outcome far less certain this time here's what the numbers show the fed's
01:02september projections put fourth quarter core pce inflation at 3.4 percent gdp growth at 2.3 percent
01:11and unemployment at 4.1 percent the 10-year treasury yield hit 4.962 percent with markets pricing in at
01:19least one more fed rate hike this year korea's short maturity corporate bond issuance jumped to 41.8
01:25percent of new debt this month up from 24.7 percent in august and the highest share in nearly two
01:32years
01:32five-year a a-minus corporate bond yields in korea rose from 3.79 percent at the start of the
01:39year
01:39to 4.89 percent by september 21st korea and the u.s reached a nuclear power framework covering eight
01:47reactors including two of korea's apr 1400 model unlocking a market worth an estimated 1.5 trillion
01:55dollars of the initial 10 billion dollars in u.s investment funds korea secured a commitment to
02:01redirect that cash into orders for its own nuclear equipment makers rather than a straight cash transfer
02:07c atl shares fell 24.04 percent in september alone as chinese automakers diversify battery suppliers
02:16even though c atl still holds close to half the chinese market sb energy postponed its ipo past a
02:23targeted 50 billion valuation as wall street grows more cautious on data center investments ahead of
02:30the u.s midterm elections so what does this mean for global investors in korea earlier we flagged the
02:36fed's hawkish tilt against a backdrop of geopolitical risk here's what that actually means for you
02:42rising u.s yields and a tighter fed raise the bar for capital staying in korean assets even as the
02:49nuclear deal and korea's own credit markets show where structural opportunities and stress points
02:53both sit watch three things whether the fed delivers the additional hike markets are pricing in
02:59how the apr 1400 framework translates into contracts for korean suppliers and whether korea's short
03:06bond financing trend triggers renewed credit stress like the 2022 legoland episode that's today's ai
03:12prism global investors this episode was produced with ai assistance based on seoul economic daily
03:18reporting and reviewed by a human editor ai prism is a juan ifra award-winning series we'll be back
03:25tomorrow you've been listening to ai prism from seoul economic daily
03:29you
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