Core Viewpoint - The "debasement trade" has emerged as a significant investment theme this year, driven by various factors including trade disputes, fiscal deficits, rate policy, and geopolitical tensions, leading to a negative market outlook for certain assets [1] Group 1 - The market's perception of trade disputes has contributed to a negative sentiment, impacting investment strategies [1] - Fiscal deficits are influencing investor confidence, further exacerbating the negative outlook [1] - Rate policy adjustments are being closely monitored as they play a crucial role in shaping market expectations [1] Group 2 - Geopolitical tensions are adding to the complexity of the investment landscape, prompting a reevaluation of risk [1] - The combination of these factors has solidified the "debasement trade" as a focal point for investors seeking to navigate current market conditions [1]

(Subtitles may contain inaccuracies) We had President Lee saying that the BOK did the right thing when it held rates steady instead of cutting rates because that would boost the property market further. Saying the property market is a ticking time bomb. What's your take on whether or not the property sector is in fact one of the considerations for your monetary policy decisions.Yes. Definitely property prices, especially in metropolitan area and Seoul, affect the financial stability. And price stability is ...

Tariffs and Trade Impact - President Trump announced an additional 100% tariff on Chinese goods, raising the total tariff burden on Chinese imports to 130% [2] - Following this announcement, the S&P 500 dropped 2.7%, the Dow Jones Industrial Average fell 878 points (1.9%), and the Nasdaq Composite decreased by 3.6% [3] - Boeing shares fell 4.1% after threats of a parts export ban, highlighting the negative impact of geopolitical tensions on stock performance [4] Pharmaceutical Sector Developments - A major deal was announced to reduce prices of GLP-1 weight-loss drugs, with prices for Ozempic and Wegovy expected to drop from $1,000-$1,350 to $350, and as low as $245 for Medicare and Medicaid beneficiaries [6] - Despite the price cuts, shares of Novo Nordisk and Eli Lilly fell by 3% and 3% respectively, indicating market skepticism about the long-term benefits of price reductions [7] - Earlier, Indian generic drugmakers saw stock surges due to potential exemptions from new import tariffs, contrasting the mixed reactions to price cuts [9] Geopolitical and Economic Agreements - President Trump announced a $100 billion trade deal with Uzbekistan, which includes investments in critical minerals and aviation, although analysts question the long-term viability of such unilateral agreements [11] - The U.S. Supreme Court is reviewing the legality of recent tariff actions, with a ruling expected by early 2026 that could impact market stability [5] Meatpacking Industry Scrutiny - An antitrust investigation was launched into major meatpacking companies, causing shares of JBS NV to drop by 6.2% in after-hours trading [12][13] - The investigation is viewed skeptically by agricultural economists, who suggest it may not lead to lower consumer prices and could disrupt market efficiency [13]

Market Overview - The market is experiencing significant volatility, with the Dow down 400 points, S&P down 1.3%, and NASDAQ down 1.8% [1] - Oil prices have also seen a decline, with American oil prices falling below $60 per barrel, currently at $58, and global oil down $7 from a previous level of $70 [1] Geopolitical Factors - There is a notable geopolitical linkage affecting economics and finance, particularly with tensions involving Japan and China [1] - Japan's ruling coalition has collapsed, which has jolted markets and indicates interdependence among global economies [1] Business Sentiment - A report from KPMG highlights a prevailing tone of uncertainty in business across America, reflecting the current political climate and global market conditions [1] - The uncertainty is compounded by ongoing tariff discussions and the unpredictable nature of China's economic policies [1]

Core Viewpoint - Geopolitical tensions are increasing globally, leading countries to prioritize national security and protection [1] Group 1: Geopolitical Tensions - The rise in geopolitical tensions is a prominent theme in current news [1] - Countries are emphasizing national security in response to political and economic challenges [1] Group 2: Investment Analysis - The article aims to provide tools and knowledge for informed investment decisions through macroeconomic analysis and market trends [1]

Core Viewpoint - Oil prices experienced a slight increase due to geopolitical tensions in Europe and the Middle East, despite concerns regarding potential increases in oil supply and the impact of trade tariffs on global fuel demand [1] Group 1: Geopolitical Factors - Geopolitical tensions in Europe and the Middle East are contributing to the upward pressure on oil prices [1] Group 2: Supply and Demand Concerns - There are concerns about the prospect of increased oil supply which may counterbalance the price increase [1] - Trade tariffs are raising concerns about their potential impact on global fuel demand [1]

Report Summary Investment Rating - Short - term: Oil prices are expected to fluctuate with a slight upward trend; Medium - term: Bearish allocation [3] Core View - Tensions in the Middle East show no sign of easing. The IAEA's announcement that Iran violated the nuclear non - proliferation treaty adds pressure on Iran. The probability of a US - Iran nuclear deal is low unless Iran makes major concessions. However, there is great uncertainty between geopolitical escalation and supply impact. Without threats to supply or key shipping routes, it's difficult for oil prices to have a trend - like increase [2] Market News and Key Data - **Oil Futures Prices**: On the New York Mercantile Exchange, the July - delivery light - sweet crude oil futures price fell 11 cents to $68.04 per barrel, a 0.16% decline; the August - delivery Brent crude oil futures price on the London market dropped 41 cents to $69.36 per barrel, a 0.59% decline. The SC crude oil main contract rose 0.67% to 494 yuan per barrel [1] - **IAEA Resolution**: The IAEA Board of Governors passed a resolution stating that Iran violated nuclear non - proliferation obligations for the first time in nearly 20 years. Iran condemned it as a "political" decision and plans counter - measures [1] - **G7 on Russian Oil Price Cap**: Most G7 countries plan to lower the price cap on Russian oil even if Trump decides to withdraw. The current $60 per - barrel cap is almost ineffective due to falling global oil prices [1] - **Israel's Military Consideration**: Israel is considering military action against Iran in the coming days. The US may play a logistical role and share intelligence. Trump said there's a possibility of large - scale conflict in the Middle East [1] - **Singapore Fuel Inventory**: As of the week ending June 11, Singapore's fuel oil inventory rose 1.133 million barrels to 23.714 million barrels (a 7 - week high), light distillates inventory increased 232,000 barrels to 13.334 million barrels (a 3 - week high), and middle distillates inventory rose 1.475 million barrels to 10.715 million barrels (a 13 - week high) [1] - **US Jobless Claims**: The number of initial jobless claims in the US remained stable at a high level. As of the week ending June 7, it was 248,000 after seasonal adjustment, against a market expectation of 240,000 [1]

Market Trends & Geopolitical Tensions - Geopolitical tensions are weighing on the markets, potentially causing a pause or reversal in the US market rally [1][2] - Rising oil prices are not good news for US inflation [2] - The working assumption is that tariffs will remain at 10%, but there could be surprises causing downside market pressure [3][4] - Possibility of a "taco trade" scenario, suggesting potential for policy shifts [4][5] Investment Opportunities - Defense is an area where many governments, especially in Europe, are increasing spending, presenting a secular trend [6] - Increased defense spending has positive implications for the wider European industrial sector, particularly for countries like Germany [7]