Another Unstable Exchange Rate... Will Prices Fluctuate? [3-Minute Brief]

[At a Glance]
① Buffett Increasing Stake in Japanese Trading Companies
② Chicken Instead of Pheasant? Hybrid Car Craze
③ Closing Suez Canal, Rising Shipping Costs

MARKET INDEX

- US New York stock market's three major indices all closed lower
- Retail sales exceeded expectations, influenced by rising government bond yields
- Outlook favors maintaining high interest rates for the time being

TOP3 NEWS

■ "Warren Buffett Continues to Increase Stakes in Japan's Top 5 General Trading Companies"

- Buffett steadily increasing shareholding in Japan's top 5 general trading companies
- Investment made through Berkshire Hathaway since 2020
- Previously praised Japanese trading companies in interviews

■ Hybrid Vehicle Growth Rate Surpasses Gasoline Cars for the First Time

- Domestic hybrid vehicle growth rate surpasses gasoline cars
- 1.47 million hybrids last year, an increase of 360,000 units in one year
- Seen as a 'practical eco-friendly' option amid stagnation in battery electric vehicles

■ President Yoon: "ISA Enrollment and Tax Exemption Limits to be Significantly Expanded"

- President Yoon announced plans to expand ISA enrollment eligibility and tax exemption limits
- Aims to diversify investment markets concentrated in real estate into stocks and bonds
- Emphasized that the ban on short selling is not a temporary measure for the general election

Graphic News: Ships Returning Around the Cape of Good Hope... Will It Fuel Inflation?

- Disruptions in Suez Canal usage due to Houthi rebel attacks
- Rising concerns over Asia-Europe shipping logistics prices
- Global maritime shipping route freight indices are also rising

the Chart: Exchange Rates Soar Amid Geopolitical Instability

- Exchange rates impact import prices with a 1-3 month lag
- Recent intensification of geopolitical instability causing Korean won depreciation
- Concerns that effects may continue through February to April

Law That Pays

■ Constitutional Court and Supreme Court May End 20-Year Tax Litigation

- Dispute over whether tax imposition on conditional tax reduction benefits is justified
- Supreme Court: "Taxation is legitimate" · Constitutional Court: "Invalid due to repealed provisions"
- Anti-Corruption and Civil Rights Commission to conclude with legal and academic experts
☞Read article: https://www.asiae.co.kr/article/lawtimes/2024011716033770603

■ 37.7% of New Prosecutors Over 12 Years Graduated from SKY Law Schools

- Among all law school graduate prosecutors, 62.2% graduated from SKY undergraduate universities
- Number of law school graduate prosecutors increased from 42 in 2012 to 94 in 2023
- "Prosecutors should be selected from local law schools like regional judges in courts"
☞Read article: https://www.asiae.co.kr/article/lawtimes/2024011716083392216

■ Anti-Corruption Commission: "Building Status Maps Contain Errors, Administrative Authorities Must Actively Correct"

- Cases where auctions were halted due to discrepancies between building status maps and actual ownership
- Changes must be made without consent from mortgage holders if owners request
- "Local governments must rectify... Administrative authorities should strive for proactive administration from the public's perspective"
☞Read article: https://www.asiae.co.kr/article/lawtimes/2024011718073927508

※ 'Law That Pays,' a content partnership corner between Asia Economy and Law Times, is published every Tuesday and Thursday.

News Term: 'Underground Water Storage Dams' Built on Islands and Remote Areas

[Image source=Yonhap News]

- Artificial underground water barriers installed to prevent groundwater leakage as a drought response facility
- Unlike conventional dams, no submerged areas occur and environmental impact is minimal
- Ministry of Environment announced installation of underground dams in 10 locations nationwide including Yokjido Island... Construction and maintenance capabilities are key

Today's Key Schedule

○ Domestic
- 18th KOSDAQ Fosbank subscription / Offering price 18,000 KRW
- 18th KOSDAQ Hyundai Hims subscription / Offering price 7,300 KRW

○ Overseas
- 00:00 US November Business Inventories
- 03:00 US Atlanta Fed Q4 GDPNow
- 05:00 US Williams FOMC Member Speech
- 09:30 Australia December Unemployment Rate
- 13:30 Japan November Industrial Production
- 21:30 European Central Bank Monetary Policy Meeting Report Release
- 22:30 US January Philadelphia Fed Manufacturing Index

◇ Lunch & Commute Weather

○ Lowest temperature 1℃(▲4℃) ｜ Highest temperature: 10℃(▲7℃)
○ Precipitation probability 10% in the morning｜20% in the afternoon
○ Fine dust Good in the morning｜Good in the afternoon

OK in 3 minutes, essential time-efficient economic news. Published daily at 8 AM.