President Lee: "AI-Driven Changes Should Serve as a Springboard for Humanity's Progress" [3-Minute Brief]

[Quick Take]
1. President Lee chairs Security Council open debate at the UN Headquarters in New York
2. US imposes 15% car tariff on the European Union, following Japan
3. National tax revenue projected at 369.9 trillion won... 2.2 trillion won shortfall versus expected revenue

MARKET INDEX : Year to date

○The three major indices of the New York Stock Exchange closed lower for the third consecutive day.
○Caution over the AI rally and concerns about overvalued stock prices are weighing on the market.
○Attention is focused on the August Personal Consumption Expenditures (PCE) price index.

Top3 NEWS

■ President Lee chairs UN Security Council open debate for the first time as a Korean president: "AI-driven changes should serve as a springboard for humanity's progress"

○First time a Korean president has chaired an open debate at the Security Council
○"AI can become a fierce beast, or it can be like 'Duppy' from K-Pop Demon Hunters"
○"Failure to respond to AI-driven changes will deepen global inequality and imbalance"

■ Only Korea faces a 25% car tariff... US lowers tariffs to 15% for EU after Japan

○US imposes a 15% car tariff on the EU, effective from August
○Japan applies the 15% rate from the 16th
○Korea remains at 25% due to disagreements over $350 billion in investments in the US

■ This year's tax revenue falls short by 2.2 trillion won compared to the supplementary budget... 3.3% error versus main budget

○Announcement of the 2025 national tax revenue re-estimate
○This year: 369.9 trillion won, 0.6% error versus supplementary budget
○Average error rate from 2011 to 2020 was 4.8%

Graphic News: Home prices rose further after the September 7 measures... "Need to strengthen macroprudential policies"

○Bank of Korea's "September Financial Stability Report" reviews home prices after real estate measures
○Seoul apartment prices rose 0.1% even 10 weeks after June 27... Impact of past measures was limited
○After September 7, when comparing periods with similar average price increases in Seoul, the rate of increase spread across more districts

the Chart: Just one mention of 'treasury share EB' shakes even 3 trillion won market cap companies... Individual investors disappointed over canceled buybacks

○KCC announces issuance of 430 billion won exchangeable bonds (EB) backed by treasury shares
○Record-high earnings forecasts and target price hikes proved ineffective
○This year, 51 companies announced treasury share EB issuances-nearly five times last year's figure

Today's Key Schedule

○Domestic

06:00 Manufacturing Business Survey Index

○International

02:00 US 7-year Treasury bond auction

02:00 Speech by US Federal Reserve Vice Chair for Supervision Barr

04:30 Speech by US Federal Open Market Committee member Daly

05:00 US Federal Reserve balance sheet

08:30 Japan Tokyo Core Consumer Price Index (YoY) (September)

18:30 Speech by Christine Lagarde, President of the European Central Bank

21:30 US Core Personal Consumption Expenditures (PCE) Price Index (YoY) (August)

21:30 US Core PCE Price Index (MoM) (August)

21:30 US PCE Price Index (YoY) (August)

23:00 US University of Michigan Inflation Expectations (September)

◇ Lunch & Evening Commute Weather

○Lowest temperature: 18°C (▼2°C) ｜Highest temperature: 27°C (▼1°C)
○Precipitation probability: 0% in the morning｜0% in the afternoon
○Fine dust: Good in the morning｜Good in the afternoon

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