U.S. Stock Market Rises Despite Shutdown Fears…Gyeonggi Bus Strike Called Off [Morning Briefing]

◆New York stocks rise together on shutdown-driven rate cut hopes

Overnight, New York stocks rose together on hopes of a rate cut driven by a shutdown (temporary work stoppage). In the early hours at the New York Stock Exchange, the Dow Jones Industrial Average rose 0.18% from the previous day. The Dow hit a record high. The S&P 500 and Nasdaq rose 0.41% and 0.31%, respectively. The market interpreted shutdown concerns as a potential catalyst for the U.S. central bank (Fed) to cut rates. This is because a prolonged shutdown is analyzed to increase downside risks of an economic downturn. In past cases, shutdowns mostly ended within two weeks, so their impact on the market was limited. A shutdown will begin if the House and Senate fail to pass next year's budget by 00:00 on October 1 Eastern Time (1:00 PM KST on the 1st).

◆Gyeonggi bus labor-management agreement reached

The Gyeonggi-do Bus Union Council, which includes about 90% of all bus workers in Gyeonggi Province, reached an agreement with management at a final mediation meeting and withdrew the strike that had been scheduled to start today. The union council held a 14-hour final mediation meeting with the employers' association, the Gyeonggi Bus Transportation Business Association, at the Gyeonggi Regional Labor Relations Commission from yesterday until 6 a.m. today and agreed on a wage agreement. Accordingly, the union council withdrew the full strike that had been announced to begin from the first runs today and decided to operate all routes normally.

◆President Lee to meet OpenAI's Sam Altman today

President Lee Jae-myung will meet Sam Altman, CEO of OpenAI, the developer of ChatGPT, at the presidential office in Yongsan, Seoul, today. During the meeting, the president is expected to ask CEO Altman for advice on Korea's 'AI Transformation' (AX) strategy and request that he actively engage in cooperation with domestic companies and investment in Korea. The president has made 'becoming one of the world's top three AI powers' a central policy goal and is focusing on policies to foster the AI industry. OpenAI has also recently launched its Korean branch, OpenAI Korea, and is seeking cooperation with domestic companies and the government.

◆Custody review for Kwon Seong-dong and Han Hak-ja

Kwon Seong-dong, a People Power Party lawmaker, and Han Hak-ja, the leader of the Unification Church, key figures in the 'allegations of collusion between politics and religion', will both undergo custody review today. The Criminal Appeals 8-3 Division (Presiding Judges Choi Jin-sook and Choi Hae-il) of the Seoul Central District Court will conduct Kwon's custody review at 2:10 p.m. and Han's at 4:00 p.m. today. Previously, the Kim Keon-hee special investigation team arrested Kwon on the 16th and Han on the 23rd of last month. A custody review is a court procedure to examine whether the detention of a suspect during the investigation is lawful and necessary. Decisions on their release could be announced as early as tonight.

◆Urgent inquiry related to the National Information Resources fire

The National Assembly's Public Administration and Security Committee will hold an urgent inquiry today regarding the fire at the National Information Resources Service (NIRS). The committee will hold a plenary session from this morning to conduct a confirmation hearing for candidate Wi Cheol-hwan to the Central Election Commission, and after the hearing, it will proceed with the urgent inquiry related to the National Information Resources. Yun Ho-jung, Minister of the Interior and Safety, among others, will appear for the urgent inquiry to answer questions from ruling and opposition lawmakers. The ruling and opposition parties are exchanging accusations over fire prevention measures. The Democratic Party argues that the Yoon Suk-yeol administration's failure to prepare for disasters led to the incident, while the People Power Party claims that the Lee Jae-myung administration's neglect of public welfare caused the fire and is calling for Minister Yun's dismissal.

◆Large temperature differences…Daytime temperatures 24–29°C

On Wednesday, the country will be mostly clear, with clouds increasing at times over the central inland in the afternoon. Late in the afternoon, there may be showers in northern Gyeonggi and the northern inland areas of Gangwon (Yeongseo). Expected precipitation is around 5 mm. The daytime high is forecast at 24–29°C. For the time being, inland areas will see a large day-night temperature difference of around 10 degrees. Thick fog will form through this morning mainly over the central inland, the Jeolla region, and inland Gyeongsang. In the offshore waters of the central East Sea and the northern offshore waters of the southern East Sea, there may be gusts or thunderstorms.

No Jeong-dong, Hankyung.com reporter dong2@hankyung.com