US July CPI Meets Expectations, Korean Stocks Rise on Rate-Hold Hopes

The investment suggests Temasek views the future growth of Samsung Electronics and SK Hynix positively.

Temasek currently has AI-related investments making up about one-sixth of its total equity portfolio, and plans to raise that share to 15%, roughly a threefold increase. This is seen as a preemptive bet on the explosive growth of the AI industry. Since Samsung Electronics and SK Hynix play central roles in advancing AI technology as semiconductor companies, their investment could increase as Temasek expands its AI focus.

A clear gap has emerged in management fees and returns among domestic asset managers. Samsung and Hanwha charge a 0.269% management fee, while Mirae Asset and Korea Investment & Securities apply rates of 0.07%, less than a third of that. This fee gap also affects returns: Samsung posted 3.2 billion won in management profit, far ahead of the rest, while Mirae Asset was second with 500 million won, and the others stayed in the 100-million-won range.

Samsung holds 82% of the industry's total management profit, dominating the market. Despite higher fees, it captures the largest market share and profit, suggesting investors value Samsung's management capability and brand. Managers offering lower fees, by contrast, are struggling in market share and profit.

These fee and profit gaps may intensify competition among asset managers and prompt debate over how investors choose. In particular, high fees do not guarantee high returns, so investors need to approach carefully.

Within the industry, fee-cutting competition may intensify. Investors will likely prefer managers offering reasonable fees and stable returns, which could reshape the industry's landscape over the long term.

The released CPI includes headline CPI (all items) and core CPI (excluding food and energy), with year-over-year and month-over-month figures published for each. That all four key indicators matched expectations is read as a very positive signal.

In particular, headline CPI matching expectations suggests overall inflationary pressure is easing. This allows the assessment that the effects of the Federal Reserve's aggressive rate hikes are starting to show. As inflation slows, expectations for a slower pace of rate increases grow, which could positively affect financial markets.

Core CPI, which excludes volatile food and energy, also matched expectations, meaning underlying inflation pressure is easing too. This raises hopes that a structural decline in prices, rather than a temporary one, may be emerging. Investors will use this data to forecast the direction of future rate policy and shape their strategies.

This CPI release is expected to significantly influence the global economy and central banks' monetary policy decisions. Because US rate policy has wide ripple effects across global financial markets, attention is focused on whether these results will help stabilize international markets.

Markets currently see a better-than-60% chance that the Federal Open Market Committee will hold rates steady in September. This reflects expectations following the July CPI release, which matched market forecasts and showed signs of slowing inflation. With a majority of forecasts pointing that way, the consensus is that the next rate decision will be a hold.

However, a closer look at the CPI data suggests there is reason for caution. While the overall figures met expectations, the energy sector remains a burden, and CPI rose slightly month over month. This indicates inflationary pressure has not fully faded and that latent risks of renewed increases remain. Therefore, even if the Fed holds rates, it is likely to closely monitor price trends and maintain a cautious approach.

Big tech firms are building large data centers to deliver AI as well as a wide range of services, highlighting the importance of data center infrastructure. In particular, AI technology demands enormous computing power and data storage, so demand for data centers is surging.

Growth in the data center industry is also opening new opportunities for related technology companies. Neocloud firms, for example, are expanding by offering data center services specialized for particular fields. Beyond simply providing servers, they are strengthening their competitiveness with integrated services such as AI-optimized infrastructure, efficient power management, and security solutions.

This trend shows that AI is driving co-growth across the hardware and infrastructure industries, not just software development. As the AI ecosystem grows more sophisticated, the role of data centers will become even more important, and innovation and growth among related companies are expected to continue.

Going forward, higher-performance, more efficient data centers will be needed to keep pace with AI advances. This will spur technology development and investment in areas such as cooling technology, power supply systems, and network infrastructure, likely accelerating growth across related industries.

Byun Sang-wook, a senior commentator, said on air, "We're joking around, we're not actually doing that," stressing that the cast do not run trading chat rooms or solicit personal investments. He noted that recently many impersonation videos and voice messages have used AI to closely mimic the appearance and voice of Lee Kwang, the company head.

Byun said the impersonation is so convincing that "people even call my older sister asking if it's you," and urged viewers never to be fooled. He repeatedly warned that anyone introducing themselves as 'Lee Kwang-su,' 'Park Si-dong,' or 'Kwon Da-hyung' through cafes, trading rooms, or Telegram chats to recommend investments or propose meetings is an impersonator, and that people should not respond.

Once highlighted alongside Samsung Electronics and SK Hynix, it even climbed to third or fourth in market capitalization, drawing wide investor interest. But the recent share price decline has raised investor concerns.

Byun Sang-wook said, "Earnings are still good, and the operating margin is above 10%, so quality-wise it's still performing well, and the scenario has no problems. I'll confirm this with the market later," indicating that the company's fundamentals remain strong. In other words, the business fundamentals are solid, but the share price is being adjusted due to the broader market mood or specific issues. Investors are paying attention to the gap between earnings and share price and will need in-depth analysis of future market trends and corporate valuation.

Power-related stocks such as energy storage systems (ESS) and solid oxide fuel cells (SOFC) are rising, as stable power supply has become a key factor in building AI data centers.

In Neus's recent earnings announcement, it said it was unable to sell data centers, highlighting that power shortages were behind this. To solve the power problem, Neus said it plans to introduce on-site power plants in partnership with Blue Energy, a US-listed company. Blue Energy is a firm that installs power plants right beside data centers, and many domestic companies supply parts to Blue Energy.

As the importance of on-site generators rises, related stocks continue to surge. Power demand in the AI era far exceeds earlier forecasts, and securing stable and efficient power supply solutions is emerging as a core element of corporate competitiveness. This is expected to drive innovation and growth across the energy industry over the long term.

This shows the central bank is strengthening efforts to diversify its foreign reserves and secure safe assets.

Central bank gold purchases are generally interpreted as recognizing gold's value as an inflation hedge and safe asset in times of crisis. Especially when global economic uncertainty is rising, increasing gold holdings can strengthen a country's fiscal soundness and contribute to the stability of the financial system.

The Bank of Korea's push to buy physical gold, beyond financial products, is analyzed as a strategy to raise the stability of its asset portfolio by actually increasing its physical gold holdings. This move is expected to offer important implications for the direction of foreign reserve management.

Byun Sang-wook pointed out that news direction is determined by looking at roughly 50 to 60 major Korean media outlets, and only 20 to 30 of them report and write articles with conviction. He noted that more than 20 outlets are owned by construction capital and private equity, suggesting that most of the news we consume may be influenced by specific capital.

Such claims raise serious concerns about the independence and fairness of the press. When capital owns media outlets, coverage can be skewed toward that capital's interests. Construction capital may influence development and policy decisions, while private equity may affect reporting related to corporate investment. This risks preventing the press from properly carrying out its role of oversight and criticism.

Byun asserted, "Most of what we see is media controlled by construction capital and private equity," and emphasized that the public needs to scrutinize the background and reliability of sources more critically when consuming news. Since diversity and critical perspectives in the press are essential to a democratic society, this claim calls for reflection across the entire media ecosystem.

Therefore, continuous monitoring and analysis of media ownership structures and the resulting reporting tendencies are needed. Calls for self-reflection should grow both among the public and within the media industry, and efforts to pursue fair and objective reporting free from the influence of specific capital are important.

Cases were uncovered in which current and former reporters used nonpublic information obtained during reporting, or bought shares of a company before publishing an article about it and sold after the stock rose, profiting unfairly.

Such conduct occurred mainly among economic newspaper reporters, and it is a serious crime that violates both journalistic ethics and the Capital Markets Act. Journalists must strictly prohibit using nonpublic information for private gain and are responsible for maintaining the fairness and objectivity of their reporting. This investigation by the FSS special judicial police is considered an important step to eradicate insider trading that undermines capital market fairness and to strengthen ethics in the press.

This misreporting spread mainly through economic newspapers, leading to excessive coverage competition that blamed a specific individual for the KOSPI's sharp drop.

Byun Sang-wook pointed to this case, saying, "They wrote it this way because of the KOSPI plunge and Kim Yong-beom, the director, and there were 121 such articles over three days," criticizing how domestic media uncritically amplified Bloomberg's misreporting. 'Excess tax revenue' means the government collected more tax than expected, while 'excess profits' means companies earned more than normal levels. The two terms have entirely different meanings, yet domestic media were criticized for confusing or deliberately distorting them, which misled the public.

Such reporting attitudes raise questions about the expertise and fairness of the press. Economic articles must be written on the basis of an accurate understanding of figures and concepts, but this case appears to have conveyed misinformation to the public by confusing even basic concepts. This can increase uncertainty in financial markets and hinder investors' rational decisions.

Therefore, the press must prioritize accuracy of its reporting and be especially careful in using economic terminology. As a producer of information, the media bears a heavy responsibility to provide the public with accurate information and help reduce market confusion.

This shift in sources can directly affect the nature and content of economic articles. Analysts and consultants provide information to the public, but they are also closely tied to the business interests of their clients or employers. Their information is therefore likely to include commercial aims, such as encouraging positive outlooks on specific companies or industries or recommending particular investment products, rather than purely objective analysis.

Byun Sang-wook suggested that these sources are not necessarily pure, saying, "It doesn't seem like analysts and consultants are all pristine. They have their own interests and business." He argued that reporters should critically verify information from such sources and recognize that conflicts of interest may be involved, but in practice there is a growing tendency to rely on them because information is easy to obtain.

As a result, this shift in sources may undermine the objectivity and fairness of economic reporting and increase the likelihood that readers encounter information that serves particular interests. Readers should therefore approach economic articles critically, considering the background and interests of their sources, while the media should strengthen cross-verification and secure diverse sources.

Byun Sang-wook stressed that readers must check who wrote an article, and explained that while articles by reporters they trust can be believed, readers should be wary of articles without a name.

Articles citing 'anonymous sources' or 'industry insiders' often reflect not the reporter's own convictions but content dictated by a desk editor or a party with a specific goal. Such articles are often content the reporter cannot take responsibility for under their own name, or attempts to shape public opinion with a specific intent. Readers should therefore check whether an article names its reporter and whether its sources are clear.

Byun Sang-wook analyzed that foreign economic articles frequently present graphs and specific statistics, while Korean articles lack such objective data. He explained that this is because Korean media tend to mainly quote experts' remarks or subjective opinions.

For example, Korean economic articles often simply relay experts' statements such as "Prices here will rise" or "Chinese buyers are said to be buying a lot here." Foreign economic articles, by contrast, mainly analyze actual statistical data and logically explain market trends or policy effects based on it. This gap raises concern that Korean economic reporting may lean toward impressive claims rather than facts.

A lack of statistics and numbers can make it hard for readers to objectively understand and judge economic conditions. Also, reporting that relies only on experts' words risks representing the interests of specific groups or spreading misinformation. Korean economic media therefore need to strengthen statistical analysis and data journalism to raise the credibility and objectivity of their reporting.

Byun Sang-wook shared a serious concern about the bias and errors that pervade economic reporting and said he is exploring concrete ways to create change. This starts from the critical view that existing economic media, bound by specific capital or interests, fail to provide fair and objective information.

The proposed 'progressive economic media' project aims to provide the public with accurate, in-depth economic information and overcome the limits of existing media. It seems aimed at innovation across the whole process, not simply changing article content, including source selection, data analysis, and reporting methods. Byun expressed his will to bring positive change to Korea's economic media landscape through this project.

This project could have a major impact on the future direction of Korean economic media. Readers may encounter economic articles with new perspectives outside the existing framework, which would deepen understanding of economic phenomena and help support rational decisions. Existing media may also be spurred by this new movement to pursue fairer and more in-depth reporting.

Ultimately, the 'progressive economic media' project is expected to do more than launch a new outlet, playing an important role in improving economic awareness across Korean society and forming healthy public opinion. Attention is focused on what concrete form the project will take and how it will be carried out.

These reports suggest that former President Trump's family is deeply involved in major development projects worldwide beyond official political activities. Resource development and large-scale infrastructure projects require enormous capital and political influence, so the family's involvement may carry meaning beyond ordinary business.

Given Trump's past conduct, such investments could also spark international controversy. In particular, if he returns to the political forefront, issues of conflicts of interest with overseas business or allegations of exerting influence could arise. Continued scrutiny and disclosure of their overseas business activities are therefore needed.