but I couldn’t deal with it in the eurozone and China.

I thought I should deal with it once, but I couldn’t deal with it in the eurozone and China. The Chinese side has to say a little more, so let’s put it behind the requirements… Today, I’m going to talk about Europe. Fear of the European financial crisis. Fear of the European financial crisis. I think that fear is rising little by little as I look at France and the United Kingdom, but I just want to tell you that this is quite different from the time of the European financial crisis.

If you look at France recently, it’s unusual. The interest rate on the French 10-year Treasury has exceeded 3.5%… It’s almost the same as Italy’s 10-year interest rate, which is often referred to as a financially vulnerable country. France somehow… T.T And there’s growing concern about downgrades in France. It feels similar to the case of the European financial crisis, which spread like wildfire starting with Greece and Italy’s downgrades. And Italy and Spain’s credit ratings are improving day after day. FYI, Greece’s 10-year Treasury note is at 3.4%. Whew… France’s 10-year interest rate is reversed from Greece. The problem seems serious. T.T One more. France continues to see low growth.. We have a lot of debt, high interest rates, and we have weak growth. So we have a little income, but we have a lot of interest on our hands, so we can’t help but feel that the future of France is dark. The second most difficult situation in the Eurozone, France, and the UK across the ocean is also not easily free from the threat of inflation. There seems to be no answer.

By the way… So let’s think about it this way, we don’t call the European fiscal crisis that took place in 2010-12, the Greek fiscal crisis, and we don’t call it the crisis of the PIIGS countries, we call it the European fiscal crisis, and you have to note that the fiscal risk that started in Greece at the time… It then spread through Ireland to Portugal, Spain, Italy, and so on, and by September 2011 … As it spreads further with the issue of downgrade in the United States… With risks in Belgium, France… and around September 20th, it led to a surge in German government bond rates, and in the U.S., the operation twist began… The Eurozone has begun similar quantitative easing…. After Draghi’s WHATEVER IT TAKES remark… Starting with ABS purchase in 2014… It led to quantitative easing in December 2015.

The difference is that the problem in Greece has been transferred to other countries. But now, France is on a shaky ground, but Spain and Italy are getting better. Yes, it’s hard to judge it by the European financial crisis. If all the eurozone countries are on a shaky ground, the value of the euro is…. Of course, it’s going to go down. So in 2011, the euro crashed, and now the euro is… It’s been a little bit off lately, but… I think it’s a healthy situation. For your information, the euro was about 1,500 won when Trump was elected on November 5th last year. Now it’s over 1650 won. It’s a little hard to say the euro crisis. For your information, the Eurozone stock market was in a devastating mood at that time. Recently, the French stock market has also been solid. Wouldn’t it be right to interpret this as polarization?

And one more thing, if you’ve been through it, you know, there was a 7% fear, which is when the interest rate on government bonds goes over 7%, which means there’s no answer… Interest rates on Italian government bonds have been flying above this level. Greek Treasury interest rates were just in the air. Now 3.5%… big… now the ECB base rate is higher than it was at the time… Given that, you can feel it’s quite different from the financial crisis. The atmosphere was really depressing at the time. T.T

Finally, it’s a little bit burdensome to compare the interest rates on Greek and Italian government bonds with the French interest rates on the same line. Since the ECB’s quantitative easing began… And since the eurozone bailout began, countries like Italy and Greece have received the most support. The ECB has bought a lot of government bonds from these vulnerable countries. And we have to take into account that the impact of the ECB’s purchase on government bonds is also quite large in these countries’ interest rates. And during the COVID-19 pandemic… and the shock of the ECB’s rate hike in 2022… The ECB has introduced a program equivalent to unlimited quantitative easing to help vulnerable countries. Among them, the program that is still going on is TPI. It’s a program to control the transfer of the European financial crisis to other countries. It’s to buy government bonds from countries in need.

At the ECB’s monetary policy meeting this month, when it was talked about whether the ECB should use TPI due to France’s debt issues… Mr. Lagarde emphasized that it is not a stage yet, and at that stage… Won’t it move? Experience with the past financial crisis… That’s what you see as trying to cut off the possibility of metastasis from the source.

Are you saying it’s good… It shouldn’t lead to the fact that it’s not the worst. It’s true that the economic situation in France is very difficult. But from an investor’s point of view, rather than worrying about France… It’s important to note that debt risks in France and the United Kingdom could be a negative factor in increasing volatility in the current government-led global growth. That could be linked to the current U.S. shutdown. A similar issue could be created in Japan, which has a prime ministerial election coming up this week.

Tax cuts are my power… This is driving economic growth right now, but if those tax cuts are held back by debt risk… That can hurt growth. Even if you have debt, if you have steady growth, it’s not a big problem, but… What if growth drags on?? Yes, this could be a risk. It’s not a financial crisis, but it’s one of the potential risk factors. I think you can understand the situation in France. Essay short. Thank you