25 Bps Hike by Fed Next Week 'Right Way to Go,' Manulife IM Says

The transcript discusses financial instability risks, focusing on the SVB drama and its impact on markets. It analyzes the Federal Reserve's approach to interest rates and the implications for inflation. The discussion covers market volatility, the US dollar's strength, and Asia's exposure to SVB. It concludes with China's economic plans and growth potential.

What was the unique aspect of SVB's business model compared to its peers?

• Focus on traditional banking sectors

• Lower interest rates on loans

• Extensive international operations

• Higher deposit growth from speculative sectors

What tools does the Federal Reserve use for financial stability?

• Exchange rate interventions

• Fiscal policy tools

• Macroprudential tools

• Monetary policy tools

What was the market's reaction to the recent CPI numbers?

• Decrease in interest rates

• Expectation of a 50 basis points increase

• Expectation of a 25 basis points increase

• No change in interest rates

What was identified as a risk to the US dollar even before the SVB drama?

• Global rush to safe havens

• Trade deficits

• Interest rate differentials favoring the US

• Growth differentials favoring the US

How did the SVB situation affect Asian banks?

• Significant direct exposure

• Minimal direct exposure

• Complete isolation from the impact

• Major losses reported

What is the expected GDP target for China as mentioned in the transcript?

• 7%

• 6%

• 4%

• 5%

What does the economic outlook for Asia suggest about growth differentials?

• Narrowing significantly

• Remaining stable

• Decreasing slightly

• Widening significantly