Davies: Chinese Credit Has Become a Global Concern

The video discusses the risks facing banks in 2017, focusing on monetary policy and the yield curve. It highlights concerns about Chinese credit growth and the economic trilemma involving the renminbi, outflows, and reserves. The discussion shifts to the impact of Trump's reflation policies on the bond market and interest rates, emphasizing the importance of fiscal policy. Finally, it addresses how corporate leaders should strategically plan in light of economic forecasts and potential policy changes.

What is considered a positive development for the banking sector according to the first section?

• A flat yield curve

• A rising yield curve

• Decreasing interest rates

• Increased credit growth in China

What is one of the main concerns regarding China's economy?

• High credit growth

• Decreasing inflation

• Stable currency reserves

• Increasing foreign investments

What measure is China taking to manage economic outflows?

• Encouraging domestic spending

• Increasing foreign investments

• Lowering interest rates

• Preventing credit card use in Hong Kong

What is a relatively easy task for the President-elect according to the third section?

• Balancing the budget

• Raising interest rates

• Cutting taxes

• Increasing infrastructure spending

How are corporate leaders advised to plan for the Trump administration's economic policies?

• By focusing solely on infrastructure projects

• By making large speculative investments

• By waiting for tax cuts to be implemented

• By following a consensus forecast