RBC Capital Sees Yuan at 7.40 Per Dollar in 4Q, Trinh Says

The video discusses the current state of EM currency trade, highlighting skepticism about potential breakthroughs in US-China relations. It delves into China's severe economic slowdown, emphasizing the challenges posed by its debt trap and the inefficiency of its growth. The discussion also covers the impact of China's stimulus measures on EM currencies, noting that the credit impulse is weaker compared to past downturns, suggesting a shallower recovery.

What is the main concern regarding the potential breakthroughs in Brexit and US-China relations?

• They will weaken the renminbi.

• They will strengthen the US dollar.

• They will lead to immediate economic growth.

• They might not result in substantive changes.

What is a significant challenge China faces in its economic slowdown?

• A debt trap with diminishing growth returns.

• Rapid technological advancements.

• High inflation rates.

• Excessive foreign investments.

Why are China's GDP growth figures considered unreliable?

• They are based on outdated data.

• They do not account for inflation.

• They are not reflective of timely indicators.

• They are influenced by foreign markets.

How does the current credit impulse in China compare to previous downturns?

• It has no impact.

• It is much lower.

• It is about the same.

• It is significantly higher.

What is the expected outcome of China's stimulus measures on its economic recovery?

• A rapid and strong recovery.

• A shallow and slow turnaround.

• No impact on the economy.

• Immediate stabilization of the currency.