Daybreak Europe Show Open: Yuan Resilient After PBOC Hike

The transcript discusses the People's Bank of China's (PBOC) recent decision to raise the triple R by 2%, marking the first such move since 2007. This action is intended to address the strengthening of their currency, but its effectiveness is questioned. The transcript explores the potential impact on liquidity, market reactions, and the broader implications for global equities, bonds, and currencies.

What significant action did the PBOC take for the first time since 2007?

• Increased foreign reserves

• Devalued the currency

• Raised the triple R by 2%

• Lowered interest rates

How much liquidity is expected to be removed from the system due to the PBOC's recent action?

• $10 billion

• $20 billion

• $30 billion

• $40 billion

What is the main concern regarding the effectiveness of the PBOC's move?

• It might lead to inflation

• It may not significantly impact the currency's movement

• It might increase foreign debt

• It could cause a recession

What global financial elements are mentioned as being affected by the PBOC's actions?

• Real estate and commodities

• Oil prices and trade tariffs

• Carry trade, bonds, equities, and currencies

• Cryptocurrencies and gold

What is the potential global impact of the PBOC's decision on the carry trade?

• It will have no effect on the carry trade

• It will enhance the carry trade

• It will disrupt the carry trade

• It will stabilize the carry trade