Daybreak Europe Show Open: Discomfort, Disquiet, Deflating

The video discusses the discomfort and risks in the market, highlighting Larry Summers' warning of potential spontaneous deflation. It examines the Federal Reserve's challenges with a rising dollar and diverging break evens, suggesting a difficult path to a soft landing. The New York Fed survey predicts 6% inflation, diverging from soft sentiment surveys. Historical efforts at disinflation by the Fed have often led to recession. The video concludes with global economic concerns, particularly China's current economic performance.

What potential market event does Larry Summers warn about?

• Spontaneous deflation

• Controlled deflation

• Controlled inflation

• Spontaneous inflation

What is the relationship between the dollar and break evens as discussed?

• Both are rising

• Both are falling

• Dollar is rising, break evens are rolling over

• Dollar is falling, break evens are rising

According to the New York Fed survey, what is the expected inflation rate going into next year?

• 6%

• 5%

• 7%

• 4%

What historical outcome is associated with the Fed's disinflation efforts?

• Stable growth

• Economic boom

• Recession

• Deflation

What is the current economic performance of China as mentioned?

• Not firing on a V8 cylinder

• Stable and consistent

• Experiencing rapid growth

• Firing on all cylinders