SocGen's Stear: China Bond Sell-Off Fears Rise

The video discusses the gap between Producer Price Index (PPI) and Consumer Price Index (CPI) and its implications for the Chinese and global markets. It highlights the potential for rising inflation and its impact on Chinese bonds and corporate profits. The discussion also covers the People's Bank of China's (PBOC) response to economic challenges and the European credit market's outlook, emphasizing the importance of earnings expectations and credit ratings in shaping investment opportunities.

What is the significance of the gap between PPI and CPI in the context of the Chinese economy?

How does a rise in PPI potentially affect corporate profits in China?

What are the implications of a tightening liquidity in China as mentioned in the text?

Discuss the potential actions the PBOC might take in response to declining credit impulse.

What factors are contributing to the rise in earnings expectations in Europe, according to the text?