Goldman's Swell: 'Crisis of Confidence' in U.K. on Brexit

The video discusses the economic challenges facing the UK, particularly in light of Brexit. It highlights the concerns of foreign investors regarding UK assets, the impact of Brexit on the yield curve, and the uncertainty surrounding the UK's future relationship with the EU. The discussion also compares the UK and Japan's economic situations, focusing on investment risks and opportunities. The video concludes with an analysis of Japan's market, emphasizing the role of the Bank of Japan and the challenges of investing in JGBs.

What is one of the main concerns for foreign investors regarding UK assets?

• Low demand for bonds

• Strong currency

• Crisis of confidence

• High inflation rates

What is a significant factor contributing to the uncertainty in the UK market?

• Stable economic policies

• Strong trade relations with the EU

• Clear Brexit strategy

• Potential for a hard Brexit

How does the Bank of Japan influence the JGB market?

• By reducing interest rates

• By nationalizing the market

• By increasing foreign investments

• By selling government bonds

What makes Japanese long-term bonds unattractive to investors?

• High inflation risk

• Zero yield and high debt

• Strong economic growth

• High interest rates

What could make UK long-term rates attractive in the future?

• Higher inflation

• Increased government debt

• A stronger currency

• A softer Brexit

How does the UK differ from Japan in terms of investment attractiveness?

• UK has a more stable currency

• UK offers potential for attractive long-term rates

• UK has higher inflation

• UK has a larger government debt

What is a potential benefit of a weaker UK currency post-Brexit?

• Increased imports

• Lower interest rates

• Higher inflation

• Boost in exports