El-Erian on Flattening Yield Curves

The video discusses global economic trends, focusing on yield curves, central bank actions, and the impact of Brexit on the UK economy. It highlights potential central bank interventions, such as the Bank of Japan's foreign exchange actions, and the implications for the Bank of England and ECB. The discussion also covers the potential fall of sterling to historic lows and investment opportunities in UK commercial property amid market volatility.

What is the potential consequence if the UK and Europe fail to establish a Plan B post-Brexit?

• Increased economic growth

• Immediate interest rate hikes

• Dramatic flattening of the economic curve

• Strengthening of the Euro

Which central bank's action is considered the biggest potential shock to the global financial markets?

• Bank of England

• Federal Reserve

• European Central Bank

• Bank of Japan

What is the expected action of the Bank of England in response to the current economic conditions?

• Increase interest rates

• Maintain current interest rates

• Introduce new currency

• Cut interest rates

What unusual economic situation is Britain facing post-Brexit?

• Rapid GDP growth

• Surplus in trade balance

• Simultaneous play of current and capital accounts

• High inflation with low unemployment

What investment opportunity is highlighted in the UK amidst the current economic conditions?

• Technology startups

• Retail sector

• Commercial property

• Government bonds