Weighing the 'Brexit' Risk

The video discusses the decline of sterling against major currencies, driven by the ongoing Brexit referendum. It explores the impact on the fixed income market, gilts, and European bonds, highlighting concerns about interest rates and economic uncertainty. The potential risks to the EU economy and euro are also examined, with predictions on future economic outcomes post-referendum.

What has been the trend of sterling against its major trading partners over the past six months?

• It has remained stable.

• It has increased by 5-10%.

• It has decreased by 5-10%.

• It has increased by 8%.

What is the primary concern of the market regarding the referendum?

• The potential for a new government.

• The effect on global trade agreements.

• The impact on tourism.

• The impact on fixed income market.

How are gilts expected to behave if the referendum results in Brexit?

• Yields are expected to remain unchanged.

• Yields are expected to rise significantly.

• Yields are expected to fall significantly.

• Yields are expected to rise slightly.

What is a potential consequence for the EU if Britain exits?

• A decrease in trade with non-EU countries.

• Immediate economic growth in the EU.

• Other regions may demand changes to EU law.

• Increased stability in the eurozone.

What is the expected outcome of the referendum according to the speaker?

• The UK will remain in the EU.

• The referendum will have no impact.

• The UK will leave the EU.

• The referendum will be postponed.