Will Still See Volatility in Sterling, Says Conning's Busst

The video discusses the economic implications of the trade bill debate in the UK, focusing on the customs union and its impact on trade relationships. It highlights the emphasis on goods trade over services, particularly in the context of the UK economy. The Bank of England's position on interest rates is explored, considering the clarity needed for decision-making amid Brexit concerns. The discussion also covers the European Central Bank's future rate considerations and their impact on bond markets.

What is a major focus of the trade bill debate in the House?

• The impact on the services sector

• The customs union and trade relationships

• The influence of banks on the economy

• The role of insurance companies

How does the Bank of England view the current economic situation in terms of interest rates?

• They are likely to lower rates significantly

• They have complete clarity on future rate hikes

• They are considering a softer approach with potential rate increases

• They are focused solely on the services sector

What is a potential risk for the British pound according to the discussion?

• A strong euro impacting the pound

• A new election causing a drop below 130

• A decrease in goods trade

• A significant increase in interest rates

What is the ECB's current focus regarding its bond purchase program?

• Reinvesting proceeds and managing the yield curve

• Increasing the purchase of new bonds

• Reducing interest rates immediately

• Focusing on short-term policy changes

Why is the discussion on higher ECB rates not considered urgent?

• The second half of 2019 is too distant for short-term policy

• The bond markets are not affected by rate changes

• The market is already prepared for immediate changes

• The ECB has already decided on rate hikes