Owen, Chiavarone on Brexit and the Damage Done

The video discusses the weak business investment in the UK, focusing on foreign direct investment (FDI) trends, particularly in the service sector. It highlights the impact of Brexit uncertainty on investment flows and the UK's current account deficit. The role of the European Central Bank (ECB) and its quantitative easing measures are examined, along with their effects on UK markets. The video concludes with insights into the equity market's resilience and the unpredictability of Brexit's outcomes.

What has been a significant challenge for the UK service sector post-Brexit?

• Decreased demand for services

• Increased manufacturing costs

• Access and regulation issues

• Higher tariffs on goods

Why does the UK require substantial foreign direct investment?

• To stabilize its currency

• To boost its manufacturing sector

• To address its current account deficit

• To increase its export volume

What was the expected outcome of the pound's depreciation after the Brexit referendum?

• Increased foreign investment

• Higher inflation rates

• Increased domestic investment

• Lower interest rates

How has the European Central Bank's quantitative easing affected UK debt securities?

• It led to a decrease in UK bond yields

• It caused a sell-off of UK bonds

• It resulted in massive inflows into UK debt securities

• It had no impact on UK debt securities

What lesson did investors learn from the initial market reaction to Brexit?

• Market reactions can be unpredictable and short-lived

• Equity markets are unaffected by political events

• Markets are predictable during political events

• Shorting the market is always profitable