`Come, Issue, Borrow, Spend Fiscally,' JPMorgan AM Tells U.K.

The video discusses the outlook for sterling markets and gilts heading into 2020, with a focus on the potential impact of the UK election on fiscal policy and bond markets. It highlights City's prediction of a 0.2% UK 10-year yield and possible interest rate cuts by the Bank of England. The discussion covers the role of fiscal stimulus, government borrowing, and the bond market's response. It also examines the gilt market's ability to absorb changes, including inflation and central bank interventions.

What does the City chart predict about the UK 10-year yield?

• It will decrease to 0.2%

• It will increase to 1.5%

• It will fluctuate unpredictably

• It will remain stable at 0.5%

What is the bond market's stance on government borrowing and spending?

• It is open to borrowing and spending

• It discourages borrowing and spending

• It only supports borrowing for infrastructure

• It prefers minimal government intervention

How can the central bank respond if inflation surges?

• By reducing government spending

• By cutting rates and using quantitative easing

• By increasing taxes

• By freezing all financial activities

What is the potential impact of a sudden increase in yields on the gilt market?

• It will require international intervention

• It will collapse immediately

• It can absorb the change effectively

• It will lead to a financial crisis

What is the central bank's proven ability in managing the rate environment?

• It ignores rate changes

• It relies on foreign banks for rate management

• It can manage the rate environment effectively

• It struggles to control rates