Aberdeen's Gilbert on Brexit and Passporting Rights

The transcript discusses the importance of financials to the UK economy, focusing on passporting concerns for banks and asset managers. It covers the impact of Brexit on property funds, highlighting liquidity management strategies. The conversation shifts to bond market risks, emphasizing daily liquidity issues and regulatory concerns. Political and exogenous risks, such as populism and elections, are examined for their impact on investments. Finally, market reactions to political events and future predictions are discussed, with a focus on interest rate changes and their effects on the global economy.

What is the primary concern for banks regarding passporting post-Brexit?

• Lack of infrastructure in Luxembourg

• Higher taxes imposed by the UK government

• Legal and political challenges in maintaining rights

• Increased competition from asset managers

How did property funds respond to the Brexit-induced market changes?

• By increasing fund prices

• By freezing redemptions and offering discounts

• By relocating to other countries

• By investing more in UK properties

What is a significant risk associated with daily liquidity funds in the bond market?

• Limited investment options

• Increased regulatory scrutiny

• Potential liquidity crisis during market downturns

• High transaction fees

What role might central banks play in a bond market crisis?

• Implement stricter regulations

• Increase interest rates

• Act as market makers of last resort

• Reduce government spending

Which political risk is mentioned as a potential shock to markets?

• A Trump victory

• Brexit

• A coup in Thailand

• A new trade agreement

What is considered the biggest risk to the global economy according to the transcript?

• Unexpected interest rate rises

• High inflation rates

• Trade wars

• Technological disruptions

How do unexpected interest rate rises affect the bond market?

• They lead to increased bond prices

• They cause dislocation in the bond markets

• They stabilize the bond market

• They reduce the demand for bonds