Barclays Chairman McFarlane Says Markets Have Priced In Brexit Outcomes

The transcript discusses the UK's position as a financial center amidst Brexit uncertainties. Barclays Chair John McFarland shares insights on potential impacts on financial services, emphasizing the need for contingency plans. The British pound's volatility is highlighted, with historical context and market reactions to Brexit developments. The discussion includes market pricing of various Brexit outcomes and an analysis of British domestic banks' stock performance, considering potential EPS declines. The conversation also touches on past market reactions to government interventions like TARP.

What is the main concern for the UK's financial services post-Brexit?

• The relocation of financial institutions

• The continuation of services under equivalence

• The impact on the British pound

• The need for new contingency plans

How has the British pound historically performed against the US dollar?

• It has shown no significant change

• It has remained stable

• It has consistently strengthened

• It has generally weakened

What has the market priced in regarding Brexit?

• A decrease in financial volatility

• A stable economic environment

• The probability of a deal, no deal, and a different government

• A significant strengthening of the pound

What is the current market sentiment towards British domestic banks?

• They are expected to grow significantly

• They are trading at a premium

• They are discounting a decline in EPS

• They are unaffected by Brexit

What could potentially soften the impact of a no-deal Brexit?

• An increase in bank stock prices

• A new government strategy

• A significant market rally

• A softening of market reactions