Pimco's Clarida: Passporting the Lynchpin to Brexit Talks

The transcript discusses the market's reaction to Brexit, highlighting the role of Article 50 and the quick resolution of the UK's political situation. It explores the importance of passporting in negotiations, the impact of currency adjustments, and the challenges faced by central banks like the ECB and BOJ. The discussion also touches on the emotional and financial challenges Brexit poses for European hydrocarbon executives, noting significant cost deflation in the industry.

What are the two main reasons discussed for the markets taking Brexit in stride?

• The UK has already secured trade deals and the pound has stabilized.

• The UK economy is stronger than expected and the EU is supportive.

• The political situation in the UK was resolved quickly and Article 50 hasn't been triggered yet.

• The EU has agreed to all UK demands and there is no uncertainty.

What is a major challenge of adopting the Norway model for the UK?

• It forces the UK to follow EU foreign policy.

• It limits the UK's ability to negotiate trade deals.

• It involves paying the same amount to the EU and maintaining labor market mobility.

• It requires the UK to adopt the Euro.

Which central banks are considered to have tougher challenges than the Bank of England?

• Reserve Bank of India and Bank of Canada

• European Central Bank and Bank of Japan

• Swiss National Bank and Reserve Bank of Australia

• Federal Reserve and People's Bank of China

How has the deflationary environment affected European hydrocarbon executives?

• It has increased their operational costs significantly.

• It has provided a rare opportunity to reduce costs.

• It has forced them to halt all new projects.

• It has led to a surge in demand for hydrocarbons.

What percentage of cost deflation was observed in the Shell play last year?

• 30%

• 20%

• 10%

• 40%