Brexit Talks Are Very 'Messy,' Lombard Odier's Gkionakis Says

The video discusses the potential movements of asset classes in response to Brexit, focusing on the pound, guilts, and the stock market. It highlights the negative correlation between sterling and the FTSE 100 due to international exposure. The speaker addresses the complexities of Brexit, including the challenges of a gridlock and the difficulty of organizing a second referendum. The discussion also touches on the erosion of confidence and business incentives if Brexit decisions are delayed.

Which asset class is expected to react first to Brexit developments?

• Stock Market

• Real Estate

• Pound

• Gilts

What is the relationship between the pound and the FTSE 100?

• No correlation

• Negative correlation

• Direct correlation

• Positive correlation

Why is the FTSE 100 negatively correlated with the pound?

• FTSE 100 companies benefit from a strong pound

• FTSE 100 companies are not affected by currency changes

• FTSE 100 companies are internationally exposed

• FTSE 100 companies are domestically focused

What is a major hurdle in organizing a second Brexit referendum?

• Economic instability

• Insufficient political support

• Need for an EU extension

• Lack of public interest

What is a potential consequence of delaying Brexit decisions?

• Erosion of confidence and business incentives

• Stabilization of the economy

• Boost in business incentives

• Increased public confidence