Pound Risks ‘Jumpy Movements’ on Brexit: Rabobank’s Foley

The video discusses the UK's current account deficit, emphasizing the need for international savers to fill the gap. It highlights recent declines in investment due to political uncertainty, which could lead to a downward adjustment in sterling's value. The potential for sterling volatility is analyzed, especially in the context of Brexit and political events affecting the Johnson government.

What is a significant factor contributing to the UK's current account deficit?

• Lack of international savers

• High domestic savings

• International trade surplus

• Strong political stability

What has been the trend in investment into the UK as a percentage of GDP in recent years?

• It has increased significantly

• It has dropped below France and Germany

• It has surpassed all European countries

• It has remained stable

What could cause sudden changes in the value of sterling?

• Stable political environment

• Positive trade flows

• News headlines and trade flows

• Increased domestic investment

How might Brexit impact the Johnson government?

• It will strengthen the government

• It will have no impact

• It could lead to government challenges

• It will ensure political stability

What has been a significant challenge for the Johnson administration?

• Increasing domestic savings

• Reducing international investment

• Firefighting political issues

• Managing a trade surplus