Not Seeing a Huge Appetite for U.K. Equities, Says Hermes' Dudley

The video discusses the uncertainty faced by investors due to political threats to Theresa May and Brexit. It highlights how this uncertainty can create opportunities but also challenges for businesses, especially in planning and regulatory compliance. The discussion covers market insights, the appetite for UK equities, and the impact of political turmoil on potential tail risks. The importance of the UK's service-based economy and the need for companies to maintain confidence in attracting talent are also emphasized.

How can political uncertainty create opportunities for investors?

• By increasing market volatility

• By stabilizing currency values

• By reducing competition

• By providing clear regulatory guidelines

What is the current market appetite for UK-based companies?

• Low, with a preference for global companies

• High, especially for companies generating revenue within the UK

• High, particularly for small UK businesses

• Moderate, with equal interest in UK and global companies

What is a potential risk associated with the political turmoil in the UK?

• Stabilization of the UK economy

• Decreased foreign investment

• Increased likelihood of a hard Brexit

• Improved trade relations with the EU

Why is employee confidence important for the UK economy?

• It helps in attracting and retaining talent

• It ensures higher tax revenues

• It reduces the need for contingency plans

• It guarantees lower unemployment rates

What challenge do businesses face due to political uncertainty?

• Difficulty in planning and regulatory compliance

• Increased competition from local companies

• Over-reliance on domestic talent

• Lack of access to global markets