Stephen Gallo: 'Jittery' Markets Ahead of Brexit Vote

The video discusses the record lows in the German and Japanese markets, highlighting the challenges faced by global reserve managers in avoiding negative yielding assets. It explains how these conditions prop up asset prices and keep interest rates low, complicating central banks' policies. The discussion also touches on the market uncertainties surrounding Brexit and the EU referendum, suggesting that markets will remain jittery unless polls favor remaining in the EU.

What is a significant challenge for global reserve managers in the current economic environment?

• Holding assets with high yields

• Avoiding negative yielding assets

• Investing in domestic markets

• Increasing currency reserves

How does the avoidance of negative yielding assets affect asset prices?

• It props up asset prices

• It stabilizes asset prices

• It causes asset prices to fall

• It has no effect on asset prices

Why is it difficult for central banks to change their policies in the current economic climate?

• Stable currency values

• Low interest rates

• High inflation rates

• Strong economic growth

What is a major concern for markets in the context of Brexit?

• Currency appreciation

• Market stability

• Increased trade with the EU

• Rising interest rates

What could potentially reduce market jitteriness regarding Brexit?

• A rise in negative yielding assets

• A significant shift in polls towards remain

• A decrease in global interest rates

• An increase in asset prices