UBS Says Markets Expect U.K. to Avoid Hard Brexit

The video discusses the potential impacts of Brexit on markets, emphasizing the importance of government stability and the likelihood of reaching an agreement to avoid a hard Brexit. It also covers a proposal by the UK Labour Party for the Bank of England to target productivity alongside inflation, highlighting potential challenges and the role of government policy in economic growth.

What is the primary concern of markets regarding Brexit?

• The changes in European Union laws

• The impact on Theresa May's premiership

• The effect on global oil prices

• The influence on US trade policies

What is the Labour Party's proposal for the Bank of England?

• To focus solely on inflation

• To target UK productivity along with inflation

• To increase interest rates

• To decrease government spending

Why might central bank economists resist a productivity target?

• It could lead to targeting growth by stealth

• It would require changes in currency policies

• It would necessitate higher interest rates

• It would involve reducing inflation targets

What are the two main components of trend growth mentioned?

• Inflation and interest rates

• Currency exchange rates and trade balance

• Government spending and taxation

• Productivity and demographics

What role does the government play in achieving productivity targets?

• Setting interest rates

• Implementing fiscal adjustments and incentivization

• Controlling currency exchange rates

• Regulating international trade