Sterling to Reach New Lows in Prime Minister Search: Nomura's Rochester

The transcript discusses the short-term market trends, focusing on Sterling's performance amid global economic factors like the US-China trade wars. It highlights the political uncertainty in the UK due to Theresa May's resignation and the upcoming leadership contest, which could lead to a hard Brexit or an election. The economic outlook remains cautious, with potential risks dragging Sterling lower, and the Bank of England unlikely to change its stance. The discussion emphasizes the need for strategic positioning in the market given the political and economic uncertainties.

What is the 'buy the rumor, sell the fact' strategy mentioned in the context of Theresa May's resignation?

• Buying assets based on rumors and selling them after the news is confirmed

• Holding assets regardless of market rumors

• Selling assets based on rumors and buying them after the news is confirmed

• Ignoring market rumors and focusing on long-term investments

What is the main focus of the upcoming UK leadership campaign?

• Improving healthcare

• Negotiating Brexit terms

• Addressing climate change

• Strengthening ties with the US

How might a hard Brexiteer achieve a hard Brexit according to the transcript?

• By negotiating directly with the EU

• By calling for a public referendum

• By calling an election

• By seeking support from other political parties

What is the predicted impact on Sterling as the leadership contest progresses?

• Sterling is expected to decline further

• Sterling is expected to remain stable

• Sterling is expected to rise significantly

• Sterling is expected to fluctuate wildly

What is the Bank of England's expected stance according to the transcript?

• More hawkish than before

• Less hawkish than before

• Unchanged from the current stance

• Completely unpredictable