Brexit Turmoil: UBS's John Wraith Analyzes the Impact on Gilts, Pound

The video discusses the potential impact of a no-deal Brexit on yields, highlighting the possibility of negative yields due to economic slowdown and Brexit headwinds. It examines UK government spending plans and the potential effects of a Labour government on borrowing. The discussion also covers market reactions to Brexit, particularly concerning Sterling, and reviews the Chancellor's spending plans. Finally, it addresses changes to the RPI index and their impact on the gilt curve.

What is one of the reasons mentioned for the potential decline in yields?

• Rise in consumer spending

• Economic slowdown and Brexit headwinds

• Increase in global oil prices

• Strengthening of the US dollar

What factor could make Labour Party's spending plans relevant to market views on yields?

• A decrease in unemployment rates

• An increase in consumer confidence

• A realistic prospect of a majority Labour government

• A significant change in global oil prices

What is considered the worst-case scenario for markets regarding Brexit?

• A deal Brexit

• A no-deal Brexit

• A delay in Brexit

• A second referendum

What was a notable aspect of Sanchi Javid's spending review?

• It included a major infrastructure project

• It proposed significant tax cuts

• It was overshadowed by other events in Westminster

• It focused on a five-year plan

What is the expected impact on the gilt curve due to market conditions?

• The curve will flatten

• The curve will steepen

• The curve will become more volatile

• The curve will remain unchanged