BNP Paribas’s Sneyd Sees a Bit More Room in U.K. Equities

The video discusses market expectations regarding the potential passing of a vote and its impact on cable predictions, with Goldman Sachs suggesting a medium-term target of 1.35. It emphasizes the importance of focusing on macro fundamentals over politics, noting that sterling positions have re-entered the market. The discussion extends to UK equities, particularly the Footsie 100, and credit markets, highlighting the risk premium and potential for UK credit spreads to tighten. The video also covers gilt yields aligning with fair value and the implications for European markets, with a focus on European stocks and high yield opportunities.

What is the fair value of cable (GBP/USD) in a scenario without Brexit uncertainties?

• 1.35

• 1.30

• 1.33

• 1.32

Which UK index is perceived to have more room for growth due to its lagging performance?

• FTSE All-Share

• FTSE 350

• FTSE 250

• FTSE 100

What is the estimated probability of a no-deal Brexit according to the credit market?

• 20%

• 15%

• 10%

• 25%

What has been the primary focus for European stocks in the context of Brexit?

• European growth story

• US-European trade talks

• ECB policies

• Brexit negotiations

Which European asset class might benefit from the unwinding of risk premiums?

• European high yield

• European equities

• European real estate

• European government bonds