Hard Brexit Scenario Could See Pound Sold Off: Ark Capital’s Abukarsh

The video discusses the impact of Brexit on the UK economy, particularly focusing on Sterling's position and the equity market. It highlights the challenges of investing in UK assets due to Brexit uncertainties and compares the views of major financial institutions like Bank of America and JP Morgan. The discussion also covers future market themes, such as the final Brexit exit date, and the risks associated with hard versus soft Brexit scenarios. Additionally, it explores investment opportunities in undervalued UK assets and alternatives in European and US markets.

What is one of the main reasons for the potential decline of Sterling below 120?

• A successful Brexit deal

• Strong economic growth in the UK

• Structural issues, especially the current account deficit

• Increased foreign investment

Which financial institution believes that foreign investors have already adjusted to the UK market?

• Morgan Stanley

• Bank of America

• Goldman Sachs

• JP Morgan

What is a major factor causing uncertainty in the UK asset market?

• High inflation rates

• Lack of clarity on the final Brexit deal

• Strong competition from Asian markets

• Stable political environment

What is a potential reason for Boris Johnson's hard Brexit stance?

• To strengthen the UK economy immediately

• To reduce immigration

• As a negotiating tactic to pressure the EU

• To increase trade with the US

Why might long-term investors be hesitant to invest in UK assets?

• Lack of alternatives in other markets

• High interest rates in the UK

• Strong economic growth in the UK

• Ambiguity surrounding Brexit plans