Morgan Stanley's Sheets: Risks Skewed to a Lower Pound

The video discusses the current state of the UK financial market, highlighting the rise in gilt yields and pressure on the pound. It examines the economic challenges the UK faces post-Brexit, including a negative supply shock and energy crisis. The discussion also covers the pricing of UK assets, particularly bonds, and the need for a higher risk premium due to these challenges. Finally, it explores the potential for UK equities to perform better due to their inverse correlation with the currency.

What is the assessment of the risk premium in UK assets?

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In what way could UK equities perform better despite the economic challenges?

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