U.K. Has to Cave In to Maintain Brexit Timeline, Says Sharma

The video discusses the ongoing UK-EU negotiations, likened to a 'London soap opera', and the market's perception of these events as posturing. It highlights the historical pattern of UK capitulation in negotiations and the belief that a deal will eventually be reached. The discussion then shifts to inflation in London, examining the effects of Brexit and sterling weakness, and the potential for wage pressures due to labor market tightness. The Bank of England's stance on interest rates is also considered, with a focus on second-round effects on inflation.

What are the key positions being put down from the UK and European sides during the negotiations?

How does the market perceive the current negotiations between the UK and Europe?

What factors are influencing the character of inflation in London this year?

What is the significance of the labor market tightness mentioned in the KPMG REC survey?

What are the expected second round impacts on inflation according to Michael Saunders?