Sterling to Reach New Lows in Prime Minister Search: Nomura's Rochester

The transcript discusses the short-term market trends, focusing on Sterling's performance amid global economic factors like the US-China trade wars. It highlights the political uncertainty in the UK due to Theresa May's resignation and the upcoming leadership contest, which could lead to a hard Brexit or an election. The economic outlook remains cautious, with potential risks dragging Sterling lower, and the Bank of England unlikely to change its stance. The discussion emphasizes the need for strategic positioning in the market given the political and economic uncertainties.

Discuss the implications of the US-China trade wars as mentioned in the text.

What are the reasons provided for the uncertainty surrounding the UK economy?