Asks about the widening spread between Brent and WTI and what it signifies.
Jonathan Ferro
Seema Shah
The spread highlights Europe's greater exposure to the conflict. The economic impact for Europe could be considerably greater than for the US.
Asks if a gap has opened in international equities providing a buying opportunity.
Jonathan Ferro
Seema Shah
A gap has opened, but it's too early for key portfolio decisions given the uncertainty. The overnight escalation has increased downside risks.
Asks if the US is seen as a haven again, given its insulation from the price shock rippling through Europe and EMs.
Lisa Abramowicz
Seema Shah
Absolutely. The US reminds everyone it tends to be the outperformer during shocks as it's considered more resilient. With that comes a technology trade.
Asks if she's more concerned about risk assets broadly because central banks are having trouble responding to a potential stagflationary shock.
Lisa Abramowicz
Seema Shah
Equity markets typically perform worse in a geopolitical crisis when central banks hike in response to inflation. But like investors, central banks are also waiting to see how this pans out, making decisions tough.
Asks if the market is waking up to the fact that Trump cannot control the outcome, referencing an RBC note.
Annmarie Hordern
Seema Shah
Yes, that's an important point. The view is shifting from a short-lived conflict where Trump calls victory, to understanding Iran can call the shots.