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00:00. BOB: LOTS GOING ON THIS WEEK. JON: LET ' S BEGIN WITH THE NEGOTIATIONS AND THE AUTHORITY THAT PRIME MINISTER MAY MAY OR MAY NOT HAVE. BOB: OBVIOUSLY, HER BASE IS QUITE WEAK. . WE ARE HOPING FOR SOME FORM OF SOFT BREXIT WERE THERE CAN BE SOME FORWARD PASS ON BILATERAL AGREEMENTS BETWEEN THE EU. IT JUST DOESN ' T FEEL LIKE THAT ' S GOING TO HAPPEN. THAT IS A BIT TOO OPTIMISTIC. DAVID: WE ARE HOPING FOR A SOFT BREXIT. IT ' S A HARD WAY TO SEE HOW YOU GET FROM HERE TO THERE RIGHT NOW. TAKE THE ISSUE MATT MILLER JUST IDENTIFIED SOME THE TREATMENT OF EUROPEAN CITIZENS IN THE P U.K. BOB: THAT WAS ONE OF THE TENANTS THAT BREXIT WAS BASED ON. TOO HARD AND THINGS LIKE THAT. -- TO HARDEN UP THE BORDER AND THINGS LIKE THAT. THE EU IS MOVING AWAY ON ITS OWN PATH AND ONE OF THE THINGS WE ARE SAYING IS TRY TO BUILD A BASE TO MOVE BAKING TO THE CONTINENT. DAVID: IS THERE ONE POINT OF POTENTIAL LEVERAGE, MONEY? THE U.K. HAS CONTRIBUTED A LOT TO THE EUROPEAN BUDGET. THEY NEED THAT MONEY TO KEEP GOING. COULD THEY PAY THEIR WAY OUT OF THIS PROBLEM? BOB: I SUPPOSE THAT IS A POSSIBILITY. SOME FORM OF REVENUE SHARE ON BUSINESSES THAT ARE CROSS-BORDER , SOME FORM OF TAX. WE DON ' T KNOW HOW RECEPTIVE THE U.K. GOVERNMENT WILL BE TO SOMETHING LIKE THAT. ALIX: YOU DO CURRENCY AND COMMODITIES AND FIXED INCOME. WHAT DO YOU DO WITH GUILT? HOW SENSITIVE WILL THEY BE TWO HEADLINES? BOB: VERY SENSITIVE. INITIALLY, THERE WAS THE DOWNDRAFT AND THEN A BIT OF RECOVERY AND THEN EVERYONE TALKED ABOUT STERLING HAD GONE THROUGH THE CLASSIC ADJUSTMENT AND THAT SHOULD LEAD TO MORE CONSUMPTION AND THINGS LIKE THAT. NOW, AS THAT IS FADING, YOU START TO LOOK AT PROPERTY PRICES.

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JPM's Michele Says Soft Brexit Feels Too Optimistic

Bob Michele, chief investment officer and head of global FICC at JPMorgan Asset Management, discusses market hopes for a soft Brexit and looks at how negotiations can impact the pound. He speaks on "Bloomberg Daybreak: Americas." (Source: Bloomberg)

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