Live on Bloomberg TV

00:00A LOT HAS HAPPENED THIS YEAR. I HAVE NEVER UNDERSTOOD, THOUGH, AND I FEEL LIKE THIS IS THE RIGHT OPPORTUNITY TO ASK YOU, WHY WAS ELMO STANDING BEHIND BORIS JOHNSON AS HE WON THE GREAT MAJORITY? DAVID: I THINK IT IS A UNIQUE FEATURE OF BRITISH ELECTIONS. ANYONE CAN STAND AGAINST ANY OF THE MP ' S, INCLUDING THE PRIME MINISTER. LOOK AT FOOTAGE FROM MARGARET THATCHER STANDING. YOU SEE SOMEONE WITH A BUCKET ON THEIR HEAD AND NECK TO THEM. IT IS A SLIGHTLY RIDICULOUS SCENE BUT ADDS A BIT OF HUMOR TO CUT THROUGH THE GRAVITY OF THE MOMENT. THAT IS WHY ELMO WAS STANDING BEHIND. THERE WAS AN EVEN BIGGER GALLERY OF A SLIGHTLY STRANGE CREATURES. IT TURNS OUT THAT HE BEAT THEM HANDS DOWN ON THE NIGHT. MATT: ACTUALLY, SOUNDS LIKE A FANTASTIC TRADITION. WITH THAT CLEARED UP, YOU POINT OUT THE SYSTEM -- THE SITUATION STILL HAD A LOT OF GRAVITY. C ARSTEN, HOW GRAVE IS THIS SITUATION? I MEAN, WHAT DO YOU EXPECT FROM BREXIT IN 2020? CARSTEN: BREXIT IS GOING TO CONTINUE. WE WILL NOW START NEGOTIATIONS ABOUT THE FUTURE TRADE AGREEMENT. I THINK THERE IS NO SINGLE TRADE AGREEMENT WHICH HAS BEEN NEGOTIATED LESS THAN -- IN LESS THAN 11 MONTHS. . THERE IS AN EXTREMELY HIGH CHANCE THEY WILL NOT FINISH THE NEGOTIATIONS BETWEEN THE U.K. AND EU GOVERNMENT. COULD THERE BE A DISORDERLY BREXIT? THAT IDEA WILL BE QUICKLY BACK ON THE TABLE. MATT: DO YOU STILL THINK HARD BREXIT IS A POSSIBILITY? CARSTEN: I THINK HARD BREXIT IS STILL A POSSIBILITY BECAUSE REMEMBER, BORIS JOHNSON HAS A READY SAID HE WANTED TO RULE OUT THAT THERE WILL BE ANOTHER EXTENSION OF THESE TRADE NEGOTIATIONS. THE END OF 2020 WOULD BE A VERY HARD DEADLINE FOR BREXIT. I DON ' T SEE HOW THEY WILL MANAGE TO REALLY MAKE A TRADE DEAL BY THEN. THIS AGAIN MEANS EITHER THERE WILL BE ON EXTENSION OF THE DEADLINE OR WE WILL HAVE A DISORDERLY BREXIT. MATT: DAVID, FOR OUR VIEWERS, CLIENTS, I THINK ONE OF THE MOST IMPORTANT QUESTIONS IS, WHAT HAPPENS TO THE CITY OF LONDON AS THE FINANCIAL CAPITAL OF EUROPE? LAST WEEK, WE WERE REPORTING THAT NOW IT MAKES LIKE THE EU COULD BE USING THAT AS A BARGAINING CHIP. WHAT ARE YOUR EXPECTATIONS FOR LONDON ' S PLACE AS THE FINANCIAL CAPITAL OF YOUR -- EUROPE? DAVID: THIS WILL BE A HUGE QUESTION IN 2020. WE ARE GOING TO HEAR THESE PHRASES WE WERE HEARING A YEAR OR SO AGO AROUND MUTUAL RECOGNITION AND EQUIVALENCE, ALL THESE DIFFERENT ARRANGEMENTS THAT THE EU AND U.K. CAN HAVE IN ORDER TO RECOGNIZE EACH OTHER ' S FINANCIAL SERVICES SECTOR AND THE DEGREE TO WHICH THE ACCESS IS GOING TO BE GRANTED. IT IS CERTAINLY GOING TO BE A SHIFT. PLENTY OF PLACES IN EUROPE, PARIS, DUBLIN, AMSTERDAM ARCANA TO GRAB SOME OF THAT MORE BUSINESS -- ARE KEEN TO GRAB SOME OF THAT MORE BUSINESS. LONDON HAS GOT THE SCALE THAT NO ONE ELSE CAN MATCH FOR THE TIME BEING. WE HAVE NOT SEEN THE BIG OUTFLOW OF JOBS THAT MANY PREDICTED. MAYBE THAT WILL ACCELERATE. WE ARE GOING TO SEE HOW HARD A BREXIT MR. JOHNSON WANTS TO NEGOTIATE THIS YEAR. AND REALLY, EVERYTHING IS TO PLAY FOR. WE CAN EXPECT SOME REALLY HARD NEGOTIATIONS ON BOTH SIDES ON THIS POINT. MATT: DAVID, THANKS VERY MUCH FOR BEING HERE TODAY, FOR YOUR WORK THIS YEAR. REALLY, ENTIRE THIS JOB.

No schedule data available.

BTV Channel FinderWatch BTV in your area

A Hard Brexit Is Still a Possibility, Says ING’s Brzeski

Carsten Brzeski, chief economist at ING Germany, and Bloomberg’s David Merritt discuss Brexit in 2019 and what in store for 2020. They speak on “Bloomberg Markets: European Open.” (Source: Bloomberg)

More From Bloomberg Markets
All episodes and clips