The U.K. and the Brexit negotiations. United Kingdom, it is official to trigger Brexit on March 29th.

That's according to the Prime Minister Theresa May's spokesperson.

So put that in your diary, the official negotiations for the U.K.'s exit from the European Union will begin on March 29th.

The one I bring in the guest is about Mateos y Lago of BlackRock,

and of course David Kohl of Julius Baer, head of currency research, do very much with us.

David I want to begin with you, the Brexit negotiation said to officially begin next week,

sterling negative drivers, is this going to be one, even though we knew it was coming?

I agree, I mean I think they proceed and saw the Brexit negotiation actually starting is well-discounted in sterling.

We think the only thing which can drive sterling even lower and we think this will happen,

is actually that we see a reaction in terms of money flows into the U.K..

Remember we have very strong foreign direct investment flows into the U.K.,

which are financing a huge current account deficits around 5,6 percent.

They have not slowed yet, so there have been no reaction yet.

We think this will happen later in the negotiation process,

and this will be a renewed weakness for the pounds.

So far we think that all this talk about hard-brexit and soft-brexit and more hard-brexit actually,

negotiation of strategy of the U.K. government is prized in the depressed level of the currency

so for now rather neutral outlook in the shorter term and the negative in the longer term.