An uncertain global context
Trade tariffs and geopolitical tensions are creating a climate of uncertainty in financial markets, as highlighted by the CEO of UBS, Sergio Ermotti. During an interview with Bloomberg Television, Ermotti emphasized the importance of monitoring the acceleration of geopolitical events and the escalation of protectionism, elements that could significantly influence
global economic dynamics in the coming year.
Portfolio volatility and diversification
According to Ermotti, market volatility is set to increase, making it crucial for investors to maintain a well-diversified portfolio. The current low risk appetite suggests that investors are cautious in dealing with economic and political uncertainties. Despite this, Ermotti noted some resilience in consumers and the economy, which could mitigate the negative effects of these
events.
Inflation and market opportunities
Another important point raised by Ermotti concerns inflation, which seems to be under control at the moment. This scenario could pave the way for potential deregulation in the United States, stimulating mergers and acquisitions. Such developments could prove beneficial to markets and the economy, offering opportunities for investors in an otherwise uncertain environment
.
The Credit Suisse case and the necessary transparency
Ermotti also discussed the recent parliamentary report in Switzerland regarding the collapse of Credit Suisse, an event that had significant repercussions on UBS’s domestic market. The need for transparency about the causes of Credit Suisse’s collapse is essential to ensure the competitiveness of the Swiss financial center. UBS, which acquired Credit Suisse, is now facing higher capital requirements due to its increased size, making a clear understanding of the dynamics that led to this crisis crucial
.