After years as CEO of UBS, Sergio Ermotti outlines where he thinks markets are headed
Don’t underestimate current geopolitical uncertainties, was Sergio Ermotti’s parting gift as he delivered his last results as the boss of the Swiss bank UBS.
Speaking to CNBC Tuesday, he said: “We speak a lot about stimulus and Covid-related matters but the geopolitical uncertainties in Europe and also in the Sino-U.S. relationship is still there and they’re there to stay. So we shouldn’t underestimate that.”
European politicians have struggled to alleviate tensions with Turkey, Russia and Belarus — just to name a few recent issues. At the same time, the trade spat between the United States and China is not fully resolved despite the signing of a “phase one” agreement.
In addition, there’s a lot of focus on who will win the U.S. presidential election, due next month.
He explained that investors will have to rapidly react to different policies depending on who wins between incumbent Donald Trump and Democratic rival Joe Biden.
“You may have completely different tax plans and fiscal stimulus being implemented in certain ways favoring certain sectors,” he said.
Looking at different geographies, Ermotti believes there are greater growth opportunities in Asian and U.S. markets, as Europe still lacks competitiveness.
Reference: CNBC
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