WEBVTT - Global Inflation in Focus; UBS CEO Sergio Ermotti

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio news.

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<v Speaker 2>Welcome to the Bloomberg Daybreak Asia podcast. I'm Doug Krisner.

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<v Speaker 2>Here in the States, producer prices unexpectedly fell in August

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<v Speaker 2>month on month for the first time in four months. Meantime,

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<v Speaker 2>in China, the latest reading on factory gate inflation shows

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<v Speaker 2>persistent deflationary pressures, while Chinese consumer inflation slipped to a

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<v Speaker 2>six month low. And in a moment, we'll bring you

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<v Speaker 2>an exclusive conversation with Sergio Ormonti, the CEO of UBS.

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<v Speaker 2>But we begin here in the States, where treasury yields

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<v Speaker 2>dropped right across the curve and much of the equity

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<v Speaker 2>market extended record highs. Joining me now is Eric Fine.

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<v Speaker 2>He is portfolio manager also head of Active em Debt

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<v Speaker 2>at Vanek. He joins us from here in New York City. Eric,

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<v Speaker 2>thank you so much for making time. Give me your

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<v Speaker 2>sense of how you feel about the inflationary story right now.

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<v Speaker 2>I know there are a couple of threads here, and

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<v Speaker 2>as a part of that, the tariff story obviously, but

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<v Speaker 2>give me your overall sense of where we are directionally

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<v Speaker 2>in terms of inflation.

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<v Speaker 1>I think we don't know yet. And one of the

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<v Speaker 1>big concerns is that paraffs are still working their way

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<v Speaker 1>through the system at the same point that the FED

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<v Speaker 1>is arguably getting more of its certainly in the last week.

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<v Speaker 1>That's what the market is pricing. We have about seventy

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<v Speaker 1>basis points of cuts priced into your end roughly today.

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<v Speaker 1>So the inflation story is very uncertain, but the market

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<v Speaker 1>is somewhat trying to see through it, and so you

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<v Speaker 1>could see a scenario in a few quarters where stagslation

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<v Speaker 1>resumes as a concern for the US. Now, inflation in

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<v Speaker 1>China's a very different story. Well, it's deflation, as you noted,

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<v Speaker 1>and that is very bullish for the Chinese currency. That's

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<v Speaker 1>an important thing to keep in mind. Bearished for the

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<v Speaker 1>dollar a relative to China, and that's a key dynamic.

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<v Speaker 1>That means that even though inflation may be an important

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<v Speaker 1>issue for the develop markets like the US, it is

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<v Speaker 1>almost the opposite for ems and EM currencies. That's why

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<v Speaker 1>they've done so well this year. They've had very high

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<v Speaker 1>real rates and they're just waiting for the FED to cut.

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<v Speaker 1>So if the FED cuts, they do well. Fed doesn't cut,

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<v Speaker 1>we know they've already done well. It's a sort of

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<v Speaker 1>simplistic way of putting it. Tariffs s fit into this

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<v Speaker 1>in an important way. Most important, I hope your listeners

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<v Speaker 1>know that negotiators are not going to reveal whether there's

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<v Speaker 1>a currency chapter in the discussions. Namely, you know what

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<v Speaker 1>they're talking about in terms of currency. But I hope

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<v Speaker 1>it's also obvious that if a country devalues right after

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<v Speaker 1>a trade agreement, they're three steps backward. And further note that,

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<v Speaker 1>so you know your currency can't be devalued to but

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<v Speaker 1>super super simple after a tariff negotiation and look at

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<v Speaker 1>your balance of payments accounts. Most of these countries, especially

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<v Speaker 1>Nasan and em have high positive net international investment positions

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<v Speaker 1>with the US. They own more of US if I'm

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<v Speaker 1>speaking as the US, than we of them. That means

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<v Speaker 1>they're up to their nexts in dollars. And what do

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<v Speaker 1>you do if you're up to your next in dollars

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<v Speaker 1>and you know dollars are going to go down? You

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<v Speaker 1>reshore those dollars to your shores or to other non

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<v Speaker 1>non US shores. There are many other variables, but I

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<v Speaker 1>think inflation tariffs are definitely feeding into an uncertain narrative.

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<v Speaker 1>But I wanted to emphasize that the dollar down means

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<v Speaker 1>a lot of other currencies up, and that gives them

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<v Speaker 1>a lot of flexibility, and it certainly underlies and supports

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<v Speaker 1>their currencies.

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<v Speaker 2>So the dollar story is definitely correlated with the expectations

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<v Speaker 2>for FED policy easing and maybe as many as three

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<v Speaker 2>rate cuts this year. Certainly that's the takeaway after this

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<v Speaker 2>PPI number. Earlier in the week, obviously, we had the

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<v Speaker 2>downward revision in employment growth over the last twelve months

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<v Speaker 2>from the end of March. I think nine hundred thousand

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<v Speaker 2>roughly overstated. So the market now seems to be of

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<v Speaker 2>the opinion that we're going to get some aggressive FED

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<v Speaker 2>easing given labor market weakness and perhaps contained inflation. Do

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<v Speaker 2>you think the market's thinking is a little misguided here

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<v Speaker 2>and is the Fed in particular in a very very

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<v Speaker 2>difficult situation.

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<v Speaker 1>I think in terms of the real thing many our

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<v Speaker 1>listeners might care about, which is what could the ten

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<v Speaker 1>year or thirty year yield? Do? I think it could

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<v Speaker 1>rally a lot, but that's mostly due to positioning for

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<v Speaker 1>a couple quarters. Now, the steepening trade that you know,

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<v Speaker 1>long ends long end rates higher, front ends lower relative

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<v Speaker 1>to each other has been consensus trade and if that's unwinding,

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<v Speaker 1>and I said, my concerns come in a couple quarters,

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<v Speaker 1>So if that's unwinding, that could go for a good

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<v Speaker 1>period of time. PPI today certainly gives a green light today,

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<v Speaker 1>we'll have to wait CPI for the final green light. Also,

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<v Speaker 1>the inflation downtrend is going to be very much affected

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<v Speaker 1>by the Oeer calculation that the FED uses owner's equivalent

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<v Speaker 1>rent and that's you know, somewhat sticky in terms of

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<v Speaker 1>its direction, namely weaker, and so a rally in rates,

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<v Speaker 1>maybe even another fifty basis points is entirely possible, but

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<v Speaker 1>I think it's going to be mainly due to positioning

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<v Speaker 1>this consensus deep innerview that's been on because on your

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<v Speaker 1>issue of you know, inflation's already sort of been pushed

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<v Speaker 1>aside as a risk and employment growth there's great uncertainty still,

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<v Speaker 1>certainly in terms of sequencing. I already mentioned that terriff

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<v Speaker 1>implications may still becoming. What if the Fed's already cut

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<v Speaker 1>by then and employment growth is extremely complicated because there's

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<v Speaker 1>there's a new methodology or new you know, a new

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<v Speaker 1>huh head of the Data Provision Agency, which if you're

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<v Speaker 1>sitting in Singapore, right, you don't really care, you don't

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<v Speaker 1>have a domestic political opinion. But that's not a not

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<v Speaker 1>something normally you want to see in a country you

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<v Speaker 1>invest in. Maybe you know, I'm not getting into whether

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<v Speaker 1>it's warranted or not, but there's great uncertainty over the

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<v Speaker 1>employment situation itself because of migration. There's great uncertainty on

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<v Speaker 1>how much self deportation is happening, and so that's going

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<v Speaker 1>to take, you know, a couple of quarters to work

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<v Speaker 1>itself out, which is why I defer to the technicals.

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<v Speaker 1>Everyone is positioned in a steepener. So the pain trade

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<v Speaker 1>is that that unwindes and that's a rates rally. But

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<v Speaker 1>I want to emphasize it's not because of UH that

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<v Speaker 1>in a few quarters that'll seem warranted.

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<v Speaker 2>On that I think is still very uncertainly am i'ment ago.

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<v Speaker 2>You mentioned stagflation. Talk to me a little bit about

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<v Speaker 2>the risk that you see right now of a stagflationary

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<v Speaker 2>type environment.

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<v Speaker 1>I think it should be standard. It should be your

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<v Speaker 1>central case for the highly indebted developed markets where most

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<v Speaker 1>investors unfortunately have their bond exposure. The only real solutions

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<v Speaker 1>available to high indebtedness are default or inflation. I don't

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<v Speaker 1>think default is really a scenario. Forms of it might be,

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<v Speaker 1>but which leaves you with inflation. Now, the inflation dynamic

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<v Speaker 1>when it unfolds. And I say this as someone who's

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<v Speaker 1>been doing looking at countries for thirty years and a

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<v Speaker 1>lot of them have defaulted and they recovered. And you know,

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<v Speaker 1>I'm speaking from that experience. But it's saying that inflation

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<v Speaker 1>solves the problem is essentially a way of saying that

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<v Speaker 1>the dynamic moves completely to the political and social level.

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<v Speaker 1>Just look at the US election. The last US election

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<v Speaker 1>was very much about inflation. Was it too fiscally stimulated?

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<v Speaker 1>Was the Trump campaign's argument. Or and look at the

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<v Speaker 1>New York campaign, the New York City campaign on the left,

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<v Speaker 1>you're getting arguments that are very focused on cost of living.

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<v Speaker 3>Right.

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<v Speaker 1>So inflation is front and center in politics. And the way,

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<v Speaker 1>unfortunately it works, its way it works its way out

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<v Speaker 1>is over many years in which consumers and investors need

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<v Speaker 1>to figure out what is the nominal and what is

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<v Speaker 1>the real That becomes the most important variable. So I'm

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<v Speaker 1>sorry I don't have a like a simple black and white,

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<v Speaker 1>you know, headline answer, but stagflation I think should be

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<v Speaker 1>central case, especially if the dollar continues to weaken, and

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<v Speaker 1>especially if the FED is actually or viewed as I'm

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<v Speaker 1>having its independence undermined, and in an extreme scenario of

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<v Speaker 1>YCC scenarios are contemplated, you know, that would underline the

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<v Speaker 1>whole phenomenon. But the interesting thing and the point you

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<v Speaker 1>know I mentioned, you know on your initial question, well,

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<v Speaker 1>is that there are winners from this dollar down means

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<v Speaker 1>something up. And it's not just gold, it's c and

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<v Speaker 1>why for example, a C and Y is going to

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<v Speaker 1>be extremely stable, it's going to be like watching paint dry.

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<v Speaker 1>But other emerging markets with high real interest rates and

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<v Speaker 1>cheap currencies that export commodities, that have decades of proof

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<v Speaker 1>on their orthodoxy on inflation, we already know how the

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<v Speaker 1>market will react to that. Even you know, even so

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<v Speaker 1>far this year they've all rallied, not all, but you know,

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<v Speaker 1>basically and UH and so if the FED cuts, it's

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<v Speaker 1>going to be a big support for those currencies. And

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<v Speaker 1>I think that's the better way, the better expression of

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<v Speaker 1>this view. It's it's been. The better way to invest

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<v Speaker 1>in bonds in general is through the more orthodox fiscal

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<v Speaker 1>UH and monetary policies that characterize many of the emergent

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<v Speaker 1>so called emerging markets.

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<v Speaker 2>All right, Eric, good stuff, Thank you so much. We'll

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<v Speaker 2>leave you there with Eric Fine, portfolio manager also head

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<v Speaker 2>of Active em Debt at Venneck here in New York

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<v Speaker 2>City on the Daybreak Asia podcast. Welcome back to the

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<v Speaker 2>Debreak Asia podcast. I'm Doug Chrisner and has promised some

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<v Speaker 2>of our exclusive conversation with the CEO of UBS, Sergio Ermati.

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<v Speaker 2>He says the impact of global tariffs on the American economy,

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<v Speaker 2>as well as FED policy both remain unclear. You know,

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<v Speaker 2>it was last month when Bloomberg reported the Swiss Economy

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<v Speaker 2>Minister sought input from UBS as the Swiss government scrambled

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<v Speaker 2>to get and improved US trade deal. Now the Trump

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<v Speaker 2>administration has imposed levies of thirty nine percent on Swiss

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<v Speaker 2>exports to the US. That is the highest tariff rate

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<v Speaker 2>for any developed nation. Ermadi is in Hong Kong for

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<v Speaker 2>the annual UBS Disruptive Technology Summit. It begins later today.

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<v Speaker 2>Here he is speaking exclusively with Bloomberg's David in Glace

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<v Speaker 2>in our Hong Kong bureaus.

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<v Speaker 4>Good morning, and it's very nice to see you in

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<v Speaker 4>the region.

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<v Speaker 1>What are you looking forward to this.

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<v Speaker 4>Entire event about disruptive technologies? How is the bank looking

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<v Speaker 4>to get involved here?

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<v Speaker 3>Now?

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<v Speaker 5>It was great to be back in Hong Kong with

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<v Speaker 5>all the executive board and the Board of Directors for

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<v Speaker 5>a full week of sessions, and now we are also

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<v Speaker 5>hosting our eleventh event here on disruptive technology and gathering

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<v Speaker 5>one thousand clients and really at the pivotal moment for

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<v Speaker 5>the sector.

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<v Speaker 3>I think that we always.

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<v Speaker 5>Saw a lot of innovations, particularly coming out of age,

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<v Speaker 5>but now the acceleration is huge around AI, around robotics,

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<v Speaker 5>and so we're looking forward to engage with clients.

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<v Speaker 4>Right And I think you and I were just talking

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<v Speaker 4>before we started here that you know, people tend to

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<v Speaker 4>overestimate in the short term how quickly things can but

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<v Speaker 4>I think in this case things are rather moving fairly

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<v Speaker 4>quickly as far as this technology. Because how is your

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<v Speaker 4>team looking at opportunities for the bank here, internal or external?

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<v Speaker 5>Yeah, is fair to say that also this time, probably

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<v Speaker 5>there is an exaggeration of the estimation, but is going

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<v Speaker 5>faster than what we saw in the past. But I'm

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<v Speaker 5>pretty convinced that we are still underestimating the impact that

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<v Speaker 5>we have over the long term. I think that for

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<v Speaker 5>us is all about really preparing for the future. The

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<v Speaker 5>biggest focus we have right now is how to make

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<v Speaker 5>our processes more efficient on the backhand, but also how

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<v Speaker 5>can we help our client advisors serving their clients in

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<v Speaker 5>a more effective and efficient way. Our analyst to be

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<v Speaker 5>more responsive to market changes. And you know, one point

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<v Speaker 5>is very important. Technology will help humans being better and

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<v Speaker 5>in banking we will continue to see the emotional part,

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<v Speaker 5>the eq part of the equation playing also a very

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<v Speaker 5>important role.

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<v Speaker 4>The bank has been around through many cycles. I want

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<v Speaker 4>to get your sense of this current macro environment. I mean,

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<v Speaker 4>we went into this year with some expectations around how

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<v Speaker 4>the macro environment would change, and then we had this

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<v Speaker 4>flurry of tarists and this back and forth and now

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<v Speaker 4>questions around how much the FED can in fact lower

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<v Speaker 4>interest rates.

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<v Speaker 1>What's your sense of the.

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<v Speaker 4>Global economy and where do you think we will be

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<v Speaker 4>in six months time?

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<v Speaker 3>Are we going to be better offerers off? Well?

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<v Speaker 5>Look, you know the issues that I don't think we

0:13:29.880 --> 0:13:33.640
<v Speaker 5>have seen really the true impact of tariffs playing out

0:13:34.160 --> 0:13:37.480
<v Speaker 5>in the economies. Of course, when you look at Asia

0:13:37.480 --> 0:13:41.840
<v Speaker 5>and China and particularly it's fairly robust, you know, five percent,

0:13:42.040 --> 0:13:45.800
<v Speaker 5>you know, comfortably about five percent GDP is quite quite

0:13:45.840 --> 0:13:46.760
<v Speaker 5>a strong.

0:13:49.520 --> 0:13:50.160
<v Speaker 3>Momentum.

0:13:51.360 --> 0:13:55.400
<v Speaker 5>And of course also China may be impacted by high tariffs,

0:13:55.480 --> 0:14:00.480
<v Speaker 5>but on the current assumptions around forty percent consumer Also

0:14:00.520 --> 0:14:02.720
<v Speaker 5>that the waiting of tariffs in.

0:14:04.360 --> 0:14:06.800
<v Speaker 3>For exporter has changed.

0:14:07.080 --> 0:14:10.640
<v Speaker 5>You know, in twenty seventeen was probably around twenty percent

0:14:10.679 --> 0:14:12.360
<v Speaker 5>of the exports we're going to the US.

0:14:12.400 --> 0:14:15.320
<v Speaker 3>Now we are closer to fourteen percent.

0:14:15.480 --> 0:14:18.760
<v Speaker 5>Of course, when you look at machinery, autos and technology

0:14:18.960 --> 0:14:21.720
<v Speaker 5>there is between forty and eighty percent. But you know,

0:14:21.760 --> 0:14:24.560
<v Speaker 5>what's going on, for example in this region, diversification.

0:14:25.720 --> 0:14:26.960
<v Speaker 3>It's a very important topic.

0:14:27.080 --> 0:14:32.479
<v Speaker 5>So you see Asian becoming much more, you know, developing

0:14:32.520 --> 0:14:37.280
<v Speaker 5>more into a diversified play. The same is going on

0:14:37.480 --> 0:14:41.560
<v Speaker 5>for you know, in Europe. The true issue on tariffs

0:14:41.600 --> 0:14:42.520
<v Speaker 5>will be seen on.

0:14:44.080 --> 0:14:45.720
<v Speaker 3>Consumers. In the US.

0:14:45.720 --> 0:14:48.800
<v Speaker 5>We will need to see exactly if there is an

0:14:48.840 --> 0:14:53.120
<v Speaker 5>inflationary aspect of tariffs and.

0:14:53.280 --> 0:14:54.600
<v Speaker 4>Is that still unclear at this point?

0:14:54.640 --> 0:14:57.320
<v Speaker 5>I think it's unclear because you know, a lot of

0:14:58.440 --> 0:15:01.600
<v Speaker 5>in anticipation of tarists, lots of people have been exporting

0:15:01.640 --> 0:15:05.640
<v Speaker 5>and anticipating and you know, the exports or imports from

0:15:05.760 --> 0:15:08.920
<v Speaker 5>the rest of the world in the US, so the

0:15:09.000 --> 0:15:12.000
<v Speaker 5>kind of targists we see right now which is seven

0:15:12.040 --> 0:15:14.200
<v Speaker 5>eight times higher than what we add at the beginning

0:15:14.240 --> 0:15:16.360
<v Speaker 5>of the years. I mean, if you look at Europe

0:15:16.680 --> 0:15:21.680
<v Speaker 5>at fifteen percent and you know it's seven times higher

0:15:21.720 --> 0:15:25.800
<v Speaker 5>than what it was. The dollar also depreciating ten percent

0:15:26.400 --> 0:15:30.120
<v Speaker 5>as a big effect on the economy, so it's going

0:15:30.200 --> 0:15:33.040
<v Speaker 5>to be challenging for Europe. In the US, we still

0:15:33.080 --> 0:15:38.080
<v Speaker 5>believe that growth will be there, but the inflation questions

0:15:38.120 --> 0:15:40.760
<v Speaker 5>and how it plays out into the central bank policy

0:15:41.520 --> 0:15:42.160
<v Speaker 5>remains open.

0:15:42.360 --> 0:15:45.000
<v Speaker 4>Well, when you speak to your big corporate clients, do

0:15:45.000 --> 0:15:48.200
<v Speaker 4>you get a sense that people are more conservative still

0:15:48.240 --> 0:15:50.880
<v Speaker 4>in terms of their assumptions, their cap expending, and just

0:15:50.920 --> 0:15:53.960
<v Speaker 4>their broad expectations of how things will play out.

0:15:54.160 --> 0:15:56.760
<v Speaker 5>Well, I think that there is still a level of uncertainty.

0:15:56.760 --> 0:16:00.600
<v Speaker 5>Although if you look at the war, it seems to

0:16:00.600 --> 0:16:03.640
<v Speaker 5>be divided into two pms, the more traditional let's call

0:16:03.680 --> 0:16:06.720
<v Speaker 5>it economy and the one that is AI technology driven.

0:16:06.800 --> 0:16:09.880
<v Speaker 5>There there is a clear boom and h and prospect

0:16:09.960 --> 0:16:12.680
<v Speaker 5>for growth. We see it here in Hong Kong with

0:16:13.320 --> 0:16:16.400
<v Speaker 5>the booming IPO market. You know this is something that

0:16:16.440 --> 0:16:23.320
<v Speaker 5>we saw in the best times. But in general there

0:16:23.400 --> 0:16:28.040
<v Speaker 5>is a constructive momentum. But the jury is out because

0:16:28.080 --> 0:16:31.280
<v Speaker 5>the complexity is not only the economics, is also the

0:16:31.400 --> 0:16:36.840
<v Speaker 5>very complex geopolitical environment is you know, is keeping all

0:16:36.880 --> 0:16:40.040
<v Speaker 5>of us very focused on making sure that we are

0:16:40.040 --> 0:16:41.120
<v Speaker 5>not becoming complacent.

0:16:41.440 --> 0:16:43.960
<v Speaker 4>Well, speaking of this booming IPO market, it's something we

0:16:44.000 --> 0:16:46.560
<v Speaker 4>haven't seen in years. That's put a diary at least

0:16:46.560 --> 0:16:48.280
<v Speaker 4>our team as well, feels extremely busy.

0:16:48.280 --> 0:16:48.680
<v Speaker 3>Every day.

0:16:48.680 --> 0:16:50.600
<v Speaker 4>There seems to be a deal of fundraising, a stock

0:16:50.720 --> 0:16:53.680
<v Speaker 4>rights offering, what have you almost on a daily basis.

0:16:53.680 --> 0:16:57.120
<v Speaker 4>Are you satisfied with how your deals teams has come

0:16:57.200 --> 0:17:01.120
<v Speaker 4>up to the task of this this booming in activity world.

0:17:01.360 --> 0:17:04.160
<v Speaker 5>Absolutely, I mean it's extraordinary to see. I mean, if

0:17:04.359 --> 0:17:10.320
<v Speaker 5>this is tenfold, seven seven, eight times higher volumes that

0:17:10.359 --> 0:17:13.120
<v Speaker 5>we had at this point in time last year, I'm

0:17:13.200 --> 0:17:15.960
<v Speaker 5>very happy. You know, we are one of the leaders

0:17:15.960 --> 0:17:20.239
<v Speaker 5>with more than ten percent market share, you know, and

0:17:20.560 --> 0:17:23.080
<v Speaker 5>you know, very happy to see that momentum. But it's

0:17:23.160 --> 0:17:25.920
<v Speaker 5>quite impressive to see how the mood has changed compared

0:17:25.920 --> 0:17:29.680
<v Speaker 5>to a year ago. And so it's which which shows

0:17:29.840 --> 0:17:34.000
<v Speaker 5>the flexibility and the agility of the economy in this

0:17:34.160 --> 0:17:37.840
<v Speaker 5>region to respond and react to market changes and the

0:17:37.920 --> 0:17:40.560
<v Speaker 5>driving force of innovation that stays behind it.

0:17:40.600 --> 0:17:43.280
<v Speaker 4>Right, and there's this renewed, let's put it, a healthy

0:17:43.280 --> 0:17:47.000
<v Speaker 4>competition coming from some of your Chinese peers in the industry.

0:17:47.000 --> 0:17:48.960
<v Speaker 4>Do you get a sense that the competition now is

0:17:48.960 --> 0:17:50.840
<v Speaker 4>a bit it's a bit more fierce and how are

0:17:50.840 --> 0:17:53.840
<v Speaker 4>you prepared to respond to all? How is UBS prepared

0:17:53.880 --> 0:17:54.359
<v Speaker 4>to respond?

0:17:54.400 --> 0:17:54.480
<v Speaker 1>It?

0:17:54.560 --> 0:17:56.760
<v Speaker 4>Is this this new regime?

0:17:57.440 --> 0:18:00.840
<v Speaker 5>Well, I don't remember in my career times which competition

0:18:01.040 --> 0:18:04.399
<v Speaker 5>was in fierce And look, you know, I think that

0:18:05.320 --> 0:18:09.760
<v Speaker 5>it is good to see that. Also Chinese securities firms

0:18:09.760 --> 0:18:13.760
<v Speaker 5>and banks are broadening up their capabilities. We see us

0:18:13.880 --> 0:18:18.040
<v Speaker 5>as a complimentary player in that sense. So we are

0:18:18.080 --> 0:18:23.280
<v Speaker 5>helping international investors that wants to invest in China and

0:18:23.280 --> 0:18:26.440
<v Speaker 5>in Asia and also the other way around.

0:18:26.520 --> 0:18:31.639
<v Speaker 3>And this is very complimentary with the rest of the

0:18:31.720 --> 0:18:34.360
<v Speaker 3>industry and the competitive landscape.

0:18:33.840 --> 0:18:37.480
<v Speaker 2>That is UBS CEO Sergio or Madi speaking with Bloomberg's

0:18:37.520 --> 0:18:42.480
<v Speaker 2>David and Glaze here on the Daybreak Asia podcast. Thanks

0:18:42.480 --> 0:18:46.120
<v Speaker 2>for listening to today's episode of the Bloomberg Daybreak Asia

0:18:46.280 --> 0:18:49.560
<v Speaker 2>Edition podcast. Each weekday, we look at the story shaping

0:18:49.640 --> 0:18:53.720
<v Speaker 2>markets finance and geopolitics in the Asia Pacific. You can

0:18:53.720 --> 0:18:57.639
<v Speaker 2>find us on Apple, Spotify, the Bloomberg Podcast YouTube channel,

0:18:57.760 --> 0:19:00.600
<v Speaker 2>or anywhere else you listen. Join us again and tomorrow

0:19:00.720 --> 0:19:03.679
<v Speaker 2>for insight on the market moves from Hong Kong to

0:19:03.800 --> 0:19:08.560
<v Speaker 2>Singapore and Australia. I'm Doug Prisoner and this is Bloomberg