UBS On-Air: Market Moves

As the U.S. midterm elections are quickly approaching, Shane identifies the Senate races that he is closely watching, and what polling is currently pointing to. With the U.S. Supreme Court now back in session, we also review some notable cases on the docket. Plus, a look at how U.S. officials have been responding to reported public health concerns in Siberia. Featured is Shane Lieberman, Senior Governmental Affairs Advisor, Governmental Affairs US. Host: Daniel Cassidy

US President Trump’s social media account declared the US would not attack Iran before the midterm elections. Other actors in the war may launch attacks. The post does reveal the concern about the political costs of the war, and rekindled some of the optimism bias in markets. However, the political costs presumably shift after the midterms.

Derek Pines is a Senior Managing Director and Portfolio Manager at Bramshill Investments. Derek joins Frank Sileo, Senior Fixed Income Strategist Americas from the UBS Chief Investment Office, for a comprehensive discussion on the preferred securities market. They cover a performance update and outlook, risk considerations, positioning views, and more.

Crude oil prices and diesel prices are up (there seems to be uncertainty about whether last Friday’s pledge to release diesel reserves is actually just confirming previously announced reserve releases). Bonds and equities do not like this. Central banks have pretended that they can do something about oil prices, which worries investors. If central banks want to offset inflation from an oil shock, they need to create a recession (or near recession) in the non-oil economy via aggressively restrictive policy. That does not favor bonds or equities.

With the next Fed policy meeting just a few weeks away, Andrew Dubinsky, US Economist from the UBS Chief Investment Office, drops by the studio to share CIO’s expectations and the factors that will likely inform the central bank’s policy decision. We also cover the health of the US labor market, GDP picture, and the latest on inflation. Host: Daniel Cassidy