UBS On-Air: Market Moves

The weekend has demonstrated that US policy uncertainty is likely to continue. On immigration and Iran there were contradictory signals, and the confusion about the White House press secretary demonstrates a general assumption of few conventional boundaries to the administration’s decisions. This uncertainty matters to expectations about the oil price, and also to firms attempting to take strategic longer term decisions.

The scale of AI investment is raising three critical questions: how quickly revenues can justify the infrastructure build-out, whether those revenues can translate into sustainable profits, and who will ultimately capture them. This episode explores the constraints that could shape AI's growth trajectory, the economics of intelligence, and what the evolving competitive landscape could mean for investors.

Following CIO’s recent upgrade of the Preferred Securities sector to Attractive, Frank Sileo, Senior Fixed Income Strategist Americas from the UBS Chief Investment Office, joins to explain the positioning rationale against the current rate environment. Host: Daniel Cassidy

Markets have reassessed what the shifting US political landscape means for the shiny new toy of artificial intelligence. This does not mean much economically—households are not likely to change consumption patterns because the Nasdaq had a bad day. Data-center builders might have to offer more “inducements” to local communities, raising project costs. Such “inducements” are economically positive—building a school generates economic activity.

In the wake of this week’s US midterm election outcome, Paul Hsiao, Senior Asset Allocation Strategist Americas from the UBS Chief Investment Office, joins for timely reflections on this week’s notable market swings, and guidance on how to position your portfolio. We also cover the implications of the election outcome to the landscapes for financing and deal-making, along with the progression of AI-buildout. Host: Daniel Cassidy