UBS On-Air: Market Moves

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

On this week’s episode, Burkhard shares his thoughts on how and to what extent an array of factors - the US midterm elections, the recent global technology sector correction, bond markets, ongoing geopolitical developments, and a recent crypto heist - are weighing on minds of investors. Burkhard then goes on to reinforce why in today’s environment, it’s important to stick to your strategy, stay diversified, and not let the news make your decisions for you.

Markets responded positively to the US midterm election results. Expectations of policy gridlock do not solve the unsustainable US fiscal position but reduce politicians’ ability to inflict further fiscal damage. US Vice President Vance blamed Republican losses on the Gulf war. That, amplified by the optimism bias, shifted expectations of a US retreat and allowed oil prices to fall.

In the wake of Election Day, Kurt and Shane join to assess the outcomes of Congressional and Gubernatorial races across the US and the implications of them to the domestic and foreign policy landscape, the macroeconomic environment, the road ahead for AI-buildout, and financial markets. Plus, a review of CIO’s positioning recommendations and messaging as we look ahead to 2027. Featured are Kurt Reiman, Head of Fixed Income Americas from the UBS Chief Investment Office, and Shane Lieberman, Senior Governmental Affairs Advisor from Governmental Affairs US. Host: Daniel Cassidy

US Democrats have decisively won the midterm elections. State results will matter to investors because data center decisions often take place at a state level and some Democrat governors are publicly opposed. At the very least, data center builders are likely to have to offer more incentives to local communities.