Last Updated on October 20, 2020 by admin
Sergio Ermotti, CEO of UBS AG Group on the World Financial Discussion board in Davos, Switzerland.
David A. Grogan | CNBC
LONDON — Do not underestimate present geopolitical uncertainties, was Sergio Ermotti’s parting present as he delivered his final outcomes because the boss of the Swiss financial institution UBS.
Talking to CNBC Tuesday, he stated: “We communicate quite a bit about stimulus and Covid-related issues however the geopolitical uncertainties in Europe and likewise within the Sino-U.S. relationship continues to be there they usually’re there to remain. So we should not underestimate that.”
European politicians have struggled to alleviate tensions with Turkey, Russia and Belarus — simply to call just a few latest points. On the identical time, the commerce spat between america and China is just not absolutely resolved regardless of the signing of a “part one” settlement.
As well as, there’s lots of concentrate on who will win the U.S. presidential election, due subsequent month.
I do not imagine banks are, notably, (a) dangerous actor.
Ermotti, who joined UBS in 2011 and have become chief govt in 2014, believes that buyers will likely be shifting their portfolio positions within the runup to that vote.
“Investor survey(s), shopper survey(s) that we do tells us that probably we are going to see, operating into the elections and after the elections, a shift of their asset allocation,” Ermotti advised CNBC’s Geoff Cutmore.
He defined that buyers must quickly react to totally different insurance policies relying on who wins between incumbent Donald Trump and Democratic rival Joe Biden.
“You might have utterly totally different tax plans and monetary stimulus being carried out in sure methods favoring sure sectors,” he stated.
I believe the picture of banks has improved dramatically.
Taking a look at totally different geographies, Ermotti believes there are higher progress alternatives in Asian and U.S. markets, as Europe nonetheless lacks competitiveness.
Ermotti began at UBS on the peak of the euro zone debt disaster of 2011, which coincided with public anger towards the banking sector for contributing to one of many worst monetary shocks in historical past.
Nevertheless, Ermotti believes that banks have realized their classes and have managed to enhance their popularity in recent times, saying that “banks are product of people and people are a mirrored image of society. I do not imagine banks are, notably, (a) dangerous actor.”
“Banks have been demonstrating the flexibility to adapt and be taught the teachings from our errors throughout the monetary disaster. By the best way, we weren’t the one ones making errors there, however right this moment I believe the picture of banks has improved dramatically,” he stated.
Ermotti will depart the world’s largest wealth supervisor on the finish of this month.
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