FIEE News and Press, UBS AG FI Enhanced Europe 50 ETN due February 12 2026 From 10/01/22

Summary As the BOE began to raise rates and market yields surged higher, trouble quickly materialized. The size of the LDI (liability-driven investing) market has exploded over the past decade. The Bank of England stopped the selloff exacerbated by heavy selling from U.K. pens...

Summary Investors will have a handful of key economic releases to follow this week. The key economic release for the week is the September nonfarm payroll report. Unemployment is expected to remain steady at 3.7%. US It remains all about the Fed as it continu...

Summary When central banks implied that bringing inflation down required breaking things along the way, what happened to the gilt market is likely not what they had in mind. The BoE was forced to row back on its immediate quantitative tightening ambitions and even pressed to buy g...

Summary Near-term, inflation will remain elevated. We anticipate at least another 100–150 b.p. of tightening from major central banks in the next few months. There are already signs of an economic slowdown globally, but household finances are robust, corporate balance sheet...

Summary Further normalization of headline inflation and aggressive monetary tightening in other regions should keep the U.S. dollar relatively stable, which bodes well for technology companies and other growth-oriented names. The global energy crisis will likely make climate chang...

Summary We believe it is unlikely that Fed Chair Jerome Powell will navigate a pivot to a less-hawkish stance before early in 2023. We expect China to grow at a meager 2%-3% pace in 2022, with the potential for these risks to bleed into 2023, as a slowing developed-market consumer...

Summary Many central banks aren’t acknowledging the extent of recession needed to rapidly reduce inflation. Markets haven’t priced that, so we shun most stocks. Yields surged after more rate hikes and the UK’s fiscal splurge news. We cut UK gilts to underweigh...

Summary On 16 August 2022, President Joe Biden signed into law the IRA. The COVID-19-related global supply chain disruptions, extreme weather events, rising inflation, and the Russia-Ukraine crisis have pushed the cost of capital to record highs. Meanwhile, in China, surging c...

Summary As September winds down, three sets of economic reports will draw the most attention. Many will see the US PCE deflator as the key given the monetary cycle, but its thunder has been stolen. The Mexican peso is one of four emerging market currencies that have appreciate...

Summary A global recession is likely, with at least slower economic growth virtually certain. The tightening is not a mistake, but in most cases it’s coming too late, which means more economic damage than it had begun earlier. Businesses selling to China can expect lowe...