FIEE News and Press, UBS AG FI Enhanced Europe 50 ETN due February 12 2026 From 05/04/22

We argue that the Fed has to deliver on hawkish expectations by hiking by 50bp today and announcing balance sheet reduction. This urgency has also pushed EUR rates up, despite the increasing likelihood of stagflation in Europe. This could flatten the curve and push peripheral spre...

Expectations of tighter Fed policy and increased demand for safe-haven assets have pushed the U.S. dollar to multi-month highs. As central banks prepare to fight inflation, the U.S. dollar remains unchallenged against the euro and yen. Euro area inflation is now over 7%, yet the E...

Beijing prodding may have reversed much of the week’s equities market pain, though I doubt positive sentiment will return anytime soon. China Development Bank CDS jumped 12.5 to 91.5 bps, surpassing the March 2020 crisis spike to a five-year high (began the year at 55bps). ...

A potential economic and political revolution in France and Europe was averted. President Emmanuel Macron won a decisive victory over the populist Eurosceptic Marine Le Pen in the second round of the French elections on April 24. The results should allay immediate concerns about p...

A blockbuster week in store in financial markets and one that begins with bank holidays across various countries. The standout event next week will naturally be the Federal Reserve monetary policy decision on Wednesday when we’re likely to see the first 50 basis point rate hike...

EM debt currently offers value to investors with a medium- to long-term horizon and a willingness to tolerate a period of higher volatility. EM sovereign high-yield spreads are particularly compelling, especially relative to U.S. high-yield debt. Longer term, we believe the outloo...

Inflation worries still loom large in the market’s psyche, even with rising growth concerns. Risk sentiment doesn’t fare well in these circumstances. Sterling markets seem like a haven of relative calm, as we believe the BoE will hike twice more this year but pause after...

According to the European Commission’s estimates, the unemployment rate has even dropped below the natural rate of unemployment, the rate below which wage growth is set to rise. The recent surge in inflation will exert less upward pressure on wages than it would have done in th...

The euro has been weakening since last summer, and we are about to experience another episode of conflicting central bank policies, where the Fed will be tightening monetary policy while the ECB will be lagging the Fed. Europe already has had to deal with a horrific price spike in nat...

Investors have been processing high inflation reports, rising interest rates, surging energy, commodity, and real estate prices. So, what is the market saying about which markets investors have favored the last couple of years vs where are they putting their money right now? A way...