UBS On-Air: Market Moves

The recurring risk of a US government shutdown has receded, with some Democrat senators looking to advance legislation. Against the backdrop of damage to “animal spirits” from erratic government policy and taxes, the potential for economic damage from a shutdown would be larger and longer lasting.

With the government funding deadline just hours away, Shane outlines what the proposed continuing resolution consists of, and updates on where negotiations stand. Plus, an inventory of US imposed tariffs, along with retaliatory measures by trading partners. We also check in on progress of a Russia-Ukraine ceasefire agreement and speak to the likelihood of a CHIPS Act reversal. Featured is Shane Lieberman, Senior Governmental Affairs Advisors, Governmental Affairs US. Host: Daniel Cassidy

ECB President Lagarde almost sounded like an economist yesterday, noting inflation pressures could go up or they could go down. While highlighting the increased economic uncertainty of 2025, Lagarde confirmed market expectations that the direction of ECB rates is down. There are seven ECB speakers jostling for media attention today.

We examine how China has been responding to challenges on the trade-front, along with highlight how ex-US markets (including China) have been performing as of late. Plus, some takeaways from the National People’s Congress meeting, and a broader review of preferences across emerging market equities. Featured is Xingchen Yu, Emerging Markets Strategist Americas, UBS Chief Investment Office. Host: Daniel Cassidy

As potential risks around macro-and tariff-related uncertainties emerge in 2025, how should investors position in tech and take advantage of increasing near-term volatility? Plus, as German election results shape market sentiment, what's the outlook for European stocks and what tools can investors leverage?