UBS On-Air: Market Moves

Hostilities in the Middle East have flared up again, disrupting shipping and renewing concerns about energy prices, inflation, and global growth. But both the US and Iran still have powerful economic and political incentives to avoid a return to all-out war. Why does diplomacy remain the most likely endgame - and what could a lasting agreement mean for investors? In the latest episode of Across the Pond, hosts Christopher Swann and Belinda Ulander are joined by UBS Global Chief Economist Paul Donovan to explore the implications for US markets, Europe’s energy-sensitive economy, and opportunities across Asia and beyond.

Traditional IRAs can be powerful retirement savings vehicles, but they may not always be the most tax-efficient asset for beneficiaries to inherit. Ainsley Carbone and Justin Waring join to discuss one strategy that may help address that challenge - using IRA distributions to fund life insurance as part of a broader legacy plan. Host: Daniel Cassidy

Frank drops by for a performance update and outlook for the preferreds market, including a look at positioning considerations and recommendations, and what to be mindful of when it comes to the interest rate environment. Featured is Frank Sileo, Senior Fixed Income Strategist Americas, UBS Chief Investment Office. Host: Daniel Cassidy

US President Trump had declared the Strait of Hormuz open for free. Now Trump has declared it open for a 20% fee. Shipping data suggests there was less-than-universal belief in free safe passage through Hormuz on Monday. It is unlikely ships will go full steam ahead to take the same risks while paying a high tax. A 20% fee would be about 15 times the mooted Iranian charge, and (as a proportionate tax) would exaggerate future oil price moves.

Jason rejoins to weigh in on recent market activity and drivers, spanning geopolitics, to the Fed, to macro data. Plus, thoughts on this week’s key inflation data, Congressional testimony from Fed Chair Kevin Warsh, the beginning of the Q2 corporate earnings season, and more. We end with guidance around portfolio positioning in consideration of all these factors. Featured is Jason Draho, Head of Asset Allocation Americas, UBS Chief Investment Office. Host: Daniel Cassidy