UBS On-Air: Market Moves

Amidst the toasting of marshmallows at the Jackson Hole summer camp for economists, there are some hopes Federal Reserve Chair Warsh will offer a sensible structure for thinking about US monetary policy. Warsh’s communication style, telling investors “you figure it out”, is not working, creating uncertainty and introducing an unnecessary risk premium into financial markets.

AI data-center development is unlikely to stop, but the rules of engagement are changing. Local opposition, ratepayer concerns, and permitting scrutiny are shifting the debate from whether projects should be built to how costs, benefits, and community impacts should be allocated. Hear insights from Kurt Reiman, Head of Fixed Income Americas, Barry McAlinden, Fixed Income Strategist Americas, Jeannine Lennon, Municipal Strategist Americas, Jay Dobson, US Energy & Utilities Equity Strategist, and Nathaniel Gabriel, Materials & Industrials Equity Strategist: Host: Daniel Cassidy

The Iranian Revolutionary Guard reported that Iran and Oman have agreed to share revenues from tolls on shipping passing through the Strait of Hormuz—once the strait reopens. The announcement stresses that Iran is likely to keep stricter control over the strait after the war, but investors expect that. The announcement does not, of itself, suggest an imminent reopening of the strait.

Higher interest rates and government finances have been in the spotlight over the past week, with investor attention focused on possible policy responses this week and beyond. Financial markets have been struck by these developments, though have remained resilient as the summer nears an end. Jason Draho, Head of Asset Allocation Americas from the UBS Chief Investment Office, reflects on these developments and shares guidance around portfolio positioning. Host: Daniel Cassidy

Iran and Oman are close to agreeing on a shipping route through the Strait of Hormuz. While this may not signal an immediate reopening of the strait, it does suggest Iran is considering reopening the strait. Crude oil prices have fallen (although gasoline prices in the US remain comfortably over USD 4 per US gallon).