Swiss banking giant UBS warns of stagflation risk amid tariff dispute

Source Cryptopolitan

Swiss banking giant UBS has warned that stagflation — stagnant growth and high inflation — may be the next big threat. 

UBS Group AG’s Asia Pacific President, Iqbal Khan, described stagflation as investors’ primary risk while identifying select opportunities in the existing economic environment.

Stagflation Fears Rise Amid Trade Tensions and Central Bank Measures

Addressing Bloomberg’s Family Office Summit in Hong Kong, Khan said that perhaps the biggest question in the market today is how fast the economy grows and whether stagflation—a situation marked by weak growth, high unemployment, and high inflation—is the new normal. He noted:

“That’s the real risk out there and that’s what everybody wants to avoid. And I think most of the central banks including the Fed is clearly very very focused on that.”

The warning comes as central banks around the world tighten their belts in a bid to tame inflation, disruptions in the global supply chain, and increased trade restrictions, which are complicating economic projections.

The ongoing tariff dispute between major economies is one of the major factors fueling stagflation risks. Policy adjustments in recent years, notably between the U.S. and China, have raised new concerns about how trade constraints will affect global supply chains. 

Higher tariffs on key commodities and high-tech exports increase production costs and fuel inflation, complicating the economic outlook.

UBS acknowledges risks related to such trade tensions, but Khan noted that pockets of opportunities still exist. He said Europe was exhibiting signs of renewed economic focus, for example, and China and Europe remained relatively low-cost investment destinations with growth potential despite short-term headwinds.

UBS expands in Asia-Pacific with new Hong Kong Tower and leadership moves

UBS is the biggest wealth manager in the Asia-Pacific region and continues to cement its place there. Zurich-based UBS, which has more than 900 client advisers in the region, faces stiff competition from HSBC and regional players like DBS Group. 

To strengthen its claim, UBS intends to rent a 14-story office tower currently under construction in Hong Kong’s West Kowloon district, which is scheduled to be finished in 2026.

Khan, who moved to Hong Kong last year, has been instrumental in shaping UBS’s Asia strategy. His appointment as Asia-Pacific president in 2024 was part of a wider corporate rejig, including the expanded role of investment-banking head Rob Karofsky. 

Both executives are considered potential successors to UBS Chief Executive Officer Sergio Ermotti, who is set to leave the post by early 2027.

UBS urges strategic investing amid inflation and trade disruptions

The state of the economy may have weighed on the outlook. Despite this, Khan had previously addressed concerns regarding the long-term outlook with measured optimism. UBS recommends that investors take a more “strategic” view and focus on sectors and regions that can withstand inflationary pressures or trade disruptions.

The trick is identifying those market opportunities that respond to new economic realities. According to Khan, solutions are always available to surmount challenges and help people keep up with growth, even amidst uncertainty.

With inflation climbing and trade tensions continuing globally, the bank’s advice on stagflation reminds investors to stay alert and adaptable to an evolving financial landscape.

Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - November 11, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for November 11, 2026. Read on for the details.
Author  Mitrade
Nov 11, Wed
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for November 11, 2026. Read on for the details.
placeholder
Bitcoin lost its 200-day average — but the exit started three sessions before the CPIBitcoin fell 2.5% to about $73,400 on 11 November, an 11-week low, breaking its 200-day moving average near $73,100. The 24-hour liquidation tally reached $632 to $705 million, roughly 82% of it longs. But spot ETF outflows began three sessions earlier and USDT's market cap has shrunk $6.6 billion in 60 days — the leveraged length left before the inflation print did. A double top at 81,890 and 81,080 leaves a measured target of 69,366.
Author  Suzie
Nov 11, Wed
Bitcoin fell 2.5% to about $73,400 on 11 November, an 11-week low, breaking its 200-day moving average near $73,100. The 24-hour liquidation tally reached $632 to $705 million, roughly 82% of it longs. But spot ETF outflows began three sessions earlier and USDT's market cap has shrunk $6.6 billion in 60 days — the leveraged length left before the inflation print did. A double top at 81,890 and 81,080 leaves a measured target of 69,366.
placeholder
Nvidia slid 7.7% after hours while AMD and Broadcom rose — the AI trade changed hands, it didn't breakNvidia closed Wednesday at 173.73, up 2.87%, then fell as much as 8.1% to 159.44 after reports that its board was preparing for a possible leadership change. The same session, the Philadelphia Semiconductor Index rose 5.7% with all 30 components higher, CoreWeave jumped 24.7% on 168% revenue growth, and Micron added 11.9%. If AI demand were being repriced, AMD and Broadcom would not be bid. This is a governance discount on one name, and 204.54 — the 200-day average — is the level that settles it.
Author  Irene Q.
Nov 12, Thu
Nvidia closed Wednesday at 173.73, up 2.87%, then fell as much as 8.1% to 159.44 after reports that its board was preparing for a possible leadership change. The same session, the Philadelphia Semiconductor Index rose 5.7% with all 30 components higher, CoreWeave jumped 24.7% on 168% revenue growth, and Micron added 11.9%. If AI demand were being repriced, AMD and Broadcom would not be bid. This is a governance discount on one name, and 204.54 — the 200-day average — is the level that settles it.
placeholder
Gold hit a one-year low while central banks bought 321 tonnes — the sellers were never the ones you thinkSpot gold closed at 3,876 on Thursday, down 2.8% and its lowest close in more than a year, with an intraday low near 3,852. The dollar is at a 19-month high of 103.21 and the 10-year yield is at 5.10%, so the price move is easy to explain. What is harder to explain is who sold: central banks bought 321 tonnes in Q3, the PBoC added for a 24th straight month, ETF holdings are near a record 4,256 tonnes, and roughly 95% of the futures selling came from non-reportable and sovereign-type accounts rather than hedge funds. This piece separates the two books that have to balance.
Author  Irene Q.
Yesterday 02: 40
Spot gold closed at 3,876 on Thursday, down 2.8% and its lowest close in more than a year, with an intraday low near 3,852. The dollar is at a 19-month high of 103.21 and the 10-year yield is at 5.10%, so the price move is easy to explain. What is harder to explain is who sold: central banks bought 321 tonnes in Q3, the PBoC added for a 24th straight month, ETF holdings are near a record 4,256 tonnes, and roughly 95% of the futures selling came from non-reportable and sovereign-type accounts rather than hedge funds. This piece separates the two books that have to balance.
placeholder
Brent rose 3.3% and US crude stocks built 4.66 million barrels in the same weekBrent January settled at 95.82, up 3.3%, and WTI at 88.74, up 2.55%, after the US signalled it would not pursue a deal with Iran and attacks on Gulf shipping continued. In the same week, EIA data showed US crude inventories rising 4.657 million barrels against expectations of a 1.1 million draw, with gasoline up another 1.799 million. OPEC output also rebounded 1.96 million barrels a day to 27.16 million in October, led by Saudi Arabia at 10.56 million. This piece separates the geopolitical premium from the physical balance and lays out where each side of the trade is anchored.
Author  Irene Q.
Yesterday 03: 06
Brent January settled at 95.82, up 3.3%, and WTI at 88.74, up 2.55%, after the US signalled it would not pursue a deal with Iran and attacks on Gulf shipping continued. In the same week, EIA data showed US crude inventories rising 4.657 million barrels against expectations of a 1.1 million draw, with gasoline up another 1.799 million. OPEC output also rebounded 1.96 million barrels a day to 27.16 million in October, led by Saudi Arabia at 10.56 million. This piece separates the geopolitical premium from the physical balance and lays out where each side of the trade is anchored.
goTop
quote