Bloomberg Daybreak: Asia Edition Global Inflation in Focus; UBS CEO Sergio Ermotti
Sep 11, 2025
In this discussion, Eric Fine, Portfolio Manager and Head of Active EM Debt at VanEck, offers sharp insights on the interplay between U.S. inflation and Federal Reserve policies, highlighting investment prospects in emerging markets. UBS CEO Sergio Ermotti talks about the uncertain impact of global tariffs on the U.S. economy, emphasizing the ongoing challenges businesses face. They also touch on technological innovations in AI and robotics and the potential changes in market dynamics ahead of the annual UBS Disruptive Technology CEO Summit.
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Tariffs, Fed Bets And The Dollar
- Eric Fine says tariff effects are still working through the system while markets price Fed easing, creating uncertainty on inflation.
- A weaker dollar helps many EM currencies and supports their flexibility and financial positions.
Monitor EM Currencies And Real Rates
- Watch EM currencies and real rates as hedges against developed-market inflation risks.
- Expect EM assets to benefit if the Fed cuts and already-high real rates persist.
Rates Rally Driven By Positioning
- Positioning has driven much of the recent long-end rally and could reverse if the consensus steepener unwinds.
- PPI gave a short-term green light, but CPI and OER trends will determine longer-term rate direction.