UBS On-Air: Market Moves
CIO Global Livestream: From tariffs to AI: how to navigate market volatility
Jan 29, 2025
Ulrika Hoffman-Vacardi, Global Head of Equities at UBS CIO, and Paul Donovan, Global Chief Economist at UBS, dive into the intricacies of today's market. They discuss the evolving landscape of AI advancements and how they present new investment opportunities. The duo explores recent U.S. tariff policies and their unpredictable economic impacts, highlighting their role as a sales tax on consumers. Additionally, they analyze European equities in light of geopolitical shifts, focusing on low valuations and infrastructure investments.
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Podcast summary created with Snipd AI
Quick takeaways
- The introduction of DeepSeek's low-cost R1 AI model presents a significant investment opportunity in technology, particularly as demand for computational resources is expected to rise.
- U.S. tariffs may have a modest negative impact on growth and inflation, but historical trends suggest that market adjustments will likely mitigate these effects over time.
Deep dives
Opportunities Presented by DeepSeek's AI Model
The introduction of DeepSeek's R1 AI model represents a significant opportunity for investors in technology, particularly in artificial intelligence, electrification, and energy resources. The low-cost nature of this model positions it for widespread adoption, which is expected to lead to increased demand for computational resources. Historical trends support the notion that cheaper technology tends to be adopted more widely, suggesting that the market's initial negative reaction may be misguided. This situation encourages investors to consider strategic positions within an AI-focused portfolio, particularly due to the anticipated growth in AI utilization and the continued investment in training and infrastructure.
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