UBS CEO Sergio Ermotti on US Growth, Tariffs, and Investment Outlook

US as a Premier Investment Destination

• 🇺🇸 The United States is highlighted as a country with the most active and successful entrepreneurs, boasting a fantastic innovation and ecosystem.
• 💡 UBS continues to invest in its US franchise, managing two trillion dollars in US-based assets, aiming to equip financial advisors with superior tools and global reach.

Navigating Economic Uncertainty

• 📈 While secular trends support continued US growth, short-term uncertainty, particularly regarding tariffs, is not helpful for investment.
• ⚠️ Entrepreneurs and investors need certainty to make investments and take risks; once certainty is established, a new start is likely.
• 🌍 The US remains the reference economy and the primary place to invest due to its liquidity and depth, though a need for diversification is evident globally.

Regulatory Landscape and Banking

• ✅ UBS and the broader economy welcome a readjustment of regulation post-financial crisis, favoring simplification that doesn't compromise system resilience.
• 🇨🇭 In contrast to the US, Switzerland is moving in the opposite direction with regulation, which is difficult to understand but must be constructively managed.
• 🏦 Simplifying regulation is crucial as an inefficient financial system impacts the entire economy, not just bank shareholders.

Capital Markets and Deal Execution

• 📊 Capital markets activity is subdued compared to past expectations, with a healthy pipeline of IPOs and M&A interest.
• ⏳ Market conditions and uncertainty are preventing deals from being executed; certainty around tariffs by the end of summer is seen as a key moment to mobilize this pipeline.
• 🤝 Clients are adopting a 'wait-and-see' attitude, delaying investment decisions until clarity on tariffs and other economic factors is achieved.