Ermotti said macro conditions, geopolitics, market divergence and pressure on energy prices could create inflation headwinds in the remaining months of the year.
UBS Group CEO Sergio Ermotti said he expects volatility to continue surging for the rest of this year, warning that investors are unlikely to welcome the turbulence. He cited the macro backdrop, geopolitical tensions, ongoing debates, sharp divergence in equity markets and pressure on energy prices as factors that could create potential headwinds for inflation. The remarks point to a market environment in which cross-asset swings may remain elevated as investors weigh growth, pricing pressures and geopolitical risk.