Why is China's Xi Hosting Russia's Putin After Trump Visit? | The Pulse 5/20
Speakers
Bhanu Baweja
— Chief Strategist, UBS Investment Bank
Summary
The episode covers geopolitical tensions between China and Russia, a global bond selloff, and ECB policy amid rising inflation. UBS strategist Bhanu Baweja warns of oil upside and recommends avoiding consumer and financials. The Belgian central bank governor signals possible rate hikes, and private markets are discussed.
- Vladimir Putin and Xi Jinping meet in Beijing to strengthen ties.
- Global bond yields rise, with US 30-year yields at 2007 highs.
- UBS strategist Bhanu Baweja sees oil rising and consumer/financials as risky.
- National Bank of Belgium governor Pierre Wunsch says ECB may hike in June.
- Sebastian Mallaby discusses US-China AI parity and need for global regulation.
- Private markets head Jed Laskowitz highlights infrastructure and AI opportunities.
- Samsung union strike threat could impact tech supply chain.
- Nvidia earnings anticipated as major market catalyst.
Trade Ideas
Oil prices likely to rise further.
The financial oil market is too complacent about the Middle East conflict; physical oil prices are rising while implied volatility in oil futures has halved. The conflict could linger or worsen, so oil prices should rise toward physical levels, and even six-month futures are too low. This makes oil a buy.
Avoid consumer and financials sectors.
Consumer and financials sectors are in harm's way because the market is overly focused on AI earnings and has not priced in the slowdown in real disposable income growth (near zero), low savings, and the impact of inflation. The economy will slow, making these sectors vulnerable.
Up Next
This Bloomberg Markets video, published May 20, 2026, features Bhanu Baweja discussing WTI, XLF, XLY. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Bhanu Baweja · Tickers: WTI, XLF, XLY