Donald Goes to Davos, Global Equities Stay Red | The Opening Trade 1/21/2026

Watch on YouTube ↗  |  January 21, 2026 at 13:54  |  1:38:42  |  Bloomberg Markets
Speakers
Sergio Ermotti — Group CEO, UBS
Mark Cudmore — Executive Editor, Bloomberg Live / Macro Strategist
Lawrence Malcolm — Head of EMEA Rates Strategy, BMO
Maddie Parker — Reporter, Bloomberg
Nicola Mendelsohn — Head of Meta's Global Business Group
Bill Winters — CEO, Standard Chartered
Scott Bessent — Treasury Secretary
Jamieson Greer — US Trade Representative
Colin Montgomerie — Bloomberg AM Live Team

Summary

Markets were largely waiting for President Trump's delayed Davos speech amid tensions over Greenland and tariffs. Japanese bonds rebounded after a sharp selloff, UK inflation was mixed, and gold stayed in focus as a hedge. Interviews with UBS's Sergio Ermotti, USTR Jamieson Greer, Meta's Nicola Mendelsohn, and Standard Chartered's Bill Winters covered US asset allocation, trade policy, AI advertising, stablecoins, and bank valuations. Burberry results lifted luxury sentiment while Netflix and Warner Bros deal news remained in focus.

  • Investors await Trump's Davos address as Greenland and tariff tensions dominate.
  • Japanese long-end yields rebound after a historic selloff; BOJ and snap election are watched.
  • US and European bonds stabilize but term-premium and higher-yield debate continues.
  • Gold rallies near $5,000 as a geopolitical uncertainty hedge.
  • UBS CEO says diversifying away from US assets and the dollar is dangerous; sees India opportunity.
  • Burberry's Greater China strength lifts luxury sentiment.
  • Meta executive highlights AI ad ROI, messaging, and wearables; Standard Chartered CEO calls shares cheap.
  • Netflix's Warner Bros all-cash bid and cautious outlook keep M&A and earnings in focus.
Ideas
Lawrence Malcolm Head of EMEA Rates Strategy, BMO 30:04
JGB selloff not UK-style dysfunction.
Malcolm says Japan's sharp long-end selloff was sudden and volatile but lacks the UK 2022 LDI-style self-reinforcing selling dynamic; higher long-end JGB yields put Japanese forwards more on par with Europe, making it a relative-value reset to monitor rather than market dysfunction.
Japanese government bonds MED
Lawrence Malcolm Head of EMEA Rates Strategy, BMO 33:22
Deficits, end easing lift yields.
Malcolm expects the cost of debt to rise gradually because deficits remain large and bond markets are near the end of the easing cycle; as easing ends, yield curves typically steepen since investors need a positive curve to extend duration.
TLT MED
Mark Cudmore Executive Editor, Bloomberg Live / Macro Strategist 40:17
More selling before compromise; risk-off.
Cudmore expects the Greenland/Europe confrontation to worsen before a diplomatic solution because neither side has short-term incentive to compromise; he expects more selling in stocks, bond markets, and possibly the dollar, with market pain needed to force a resolution.
VT TLT USD HIGH
Mark Cudmore Executive Editor, Bloomberg Live / Macro Strategist 43:00
Gold is cleanest geopolitical uncertainty play.
Cudmore calls gold one of the cleanest plays around geopolitical uncertainty and fiat-currency concerns, with no fundamental derailment and prices approaching $5,000, though he warns extreme risk aversion could cause a temporary deleveraging selloff before a rebound.
GLD HIGH
Sergio Ermotti Group CEO, UBS 45:26
Don't bet against US assets or dollar.
Ermotti argues that while investors can tweak US weightings, diversifying away from the US and the dollar is a dangerous bet because the US remains the strongest economy with the highest innovation and is still the top destination for capital in CEO surveys.
US assets USD HIGH
Sergio Ermotti Group CEO, UBS 46:49
India growth and wealth creation attractive.
He also highlights UBS's large and growing India business, with $1 trillion of assets, a fast-growing economy, and half the world's population creating new wealth, supporting a positive view on India and Asia opportunities.
INDA MED
Maddie Parker Reporter, Bloomberg 68:06
Burberry turnaround gains traction in China.
Parker says Burberry's strong Greater China sales, appeal to Gen Z, and back-to-basics product focus on tartan scarves and trench coats are working; core products are robust and well priced, supporting the turnaround narrative under CEO Schulman.
BRBY.L MED
Nicola Mendelsohn Head of Meta's Global Business Group 80:25
AI ads and messaging drive Meta.
Mendelsohn says Meta's AI-driven Advantage ad tools are producing strong returns for advertisers, with $4.52 average return per dollar spent and 20-25% higher return on ad spend; messaging and generative AI tools are scaling, and AI glasses and wearables support a personal-superintelligence roadmap.
META MED
Bill Winters CEO, Standard Chartered 93:09
Stablecoins may rewire banking system.
Winters says stablecoins, tokenized bank deposits, and digital money are moving from the self-contained crypto community into traditional banking, trade, and payments; adoption is early but he expects a complete rewiring of the banking and financial system.
STABLECOINS MED
Bill Winters CEO, Standard Chartered 94:10
Standard Chartered still cheap despite rally.
Winters says Standard Chartered's shares have rallied but remain cheap; the bank's cross-border client franchise and wealth management business are attractive, with the fastest-growing wealth manager in Asia, Middle East and Africa and third-largest overall, and he would like to build out the wealth portfolio via M&A or partnership.
STAN.L HIGH
Up Next
12:22
Morgan Stanley CEO 'Pretty Amped Up' About M&A Landscape
Bloomberg Markets · Jan 21
7:01
Lazard CEO Peter Orszag: Expect inflation to surprise to the upside this year
CNBC · Jan 21
5:03
BNY CEO Robin Vince: There are many reasons to be optimistic despite the macro noise
CNBC · Jan 21
15:13
Watch CNBC's full interview with White House AI & crypto czar David Sacks
CNBC · Jan 21
4:35
Honeywell CEO: Splitting into 3 separate companies positions us well for the next couple of decades
CNBC · Jan 21

This Bloomberg Markets video, published January 21, 2026, features Lawrence Malcolm, Mark Cudmore, Sergio Ermotti, Maddie Parker, Nicola Mendelsohn, Bill Winters discussing Japanese government bonds, TLT, VT, USD, GLD, US assets, INDA, BRBY.L, META, STABLECOINS, STAN.L. 10 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Lawrence Malcolm, Mark Cudmore, Sergio Ermotti, Maddie Parker, Nicola Mendelsohn, Bill Winters  · Tickers: Japanese government bonds, TLT, VT, USD, GLD, US assets, INDA, BRBY.L, META, STABLECOINS, STAN.L