Trump Heads To Davos: Air Force One Issue Delays Start Of Trip | Daybreak Europe 1/21/2026

Watch on YouTube ↗  |  January 21, 2026 at 14:15  |  46:44  |  Bloomberg Markets
Speakers
Mark Cudmore — Executive Editor, Bloomberg Live / Macro Strategist
Sergio Ermotti — Group CEO, UBS
Lesetja Kganyago — South African Reserve Bank Governor
Rafael Grossi — Director General, International Atomic Energy Agency
Rachel Reeves — UK Chancellor of the Exchequer
Bob Michele — CIO and Head of Global Fixed Income, J.P. Morgan Asset Management
Winnie Shu — Bloomberg Reporter
Manuel Bori — Deals Reporter, Bloomberg
Lizzy Burden — Crypto Reporter, Bloomberg News

Summary

Bloomberg Daybreak Europe focuses on markets stabilizing after a tariff- and Greenland-driven selloff, with Japanese long bonds rebounding and US futures edging higher. Davos coverage centers on Trump's delayed arrival and expected speech amid tensions with European allies. Guests include South African Reserve Bank Governor Lesetja Kganyago, IAEA Director General Rafael Grossi, and UBS CEO Sergio Ermotti, while Mark Cudmore warns that the JGB and US equity bounces are not durable.

  • Markets rebounded modestly after a global bond and stock selloff tied to Trump's Greenland tariff threats.
  • Davos awaits President Trump's speech as European and Canadian leaders criticize tariff pressure.
  • Mark Cudmore says the JGB rebound is low-liquidity and Japan still faces a weak-yen/weak-bond dynamic.
  • Cudmore also calls the US equity futures bounce a short-term risk-reward trade with a negative weekly trend.
  • UBS CEO Sergio Ermotti says avoiding the US and dollar is a dangerous bet and highlights Asia growth.
  • South Africa's central bank governor cites a lower inflation target, fiscal consolidation, and reforms.
  • IAEA's Grossi says Iran's nuclear capabilities remain despite damage and the situation is fragile.
  • Corporate news includes Netflix's cautious outlook, Lululemon's legging issue, and Nvidia's planned China visit.
Ideas
Mark Cudmore Executive Editor, Bloomberg Live / Macro Strategist 9:41
Short JGBs; Japan risks weaker yen.
The rebound in JGBs is minimal and reflects poor liquidity, while yields remain much higher than Friday. The trend for JGBs is still very poor because Japan's debt profile, demographics and lack of growth mean it cannot preserve both a stable yen and a stable bond market; it will likely need a weaker yen, a weaker JGB market, or both.
Japanese government bonds FXY HIGH
Mark Cudmore Executive Editor, Bloomberg Live / Macro Strategist 10:12
US equity futures trend still extremely negative.
The bounce in US equity futures is just a short-term risk-reward trade by day traders positioning against the overnight low, not a sign that conditions are improving. The trend for this week remains extremely negative and price action is poor despite the immediate relief rally.
US equity futures HIGH
Lesetja Kganyago South African Reserve Bank Governor 14:28
South Africa macro improving on reforms.
South Africa's macro outlook is sound because the central bank has adopted a lower 3% inflation target, fiscal consolidation is on track with debt-to-GDP peaking and beginning to decline, and structural reforms in energy, transport/logistics and visas are laying the basis for higher potential growth. Inflation should remain around 3-3.5% and the central bank sees room for further rate cuts.
EZA HIGH
Sergio Ermotti Group CEO, UBS 35:32
Stay invested in US and dollar.
Diversifying away from the US and the dollar is an impossible and dangerous bet because the US remains the strongest economy with the highest level of innovation and is still the top destination for capital. Investors can tweak overweights or underweights, but they should not bet against the US.
United States (economy) USD HIGH
Sergio Ermotti Group CEO, UBS 36:55
Asia grows as new wealth is created.
Asia is a major growth and wealth-creation opportunity: UBS manages about $1 trillion of assets there and is growing fast, the regional economy is expanding, and half the world's population lives there and is creating new wealth.
AAXJ MED
Up Next
5:15
'Decade déjà vu': Highlights from WEF panel with Larry Fink, Ken Griffin and Christine Lagarde
CNBC · Jan 21
1:02
NATO’s Rutte Warns China, Russia Increasingly Active in Arctic
Bloomberg Markets · Jan 21
10:48
Stoltenberg on Norway Wealth Fund, Greenland, Ukraine
Bloomberg Markets · Jan 21
7:06
Bill Gates on Gates Foundation-OpenAI partnership, impact of AI on jobs
CNBC · Jan 21
51:08
Market Structure, Macro Volatility, and the Next Phase of Crypto | Michael Anderson & Vance Spencer
Bell Curve · Jan 21

This Bloomberg Markets video, published January 21, 2026, features Mark Cudmore, Lesetja Kganyago, Sergio Ermotti discussing Japanese government bonds, FXY, US equity futures, EZA, United States (economy), USD, AAXJ. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Mark Cudmore, Lesetja Kganyago, Sergio Ermotti  · Tickers: Japanese government bonds, FXY, US equity futures, EZA, United States (economy), USD, AAXJ