UAE Blindsides OPEC, OpenAI Sparks Tech Jitters | The Asia Trade 4/29/2026

Watch on YouTube ↗  |  April 29, 2026 at 05:07  |  1:35:09  |  Bloomberg Markets
Speakers
Hartmut Issel — Head APAC Equities & Credit, UBS WM

Summary

The episode covers the UAE's surprise exit from OPEC amid the Iran war and Strait of Hormuz closure, keeping oil prices elevated but with limited market reaction. A report that OpenAI missed targets triggers tech jitters, raising questions about AI capex payoffs. Analysts highlight natural gas as a overlooked opportunity and see short-term bonds as attractive given expected Fed rate cuts. Interviews with TDK, Goto, and South Korea's SME minister round out the session.

  • UAE announces exit from OPEC next month, but immediate oil market impact muted due to Strait of Hormuz closure.
  • Brent crude remains above $110 with no breakthrough in U.S.-Iran talks.
  • OpenAI report of missed sales targets sparks selloff in AI-related tech stocks.
  • Bloomberg Intelligence's Kevin Liu argues natural gas has strong fundamentals (LNG exports, AI data centers) while oil producers have limited upside.
  • UBS's Hartmut Issel recommends short-term bonds on expectations of Fed rate cuts and sees MSCI China as undervalued with AI demand growth.
  • TDK CEO reports record profits but cautious outlook; sees AI-driven demand continuing long-term.
  • Goto Group posts first net profit; CEO remains vigilant on inflation but sees limited near-term impact.
  • South Korea's SME minister discusses efforts to diversify global value chains and open startup ecosystem.
Trade Ideas
Kevin Liu 12:22
Oil producers have limited upside after gains.
Oil producers have already rallied sharply (S&P Energy Index up 28% YTD, some coverage companies up 40-50%). Upside is now limited from current levels, especially relative to natural gas.
XLE MED
Kevin Liu 12:28
Natural gas bullish on LNG, AI data centers.
Natural gas is being overlooked. LNG exports from the U.S. and Canada to Asia and Europe are strong and growing, and power generation demand from AI data centers remains robust. This thesis is intact, while oil producers have already rallied and have limited upside. Expect rotation from oil to natural gas.
UNG HIGH
Hartmut Issel Head APAC Equities & Credit, UBS WM 57:25
Short-term bonds cheap as rate cuts ahead.
The market is overpricing how aggressive central banks will be. The Fed will likely cut rates later this year given the economic dampening effect of the oil shock. Short-term bonds at current relatively high levels offer good entry opportunities.
SHY MED
Hartmut Issel Head APAC Equities & Credit, UBS WM 59:48
MSCI China cheap with strong AI demand.
MSCI China is about 50% tech, and AI cloud revenue growth has accelerated strongly (double digits, sometimes over 30%). The market is currently pricing in different fears, but over the next 12 months it will recognize that China tech is not expensive and AI demand remains strong.
MSCI China MED
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This Bloomberg Markets video, published April 29, 2026, features Kevin Liu, Hartmut Issel discussing XLE, UNG, SHY, MSCI China. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Kevin Liu, Hartmut Issel  · Tickers: XLE, UNG, SHY, MSCI China