The Asia Trade 1/21/26

Watch on YouTube ↗  |  January 21, 2026 at 16:11  |  1:33:52  |  Bloomberg Markets
Speakers
Rick Gardner — CIO, RGA Investments
Sergio Ermotti — Group CEO, UBS
Christopher Smart — Managing Partner, Arbroath Group
Mozamil Afzal — CEO, EFG Asset Management
Ruth Carson — Correspondent, Singapore
Paul Chen — Financial Secretary, Hong Kong
Demis Hassabis — CEO, Google DeepMind
Chris Palmeri — Team Leader, Media & Entertainment, Bloomberg

Summary

Global markets sold off as geopolitical tensions over Greenland and tariff threats roiled stocks and bonds. Japan's JGB market experienced a historic meltdown, with the 40-year yield topping 4% on fiscal concerns. At Davos, UBS's CEO expressed confidence in US and Indian assets, while analysts debated the outlook for US equities, JGBs, and the yen.

  • Global stocks and bonds sold off on Greenland tensions and tariff worries.
  • Japan's long-dated JGB yields spiked to record highs on fiscal spending concerns.
  • Japan's finance minister defended fiscal policy and called for market calm.
  • UBS CEO said diversifying away from US assets and dollar is dangerous.
  • DeepMind CEO said Chinese AI firms are about six months behind.
  • US equities seen positive by some analysts despite valuation worries.
  • JGBs attractive at high yields, but yen remains weak on slow BOJ hikes.
  • Netflix reported strong Q4 but warned of rising content costs.
Ideas
Rick Gardner CIO, RGA Investments 7:34
Expect positive trend in US markets
Expects volatility this year, but the general trend should be positive, particularly for US markets, because the administration's tariff threats are likely negotiating tactics that ultimately lead to deals, and despite rich valuations, the US economy remains resilient.
SPY MED
Christopher Smart Managing Partner, Arbroath Group 18:04
Optimistic US earnings season ahead
The market selloff is not the main story; an optimistic earnings season lies ahead, supported by US economic growth of around 2.5%, falling inflation, and tax benefits flowing to consumers.
SPY MED
Christopher Smart Managing Partner, Arbroath Group 22:34
Yields will fall as Fed cuts
Borrowing costs will come back down toward fundamentals as inflation declines and the Fed cuts rates further, making current yields attractive.
TLT MED
Sergio Ermotti Group CEO, UBS 37:17
Don't bet against US assets, dollar
The US remains the strongest economy with the highest level of innovation, so diversifying away from US assets and the dollar is a dangerous bet; investors should maintain or overweight US exposure.
UST USD HIGH
Sergio Ermotti Group CEO, UBS 38:42
India growing, creating new wealth
India's economy is growing rapidly and creating new wealth, making it an attractive destination for investment and asset management.
INDA MED
Mozamil Afzal CEO, EFG Asset Management 52:01
JGBs attractive at high yields
JGB yields at multi-decade highs are becoming attractive for domestic institutions like pension funds, and BOJ rate hikes and demographic demand should help stabilize the market.
Japanese government bonds MED
Mozamil Afzal CEO, EFG Asset Management 56:09
Global growth aids Japan-Korea cyclicals
The global economy should improve over the next 6-12 months with a trough in interest rates and steeper yield curves, which is stimulatory and particularly beneficial for cyclical and export-oriented companies in Japan and Korea.
EWJ Korean equities MED
Ruth Carson Correspondent, Singapore 79:43
JGB pressure likely persists
JGB selling pressure is likely to persist due to underlying market tension and the BOJ not hiking fast enough, keeping long-end yields under pressure.
Japanese government bonds MED
Ruth Carson Correspondent, Singapore 79:56
BOJ slow hikes keep yen weak
The BOJ is not hiking interest rates quickly enough, leading to a loss of confidence among macro investors in Japanese assets, so the yen is likely to remain weak.
FXY HIGH
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This Bloomberg Markets video, published January 21, 2026, features Rick Gardner, Christopher Smart, Sergio Ermotti, Mozamil Afzal, Ruth Carson discussing SPY, TLT, UST, USD, INDA, Japanese government bonds, EWJ, Korean equities, FXY. 9 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Rick Gardner, Christopher Smart, Sergio Ermotti, Mozamil Afzal, Ruth Carson  · Tickers: SPY, TLT, UST, USD, INDA, Japanese government bonds, EWJ, Korean equities, FXY