In a television interview with Bloomberg TV, UBS Chairman Axel Weber notes that markets seem to have rolled too far bearish given the condition of the US economy. Although Weber concedes that the Fed is set to reduce the pace of rate hikes, broader markets have swung too far towards assuming a US recession, and the former ECB policymaker noted that its far too soon to be talking about a US recession.
“The market in my view is taking too bearish a view on the economy,” Weber told Bloomberg Television. “There’s less of an upswing than we might have seen last year but we still have a relatively good global economy and we still have a relatively good performance on trade.”
"We are still facing a very favorable outlook, both for corporate earnings and for growth, so I think the market is running a bit ahead of itself in starting to price in a recession."
The UBS Chairman said he’s hopeful that negotiations between the U.S. and China to resolve their ongoing trade war will reach a resolution, describing planned talks this week in Beijing as a very positive signal.
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