Trade Is Doing Damage to the Global Economy, UBS's Brown Says

The transcript discusses the potential escalation of a trade war, focusing on the implications of tariffs on Chinese goods and the tech sector. It highlights the impact on global markets and business confidence, noting that even a sudden trade deal may not remove all tariffs. The discussion also covers potential investment strategies, emphasizing defensive sectors like utilities and consumer staples, which may perform well if the trade war escalates.

What event is seen as a potential turning point in the trade war situation?

• The UN General Assembly

• The IMF Annual Meeting

• The World Economic Forum

• The G20 meeting on June 28-29

What is one of the main consequences of the trade war on the global economy?

• Increased global cooperation

• Enhanced business confidence

• Damage to business sentiment

• Rapid economic growth

What is the likelihood of tariffs being completely removed even if a trade deal is reached?

• Certain

• Unlikely

• Moderate

• Very high

Which sectors are considered defensive and might perform well if the trade war escalates?

• Energy and Industrials

• Technology and Finance

• Utilities and Consumer Staples

• Healthcare and Real Estate

What action might the Federal Reserve be forced to take if the trade war escalates?

• Maintain current rates

• Cut interest rates

• Increase interest rates

• Introduce new tariffs