Defend Truth

International Finance

UBS, DBS Top Executives Warn High Inflation May Be Here to Stay

Trucks carrying shipping containers travel through the Port of Charleston in Charleston, South Carolina, U.S., on Wednesday, Nov. 3, 2021. The supply crunch that has dogged the global shipping industry could worsen before it gets better, with new challenges ranging from crew retention to wage inflation. Photographer: Sam Wolfe/Bloomberg
By Bloomberg
17 Nov 2021
0

The heads of two global banks predicted an uncertain time ahead for the world economy as inflation rises and persists. 

The world may see “uncomfortably high” rates of inflation for one to three years, UBS Group AG Chairman Axel Weber said at the Bloomberg New Economy Forum in Singapore Wednesday. Inflation is getting a lot more structural, DBS Group Holdings Ltd. Chief Executive Officer Piyush Gupta said at the event.

Prices for energy, raw materials and transport have surged as economies emerge from lockdowns and supply chains come under pressure. UBS’s wealthy clients are turning away from risky assets as they seek ways to protect their fortunes from accelerating inflation.

While higher interest rates could provide support for bank lending, they may also become a headwind for stock markets. Overall, changing market conditions may benefit banks because they prompt clients to trade more. DBS is the largest lender in Southeast Asia.

The New Economy Forum is being organized by Bloomberg Media Group, a division of Bloomberg LP, the parent company of Bloomberg News.

Gallery

Comments - Please in order to comment.

Investigations

News & Analysis

Features

Newsletters

Community

DM168

Daily Maverick © All rights reserved

Please peer review 3 community comments before your comment can be posted

[%% img-description %%]

The Spy Bill: An autocratic roadmap to State Capture 2.0

Join Heidi Swart in conversation with Anton Harber and Marianne Merten as they discuss a concerning push to pass a controversial “Spy Bill” into law by May 2024. Tues 5 Dec at 12pm, live, online and free of charge.

You’ll miss it when it’s gone...

It’s hard to imagine South Africa without journalism. Then again, it was unthinkable that we would be without electricity as much as we are. Daily Maverick is free to read. We don’t have a paywall because we believe that everyone, regardless of their financial status, should be able to access the news. Which gives our journalism a greater chance of broader impact on society.

If you agree that our work makes South Africa a better place (and want to see us keep doing it) then please consider joining Maverick Insider and supporting our journalism.

You choose the amount and you can cancel at any time.

JOIN THE CAUSE
Lightbulb

A South African Hero: You

There’s a 99.8% chance that this isn’t for you. Only 0.2% of our readers have responded to this call for action.

Those 0.2% of our readers are our hidden heroes, who are fuelling our work and impacting the lives of every South African in doing so. They’re the people who contribute to keep Daily Maverick free for all, including you.

The equation is quite simple: the more members we have, the more reporting and investigations we can do, and the greater the impact on the country.

Be part of that 0.2%. Be a Maverick. Be a Maverick Insider.

Support Daily Maverick→
Payment options