UBS’s Khan Says Real Risk Is ‘Stagflation’ Amid Tariff Dispute

(Bloomberg) — UBS Group AG’s Asia Pacific President Iqbal Khan said the real risk facing investors is stagflation as he sees “pockets of opportunity” amid uncertain markets. 

“The biggest question if you think about risk — I don’t think it’s a question of how much growth we will have or not — it’s stagflation,” Khan said at Bloomberg family office summit in Hong Kong on Thursday. “That’s the real risk out there and that’s what everybody wants to avoid. And I think most of the central banks including the Fed is clearly very very focused on that.”

Khan, who relocated to Hong Kong last year, is also co-president for global wealth management. 

He underscored that there are opportunities in the market. Europe is starting to “wake up” with a greater focus on the economy, while investors should be long-term positive on China, he said.   

Khan was tapped for the Asia-Pacific role in 2024 as part of a shakeup that saw investment-banking chief Rob Karofsky appointed to run the US business and jointly oversee private banking. The two are key contenders to succeed Chief Executive Officer Sergio Ermotti, who is likely to step down by early 2027.

UBS is the biggest wealth manager in the Asia Pacific region with more than 900 client advisers. It faces rising competition from the likes of HSBC Holdings Plc and regional lenders such as DBS Group Holdings Ltd. The Swiss bank plans to lease a 14 story office tower which is being developed by Sun Hung Kai Properties Ltd. in West Kowloon,  due to be ready in 2026. 

The Swiss bank completed the historic acquisition of its former rival Credit Suisse Group AG last year. 

–With assistance from Patrick Winters.

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