According to CNBC, UBS Chief Executive Sergio Ermotti warned that investors have become complacent in recent years even as geopolitical and economic risks have increased, and he said major central banks including the European Central Bank, Federal Reserve and Bank of Japan may raise rates in the coming months. He said markets have seen occasional turbulence, but investment in artificial intelligence, data centers and other new technologies has helped support economic growth and financial markets. Ermotti said investors are facing a more complicated backdrop because new problems are emerging before older ones are resolved, citing Iran and Ukraine war-related energy and shipping risks, U.S.-China rivalry, higher borrowing costs and sticky inflation. He added that UBS clients have been diversifying across sectors and geographies in recent quarters while continuing to invest in AI and technology, but their overall asset allocation has not changed materially over the past year. Ermotti said money moved into global emerging markets about a year ago mainly as spare cash was deployed, rather than as investors reduced U.S. or dollar positions, and he said the dollar remains a reference currency. He also said inflationary pressure is still present and that higher rates are likely to persist for the foreseeable future.