Adrian Zuercher of UBS says the equity market "definitely has more upside" if the Federal Reserve signals further rate cuts. He tells Bloomberg Television that U.S. markets are "quite healthy" as earnings have been strong in the third quarter, but "a lot of people are positioned so there is a little bit of profit taking from time to time."

Zürich

UBS analysts state that the equity markets have potential for further gains if the U.S. Federal Reserve continues to cut interest rates or signals additional cuts. They highlight that strong third-quarter earnings and a fundamentally healthy market underpin this outlook, though some volatility is expected around key macroeconomic data releases and FOMC minutes.

The analysts also note that the current rally is driven by liquidity and robust earnings, with the Fed's rate policy providing room for further cuts if needed. Looking ahead, they expect a positive environment for multi-asset portfolios, citing the recent shift to negative correlations between bonds and equities and the Fed's flexibility to intervene if necessary.

Equity markets have 'more upside' if feds cuts rates, UBS says

It's a big week but certainly there's a lot of questions about the A.I. trade which started off very positive this year and now it seems like things are just getting more negative. How should I assess the rest of the year. Well I guess overall I think it all depends on the Fed particular. So I do think that if the Fed keeps on cutting or at least signaling that there's more industry coming the equity market definitely has more upside. Overall fundamentally I think actually market is very healthy. Earnings have been very very strong in the third quarter. I do believe that a lot of people are positioned. So there's a little bit of profit taking from time to time depends on the macro data. Now this week we will get a lot of macro data since the U.S. has reopened up. We get FMC minutes as well. That's right. I do believe that the Fed still has potential to cut in December but that brings volatility. But overall we actually do think the market is quite healthy and could actually go further up from here. It's still a liquidity driven rally. You think that's still the most important component to your point. Well I believe. I mean there's a lot of fundamental behind that. I mean the earnings are really really strong. I mean we need to fit that point out though. I do believe. But for me the Fed actually the overall story on the Fed is really about their neutral rates are on 300 basis points. We still have 400 basis points. So if there's negative news coming through they have a lot of potential to cut in their own thinking. They actually have to cut below 300 basis points to really become stimulated and dovish. And I think that's sort of the Fed put is very much on and that will help the market. And if we don't get the cuts then because we get strong macro data and that should be positive for earnings overall. It seems like this this year was I don't want to say easy but it seemed like there was everything that was rallying. Right. And for someone that watches multi assets I'm just wondering can we can we see similar success next year where correlations are actually positive or have those correlations relationships actually flip back to normal. Now I actually think it was a very difficult year on the one hand and there is on the other. Yes. You just put in money at work at the beginning of you don't touch you most likely up quite simply. But actually it was a lot of rotation shifts coming in. U.S. massively underperformed first quarter. Then we had the sell off in April. Then suddenly we had the rally back on. We had the dollar declining 10 percent. And since everybody speaks of a weak dollar it's actually flat. So you could also do a lot of things wrong. But overall I actually think for next year the outlook remains very very healthy. We probably see a reacceleration of growth with lower interest rates. We see earnings still coming through and actually correlation to between bonds and equities started to flip. So we actually see this negative correlations perfect for the environment for a multi asset class portfolio. And as I said with the Fed probably at least on the fence and be able with a lot of an emission to help if something goes wrong we actually get a positive here. Wall will stay high. Maybe even go up the higher valuation is. But I'm actually remaining very very positive particular for multi asset class.

A special tribunal in Bangladesh’s Dhaka has found former Prime Minister Sheikh Hasina guilty of crimes against humanity.

Dhaka

Bangladesh court convicts Sheikh Hasina of crimes against humanity

If the bill passes, the U.S. Justice Department would be required to release all files and communications related to Epstein, as well as details about the investigation into his death in federal prison.

Washington

Trump calls on House Republicans to vote to release Epstein files

Chile heads to a December runoff after Sunday's presidential vote left no clear winner. Leftist Jeannette Jara and far-right José Antonio Kast will now face off in a race dominated by concerns over crime and migration.

Santiago

Chile leftists advance to next month's presidential runoff

Construction work of a concrete wall continued on the Israeli side of southern border with Lebanon, despite the Lebanese presidency's threat to complain to the U.N. Security Council over the wall's extension into Lebanese territory.

Tel Aviv-Yafo

Middle East Conflict

Israel constructs wall along Lebanon border

Venezuelan President Nicolas Maduro slammed planned joint military exercises by the United States and its ally Trinidad and Tobago as "irresponsible," with Washington increasing its armed presence in the Caribbean.

Caracas

Maduro denounces US military exercises

Despite U.S. President Donald Trump's repeated attempts to kill the effort to release federal files related to Jeffrey Epstein, House Republican leaders are planning to hold a vote this week on legislation to force the issue.

Claims Epstein emails mentioning Trump were 'selectively leaked'

President Trump says he has "sort of made up my mind" on whether to take military action in Venezuela. The comments come as America's largest aircraft carrier, the Ford, and other U.S. forces move within striking distance of the country. Charlie D'Agata has new details.

Trump says he's "sort of made up my mind" on Venezuela military action

President Trump says he will no longer support onetime close ally and Georgia congresswoman Marjorie Taylor Greene amid the ongoing fallout over the Epstein files. Willie James Inman reports.

Marjorie Taylor Greene 'threatened' by Trump supporters amid Epstein fallout

Flash flood warnings expanded on Saturday as rain hit wide swaths of California amid fears that the atmospheric river will intensify. Andres Gutierrez has the latest details.

Pacific Palisades

Rainstorm pummels California, triggering flash flood warnings

Large-scale protests at COP30 in Belém, Brazil, have drawn attention to environmental concerns and the preservation of the Amazon rainforest. Inside the summit, negotiations have been complicated by the absence of the United States.

Belém

Protesters block entrance to COP30 climate talks in Brazil

The UN climate talks in Brazil are facing increasing disruption from protesters. Thousands joined the "Great People's March" outside the conference venue to demand action on global warming instead of empty promises.

Thousands join protest at COP30 climate talks in Brazil

Air travel and other government services, including SNAP benefits, are returning to normal following the end of the longest shutdown in U.S. history.

Los Angeles International Airport

Flights begin to get back on track as shutdown ends

The U.S. military is expanding operations in the Caribbean and Puerto Rico amid its deadly boat strikes on alleged drug-smuggling boats, while the Trump administration weighs military action against Venezuela.

Trump administration weighs U.S military action in Venezuela

U.S. Secretary of Defense Pete Hegseth announced "Operation Southern Spear" in the Western Hemisphere as U.S. strikes continue in the region near Colombia and Venezuela. CBS News' Eleanor Watson reports.

Hegseth announces 'Operation Southern Spear'

The U.S. has approved the sale of $330 million worth of weapons to Taiwan as tensions rise in the region with China. CBS News' Nancy Cordes reports.

Taipei City

U.S. approves massive sale of weapons to Taiwan

Jeff Bezos's Blue Origin successfully launched its New Glenn rocket on Thursday with NASA twin spacecraft destined for Mars aboard, and in a breakthrough nailed the landing of its booster.

Cape Canaveral

Blue Origin's New Glenn rocket deploys Mars satellites

A three-person crew stranded at China’s space station after their spacecraft was apparently hit by space debris are to return Friday using the craft that brought their replacement crew.

Chinese astronauts return to earth after spacecraft damaged

The AI firm Anthropic says Chinese hackers used its artificial intelligence tools to spy on tech companies, financial institutions and government agencies in what it believes is the first documented case of a worldwide cyberattack with minimal human involvement.

Rise of AI

Anthropic says Chinese hackers used its AI chatbot in cyberattack

Senior U.S. military officials have presented President Donald Trump with options for potential military operations inside Venezuela, including strikes on land, sources tell CBS News. Charlie D'Agata reports.

Trump weighs military plans against Venezuela

U.S. President Donald Trump is ducking press questions about newly released emails connecting him to convicted sex offender Jeffrey Epstein’s criminal activities ahead of an expected vote on releasing all Epstein case files by the U.S. House of Representatives as early as next week.

Trump avoids media’s Epstein email questions

The U.S. government lumbered back to life on Thursday (November 13) after the longest shutdown in U.S. history snarled air traffic, cut food assistance to low-income Americans and forced more than 1 million workers to go unpaid for more than a month. But the deep political divisions that caused the 43-day shutdown in the first place remain unresolved.

U.S. government opens up again but deep political divisions remain

China's factory output and retail sales grew at their weakest pace in over a year in October, piling pressure on policymakers to revamp the $19 trillion export-driven economy as mounting supply and demand strains threaten to further curtail growth.

Beijing

China's factory output, retail sales growth worst in over a year

Germany's government plans to bring back military service, to boost troop numbers to deal with the perceived threat from Russia. But voluntary conscription could become compulsory, if not enough recruits come forward.

Berlin

Germany outlines potential shift to compulsory conscription

As F-35 stealth fighter jets fly missions from a reopened naval base in Puerto Rico and Marines practice beach landings, sources tell CBS News the Pentagon is preparing for possible military action in Venezuela. Charlie D'Agata reports.

Pentagon preparing for possible military action in Venezuela

President Trump's name appears hundreds of times in the newly-released batch of 23,000 pages of records and messages from convicted sex offender Jeffrey Epstein, raising questions about their relationship. Mr. Trump has repeatedly denied any wrongdoing and has called the scandal a "hoax" perpetrated by Democrats.

Trump named hundreds of times in newly released Epstein files

A federal judge has ruled that hundreds of people detained by Immigration and Customs Enforcement during "Operation Midway Blitz" in the Chicago area must be released. CBS News immigration and politics reporter Camilo Montoya-Galvez has more.

Chicago

Judge finds ICE illegally arrested hundreds of people in Chicago

For the first time in six weeks, the U.S. government is open. President Trump signed a bill last night to fund the government through the end of January.

Trump says he is 'willing to work with anyone' on health care

U.S. forces have killed four people in the latest strike on an alleged drug boat in the Caribbean. CBS News national security coordinating producer James LaPorta has more.

U.S. forces kill four in latest Caribbean drug boat strike

Israeli settlers set fire to a mosque in the West Bank on Thursday (November 13) and sprayed racist slogans on its walls, Palestinian residents said.

Jerusalem

Israeli settlers torch mosque in West Bank, residents say

Thailand-Cambodia border tensions escalate days after a US-backed ceasefire agreement breaks down.

Breakdown