Ermotti Warns of Risky Bet as Europe Eyes US Debt Selloff (1)

Europeans tempted to weaponize their holdings of US government debt amid the standoff with President Trump over Greenland are making a “dangerous bet” that risks backfiring.

That was the view of UBS Chief Executive Officer Sergio Ermotti, who runs one of the world’s largest wealth and asset managers, after a day when transatlantic tensions ramped up and markets sold off on the prospect of a deeper US-Europe trade war and a fracturing of NATO.

“Diversifying away from America is impossible,” Ermotti said in a Bloomberg Television interview at the World Economic Forum in Davos, Switzerland, on Tuesday. “The US ...