Nikolai Tangen, CEO of Norges Bank Investment Management, during a press conference in Oslo, Norway, on Tuesday, January 30, 2024. The $1.6 trillion Norwegian wealth fund added to its bets in the largest technology companies last year after interest in manufacturing industries. Intelligence has led a boom in this sector.
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Inflation caused by tariffs is among the biggest market risks in 2025, Nikolai Tangen, head of the world's largest sovereign wealth fund, said on Tuesday.
“I don't think I have to give any advice to the United States, but if you look at the risks to the financial markets, I think inflation is definitely one, and it's all driven by tariffs,” the CEO of Norges Bank Investment Management told CNBC. World Economic Forum in Davos.
“Many of the proposals coming out now from the United States are potentially inflationary. They could cause more inflation. There could be less labor supply, there could be more tariffs – all of these things lead to inflation, so it's not a given.” That inflation “will come down,” he said.
Tangen also cited additional key risks including rising long-term interest rates, rising government debt levels and geopolitical tensions. As his biggest risk, he pointed to the concentration in US stocks among big tech companies, which he said has “never been greater”.
This is a breaking news story and will be updated soon.
