Markets ‘at risk’ from tariff-fueled inflation

The boss of the world’s biggest sovereign wealth fund has warned that markets are at risk from tariff-fueled inflation. Nicolai Tangen, chief executive of Norges Bank Investment Management, told CNBC at the World Economic Forum in Davos that inflation driven by U.S. tariffs is among the biggest market risks in 2025. He also identified chief risks to markets including higher for longer interest rates, high levels of government debt and geopolitical tensions. Tangen said his top risk was the concentration in U.S. equities among large cap tech firms, which he said had “never been bigger.” However, he said that “purely financially,” for a lot of U.S. companies, the arrival of Donald Trump in the White House was likely to be “very positive,” observing that “A lot of these policies we would not necessarily agree with, but if we look at it just from a financial point of view, as a financial investor, it’s generally very exciting. You know, we have more than half the assets invested in America. And when we talk to American CEOs, and we talk to a lot of them, we really see this animal spirit coming back.”