Navigating Global Financial Uncertainties: Tangen's Insights

The CEO of Norway's $1.8 trillion sovereign wealth fund, Nicolai Tangen, discussed inflationary pressure in the U.S. and global sovereign debt levels as significant financial market risks. Amidst contrasting conditions in the U.S. and Europe, Tangen emphasized the fund's commitment to ESG principles and its proactive engagement with corporations.

Nicolai Tangen, CEO of Norway's $1.8 trillion sovereign wealth fund, warned on Thursday about significant inflationary pressure in the United States, identifying it as a prominent risk to financial markets this year. President Donald Trump's tariff policies against European, Chinese, Canadian, and Mexican firms may provoke retaliatory actions.

Amidst regulatory rollbacks in oil and gas drilling by Trump, which aim to stimulate economic activity, Tangen also highlighted the global threat posed by high sovereign debt levels during his participation in a Reuters NEXT Newsmaker interview at the World Economic Forum in Davos. While not pinpointing specific nations, he described the threat as widespread.

Tangen, whose fund includes stakes in almost 9,000 companies globally, noted a dichotomy between U.S. and European firms, with U.S. CEOs expressing optimism and their European counterparts feeling pessimistic. Despite challenges, Tangen reaffirmed the fund's dedication to environmental, social, and corporate governance values.

(With inputs from agencies.)