Trump's Potential Return: Impact on Global Economy and Geopolitics
A return of Donald Trump to the presidency could heighten global tensions, especially affecting European firms linked to China, a Norges Bank official states. Despite a close U.S. election race, the domestic economy might remain unchanged, while the Middle East situation is also being closely monitored by the wealth fund.
A potential return of former President Donald Trump to the White House might escalate geopolitical tensions and negatively impact the global economy outside the United States, according to an official from the world's largest wealth fund.
Trond Grande, deputy CEO of Norges Bank Investment Management, highlighted the increased likelihood of tariffs and sanctions, particularly affecting European companies engaged with China, under a Trump presidency. Grande noted that while the U.S. domestic economy might sustain regardless of the election outcome, the global ramifications could be pronounced under Trump's policies.
With 27% of its investments in Europe as of June 30, the fund is monitoring the Middle East conflict for its potential impact on global holdings. Meanwhile, the fund reported a profit surge due to falling interest rates boosting stock markets in the third quarter.
(With inputs from agencies.)
ALSO READ
Norway's Wealth Fund to Probe Ethical Practices in Key Industries
Norway's Sovereign Wealth Fund Urged to Seize Divestment Opportunities in Russia
Norwegian Wealth Fund Divests from Bezeq Over Ethical Concerns
Norway's Wealth Fund Eyes Strategic Exit from Russian Investments
Norway's Wealth Fund Divests from Bezeq Over Ethics Concerns