The CEO of the wealth fund in Norway says that the greatest danger to the market is a partial world

By gwladys fouche

Oslo (Reuters) -It seems that the global economy explodes, which is the largest danger to the markets currently because it leads to low growth and high inflation.

The fund, which invests the Norwegian state revenues of oil and gas, is the largest of its kind and one of the largest investors in the world, and has an average of 1.5 % of all listed shares and across about 9,000 companies worldwide.

It also invests in bonds, real estate and renewable energy assets.

In response to a question about the biggest risks on the financial markets today, Nikolai Tangin, CEO of the Fund operator Nurges Bank of Management (NBIM), said that he had been separated and referred to one of the scenarios of stress tests in the fund that sees a fragmented global economy.

“This type of world class is a very negative scenario,” he said in an interview.

“You are in a situation now you have … a hot war, you have a cold war, you have a trade war, you have a technical war. It is just a friction here between the great powers.”

“This leads to low economic growth, higher inflationary pressure, and more uncertainty.”

When asked if we were in this scenario, Tangen said: “It looks like that.”

In the box test scenario in the box, a “fragmented world” can lead to the loss of the box until about a third of its value.

At the same time, he pointed to the paradox that although the markets have seen many fluctuations in recent weeks, they are flat per year.

“If you asked me, this is what will happen, where do you think the markets will be? I didn’t think they would be in their place. I mean, they did not change in the year,” he said.

He said that it is not clear the time when the current situation will continue, and pointed out that companies seem to be hesitant to give expectations at the present time.

“The companies are increasingly not giving expectations when they reach the numbers,” he said.

Who is flexible?

Companies that can deal with the best in the current environment are those that can resist price pressure, either because they are able to raise prices and not beating financially – for example, because their competitors must raise prices as well – or because they have flexible supply chains.

He refused to name specific sectors, or companies, which were particularly affected by the trade war.

In general, during the past year, the fund was slightly underweight in stocks, and technology shares.

He said that the changes were generally small, because the fund should respect the mandate set by Parliament.

Re –

Tangen was reset last month for a second and last period for five years as CEO of NBIM. His job sees its new session as continuing to improve each aspect of the fund’s operations.

“It is improving 1 % everywhere, all the time,” he said.

Tangen was keen on the box – and the 9,000 companies investing in it – to use artificial intelligence in their operations.

He said that in the past three weeks, fund employees have been able to check online news control for companies against certain risk standards, which were not called AI.

“In the past, it took days and days,” he said.

(Participated in the reports of Gwladys Fouche; Al -Tahrir by Jean Harvey)