Overview of the World Economic Forum (WEF) Annual Meeting as it comes together under the theme 'Collaboration for the Intellectual Age' in Davos, Switzerland on January 20, 2025.
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President Donald Trump has only been in office for a few days, but his impact on markets has already been significant.
US stocks fell weekly benefits back last week and although the rally stopped on Friday, the S&P 500 still got a new record during the day.
It comes after the US leader called lower interest rates and cheaper oil prices in a speech Thursday at the World Economic Forum in Davos, Switzerland. Investors have also been betting on possible tax cuts and deregulation under the new president, sending stocks higher.
Not all optimists are looking ahead, however, with some – such as JPMorgan Chase CEO Jamie Dimon – suggesting markets may be too much.
After a week of interviews with business leaders, lawmakers and investors in the Swiss ski resort, here's what top industry names told CNBC:
Larry Fink, CEO and chairman, BlackRock
“I am cautiously optimistic — by saying I have situations where it could be very bad,” Fink told CNBC's Andrew Ross Sorkin.
“I believe that if we were to unlock all of this private capital we will have great growth, (but), at the same time, some of this is going to unlock new inflationary pressures,” he explained. “And I believe that's the danger of not being introduced to the market.”
Ted Pick, CEO, Morgan Stanley
Pick said he believed corporate earnings could rise in markets over the next 12 to 24 months as they “continue to be strong. “
“That's kind of an indicator… How many companies right now are really talking about a recession, how many are talking about inflation?” I feel that the income is looking very crazy,” he said.
“More importantly, I know we like to look at the index, but the index is dominated by half a dozen technology companies – which, by the way, are all doing very well – but if you look at the deregulation opportunities in the energy sector, in the financial services sector, these sectors are still in multiples that are not that expensive,” said Pick.
“If you're an investor and you're thinking about allocating over the next 12 to 18 months, there may be a pullback in the index level, but (a yes) that you really want to think about where I appear in the category?”
Christine Lagarde, President, European Central Bank
Lagarde said Karen Tso that there was a difference in monetary policy between the euro area and the US due to “different economic conditions.”
She also said she was “not too worried” about the risk of overseas inflation being brought into Europe, saying she expected the ECB to continue cutting interest rates while gradually as the rate of price growth moves towards a target.
“We are certainly interested in seeing the US grow, because growth in the US has been a positive factor for the rest of the world,” Lagarde said.
Nicolai Tangen, CEO, Norges Bank Investment Management
“I don't think you should give any advice to the US, but if you look at the risk to financial markets, I think inflation is definitely certain, all driven by tariffs , ” Tangen said Tuesday. “Geopolitical tensions are generally negative for financial markets and for financial returns.”
Tangen said that “just from a financial standpoint,” Trump's arrival was going to be “very positive” for many US companies.
Jamie Dimon, CEO, JPMorgan Chase
Dimon said he believes U.S. asset prices are “rather inflated” at their current levels.
“By any measure, they're in the top 10% or 15%,” Dimon told Andrew Ross Sorkin on Wednesday, referring to the US stock markets. “They're inflated and you need really good results to justify those prices.
“We all hope for that, and strategies for growth help make that happen, but there are negatives out there and they can tend to surprise you,” he said.
David Solomon, CEO, Goldman Sachs
Solomon said markets were in risk mode and there was a sense of optimism in equity both because of the new US administration and because of advances in technology.
Solomon too said Andy Ross Sorkin that he was aware of a focus on growth, in the US, as well as his discussions with European clients at Davos.
“I think people are optimistic, and it won't be a smooth, perfect path, but people are optimistic that we are going to run an agenda that is more likely to grow. We are going to free up some investment, we are going. to unlock the private sector a little but more, and that must be helpful,” he said.
“It's hard to dispute that multiples of equity are high … it's not a straight line, but some of the technology that we're seeing, the opportunities that technology has for productivity are a truly remarkable development.”
Khaldoon al-Mubarak, CEO, Mubadala
“Continuing the trends we saw in 2024 as a positive year in most markets … I see, continuing in 2025, I see a continuation of ahead with strong tailwinds in the main markets, the US, Asia, especially the growth-driven markets. in Asia,” al-Mubarak told CNBC's Dan Murphy on Monday.
“I see good progress in technology and health care and financial services, life sciences,” he said. “So I would say, probably almost the same words I used last year: cautiously optimistic . When I look at 2025, it will be an interesting year.”
Ray Dalio, founder, Bridgewater
Bridgewater founder Ray Dalio told CNBC that price-earnings ratios were high in the US markets, but there could be more opportunity to climb in artificial intelligence beneficiaries.
“We've already come a long way … I think it's driven by the sectors that are good sectors, the disruptors, AI and so on.”
“I don't think it's carried down to the applications of AI, to the use of AI … the applications of AI are undisputed I think.”
Brian Moynihan, CEO, Bank of America
Moynihan said Andy Ross Sorkin On Tuesday he believed US markets had room to climb in 2025, and that regulatory policy would be the main concern for business and financial services, rather than inflation.
“Our research team thinks there is room to go this year, they predict the market will go up. Not as much as last year, which is unusual which you had for a couple of years in a series of strong growth, but that was coming off a couple of very unusual times,” he said.
Moynihan said, “I believe that if you look at the main thing for businesses in general, including the financial services and the banking businesses, it is a management issue. “
Sergio Ermotti, CEO, UBS
US President Donald Trump's proposed tariffs could prevent deflation and keep interest rates higher, the banking chief said said Andy Ross Sorkin Tuesday.
“Inflation is a lot stickier than we've been saying,” Ermotti said.
“Targets may not really help inflation come down. And so I don't see (interest) rates coming down as fast as people believe,” he said.
CS Venkatakrishnan, CEO, Barclays
Venkatakrishnan, whose British bank makes about 40% of its revenue in the US, said he was “optimistic” about US deal activity this year.
“I think two things are driving it. One is that interest rates have reached a very stable level. Our own economists are calling for maybe one rate cut in the US over the next year,” he said. said Andy Ross Sorkin.
“They're still high, but they're stable, so you can plan better anyway, because you don't have the flexibility of rates. The second is with the change in administration (USA), it should be easier for mergers. to happen.”
Venkatakrishnan said he expected President Trump to relax regulation, which would be “generally good for business sentiment and good for business opportunity.”
Rachel Reeves, UK Finance Minister
The UK needs to attract more investors to boost economic growth, Reeves said CNBC reported.
“My message to US investors and global investors too is: Britain is open for business, we want your investment.”
She also discussed Trump's threats of global tariffs.
“I understand that President Trump is concerned about countries running large and persistent trade surpluses with the US. That is not the case for the UK,” said Reeves.
“We are not part of the problem here. So we, the UK, increased trade with President Trump last time he was in office.”
Christian Sinding, CEO, EQT
Sinding, CEO of Swedish private equity firm EQT, told CNBC's Karen Tso and Steve Sedgwick on the ground that the market for M&A and large business deals “continues to improve.”
“We had our peak year in 2024, we did over $20 billion of investments,” he said. “We did over $10 billion of exports, and that's kind of building up to 2025, (when) I think many market participants are now ready to trade, whether it's private equity or family offices or strategic buyers In fact, if you look at the global capital markets, the IPO market is very open.
