General perspective of the annual meeting of the World Economic Forum (WEF) under the theme “Cooperation in the Smart Age”, held in Davos, Switzerland, on January 20, 2025.
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US President Donald Trump has only been in office for a few days, but his impact on markets has already been significant.
U.S. stocks already have Back-to-back weekly takeaways from last week Although rallies were halted on Friday, S&P 500 Still hitting new records during the day.
This comes after U.S. leaders called for lower interest rates and cheap oil prices in a speech Thursday at the World Economic Forum in Davos, Switzerland. Investors have also been betting on potential tax cuts and deregulation under the new president, sending stocks higher.
However, not everyone is bullish moving forward, but some – such as JPMorgan CEO Jamie Dimon – hinted The market may be too high.
After a week of interviews with business leaders, lawmakers and investors in Swiss ski resorts, here’s what the top industry names told CNBC:
BlackRock CEO and Chairman Larry Fink
“I’m cautiously optimistic – That being said, my scenes were probably terrible. ” Fink told CNBC’s Andrew Ross Sorkin.
“I believe that if we were to unlock all this private capital, we would have tremendous growth, but at the same time, some of it would unlock new inflationary pressures,” he explained. “And I do believe that’s a risk that’s not factored into the market ”
Ted Pick, CEO, Morgan Stanley
Peake said he believed the company’s revenue could “continue to be strong” over the next 12 to 24 months, boosting the market’s growth.
“It’s an indicator… how many companies are actually talking about recession right now and how many companies are talking about inflation? I think the earnings are looking very positive,” he said.
“More importantly, I know we like to look at the index, but the index is dominated by six technology companies – which are all doing very well, by the way – but if you look at the potential for deregulation in the energy sector, then in Financial services, those sectors are still in a multiplier realm and are not that expensive.”
“If you’re an investor and you’re thinking about allocating over the next 12 to 18 months, sure at the index level it’s probably going to go down, but (DO) do you really want to think about where do I have exposure to the sector?”
European Central Bank President Christine Lagarde
Lagarde Tell Karen TSO Monetary policies diverge between the eurozone and the United States due to “different economic environments.”
She also said she was not “overly concerned” about the risk of importing outbound inflation into Europe, adding that the ECB would continue to gradually lower interest rates as price growth shifts toward its target.
“We are certainly interested in seeing developments in the United States because growth in the United States has been a tailwind for the rest of the world,” Lagarde said.
Nicolai Tangen, CEO of Norges Bank Investment Management
“I don’t think you should give any advice to the United States, but if you look at the risks in financial markets, I think inflation is certainly one, all driven by tariffs,” Tanden said Tuesday. “Geopolitical tensions often have a negative impact on financial markets and financial returns.”
Tanden added that Trump’s arrival would be “very positive” for many U.S. companies “purely financially.”
Jamie Dimon, CEO of JPMORGAN CHASE
Dimon said he believes U.S. asset prices are “a little bit exaggerated” at current levels.
Dimon told Andrew Ross Sorkin on Wednesday, referring to the U.S. stock market. “They increase and you need pretty good results to justify those prices.
He added: “We all want to do that and having strategies that enable growth helps achieve that, but there are negatives out there and they tend to surprise you.”
Goldman Sachs CEO David Solomon
Solomon said the market is in risk-on mode, with stocks having a sense of optimism due to the new U.S. administration and technological advancements.
Solomon too Tell Andrew Ross Sorkin He noted a focus on growth in the U.S. and in conversations with customers in Europe.
“I think people are optimistic, it’s not going to be a smooth, perfect path, but people are optimistic that we’re going to run a more growth agenda. We’re going to unlock some investment, we’re going to unlock the private sector, but more , it must be constructive,” he said.
“It’s hard to argue with the fact that equity multiples are high… I think stock markets are showing a sense of optimism right now, but they’re also showing a sense of optimism about growth and technology, especially this AI wave. Of course, that’s not Straight line, but with some of the technology we see, the opportunity for that technology to meaningfully improve productivity is extraordinary.”
Mubadala CEO Khaldoon Al-Mubarak
“Continuing the trend that we’ve seen in 2024 has been a positive year for most markets… I see continuing into 2025, I see in the core markets, the U.S., Asia, especially the growth-driven markets, I see There’s a continuation of strong tailwinds in Asia, Mubarak told CNBC’s Dan Murphy on Monday.
“I see good headwinds in technology, healthcare and financial services, life sciences,” he added. “So I would say, maybe almost the same word I used last year: cautiously optimistic. When I look at 2025, that’s It’s going to be an exciting year.”
Bridgewater founder Ray Dalio
Bridgewater founder Ray Dalio told CNBC that affordability rates in the U.S. market are high, but AI beneficiaries are likely to climb further.
“We’ve come a long way…I think that’s led by the Great Sector, Disruptor, Artificial Intelligence, etc.”
“I don’t think it comes down to the application of AI, the use of AI… I think there’s under-application of AI.”
Bank of America CEO Brian Moynihan
Moynihan Tell Andrew Ross Sorkin He argued on Tuesday that the U.S. market has room to climb in 2025, and that the main focus on business and financial services is regulatory policy, not inflation.
“Our research team thinks there’s room this year and they predict the market will go up. Last year not so much and the unusual thing is you have growth for several years in a row that’s very unusual,” he said.
Moynihan added: “I believe if you have a key takeaway for businesses in general, including financial services and banking, it’s the regulatory issue.”
UBS CEO Sergio Ermotti
Tariffs proposed by US President Donald Trump could prevent unwinding and keep interest rates higher, bank chief Tell Andrew Ross Sorkin Tuesday.
“Inflation is a lot stickier than we’re letting on,” Ermotti said.
“Tariffs may not really help inflation come down. So I don’t think (interest rates) are going to move as quickly as people believe,” he said.
Barclays CEO CS Venkatakrishnan
Venkatakrishnan, whose British bank has 40% of revenue in the United States, said he was “optimistic” about deal activity this year.
“I think there are two things driving it. One is that interest rates have reached a relatively stable level. Our own economists are calling for lower U.S. rates next year,” he Tell Andrew Ross Sorkin.
“They’re still high, but they’re stable, so you can at least plan better because you don’t have the volatility of rates. The second is the change in (U.S.) management, which should be easier for mergers to happen.”
Venkatakrishnan added that he hopes President Trump will loosen regulations, which is “generally good for business sentiment and good for business opportunities.”
UK Finance Minister Rachel Reeves
UK needs to attract more regulatory investment to boost economic growth, Reeves told CNBC.
“My message to American investors and global investors is: Britain is open for business and we want your investment.”
She also discussed Trump’s global tariff threats.
Reeves said: “I do know that President Trump’s concerns about countries running large and persistent surpluses in their trade balances with the United States are not the same with the United Kingdom.”
“We are not part of the problem here. So the UK’s trade increased last time President Trump was in office.”
Christian Siding, CEO, eqt
Sinding, CEO of Swedish private equity firm EQT, told CNBC’s Karen TSO and Steve Sedgwick that the market for M&A and large commercial deals “is continuing to improve.”
“We had a record year in 2024, we did over $20 billion in investments,” he said. “We did over $10 billion in exits, and that’s building into 2025, when I think many markets Players are now ready to do deals, whether it’s private equity or family offices or strategic buyers, and certainly if you look at global capital markets, the IPO market is wide open.
