NBIM CEO: Surprised markets haven't reacted more to Iran war

• High energy prices (oil above $100/barrel, potential for $150-$200) pose an inflationary risk, but markets appear 'remarkably stable' or 'too complacent'.
• AI is seen as a transformative technology, but a stress test indicates a potential AI correction could wipe out over 50% of the fund's equity portfolio value.
• European capital markets are fragmented, leading to a dominance of US tech companies; urgent action is needed to consolidate and unify rules to avoid falling further behind.
• A committee is reviewing ethical rules for the fund's investments, including the possibility of investing in defense companies, with proposals expected by autumn.

The NBIM CEO discusses concerns about high energy prices and their inflationary impact, noting market complacency. He highlights the transformative power of AI but acknowledges the risk of a bubble, with a stress test showing a significant potential impact on the fund's equity portfolio. He also emphasizes the urgent need for Europe to strengthen its capital markets and foster innovation to compete with the US in tech.