Members of the global elite are back in Davos in their regular January slot after a three-year hiatus due to the Covid-19 pandemic.
(Bloomberg) — Members of the global elite are back in Davos in their regular January slot after a three-year hiatus due to the Covid-19 pandemic.
While the billionaires are gathering again for the World Economic Forum’s annual meeting, which kicks off Tuesday in the Swiss ski resort, there are fewer heavy hitters from politics. Russia’s war in Ukraine and tensions between the US and China have made feel-good appearances at the event in the Alps awkward.
The lack of snow on the slopes is a reminder of the climate crisis that will dominate much of the discussions. Concerns about political stability are also high on the agenda and other topics will include the end of the era of cheap money and food and energy security.
Tune into Bloomberg Television for interviews with OPEC Secretary General Haitham Al-Ghais, Chevron CEO Mike Wirth and German Economy Minister Robert Habeck, among many others. German Chancellor Olaf Scholz will also be speaking to Bloomberg TV from our studio in Berlin.
Key Developments
- China Stirs Hope for Global Growth in 2023 Even as Davos Worries
- UK Jumps Into the Top Three Countries for Growth, Bosses Say
- ECB’s Centeno Says Euro-Zone Economy Is Surprisingly Positive
- Chief Executives, Economists Brace for Recession as Davos Begins
(All times CET)
China Stirs Hope for Growth (10 a.m.)
China’s reopening and the resilience of advanced economies provide hope for the world to weather 2023 even if some struggle to grow, according to a panel on the prospect of a recession.
“If we look at the key event this year so far, definitely the reopening of China has to be the major event,” said Laura M Cha, chair of Hong Kong Exchanges and Clearing. “The lockdown of the last three years has created pent-up demand domestically, so I would see increased domestic consumption and of course the manufacturing sector will pick up. All those will be good factors for global growth.”
Hamers Says High Inflation Here to Stay (9:40 a.m.)
UBS CEO Ralph Hamers said that 2023 will be the year of inflation and that even as it recedes each month, he expects it to remain much higher than in the past.
“Higher inflation rates are here to stay,” he told Bloomberg TV, adding that if Europe does fall into recession, it’s likely to be short and shallow. The Swiss bank is still in hiring mode, even as some competitors cut jobs, though is looking more at filling its most important vacancies, he added. “We are not in retrenchment mode on staff, we are hiring for critical jobs,” Hamers said.
Man U Targets the Davos Crowd (9:30 a.m.)
Manchester United is trying to score in Davos by taking over one of the shopfronts on the promenade, usually home to Wall Street banks and tech companies. The football club — a partner with the World Economic Forum since 2019 — is bringing goalkeeping legend Peter Schmeichel to meet delegates at a Tuesday nightcap this year.
The American Glazer family that owns the club is looking for an investor and might be prepared to sell up, but that doesn’t seem to be the purpose of the Red Devils’ Alpine adventure. “Manchester United is proud to be the first sports team to partner with the World Economic Forum,” a spokesperson said. “We’re in Davos to explore ways to maximize the impact” of the team’s global fan base.
Poland Sees Germany Under Pressure on Tanks (9:25 a.m.)
Polish President Andrzej Duda said pressure is growing on Scholz’s government in Berlin to give the green light to send German-made Leopard battle tanks to Ukraine.
Poland has pledged to supply about 14 Leopards and the country is talking to “a few allies” to ensure additional vehicles, Duda said during a panel discussion. Shipping them has the potential to start “a new chapter” of the war, he said, adding that Poland already supplied more than 260 of its Soviet-model battle tanks last year.
Musk: S in ESG Stands for ‘Satanic’ (9:20 a.m.)
Elon Musk is not a fan of the WEF — or ESG, it seems.
“The S in ESG stands for Satanic,” the Twitter CEO tweeted in response to author Michael Shellenberger, who ran in the primary race to be California’s governor last year.
CS’s Lehmann Doesn’t See Recession (9:15 a.m.)
Credit Suisse Chairman Axel Lehmann said that the bank’s high net-worth clients still have plenty to invest, and he’s optimistic that a global recession can be avoided, with China reopening and “huge growth” coming from India.
“We are entering into a multipolar world, it is not a global recession,” Lehmann said on a panel with Bloomberg TV’s Francine Lacqua.
ECB’s Centeno Upbeat on Economy (9 a.m.)
European Central Bank Governing Council member Mario Centeno said the euro-area economy is performing better than many anticipated in the face of record inflation and the energy crisis that erupted after Russia attacked Ukraine.
“The economy has been surprising us quarter after quarter,” Centeno told the same panel. “The fourth quarter in Europe will be most likely still positive. Maybe we’ll be surprised also in the first half of the year.”
Habeck Says Trade War Risk ‘Very High’ (8 a.m.)
Germany’s Habeck warned that the risk of additional trade wars is “very high” as countries increasingly look inward amid global insecurity and said that the WEF can be an effective forum for discussions that could help avert such disputes.
“We have seen with some countries that they have chosen isolation or confrontation,” Habeck said in an interview with Germany’s Deutschlandfunk radio from Davos, adding that China had pursued “very aggressive policies in recent years.” If other nations in Europe or the Americas chose to do the same “then we won’t be able to solve the world’s problems,” he said.
EU-US Trade War Must be Averted: Sanchez (8 a.m.)
The European Union must reform its industrial state-aid policies while also seeking an agreement with the US to avert a trade war, according to Spanish Prime Minister Pedro Sánchez.
It’s “mandatory for the US and the EU” to reach an agreement on industrial policy, Sánchez said in an interview with CNBC. The EU has some internal “homework” to do, including reducing bureaucracy and reform rules for state-aid to industries, he said.
Climate Must be Priority: Forrest (8 a.m.)
There’s a rump of Davos attendees who are still too focused on inflation, interest rates and temporary economic factors when they should be looking at the climate crisis, according to mining billionaire Andrew Forrest.
Companies that are “going hard into green energy, know full well that that is going to bring down the cost of energy and increase the standard of living and that will bring down inflation,” Forrest told Bloomberg, adding that the worst of Europe’s energy crisis is over. “People have started to get used to it but what they also got used to either subconsciously or consciously is that the era of fossil fuels is over,” the iron ore magnate said.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.