Monday, January 27, 2014

Analysis: Emerging markets rout a reality check for Davos elite

Full Speech of Chinese FM in Davos Forum 2014
Published on Jan 24, 2014
In the Davos Forum, Chinese Foreign Minister Wang Yi is presently participating in discussions on the "global dimensions of China's development".

Wang Yi is in discussion with Harvard Professor Joseph Nye, who is also former US Assistant Defense Secretary, and former US National Intelligence Council Chairman.

China has kept close engagement with the World Economic Forum and has sent delegations to the forum's annual meetings since 1979. In June 2006, the forum opened its regional office in Beijing.


Davos 2014 - Changing the Climate for Growth and Development
Published on Jan 24, 2014

An unprecedented international effort will be made in September during the UN General Assembly to energize leaders to successfully negotiate a climate change agreement and set new goals for ending extreme poverty globally.

How can government and business work together to ensure that this extraordinary effort leads to action?

· Ban Ki-moon, Secretary-General, United Nations, New York
· William H. Gates III, Co-Chair, Bill & Melinda Gates Foundation, USA
· Al Gore, Vice-President of the United States (1993-2001); Chairman and Founder, Generation Investment Management, USA
· Jim Yong Kim, President, The World Bank, Washington DC
· Ngozi Okonjo-Iweala, Coordinating Minister for the Economy and Minister of Finance of Nigeria
· Paul Polman, Chief Executive Officer, Unilever, United Kingdom
· Erna Solberg, Prime Minister of Norway

Chaired by
· Mishal Husain, Anchor and Reporter, BBC, United Kingdom


Lionel Barber previews Davos 2014
Published on Jan 20, 2014
Financial Times editor Lionel Barber previews the annual World Economic Forum in Davos, Switzerland. He tells economics editor Chris Giles that growing business confidence, Middle East instability, inequality and the impact of technology will top the agenda

For more video content from the Financial Times, visit


$170 Million HOTEL Keeps RICH & POWERFUL ELITE, Super SAFE
Published on Jan 22, 2014

$170 Million InterContinental HOTEL Keeps RICH & POWERFUL ELITE, Super SAFE at Davos World Economic Forum

Intercontinental Hotels Group has opened a property in the Swiss city of Davos, home to the annual World Economic Forum.

The 216-room Intercontinental Davos looks out over Lake Davos and is "enveloped by 790 gold-coloured steel elements" while its interior is designed to reflect the feel of a chalet.

It features four restaurants, two bars, a spa and both indoor and outdoor swimming pools.
Intercontinental Davos

Peter H Pedersen, the hotel's general manager, said: "We are proud to bring Intercontinental Davos to this beautiful location. Whether for business or pleasure, we look forward to sharing our unique hotel and stunning surroundings with our guests."

Located in east Switzerland, Davos is the largest skiing resort in the country, and is home to the annual World Economic Forum, which takes place next week from January 22 to 25.

The InterContinental Davos luxury hotel in the Swiss mountain resort of Davos. Oxfam report found people in countries around the world believe that the rich have too much influence over the direction their country is heading.

The world's wealthiest people aren't known for travelling by bus, but if they fancied a change of scene then the richest 85 people on the globe -- who between them control as much wealth as the poorest half of the global population put together -- could squeeze onto a single double-decker.

The extent to which so much global wealth has become corralled by a virtual handful of the so-called 'global elite' is exposed in a new report from Oxfam on Monday. It warned that those richest 85 people across the globe share a combined wealth of £1tn, as much as the poorest 3.5 billion of the world's population.

The wealth of the 1% richest people in the world amounts to $110tn (£60.88tn), or 65 times as much as the poorest half of the world, added the development charity, which fears this concentration of economic resources is threatening political stability and driving up social tensions.

It's a chilling reminder of the depths of wealth inequality as political leaders and top business people head to the snowy peaks of Davos for this week's World Economic Forum. Few, if any, will be arriving on anything as common as a bus, with private jets and helicopters pressed into service as many of the world's most powerful people convene to discuss the state of the global economy over four hectic days of meetings, seminars and parties in the exclusive ski resort.

Winnie Byanyima, the Oxfam executive director who will attend the Davos meetings, said: "It is staggering that in the 21st Century, half of the world's population -- that's three and a half billion people -- own no more than a tiny elite whose numbers could all fit comfortably on a double-decker bus."

Oxfam also argues that this is no accident either, saying growing inequality has been driven by a "power grab" by wealthy elites, who have co-opted the political process to rig the rules of the economic system in their favour.

Annual report gauging mood of CEOs detects perception of stability amid fear of overregulation and growing deficits
Davos 2014

The report says: "The optimism some CEOs display may therefore stem from the relief that certain risks (such as the collapse of the eurozone) have been averted for now, rather than the conviction that things are really getting better."
intercontinental hotel davos "intercontinental hotel" "world economic forum" mountain security defense secure vip "head of state" "presidential suite" "hotel room" luxury elite power powerful "davos city" booking travel monaco traveling asia conference market world 2014 "private jet" cctv "motion sensor" "ski village" skiing switzerland president exclusive "5 star hotel" "5 star" "michelin star chef" event market "far east" "agenda nwo"
forex trading currency wars ww3 agenda protest anonymous gold price manipulation future humanity sheeple poverty usd collapse america european union collapse gerald celente david icke lindsey williams global currency reset bitcoin litecoin usd alex jones infowars
However, tax campaigners put pressure on David Cameron, who is attending the four-day gathering in the Alpine resort later this week, to make good on the promise to crack down on corporate tax-dodging he made in his "wake up and smell the coffee" speech at Davos last year.

PwC's report says fortunes in the so-called Brics emerging economies are diverging: China's economy appears robust, it reports, while Brazil is said to be suffering a debt hangover, India to be slow to open its markets, Russia unduly reliant on commodity exports and South Africa impeded by regulation. The report also says the UK is becoming a more attractive place for investment.


Bankers At Davos Plan To Push The "Reset" Button On The World
Published on Jan 21, 2014


Analysis: Emerging markets rout a reality check for Davos elite

By Paul Carrel and Ben Hirschler
DAVOS, Switzerland Sun Jan 26, 2014 7:10am EST
European Central Bank (ECB) President Mario Draghi is seen on screens during a session at the World Economic Forum (WEF) in Davos January 25, 2014. REUTERS/Ruben Sprich

Related Topics

DAVOS, Switzerland (Reuters) - Just as they were getting their swagger back, the global elite stumbled last week on an emerging market sell-off that served as a reminder of the risks the global economy still faces.

Veterans of the annual World Economic Forum in Davos seized on the wobble as a warning that expectations for a smooth upswing were misplaced, and that recovery would likely be volatile and uneven.

The euro zone crisis is out of its acute phase and growth is returning across the developed world but a revival fuelled largely by vast amounts of new central bank money is a capricious one.

The prospect of the U.S. Federal Reserve turning off its money taps this year, combined with political troubles in several emerging markets, drove last week's sell-off and exposed some of the unresolved problems in both developing and advanced economies.

"I hear way too much optimism now," Larry Fink, CEO of investment group BlackRock, told the forum.

"I think the experience of the marketplace this week is going to be indicative of this entire year. We are going to be in a world of much greater volatility."

The return of growth in the United States, Japan and Europe masks festering problems from chronic youth unemployment to skills shortages and rising inequality that dampened any hubris in Davos.

Tech executives were exuberant about breakthroughs that are revolutionising production, healthcare and communication but others warned those advances may kill jobs.

CEOs in Davos complained more vociferously than ever about a lack of talent for hire despite sky-high unemployment in rich and poor countries alike.

In the West, too many young people are graduating from expensive colleges with high debts and the wrong skills, while in developing countries a big majority are not achieving their economic potential.

Worldwide unemployment hit nearly 202 million in 2013, an increase of 5 million compared with a year earlier, the International Labour Organization reported last week.

Joe Kaeser, chief executive of German engineering giant Siemens, questioned whether the world was really seeing an economic recovery at all.

"Do we feel good because what we see is good?" he asked. "Or do we feel good because we just have eased the pain? How many jobs have we created? How many of those millions and millions of jobless people in Europe have we put into jobs?"


The year ahead will witness a marked shift in the balance among the world's main growth engines, with the United States and other developed economies contributing more and emerging markets somewhat less than before.

Reduced Fed bond buying will reverse the liquidity that has flooded into higher-yielding emerging markets assets.

"We expected this year to be a volatile year for EM as the Fed tapers," Mexican Finance Minister Luis Videgaray said, adding that volatility "will happen throughout the year as tapering goes on".

Despite particular worries in countries like Argentina and Turkey, CEOs are still determined to tap into the growing middle classes of the new mega-cities of Asia, Latin America and Africa. But they are becoming more selective.

The notion of lumping together diverse economies like Brazil, Russia, India and China has gone.

BlackRock's Fink said the Fed's tapering was just an excuse for turmoil in some emerging markets. The real cause was "bad policy" in the countries affected.

Renault-Nissan chief Carlos Ghosn, whose company has car plants in many emerging markets, said: "You have to be ready when you invest in emerging markets for ups and downs."

In the short term, investors are braced for more downs.

"We are on the cusp of a slowdown in emerging markets," said Scott Gordon of Taconic Capital Advisors. "There is a higher proportion of developed market growth that will drive the global economy."


Yet advanced economies also have work to do to put their houses in order.

"Complacency is both the positive and the negative of Davos this year," said John Studzinski, global head of Blackstone Advisory Partners. "On the one hand, we're not looking at the break-up of the euro zone anymore and people are more relaxed.

"On the other hand, people are not paying attention to things they need to, like the education reform that is needed to resolve mismatches in the workforce, particularly in Europe and the United States."

Even as headline growth numbers improve, few citizens are feeling the recovery. A survey by consulting group Alix Partners of 6,000 adults in six European countries conducted in mid-January showed 71 percent of those questioned saw the economy staying the same or getting worse over the next year.

Christine Lagarde, managing director of the International Monetary Fund, warned policymakers of "some of the old risks that have not yet been completely fixed", added to which is the threat of deflation in Europe.

A case in point is a European Union plan to curb banks' ability to take market bets with their own money, which Germany and France have attacked, warning in a paper seen by Reuters that it could jeopardise a delicate revival.

In some cases, European policymakers cannot even agree on the problems they should be tackling.

German Finance Minister Wolfgang Schaeuble publicly disagreed with EU Economic and Monetary Affairs Commissioner Olli Rehn's view that prolonged low inflation in the euro zone would make necessary economic rebalancing harder.

Schaeuble called that view "nonsense".

Both Rehn and French Finance Minister Pierre Moscovici said the European Parliament could still "improve" a complex system for winding up failed banks agreed by the EU last month. Schaeuble said there was little scope for change without breaching EU treaties.

Joe Jimenez, chief executive of Swiss drugmaker Novartis, said the conversation at Davos had shifted from five years of angst over financial crisis to talk of economic recovery, but companies were still hesitant about the levels of investment which could drive lasting growth.

"If we had the certainty I think you would see more and more companies around the world leaning forward in terms of investment," he said.

(Additional reporting by Alessandra Galloni and Paul Taylor. Editing by Paul Taylor and Mike Peacock)


No comments: