Good morning From Magic Mountain as POLITICO’s transatlantic team prepares for a busy week in Davos. A week of World Economic Forum news, gossip and insightful analysis in our Morning Newsletter, published Monday through Friday. Check out today’s edition). here).
First things first — the weather: The delegation trickles into the Alpine Resort ahead of tonight’s opening event. But while the WEF hosted his 2022 ‘Summer Davos’ he may have thought it was a one-off experiment, but the leading team that arrived on Saturday had a different idea. will also be allowed. Mountains because the temperature was above freezing.
It snowed on Sunday. It’s not the Davos Snowmageddon of 2018, but it might be enough to take a sleigh off Schatzalp. Temperatures have dropped and we are hoping for a full recovery over the weekend.
Moral Lesson 1: No matter how rich you are, you can’t control snowfall.
Lesson 2: When it comes to climate change, the WEF has made zero net progress. These endless discussions about climate change that have characterized the program for years were prescient.Look around.Climate change is happening literally in front of your eyes.
who has: United Nations Secretary General Antonio GuterresGerman Chancellor Olaf ScholzPresident of the European Commission Ursula von der LeyenVice Premier of China Liu Hwason-in-law of Donald Trump Jared Kushnerfounder of Dell Technologies Michael DellChief of Goldman Sachs David Solomonformer U.S. Vice President Al Goreformer British Prime Minister Tony BlairPresident of the European Central Bank Christine LagardeIMF Secretary Kristalina GeorgievaPresident of South Africa Cyril Ramaphosa,President of the European Parliament Roberta MezzolaPresident of Poland Andrzej DudaPrime Minister of Spain Pedro SanchezIrish Taoisatch Leo VaradkarFBI Director Christopher RayU.S. Secretary of Labor Marty WalshUS Trade Representative Catherine Tai.
WHO’S OUT: George Sorosthe 92-year-old philanthropist will miss this year’s event for the first time in years. of 6G7 (only Scholz from Germany attended). Japan — most of the delegation withdrew at the last minute. Russia,clearly.U.S. Treasury Secretary Janet Yellen — Despite being in Switzerland this week, she hasn’t made the trip to Davos. peter mandelsonBritish New Workers architect and regular at Davos.
Who is indifferent: Nobel Peace Prize Winner Beatrice Finn“I really forgot that the Davos meeting was still going on,” said a woman who called for the abolition of nuclear weapons. Scott ColvinA veteran of the Davos conference and now Aviva’s public relations director, he called the format “outdated” and added: policy goals. ”
See in numbers: sum of 600 CEO, 56 Minister of Finance, 19 central bank governor, 30 with the Minister of Trade 35 This year, the foreign minister will attend the Davos meeting. But the WEF’s operating model should provide a place for the world’s most influential people to speak (in 2020 he had 119 billionaires on board).
WEF speaker roster Currently, female participation is 42%, but overall female participation is (slightly) 27%. Both numbers are new WEF records.
where they fly from: While Europe still provides the largest chunk of political leaders at Davos, the United States, roughly 20 times the size of the Chinese delegation, has by far the largest chunk of corporate customers.
Covid test: The pandemic that derailed the WEF three times may be a distant memory for many of our participants, but they should be tested upon arrival. That said, no one was watching the creator spit and swirl behind privacy-her curtains.
Consumer sentiment improved in 31 of the 43 countries surveyed by Morning Consult in December.But Morning Consult President Kyle Drop shared new consumer sentiment index data. The data shows that about two-thirds of the world’s largest economies still have a negative view of the state of the economy and their personal finances. European countries are at the bottom of the list.
The return of protectionism: The WEF economy has lost its legitimacy and governments are investing in their own industries as they seek to reduce their dependence on other countries in strategic industries. His $369 billion clean energy incentives for the Biden administration in the Inflation Reduction Act have enraged allies from Europe to Asia. The EU also plans to suspend its own subsidy limits (Ursula von der Leyen I have more to say this Tuesday). We will be intrigued to see how Davos, the pinnacle of globalization, will deal with the new epidemic of subsidies, export controls and economic self-sufficiency.
It’s still Cryptowinter: Oh how times can change. In May, attendees couldn’t walk the promenade without being bombarded with storefronts and pop-ups dedicated to cryptocurrencies.Eight months later, the industry is in crisis.The collapse of FTX led by Sam Bankman-Fried, making the entire sector tense. Crypto.com cut his 20% of its workforce Friday.But a Davos veteran Anthony Scaramucci announced that it is investing in a company founded by former FTX head Brett Harrison.
Technology: What are layoffs? Technology has a little time too, but not in a good way. The turbulent Elon Musk takeover of Twitter and subsequent rapid job cuts reflect a broader contraction in the tech sector. Extravagant parties hosted by big names like Salesforce and Facebook were in Davos lore. Let’s see if they live up to their previous form this year. One thing is clear: Despite headcount cuts, tech companies like Qualcomm, Meta, HCL and Salesforce still have a healthy presence on the promenade.
Cost of living: The WEF’s Global Risks Report identified the cost of living crisis as the greatest short-term risk to the economy.
Ukrainian wishlist: Russia’s invasion of Ukraine tops the geopolitical story of this World Economic Forum. Kyiv, which is trying to repel Russia, is expected to increase demand for tanks to the West, especially the German-built Leopard 2.german chancellor OlafScholz I will be giving a keynote on Wednesday.
Arrived in Times Square? The majestic promenades that crisscross Davos, brimming with billboards, pop-up fronts and corporate branding, are Davos’ man’s playground.
Spot: A few new additions this year. The United Arab Emirates is running a new line of hot chocolate that looks like the promenade’s most expensive pavilion. India has a sustainability lounge. Yes, the Saudi government is back in the form of his MBS-branded lounges that are flashy.
Most Davos-inspired slogans: “The Impossible is Possible” (Emirates)…“From Isolation to Integration” (Deloitte)…“Supercharging Progress” (HCLTech).
where are all the tories? A flashback to the early 2000s features a new crew of British workers at work.Former British Prime Minister TonyBlairFormer Minister of Foreign Affairs Davidmilliband and the current Labor leader keelSturmer Perhaps a sign that Davos is embracing the “third way” mantra of its predecessor? Rishi Snack — the perfect Davos guy in many ways — is skipping the event. This is perhaps a sign of how politically toxic the Davos meeting is for politicians.
Survival of the richest people: Oxfam released its annual inequality report this morning, laying out some uncomfortable truths for the set of the Davos conference. The richest 1 percent have won almost two-thirds of all new wealth created since 2020. The group calls for a tax of up to 5% on the world’s millionaires and billionaires, which could raise $1.7 trillion annually, enough to lift 2 billion people out of poverty. I hope it will be. What is the outlook for the Davos meeting to support this? I think it’s a chance for a snowman in hell.
Business opens massive trust leads to government: ryan sat with Richard Edelman, which features top survey findings from Edelman Trust Barometer, CEO of the communications company of the same name. This is a regular feature of the World Economic Forum every year. You can hear more on his week-long EU Confidential Podcast in Davos.
Key Findings: Business has a staggering 54-point lead over government in how the public measures competence. “Trust has become local,” he says Edelman. “Therefore, there are high expectations for ‘my CEO’ and the most reliable source of information is ‘my company newsletter’.”
The poorest choose between heating and eating. “The bottom 25% don’t trust institutions. Confidence in the future is really at stake,” says Edelman. “I’ve heard the phrase ‘heat it up or eat it.’
Why do people trust businesses? “Business has worked extremely well during the pandemic, coming up with vaccines, keeping people working in safe conditions, surviving the murder of George Floyd, and over 1,000 companies exiting Russia. Four times as many companies have pulled out of Russia than South Africa in more than 20 years during apartheid,” argues Edelman.
Why did companies do that? “Two-thirds of employees say they could only work for a company that has the same values as them. wants CEOs to stand up, which is why smart companies decide to stand up in areas of competitive advantage and knowledge and capabilities, like Pfizer on global health and Citi on green finance. ”
House of Health: The Psychedelic House of Davos has grown significantly this year as the Energy Foundation’s House of Health at Mühlestrasse 8. event program.
House of balance: It positions itself as a “haven and a quiet space” with “a range of customized experiences focused on helping people reconnect with themselves, their communities, and the planet.” The event is held at several locations, but most are also held at Mühlestrasse 8.
Here’s an overview of the 400 or so official sessions (so you don’t accidentally join another panel on innovation):
— 7:15 PM local time: Official welcome session with Klaus and Hilde Schwab at the Congress Centre.
