Closing summary:
Time to wrap up.
China’s economy has posted its slowest growth in 18 months, prompting the People’s Bank of China to cut a key lending rate for the first time since the early months of the pandemic.
GDP in China expanded by 4% year-on-year in the last quarter of 2021, taking the shine off 8.1% growth in the whole year. Economists said that the domestic economy was suffering from the ongoing pandemic, and the credit crunch in its property sector, with retail spending weakening in December.
The World Economic Forum’s virtual Davos has begun, after the Annual Meeting was delayed due to the pandemic.
China’s Xi Jinping warned that inflation was a growing risk, and expressed fears of economic pain if advanced economies hiked interest rates.
If major economies slam on the brakes or take a U-turn in the monetary policies, there would be serious negative spillovers.”
President Xi also warned of disastrous consequences from a Cold War mentality, at a time when tensions are rising with the West over Tiawan, and threats to national security.
India’s prime minister, Narendra Modi, called for global action on tackling cryptocurrency problems, along with supply chain issues, climate, and inflation.
UN secretary-general António Guterres said that inequality over vaccine rollouts, and an unfair global financial system, was hurting the recovery.
Anthony Fauci, chief medical advisor to President Biden, warned virtual Davos that disinformation spread through social media is undermining the battle against Covid-19.
The online-only event also heard that Moderna hopes to rollout a combined vaccine for flu and Covid-19 by autumn 2023.
Oxfam reported that the 10 richest men in the world have seen their global wealth double to $1.5tn (£1.01tn) since the start of the global pandemic following a surge in share and property prices that has widened the gap between rich and poor.
In the City, the FTSE 100 closed at a two-year high....
.. but Unilever slumped by 7% after seeing its £50bn approach to buy GSK’s consumer healthcare operation rejected.
The chairman of Credit Suisse, António Horta-Osório, has resigned after the Swiss bank found that he had broken Covid-19 quarantine laws, with attendance at the Wimbledon tennis tournament thought to be among the allegations.
Here are the other main stories today:
Goodnight. GW
UN's Guterres demands vaccine equity, financial reform and more emissions action
Back at virtual Davos, UN secretary-general António Guterres has challenged business leaders to:
- Drive equity and fairness
- Reform the global financial system
- Support real climate action
In a special address, Guterres warns that:
The world is emerging from depths of a paralysing economic crisis, but the recovery remains fragile and uneven, amid the lingering pandemic, persistent labour market challenges, ongoing supply chain disruption, rising inflation and looming debt traps, and the geopolitical divide.
He warns that global vaccination rates are falling behind the UN’s targets (which will increase the risk of new variants), saying:
Vaccination rates in high-income countries are, shamefully, seven times higher than in African countries. We need vaccine equity now.
Guterres adds we must prepare for the next pandemic by improving early warning and rapid response plans, strengthening the World Health Organisation, and bolstering local primary healthcare.
Guterres warns that the global financial system should be reformed to work for all countries.
At this critical moment we are setting in stone a lopsided recovery.
Eight out of 10 recovery dollars are being spend in advanced economies, he says, meaning developing countries are at a huge disadvantage, as they experience their slowest growth in a generation.
Emerging economies are suffering higher interest rates and soaring energy and food bills, Guterres says, calling for urgent reforms on debt restructuring
And on the climate emergency, Guterres warns that global emissions are set to soar over levels that would keep global warming within 1.5 degrees:
Global emissions need to be cut by 45% this decade, says @antonioguterres @UN.
— World Economic Forum (@wef) January 17, 2022
However, these emissions are currently set to increase by 14% by 2030, 'defying reason and ignoring the impacts on people, economies and our planet.'
Watch here: https://t.co/m9KqGEILsv#DavosAgenda pic.twitter.com/kn2T1zeuAJ
.@borgebrende, @wef President, states 'the cost of inaction far exceeds the cost of action.'
— World Economic Forum (@wef) January 17, 2022
We must mobilise now to fight climate change.
Watch the special address: https://t.co/m9KqGEILsv#DavosAgenda pic.twitter.com/LrEaRAdpWq
