Closing post
That may be all for us from us, after a hectic day here in Davos.
Argentina’s new president Javier Milei has launched a full-throated attack on Western governments, accusing them of abandoning the values of the west.
In a jarring speech that hailed the virtues of free market economics, Milei told delegates:
I am here to tell you that the western world is in danger . . . because those who are supposed to defend the values of the west have been co-opted by a vision of the world that inexorably leads to socialism, and therefore to poverty.
Milei also hailed business chiefs as heroes, urging them not to be “intimidated, either by the political class or by parasites who live off the state”.
He says:
Do not surrender to a political class that only wants to stay in power and retain its priviliges.
The Middle East crisis also loomed large today, with US secretary of state Antony Blinken calling the conflict in Gaza “gutwrenching”.
Blinken said what was needed to resolve the situation was a Palestinian state with a government structure “that gives people what they want and works with Israel to be effective”.
“The suffering breaks my heart.
The question is what is to be done.”
Blinken was then grounded in Switzerland after his plane had a “critical failure” due to an oxygen leak.
Ukraine was also on minds here, with Lord Cameron arguing that there are legal, moral and political justifications for using frozen Russia assets to fund the Ukraine reconstruction.
Here’s more of today’s news:
Updated
Milei: talked about Falklands with Cameron
After his strident comments on economics today, Argentina’s president, Javier Milie, has told Sky News’ Ed Conway that the issue of the Falklands Islands came up during his meeting with David Cameron today.
With a more diplomatic touch than we saw earlier, Milei says:
“We talked about the Falklands (Malvinas) and it is something for future diplomatic negotiations...”
🚨NEW🚨
— Ed Conway (@EdConwaySky) January 17, 2024
Argentinian President @JMilei, fresh from his first official meeting with the UK here at Davos (with @David_Cameron), tells me they discussed the Falkland Islands.
"We talked about the Falklands (Malvinas) and it is something for future diplomatic negotiations..." pic.twitter.com/qg8q9iSNhc
Rachel Reeves: UK has limited fiscal headroom, we must do things differently
Elsewhere in the Davos congress centre this evening, Rachel Reeves is speaking on a panel on supply side economics.
She says this used to be the preserve of the right but was now central to Labour’s growth strategy. Traditional Keynesian demand management was not possible.
“We face different constraints. Fiscal headroom is limited. We have to do things differently.”
In the UK, Reeves said economic policy could not just about spending money. “We don’t have that luxury”.
Instead as chancellor she would be focussing on planning reform, increasing work force participation and unlocking pension funds for investment.
Macron at Davos: For Russia not to win in Ukraine, 2024 will be key year for Europeans, whatever outcome U.S. elections
— CGTN America (@cgtnamerica) January 17, 2024
Russia cannot and will not win in Ukraine, Macron declares to delegates in Davos.
Macron: 2024 will be a truly French vintage of a year
Rather endearingly, Macron concedes that he is blowing his own whistle, as he tells that 2024 will be a truly French vintage of a year.
He says he hopes many people will come to celebrate the 80th anniversary of the D-Day landings in June.
The Paris Olympics this summer will be a cultural and sporting event for us, the French president continues.
Plus, he adds, Notre-Dame Cathedral will reopen this year, after the terrible fire of 2019.
Updated
After Javier Milei’s full-blooded defence of free market capitalism, red in tooth and claw, Davos will now hear from France’s Emmanual Macron.
WEF founder Klaus Schwab doesn’t hold back with his introduction, hailing Macron as a daring reformer who has taken on the biggest challenges of our times.
Macron is now running through the many achievements of his administration, citing (among other things) progress on green technology, investment in education, and an ambitious European strategy.
Macron says Europe is criticised, but has made big progress, such as facing the Ukraine crisis united.
On economics, he says France has created two million jobs in the last six years, and opened hundreds of factories.
On electric cars, Macron points out that France already has four gigafactories, which will help speed up its EV car production.
And putting modestly firmly to one side, Macron declares:
We are European leaders in quantum, in AI. We have fantastic talents of which the world is envious.
All advanced economies must work to create jobs and reindustrialise, with a focus on green technology and addressing climate change, Macron says.
He says we have seen how dependence makes things complicated, both in the Covid crisis and also Ukraine.
Bill Browder: Using Russian assets to rebuild Ukraine is 'Donald Trump insurance'
Donald Trump is the spectre at the feast of Davos this year, especially after his landslide win in Iowa earlier this week.
And Bill Browder, CEO of Hermitage Capital Management and long-standing Kremlin critic, said today that the possibility of Trump returning to the White House should spur policymakers to use seized Russian assets to fund the reconstruction of Ukraine this year.
Speaking at an event at Ukraine House here in Davos this afternoon, Browder says:
Donald Trump has said he is going to solve the Ukraine crisis in one day. What does that mean? He is going to cut off Ukraine from funding.
I would argue, putting aside all these niceties, that confiscating the $350bn is Donald Trump insurance. It needs to be done before the US election, so that if that were to come to pass, Ukraine can carry on defending itself and win.”
Browder added:
“It is the right thing to do morally, politically, and financially… I don’t think it can be done unless everyone does it together.”
Bloomberg: Blinken stranded after Boeing plane breaks down on Davos trip
Oh goodness me.
US Secretary of State Antony Blinken was unable to fly home from Davos as scheduled today due to a critical error with his aircraft, Bloomberg reports.
They say:
After flying from Davos on helicopters and boarding the modified Boeing 737, Blinken and his party were informed that the aircraft had been deemed unsafe to fly. An oxygen leak detected previously could not be remedied.
A smaller jet was being flown to Zurich from Brussels to ferry home the top US diplomat, while many of his aides and members of the press pool had to travel to Washington commercially.
US Secretary of State Antony Blinken was unable to fly home from Davos as scheduled on Wednesday due to a critical error with his aircraft https://t.co/KIOsXkcFr2
— Bloomberg (@business) January 17, 2024
As well as being inconvenient for Blinken and his team, it could be a massive embarrassment for Boeing, which is already reeling from concerns about its 737 Max 9, after a piece of fuselage fell off mid-flight.
US Secretary of State Antony Blinken was unable to fly home from Davos as scheduled on Wednesday due to a critical error with his aircraft https://t.co/KIOsXkcFr2
— Bloomberg (@business) January 17, 2024
Updated
Milei: Long live freedom, dammit
Summing up, Javier Milie again criticises the failing Western system, saying it leads to unwelcome interventions such as subsidies and price controls, which hinder the free work of markets.
And in conclusion, he praises business people in the audience, and beyond, in a crescendo, telling them:
Do not be intimidated, either by the political class or by parasites who live off the state.
Do not surrender to a political class that only wants to stay in power and retain its priviliges.
You are social benefactors. You’re heroes, You’re the creators of the most extraordinary period of prosperity we’ve ever seen.
If you make money it’s because you make a better product at a better price, Milei insists, declaring:
The state is not the solution, the state is the problem.
From today, Argentina is your “staunch , unconditional ally”, he pledges.
And in a memorable mike-drop, Milei declares:
Thank you very much, and long live freedom, dammit.
And with that, he’s off the stage. No opportunity for questions, alas (although where to begin?…..)
Updated
Having taken a mighty swing at western economic values, Javier Milei then turns to feminism.
He tells Davos that libertarianism states that we all have inalienable rights.
The “radical feminist agenda” has led to greater state intervention, Milei lectures WEF, citing ministries of women or international organisations dedicated to this agenda.
[Milei doesn’t explain, though, how this libertarian vision accounts for UK women effectively working two months for free due to the gender pay gap, for example]
Milei goes on to attack social justice, saying that it is not just – instead, it is intrinsically unfair because it is violent.
This violence, he says, is because taxes are collected coercively.
Thus the state is financed through coercion, Milei says. And by this logic, the higher the tax burden, the higher the coercion and the lower the freedom.
Milei adds that it isn’t a given that there is a pie of wealth to be carved up.
Turning to economic theory, Milei says that the market is not merely a graph showing supply and demand, but actually a market for social cooperation.
He argues that the dilemma faced by neoclassical economies is that they want to tackle problems in the market by stopping market failures.
But tackling market failures, perhaps through regulation or subsidies, you are opening up the way to socialism.
In Milei’s libertarian book, state intervention is harmful.
Socialism is always, everywhere, an impoverishering phenomonen everywhere it has been tried, Javier Milei insist.
It has also murdered 100 million people, he adds.
[this is a claim that communism was the leading ideological cause of death between 1900 and 2000, with 94m perishing in China, the Soviet Union, North Korea, Afghanistan, and Eastern Europe].
Milei goes on to attack collectivism, saying it binds the hands of entrepeneurs.
He rattles through a flurry of economic statistics, saying that between 0AD and 1800AD, global GDP per capita stagnated, apart from a pick-up after discovery of America.
GDP per capita only rose by 0.02% annually, he says, so almost no growth.
In the 19th century, in the industrial revolution, the compound annual growth rate was 0.66%, so would need over 100 years to double.
But this rate has picked up, so that in 2000-2023, the growth rate then accelerated to 3% per year, so can double in 23 years.
Argentina's Milei: The western world is in danger
Next up, on a busy day in Davos, is Argentina’s new president, Javier Milei, who is giving a special address.
This could be interesting… Milei flew by commercial jet to the World Economic Forum in Davos yesterday, taking selfies with passengers on board and criticizing what he called the event’s “socialist agenda”.
Klaus Schwab introduces Milei, contratulating him on his victory in the presidential election. This is your first foreign trip since, he points out.
Schwab, who has a dab hand introducing world leaders, says Milei’s “more radical methods” have “introduced a new spirit to Argentina”.
Milei then takes the microphone.
And he warns that “the Western world is in danger”, declaring:
Those who are meant to defend the values of the west have been co-opted by a vision of the world that inexoriably leads to socialism, and therefore poverty.
The main leaders of Western countries have abandoned freedom, in favour of collectivism, Milei claims.
These are not the solution to the world’s problems, he says, but the root cause.
Free market capitalism is the only way to tackle poverty, and the only morally desirable solution, he argues.
UNDP chief: More countries in debt distress, and possible default
The prospect of lower interest rates is bringing no relief to heavily indebted problems of the world’s poor countries, according to Achim Steiner, administrator of the UN development Programme (UNDP).
Steiner said in an interview here in Davos that:
“More countries are finding themselves in the realms of debt distress and possible default.”
Last month the World Bank said rising borrowing costs had pushed annual debt repayments to a record $443.5bn in 2022 and Steiner said this was having a profound impact on the ability of poor countries to grow sustainably.
“Countries are being left to fend for themselves or face choices that are brutal” Steiner said, adding:
“They are not able to pursue the development strategies they want but instead are going for whatever growth they can get”.
He continued:
“Debt repayments mean they don’t have the money to invest in the energy transition, educating their children, and building more resilience in health systems.”
David Cameron can’t escape his responsibility for Britain’s exit from the European Union at Davos today.
At the end of his session on supporting Ukraine, the foreign secretary is asked.
Q: You talked about the strength of the UK economy – doesn’t that show you were wrong to worry that Brexit would damage growth? Hasn’t Brexit been a big success?
Lord Cameron says the country made its choice in 2016 – now politicians must make it work.
He says Britain is demonstrating that it is perfectly capable of building a relationship where we are friends, neighbors and partners with the EU, and making it work.
He cites the response to Russia’s invasion of Ukraine as an example.
[On the growth point, the UK is currently on the brink of a technical recession, having contracted slightly in July-September].
Updated
Cameron: confident Rwanda bill will pass tonight
Q: Rwanda’s president Paul Kagame has said today [to the Guardian] there are limits for how long this can go on? Are you worried the deal could collapse?
David Cameron replies that he is confident the Rwanda bill will be passed tonight, when it has its third reading in the House of Commons.
[reminder: last night, two Conservative party deputy chairs resigned after defying Rishi Sunak and backing rightwing challenges to harden up his Rwanda deportation bill].
He says:
“We have signed this new treaty with Rwanda which puts beyond doubt that there are no dangers of asylum seekers being sent back to the country from which they came if they genuinely are asylum seekers.... I think that is important”.
And regarding the recent Supreme Court judgement against the scheme, Cameron says there is a huge pack of information abotu what Rwanda is like as a country. He says Rwanda now hosts schools that have relocated from Sudan, for example.
Of course we want to see this resolved; that’s what the bill, the treaty, the process is all about, Cameron declares.
Updated
Cameron denies Rwanda bill makes UK an embarrassment on world stage
David Cameron is then asked about the political row over Rishi Sunak’s Rwanda deportation bill.
Q: Is what’s happening over the Rwanda bill an embarrassment for the UK on the world stage, here in Davos?
Quite the contrary, Cameron insists.
He says the problem of illegal migration is one that every country has to deal with, particularly in the West.
And, Cameron claims, there are “two sorts of politicians” when it comes to this issue.
He says it’s “absolutely fine” to talk about dealing with backlogs of asylum seekers, to talk about smashing criminal gangs, to talk about collaboration with neighbours and partners, all things the UK is doing.
He adds:
“But unless you’re prepared to do something that stops this trade in human beings, that means if you take a boat from one perfectly safe country, France, to another perfectly safe country, Britain, you won’t be able to stay in the country.... then you are a politician that has got nothing to say about solving this problem.”
He adds that the government’s approach is “quite unorthodox in some ways”, but out-of-the-box thinking is necessary to break the model of this “appalling people smuggling” that undermines the UK immigration system and also costs lives.
Cameron says:
“We’ve seen this week, another four people drowning in the freezing cold water of the English channel on a January night. We’ve got to stop this.”
Cameron says there is a “growing understanding” about the need to take these novel steps, when he speaks to leaders from Italy, Austria and elsewhere.
Updated
Cameron: working very hard on using Russian assets for Ukrainian reconstruction
Lord Cameron has told delegates in Davos that there is a clear case for frozen Russian assets to be used to help pay for the reconstruction of Ukraine.
David Cameron is speaking on a panel discussion on the Ukraine war, as it moves towards its third year.
The UK foreign secretary points out that the countries backing Ukraine have a combined GDP 25 times larger than Russia.
We just need to make our support count, Cameron says.
And he argues that if you zoom out and look at the big picture, the Ukraine war has been a catastrophic disaster for Putin.
Russia has lost half the territory it captured early in the war, and has been sanctioned by a large swathe of the global economy.
Cameron also points to Ukraine’s progress in the Black Sea; with the Black Sea open, Ukraine is trading through its ports again.
Cameron says “Ukraine has done well, is doing well”, so the priority is to help Ukraine through this winter, and set up a system so that Ukraine can win in what will be a longer war.
Cameron is then asked about whether using Russian assets for Ukraine’s reconstruction would be legal.
He points out that the assets have already been frozen; the question is what we do next.
Legally, Cameron says there is growing support for the idea that these resources can be used in some way.
As a moral issue, he says Russia will have to pay reparations when the war is over, so why not use the assets now?
And the political angle, is that when Putin launched this illegal invasion, the world changed, and we need to change with it, Lord Cameron says.
We are now in a more uncertain world, so we need innovative thinking, Cameron says.
He adds that he is “certainly working very hard” on the issue, the rest of the G7 are too, and he’s confidence there will be progress.
Iran’s foreign minister Hossein Amir-Abdollahian then denies that Iran has supplied any drones or missiles to Russia that have been used against Ukraine.
He claims Ukraine has not provided any evidence to the contrary.
Iranian technology can be copied by others, Amir-Abdollahian argues.
He adds that Iran has asked Russia several times if they have used any Iranian-made weapons against Ukraine, and they have said not.
Iran’s foreign minister, Hossein Amir-Abdollahian adds that attacks by the “axis of resistance” against Israel and its interests will end if the Gaza war ends.
He warns that “everyone will be harmed” if the war continues.
DAVOS - IRAN'S AMIRABDOLLAHIAN SAYS "EVERYONE WILL BE HARMED" IF ISRAEL'S CRIMES IN GAZA DO NOT STOP IMMEDIATELY
— iNewsroom (@iNewsroom) January 17, 2024
Amir-Abdollahian adds that Tehran does not recognise Israel, and sees it as an occupying power for 75 years.
He also claims that Israel has become more isolated.
Hossein Amir-Abdollahian, Minister of Foreign Affairs of the Islamic Republic of Iran, is now speaking at Davos – and asked about Iran’s strikes on Iraq and Pakistan earlier this week.
Q: Both countries have protested, why did you do it?
Amir-Abdollahian says Iran enjoys very good relationships with both countries – and they agree about the necessity of fighting terrorism.
On the Iraq strikes, Amir-Abdollahian says they were aimed at the activities of Israel’s Mossad against Iran.
He says Iran respects the territorial integrity of Iraq, and will respond vigorously to any threats from Zionist groups.
He adde that Tehran has shared intelligence with Iraq about Mossad’s activities.
And on the Pakistan strike, he says they were targeting a terrorist group that has taken shelter in Pakistan. No Pakistani nationals were targeted, he insists.
[Update: we reported this morning that the attacks were apparently aimed at a Sunni militant group].
He adds that Iran has reassured Pakistan it respects its territorial integrity.
Updated
Just in: a photo of that meeting between Lord Cameron and Argentina’s president Javier Milei, taking place in Davos.
📸President Milei had a meeting with David Cameron.
— Javier Milei in English 🦁 (@InMilei) January 17, 2024
Milei has more that 60 meeting requests in Davos. pic.twitter.com/0zcLjypMlH
Reeves: Britain has huge potential
Rachel Reeves says the UK has ‘huge potential’, as she continues her whistle-stop tour of Davos today.
The shadow chancellor told CNBC she in Davos is to meet global investors and businesses, to show that Labour are now the pro-business party, and the party of wealth creation.
Reeves explains:
We are determined to get economic growth in the UK off the floor, to get us growing again, and that requires a partnership between government and business to unlock investment, and bring jobs and prosperity to the UK.
And that’s what I’m determined to do. I know the inheritance is going to be tough, if we do indeed have the chance to form the next government, but I’m an optimist about Britain. Huge potential. We’ve just got to tap it.
WHO: World should prepare for Disease X
The world should prepare for future unknown diseases, the head of the World Health Organization told delegates in Davos.
Tedros Adhanom Ghebreyesus, director-general of WHO, explains that the idea of so-called Disease X is not new – WHO has been using the term since 2018.
That’s because there are known threats, such as MERS, Zica, and Ebola.
But also, unknown things that may happen in the future, so a placeholder was needed for “a disease we don’t know that may come”.
Ghebreyesus says WHO had been preparing for a Covid-like virus before the 2020 pandemic, warning:
You may even call Covid the first disease X, and it may happen again.
Some people say this will create panic, Ghebreyesus adds, but this is incorrect.
He explains:
It is better to anticipate something that may happen, because it has happened in our history many times, and prepare for it.
We shouldn’t face things unprepared. We can prepare for some unknown things as well.
Such preparation includes an early warning system, and also systems that can expand when there is an urgent need for more medical space and workforce.
Cameron meeting with Argentina's Milei, to 'share a few insights'
UK foreign secretary Lord David Cameron is heading into a meeting with Argentina’s Javier Milei, here in Davos.
Lord Cameron tells us his message to Milei will be “Good luck, welcome”, and also “share a few insights”.
Updated
Rwanda's Kagame: Deportation deal is UK's problem, not ours
We caught up with Rwanda’s president Paul Kagame after his appearance on the World Economic Forum panel session here in Davos, and asked him about the revolt against Rishi Sunak’s Rwanda deportation bill.
Kagame said he was not following the debate in London. “It is the UK’s problem not ours”.
Kagame told my colleagues Larry Elliott and John Collingridge:
“I knew what the situation was 48 hours ago but don’t know what’s happened since then.”
Kagame expressed frustration at the drawn out debate about whether asylum seekers would be processed in Rwanda. “There are limits for how long this can drag on”, he said.
Kagame added that he would be happy for the scheme to be scrapped entirely.
Asked if the UK deal is working, Kagame said:
“Ask the UK. It is the UK’s problem, not Rwanda’s problem.
Asked about the money the UK has spent on the scheme, he said:
“The money is going to be used on those people who will come. If they don’t come we can return the money.”
Updated
Davos has now been hearing about the problem of the North-South divide, and how it can be addressed.
Rwanda’s president, Paul Kagame, told delegates in the Congress Hall he is optimistic that these problems can be addressed, through cooperation.
He says you cannot deny there are differences between nations, within the south, and also compared between the northe and the south.
This can be addressed through cooperation, and by addressing the root cause of each particular problem.
👀 Look who is here at Davos… on the big day for the PM’s Rwanda deal.
— Faisal Islam (@faisalislam) January 17, 2024
Paul Kagame, President, who UK Government says is concerned about UK remaining within international law as part of their migration deal, but whose country was not deemed “safe” for refugees by the Supreme… pic.twitter.com/Ni4RRBGRMy
Ngozi Okonjo-Iweala, head of the World Trade Organisation, says her big wish is that the global trade system is reformed, so that those who have not benefitted from current system, do so.
Developing countries do not see themselves benefiting from current system, she points out.
Gustavo Petro, President of Colombia, says democratic dangers need to be restored, and that 30 times more funding is needed to fix climate problems than was pledged in the Paris Agreement.
EBRD: Ukraine needs more financial support
Ukraine needs financial support as well as military support in order to prevent the government in Kyiv resorting to printing money to keep the economy afloat, the chief economist of the European Bank for Reconstruction and Development has said.
Interviewed in Davos, Beata Javorcik said that Ukraine’s economic situation was challenging, despite growth of just short of 5% last year.
Javorcik says:
“The big risk is that if money doesn’t come in from abroad things could spiral and the government might have to resort to the printing press. The government has done a very good job in ensuring macro-economic stability but we don’t want to have a failed state on our hands.
We need to support Ukraine not only militarily but through budget support.”
Javorcik said the EBRD was planning to invest between €7.5bn and €15bn over the next five years in Ukraine, with the focus on supporting the private sector.
She said there was a “substantial risk”, given the likelihood of the war continuing, of the economy being derailed.
Updated
Guterres pushes for risk management of AI
António Guterres also warned WEF that every new iteration of generative AI increases the risk of “serious unintended consequences”.
He cites a report from the International Monetary Fund this week that AI will probably worsen inequality.
He adds
“Powerful tech companies are already pursuing profits with a reckless disregard for human rights, personal privacy, and social impact.”
Guterres goes on to press Davos delegates to engage in the the UN’s push to develop a governance model for AI that is networked and adaptive.
He explains that his Advisory Body on AI has already made preliminary recommendations on AI governance, which would “ tap the benefits of this incredible new technology”, while mitigating its risks.
He adds:
We need governments urgently to work with tech companies on risk management frameworks for current AI development; and on monitoring and mitigating future harms.
And we need a systematic effort to increase access to AI so that developing economies can benefit from its enormous potential. We need to bridge the digital divide instead of deepening it.
On geopolitical crises, Antonio Guterres repeats his call for an immediate humanitarian ceasefire in Gaza, and a process that leads to sustained peace for Israelis and Palestinians, based on a two-state solution.
He says:
This is the only way to stem the suffering and prevent a spillover that could send the entire region up in flames.
Guterres also calls for a just peace in Ukraine, in accordance with the United Nations Charter and international law.
UN chief Guterres continues to say that the issues of climate and AI are exhaustively discussed by governments, by the media, by leaders here in Davos.
But there is no effective global strategy to deal with either, because geopolitical divides are preventing countries from coming together around global solutions.
It is little wonder that people everywhere are losing faith in governments, institutions, and financial and economic systems, he points out.
Guterres: We face a global crisis in trust
UN secretary general António Guterres has taken the stage here at Davos.
And he begins by warning that the world faces a “global crisis in trust”.
Rebuilding trust is the theme of this week’s WEF annual meeting, and Guterres says this crisis is due to a ‘paradox’ - that world leaders are failing to address clear risks.
He says
“In the face of the serious, even existential threats posed by runaway climate chaos, and the runaway development of Artificial Intelligence without guard rails, we seem powerless to act.
As climate breakdown begins, countries remain hellbent on raising emissions.
Our planet is heading for a scorching three-degree increase in global temperatures,
Droughts, storms, fires and floods are pummeling countries and communities.”
Guterres says he has witnessed the dramatic receding of Himalayan glaciers, and the accelerated melting of the ice sheet in Antarctica.
Guterres points out that 2023 was the hottest year on record - but might be cooler than future years.
He declares:
“The fossil fuel industry has just launched yet another multi-million-dollar campaign to kneecap progress and keep the oil and gas flowing indefinitely.
Let me be very clear: the phaseout of fossil fuels is essential and inevitable. No amount of spin or scare tactics will change that. Let’s hope it doesn’t come too late.
We must act now to ensure a just and equitable transition to renewable energy.”
Antony Blinken sums up the situation today, by saying he can’t think of a time when there has been a greater multiplicity of challenges.
And that means the US must work with allies – as virtually none of the problems that Washington want to address can be done in isolation
And when it comes to the hard things, he concludes, “when you are going through hell, keep going”.
Blinken then says that Taiwan plays an outsize role in the world, although it is small, due to its geography and its ingenuity.
He warns there would be serious consequences for the world economy if supplies of Taiwan’s semiconductors were disrupted.
Other countries say this to China too, he says, as everyone has the same interests.
Asked about Russia’s alliances, Blinken jokes that in diplomacy, sometimes you see collections of countries coming together and you’re reminded of the famous bar scene in Star Wars.
Blinken: "It reminds you of the bar scene in Star Wars." [And no, he's not talking about Davos.] #WEF24 pic.twitter.com/sOkQfQcLqH
— Balasubramaniam (@ThiruGeneva) January 17, 2024
Asked if were anywhere near a ceasefire in Ukraine, Blinken says ‘I don’t think so’.
He says Vladimir Putin is prepared to keep putting his young men into a meat grinder war, which is a profound tragedy.
But he can see a future where Ukraine stands strongly on its own two feet.
Blinken: big mistake to tear up Iran nuclear deal
Blinken is then asked about Donald Trump’s decision to tear up the Iran nuclear deal in 2018.
This was a “ big mistake”, Blinken replies.
He says that that deal meant the Iranian nuclear programme was in a box – but it has now escaped from that box. So we are now in a place where we don’t have the agreement we need.
It is deeply unfortunate, he adds.
Blinken: I think it was a big mistake to tear up the Iran nuclear agreement. We had Iran's nuclear programme in a box. Since the agreement was torn up, it’s escaped from that box. And we're now at a place where we didn't want to be because we don't have the agreement. #Davos2024
— Jack Dutton (@jackvdutton) January 17, 2024
Blinken: What we're seeing in Gaza is gut-wrenching
Q: Are Jewish lives more valuable than Muslim and Palestinian Christian lives, given the asymmetry in casualties in the Israel-Hamas war?
“No, period”, Antony Blinken insists, during his appearance on the stage at Davos this morning.
Asked at Davos if Jewish lives matter more than Palestinian and Christian lives, Blinken says categorically no - @Reuters
— Dan Williams (@DanWilliams) January 17, 2024
Blinken says that for him, and for so many of us, what we are seeing nearly every day in Gaza is gut-wrenching, adding:
The sufffering among innocent men, women and children breaks my heart.
Blinken says what we're seeing in Gaza is gut-wrenching; the suffering breaks my heart; the question is what is to be done - @Reuters
— Dan Williams (@DanWilliams) January 17, 2024
He insists that the US pressed Israel about its responsibilities every step of the way, meaning there were “several dogs that did not bark”, but adds:
That in no way takes away from the tragedy we have seen and continue to see.
He adds that no country would accept a repeat of October 7th, and that it is hard to overstate the psychological impact on Israel of what happened on that day.
Blinken points out that some people even refuse to accept that October 7th happened.
The biggest poison we face around the world is dehumanisation, he continues, ie “the inability to see the humanity in the other”.
We need to remove that poison, which means leaders around the world who see that, and are prepared to act on it, Blinken adds.
Updated
Blinken at Davos: At Camp David summit, Palestinians criticized for not doing enough to prepare people for two-state solution "The question now is, is Israeli society prepared to engage on these questions?" pic.twitter.com/fZiQo7dH4y
— Shaun Tandon (@shauntandon) January 17, 2024
Antony Blinken says there is a profound opportunity for regionalisation in the Middle East.
But the challenge is in realising it.
Blinken says he feels a fierce urgency to make progress now, in the midst of the human tragedy in the Middle East for Israelis and Palestinians alike.
He wants to see if we can start the move to a different vision, a different integration, as quickly as possible.
Blinken says Israel needs to be integrated and feel secure, and there must also be a pathway to a Palestinian state.
Without that, you will not get the security you need in the region.
A reformed Palestian authority who can deliver better for their people, must also be part of the solution, Blinken says. But it will need to operate with the support of Israel, not its opposition.
He points out that “even the most effective” Authority will struggle if it has the active opposition of the Israeli government.
Blinken speaks at Davos
Antony Blinken, US Secretary of State, has taken to the stage here at Davos, for a conversation with WEF founder Klaus Schwab, and commentator Thomas Friedman.
There’s a live-feed at the top of this blog.
Blinken is asked whether this is the worst time to be US secretary of state, or just in the top five.
Blinken argues, though, that the US is in a “renewed position of strength” under Joe Biden.
He says Biden asked him to reengage with international partners, and that has happened. It means that when dealing with China, and Russia, the world has more convergence than before, he argues.
In the Middle East, we have a profound and gut-wrenching challenge, Blinken continues.
But here’s hearing from nearly every country that they want the US at the table, and leading.
Without US leadership, you risk being left with a vacuum, Blinken continues – and vacuums tend to be filled by bad actors.
He adds, with some understatement, that this is an extraordinary time to have his job.
On US election, Lagarde says Europeans must be strong
ECB president Christine Lagarde was also asked about this year’s US elections. And after a quick swig of coffee, she replies:
“We have to be strong as Europeans and not assume that we can rely on whoever our friends are around the world, because that can change.”
@flacqua: "The US election."@lagarde: "Let me have some coffee."
— Brad Porcellato (@BradPorcellato) January 17, 2024
ECB President Christine Lagarde says "we are all concerned" about the upcoming US presidential election, as she speaks at #BloombergHouse at Davos https://t.co/4Yil8iYmZa pic.twitter.com/SAqwqIcTLh
European Central Bank president Christine Lagarde has told Davos delegates this morning tht the ECB is likely to cut interest rates in the summer.
In an interview at Bloomberg House here in Davos, Lagarde was asked whether there was enough support on the ECB’s governing council for a cut.
Lagarde says:
“I would say it’s likely too.
But I have to be reserved, because we are also saying that we are data dependent, and that there is still a level of uncertainty and some indicators that are not anchored at the level where we would like to see them.”
Lagarde cautioned that the battle to bring inflation down to 2% in the eurozone has not been won – the annual CPI index rose to 2.9% in December.
Some ECB policymakers, such as Portugal’s central bank governor Mario Centeno, have said inflation is still moving in the right direction. But others are more hawkish – Austria’s Robert Holzmann warned this week that the ECB might not cut rates at all in 2024.
On this split, Lagarde says
“You’ve talked to some of them, they have spoken recently, and each of them has their view, which I respect completely.
“We generally coalesce towards the decisions that we make on the basis of data. Some of them have their local domestic data, they have their respective inflation rates, which are different from one country to the other.”
Updated
Amitabh Behar, interim executive director of Oxfam, is in Davos this week, warning that it woud be “heart-wrenching” if the world were to have a trillionaire while there are 800 million people sleeping hungry.
As poverty worsens for five billion people and 800 million people go hungry, Davos folks have kept on perpetuating the myth that billionaires will save the world. Now the first trillionaire is on the way.
— Ben Phillips (@benphillips76) January 17, 2024
Kudos @oxfam’s @AmitabhBehar for saying this: pic.twitter.com/yptsc56xqE
Oxfam predicted on Monday that the world could have its first trillionaire within a decade…
Happening today: I'll be joining a panel at #WEF24 to discuss how governments can design tax systems that fight #inequality and fund just societies #InequalityInc #FightInequality #TaxTheRich 📺👇https://t.co/rX3WEgyC5A pic.twitter.com/uNbnk3AxyL
— Amitabh Behar (@AmitabhBehar) January 16, 2024
Updated
UK inflation rises to 4%
Back in the UK, inflation has risen unexpectedly,
The Office for National Statistics said annual inflation as measured by the consumer prices index (CPI) rose from the 3.9% reading in November, halting a period of recent declines.
City economists had forecast a modest fall to 3.8%.
In the year to December 2023:
— Office for National Statistics (ONS) (@ONS) January 17, 2024
▪️ Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 4.2%, the same rate as November.
▪️ Consumer Prices Index (CPI) rose by 4.0%, up from 3.9% in November.
➡️ https://t.co/U8NcxMkdgt pic.twitter.com/Do6AJgHNmx
The increase in the annual rate was largely the result of a government increase in tobacco duty, after the government announced higher taxes in the autumn statement. Tobacco prices rose by 16% on the year, as the cost of buying alcohol and tobacco added the largest contribution to inflation since 2006.
UK inflation unexpectedly rises despite sharp fall in fuel prices https://t.co/I5cynjizB3
— Richard Partington (@RJPartington) January 17, 2024
More here:
Tax our wealth, super-rich tell politicians at Davos
More than 250 billionaires and millionaires are demanding that the political elite meeting for the World Economic Forum in Davos introduce wealth taxes to help pay for better public services around the world.
“Our request is simple: we ask you to tax us, the very richest in society,” the wealthy people said in an open letter to world leaders, adding:
“This will not fundamentally alter our standard of living, nor deprive our children, nor harm our nations’ economic growth. But it will turn extreme and unproductive private wealth into an investment for our common democratic future.”
The rich signatories from 17 countries include Disney heir Abigail Disney; Brian Cox who played fictional billionaire Logan Roy in Succession; actor and screenwriter Simon Pegg; and Valerie Rockefeller , an heir to the US dynasty…
A message that chimes well with the Green Party’s call for a wealth tax this morning… More here:
Greens push for wealth tax on the super rich
The Green Party is challenging Labour to commit to a wealth tax, during Rachel Reeves and Jonathan Reynolds’ visit to Davos this week.
Green Party co-leader Adrian Ramsay said:
“When she attends the World Economic Forum in Davos today, Rachel Reeves will be rubbing shoulders with the super-rich who are seeing their wealth mushroom while billions around the world get poorer. Since 2020 the five richest men have added around £11 million per hour to their wealth while seven out of ten of the world’s biggest corporations have a billionaire CEO or a billionaire as their principal shareholder.
“Labour have been hesitant to challenge the grotesque levels of wealth of the super-rich. The Green Party has a clear message for the World Economic Forum: we are proud to be the Party willing to tackle inequality and implement the policies needed to create a fairer greener planet. That’s why we support the introduction of a wealth tax on the super-rich and we challenge Labour to use the platform they have at Davos to commit to the same.”
Introduction: Rachel Reeves pitches business leaders in Davos
Good morning from Davos, where the second day of the World Economic Forum’s Annual Meeting is getting under way.
The Labour Party are launching a charm offensive to corporate leaders in Davos today.
Shadow chancellor Rachel Reeves and shadow business secretary Jonathan Reynolds are hosting a breakfast hosted by the US investment bank JP Morgan this morning.
They’ll be telling CEOs, incuding the heads of Novo Holdings, Essar Group and Ericsson, that Labour will “restore Britain’s reputation as a place to do business”, if they win the next election.
Reeves will be pushing the ‘securenomics’ concept which she presented to last autumn’s party conference, contrasting it with “14 years of stagnant economic growth and political uncertainty” under the Conservatives.
She’s expected to explain that we are living in a new age of insecurity, saying:
The world has become a more uncertain, volatile and dangerous place. That has become ever more acute in recent days and weeks as we see wars and conflict in Europe and the Middle East.
“These conflicts are happening thousands of miles away from Britain’s shores. However, they are having a very real impact closer to home, with rising energy bills, higher prices in the shops and businesses anxious about disruptions to global trade.
“All major economies are being impacted by these global shocks, but Britain has been uniquely exposed. Fourteen years of stagnant economic growth and political uncertainty has left Britain weaker: the chaotic departure from the European Union, the turmoil under Liz Truss and now the managed decline with Rishi Sunak. This instability has turned businesses away, damaged our reputation and made us a less attractive place to do business.”
And on Labour’s strategy, Reeves will explain that business investment is at the heart of our plan for growth, pledging:
“With Labour, Britain will be open to business. We will restore stability and security into our economy. We will restore Britain’s reputation as a place to do business. And we will be a trusted partner with business in delivering the change our country and our economy needs.”
Later in the day, Reeves will speak on a panel organised by the World Economic Forum on Modern Supply-Side Economics.
After yesterday’s focus on Ukraine, including a call for support from Volodymyr Zelenskiy, attention will turn more to the Middle East crisis today.
We’ll hear from US secretary of state Anthony Blinken, UN secretary general António Guterres, and Iran’s foreign affairs minister, Hossein Amir-Abdollahian.
Overnight, Iran has launched airstrikes on Pakistan territory, apparently aimed at a Sunni militant group, in the latest sign of a wave of violence rolling across the Middle East and beyond.
Later in the day, Argentina’s president Javier Milei and French leader Emmanuel Macron will both give special addresses to delegates.
The agenda
10am CET / 9am GMT: A Conversation with Antony Blinken, US Secretary of State
10.45am CET / 9.45am GMT: Special Address by António Guterres, Secretary-General, United Nations
11.30am CET / 10.30am GMT: A panel discussion on “Preparing for Disease X”, including Tedros Adhanom Ghebreyesus, Director-General of the World Health Organization and Michel Demaré, chair of AstraZeneca
1.30pm CET / 12.30pm GMT: A Conversation With Hossein Amir-Abdollahian, Minister of Foreign Affairs of the Islamic Republic of Iran
2pm CET / 1pm GMT: A discussion on “Ukraine: Unity of Purpose”, with Dmytro Kuleba, Ukraine’s Minister of Foreign Affairs, and David Cameron, UK foreign secretary
2.15pm CET / 1.15pm GMT: A Conversation with Mohammad Mustafa, Chairman, Palestine Investment Fund
3.45pm CET / 2.45pm GMT: Special address by Javier Milei, President of Argentina
5.15pm CET / 4.15pm GMT: Special Address by Emmanuel Macron, President of France
5.30pm CET / 4.30pm GMT: A discussion on Modern Supply-Side Economics: Two Years On, with Rachel Reeves
