Davos attendees who hung around for the last day heard behavioural scientist Jane Goodall talking a lot of sense.
She called for:
“love, compassion and making decisions not based on how this will help my bank account … but how will it affect future generations.”
If only....
Goodall, famous for her pioneering work with chimpanzees, also warned that the natural world needs protection.
“As we destroy the natural environment...we are destroying our own future, our own children and grandchildren. We all care about them, but we’re not thinking about how what we do today is stealing their future.”
Britain’s biggest retailers and wholesalers have raised their stockpiling efforts to the highest levels since the 2008 financial crisis, according to a key industry report, with little more than 60 days to go before Brexit.
According to the latest snapshot from the CBI’s monthly distributive trades survey, retail businesses raised the ratio of their stocks to expected sales in January to the highest level since February 2008.
The report, which is closely monitored by the Bank of England for early warning signs from the UK economy, said retailers expected demand to fall and had built up stocks in case the UK exits the EU without a deal.
Novartis warns a no-deal Brexit will harm patients
Novartis is the latest firm to warn about the potential pitfalls of a no-deal Brexit, including a shortage of medicines.
The Swiss pharmaceuticals company says it is stockpiling drugs in the UK before a possible no-deal, which it warns would be “hugely impactful for patients, particularly around the supply and safety of medicines”.
Read the full story here:
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Who said deals are never done in Davos?
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Brexit has been a key talking point in Davos, where business leaders have urged clarity from the government amid mounting warnings from firms that a no-deal scenario would be disastrous for jobs and the economy.
One businessman who has consistently taken the opposing view is Tim Martin, the founder and chairman of pub group Wetherspoon and a firm supporter of Brexit.
Martin has been touring his pubs to promote his vision for a no-deal Brexit, and was interviewed by Guardian columnist Owen Jones in Southend-on-Sea. It’s fair to say they didn’t see eye to eye:
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The climate change protest is breaking up now. And so is the World Economic Forum, in a rather downbeat mood .
There’s really not been much drama here today, alas. The early finish means many delegates seem to have skipped sessions, and skipped off.
More from the Lagarde panel:
The students protesting outside the World Economic Forum are on the right side of history....but are the delegates scurrying past them?
Greenpeace International executive director, Jennifer Morgan, says she’s disappointed that Davos hasn’t provided the “moral, business and political” leadership needed to fight global warming.
It is deeply disturbing that, as the world tinkers on the brink of a climate catastrophe, avoiding further temperature rise is not at the very centre of all of the meetings of CEOs and world leaders. The solutions are in front of them and they need to prioritise solving this crisis, join the youth who are leading the way forward and thus be on the right side of history.
Yesterday there were 32,000 school strike students on the streets of Belgium and today children are taking to the streets of Berlin clamouring for an early coal phase-out. The youth are demanding to be heard, the question is, why isn’t the Davos elite responding with the scale and pace required? Short-term business interests and making a greater profit, whatever the cost to others, clearly remains the Davos elites priority. We have no time to waste.
Photos: Climate protests at Davos
Davos delegates are getting a taste of the anger over climate change.
As they leave the congress hall, they will see a group of young people holding a climate strike - urging world leaders and business chiefs to wake up to the crisis and Actually Do Something, not just talk about it.
It’s led, of course, by Thunberg, who has been doing this every Friday outside the Swedish parliament since September...and other children are joining her around the world.
More highlights from Greta Thunberg’s press conference:
Economist Mariana Mazzucato is outlining how to encourage innovation, and warning that some popular policy measure are flawed.
R&D tax credits sometimes don’t work, she says, because companies use them to fund research they’d have paid for anyway.
The smart answer is to use “granular instruments” - ie rewarding companies who create jobs, rather than basing it on profits.
That’s why the patent box beloved of George Osborne doesn’t really work, she explains -- it simply lowers profits and potentially fuels the problem of inequality.
Bottom line - businesses invest when their expectations about growth opportunities are high.
It’s a mistake to fight technology because you fear it will make some jobs redundant, argues Kganyago.
You can’t protect the job of an encyclopedia salesman, because the internet took that job away.
You should protect the people, not the jobs, he adds.
Fair point. But with a jobless rate of 27%, you can see why South Africa’s unions are worried.
Lagarde’s panel has turn to demographics and the world of work.
Japan’s ageing society has caused a labour shortage. BoJ central bank chief Haruhiko Kuroda says this has forced farms and companies to embrace automation.
But South Africa faces a different challenge - trying to get its younger population up to speed for the 4th Industrial Revolution.
Lesetja Kganyago, governor of the South African Reserve Bank (SARB), says policymakers need to “invest in the capabilities of young people so they can embrace technologies.
If not, the resulting skills gap will hurt its economy.
The future of work is going to be different, Kganyago says, so South Africa needs to broaden the skills base, and think differently about the education system.
Does the curriculum we have, in various institutions, cater for the needs of the changing economy, so that when these young people come through the educational system they can engage with an economic system that is being drive by technology?
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World Bank CEO: Think of the children on climate change
Kristalina Georgieva has also got the message that climate change is going to hurt younger generations, (who didn’t create the problem, of course).
She tells delegates:
When you think about climate, get a photo of your children and grandchildren in front of you. I guarantee you it will change your perspective. I did this and it works.
Kristalina Georgieva, World Bank CEO, says global leaders can help fight climate change by eliminating harmful subsidies [on energy and agriculture, for example].
Georgieva says progress has been made - these harmful subsidies have shrunk from $600bn to $300bn, but “we still have $300bn to go”.
She cites Egypt as a good example -they cut subsidies from 7% of GDP to 3%.
However, that risks harming vulnerable people (who suffer when petrol prices spike)
She insists that moving to a low-carbon economy is good economics, creating new jobs in cutting-edge technology areas.
So, those who tell you that low carbon is bad for the economy - don’t bite.
Thirdly, we need to provide more support for countries who didn’t create the climate crisis - but are suffering the damage. She cites Niger, Chad, and small island states.
Christine Lagarde begins by singling out the issue of climate change (maybe Greta had a word...)
Average surface temperature has risen by nearly once degree Celcius since the late 19th century.
Most of the warming has occurred in the last 35 years., with the five warmest years on record experienced since 2010.
If we don’t make the minimum global effort, which will be hopefully upped next year, to curb emissions, rising temperatures will wipe out whole segments of economies, not to mention the dramatic human damage it will cause.
The poorest countries will be most affected, she adds, but advanced economies will not be immune.
The final main event of Davos, on the state of the global economy, is underway.
But the cavernous congress hall is remarkably empty -- so much that our Larry Elliott has bagged a front row seat.
It looks like there’s only few hundred people -- many delegates have already checked out.
The panel is being chaired by IMF chief Christine Lagarde. We have World Bank chief Kristalina Georgieva, South Africa’s central bank governor Lesetja Kganyago, Japan’s central bank governor Haruhiko Kuroda, and economics professor Mariana Mazzucato.
Thunberg is now addressing the media, repeating her warning about the urgent need to reduce emissions.
Bad luck, Davos Man, Money doesn't make you happy
Three Yale university psychology professors who are experts in well being have an uncomfortable message for the wealth-seeking billionaires in Davos: your brains are lying to you.
Laurie Santos, one of the trio, says:
“One reason we are not as happy as we could be is because our minds are lying to us. It asks us to want the wrong sort of stuff. It tells us that more money bring us happiness.”
Santos says that more money does lead to happiness but only at relatively low levels of income.
“Once you get much above the poverty line happiness flatlines”.
Santos’s colleague Hedy Kober says that if Davos is serious about sustainability and tackling climate change, it should look at the Himalayan kingdom of Bhutan, which measures gross national happiness as an alternative to gross domestic product.
Kober says:
“If our goals are happiness and well being, we are doing it wrong.”
UK health minister on genome sequencing.
Questions have turned to how genetic information can be used by private companies like insurers to determine costs/premiums. Hancock points out how insurance firm Sheilas’ Wheels only offered insurance to women on the base that they posed lower risk. That was deemed unlawful by the EU.
Hancock says there is “absolutely” a role for government in deciding what information is and isn’t valid in the provision of insurance (and presumably other services).
There’s also a question of who owns genetic data, which Hancock stresses should be controlled under consent of the individual.
The health secretary said choice needs to be central to the question of genome sequencing.
“Not allowing people to opt out...would be a huge imposition of the state into people’s lives.”
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Greta Thunberg: it's time to panic on climate change
Climate activist Greta Thunberg has lived up to her pledge to warn Davos to address the climate crisis.
She told us yesterday that she had chosen to trek to Davos to get her message out.
And a few minutes ago, speaking on a panel session, she told delegates she was here to tell them that “Our house is on fire”, due to greenhouse gas emissions and rising global temperatures.
Thunberg started striking from school last summer to press Swedish MPs to meet their Paris Agreement obligations.
At places like Davos, people like to tell success stories, but financial success has come with an unthinkable price tag on climate change.
We have failed.
Thunberg added that the media haven’t managed to create enough awareness of the urgent problems of climate change. But, it’s not too late....
It’s a simple issue. We need to stop emissions of greenhouse gases. Either we do that or we don’t. Either we prevent 1.5 degrees of warming, or we don’t.
There are no grey areas when it comes to survival.
Adults like to say that they want to give their children hope. I don’t want your hope. I want you to panic. I want you to feel the fear I feel every day.
I want you to feel as it the house is on fire, because it is.
Christiana Figueres, the former head of the UN’s climate change group, backs Thunberg, saying
She’s right, we have not panicked enough.
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You know the tax system is in trouble when even the accountants won’t defend it!
Bob Moritz, the chairman of accountancy giant PcW, has told Davos that today’s taxation systems are old, outdated and not fit for the future.
They were set up for protectionism, he explains, as countries fought over each other to attract companies.
You’re telling us that people want to pay more tax?!
Moritz doesn’t go that far, but is damning about the status quo:
We want to pay our fair share of taxes, but the reality is the tax laws and regulations we have today are absolutely antiquated and not fit for the multiple stakeholders that we have to focus on.
All very worthy. But lets not forget that PwC was roasted by MPs a few years ago for selling tax avoidance on an industrial scale. Talk is cheap (well, as much as anything is cheap in Davos)
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Oxfam: Time to stop rigging economy for the rich
Winnie Byanyima, executive director of Oxfam International, has delivered a stinging blast at governments for not tackling wealth inequality.
We are now in an economy that is really rigged, so that a few get better off and others now.
With this kind of extreme inequality, many will remain stuck in poverty, says Byanyima, citing World Bank data which shows the rate of reducing extreme poverty has slowed, and continues to slow.
How bad is the situation? Very bad:
3.4 billion people are just a crop failure, or a medical bill away, from falling back into extreme poverty, because they’re earning no more than $5.5 per day.
Rich companies, rich people, have been able to write the rules of the economy so they are winners and others are losers.
She thinks a universal basic income would do some good, but ultimately we need a wealth tax, to create fiscal space for education and healthcare (an idea that is rocketing back up the political agenda)
And she warns that austerity in rich countries is hurting women particularly badly:
Women are pulling out of work to care for the sick, of the elderly, of disabled people.
This is because governments have sat back, not done their job and allowed a few to take away the bulk of the wealth.
A quick audience poll at a Davos panel on wealth inequality shows that 61% don’t support a basic income.
European markets rise after gains in Asia
Investors are in a relatively upbeat mood this morning, with European markets up across the board following gains in Asia.
- FTSE 100: +0.3% at 6,837
- Germany’s DAX: +1.1% at 11,253
- France’s CAC: +0.7% at 4,905
- Italy’s FTSE MIB: +0.8% at 19,724
- Spain’s IBEX: +0.7% at 9,210
- Europe’s STOXX 600: 0+0.7% at 358
Michael Hewson, chief market analyst at CMC Markets:
Despite the ongoing uncertainties around US, China trade markets in Europe have opened higher this morning, taking a positive lead from a strong performance for Asia markets.
It’s been a decent week for markets in Asia with the Nikkei 225 closing higher for the third week in a row, the first time that has happened since October last year.
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Chancellor Philip Hammond has just arrived at the Congress Centre.
He wouldn’t stop to talk and his team has said he’s on his way to a “bilateral meeting” downstairs but would not say with who. He was with about half a dozen staff, with a camera in tow.
Hammond has pulled out of this morning’s session on the global economy, which was officially blamed on work pressures. However, Davos insiders told us that the Treasury objected to him being on the same platform as the economist Mariana Mazzucato (which the Treasury denied).
Never mind Khashoggi, let’s make money!
That, I’m afraid, is Saudi Arabia’s message to Davos - as illustrated by this massive poster outside the congress centre.
It’s a timely reminder that money counts for more than morals round here. Just months after Jamal Khashoggi’s brutal murder, Saudi delegates aren’t being cold-shouldered here.
At an event where success is often measured by who’s seen at a reception or speaks on a panel, the Saudis aren’t getting the cold shoulder any more. James Gorman, the head of Morgan Stanley, spoke on Thursday in a debate alongside two Saudi ministers. And the likes of Jamie Dimon of JPMorgan Chase & Co. and John Flint of HSBC Holdings Plc attended the annual Davos party thrown by Saudi oil giant Aramco, according to a person present.
“I don’t think Saudi Arabia is in the penalty box,” Gorman said in an interview with Bloomberg TV. Khashoggi’s murder “was utterly unacceptable and the world including the Saudis want to understand exactly what happened. In the meantime, Saudi is a country of 32 million people. These folks deserve a shot,” he said.
In case you missed it, here is the full story on our interview with Greta Thunberg, the 16-year-old climate change campaigner, who will be addressing delegates in Davos later this morning:
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Agenda: Christine Lagarde and the global economy
Good morning, and welcome to our rolling coverage of the final day of the World Economic Forum in Davos, and other events across the economy and the markets.
In Davos, the global elite will be looking nervously to the future today - with sessions on inequality, bioethics and the global economy.
IMF chief Christine Lagarde will chair a discussion on the world economy. The global slowdown, the US-China trade war and Brexit have all loomed over WEF this week, so we’ll hear what World Bank chief Kristalina Georgieva, South Africa’s central bank governor Lesetja Kganyago, Japan’s central bank governor Haruhiko Kuroda, and economics professor Mariana Mazzucato have to say.
Delegates will also by digesting George Soros’s stinging attack on China last night, when he accused president Xi of using technology such as artificial intelligence to control his population.
Swedish 16-year old climate change campaigner Greta Thunberg is bringing her campaign to Davos. She’ll be giving a speech to delegates, and conducting her weekly school strike.
Yesterday she told us:
I have said that every Friday I will sit outside the Swedish parliament until Sweden is in line with the Paris Agreement, and now this Friday I can’t be there. So I will have to do it here, and send a message that this is the only thing that matters.
The agenda:
- 9.15am GMT / 10.15am Davos: Session on “What if everyone had their genome sequenced at birth?” with UK health secretary Matt Hancock.
- 9.30am GMT / 10.30am Davos: Session on the cost of inequality with primatologist Jane Goodall and Oxfam’s Winnie Byanyima
- 10.30am GMT/11.30am Davos: Session on the global economy with Christine Lagarde, Kristalina Georgieva, Lesetja Kganyago, Haruhiko Kuroda, and Mariana Mazzucato
- 10.15am GMT/11.15am Davos: Greta Thunberg gives speech on the urgent need to combat climate change
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