Main events
Increasing complaints against governments, businesses and the wealthy
The World Economic Forum is warning this morning that levels of complaints against businesses, governments and the wealthy have risen.
Richard A noble manCEO of A noble manis explaining that the latest Edelman Trust barometer (released this week) shows that in recent years economic fear has evolved first into polarization, and now into grievance.
Grievance is defined as the belief that government and business harm them and serve narrow interests, and ultimately the rich benefit while regular people struggle.
Edelman It explains that half of Generation Z does not believe in democratic institutions.
Across the age range, 40% say they support hostile activism to achieve change – which includes attacking people online, purposefully spreading misinformation, threatening or committing violence and damaging public or private property.
Over 50% of those aged 18-34—Gen Z—believe in hostile activism, he says.
Tirana HasanExecutive Director at Human Rights Watchtells Davos that in an age of misinformation, the fact that some social media companies are shirking their responsibilities to moderate content and ensure safe free speech is destroying trust.
Business Secretary Jonathan Reynolds has left the door open to joining a tariff-free trade scheme with Europe after a meeting with the EU Trade Commissioner here in Davos.
Jonathan Reynolds I met with Maros Sefkovic On Thursday, Sefcovic suggested Britain could join the Pan-Euro-Mediterranean Convention (PEM), which allows tariff-free trade in goods across Europe, as well as some North African and Levantine nations.
Reynolds He described the comments of Mr. Sefcovic as “very positive” and “helpful”, and suggested that joining the PEM could be acceptable as “it is not a customs union”.
“We can improve the terms of trade with the EU in a way that doesn’t review customs unions or single markets or Brexit arguments, and we can do it while pursuing closer trade links around the world.”
Young
🚨 Trade trade Jonathan Reynolds tells @Bbcnews After Trump’s speech, the U.S.
🚨 Reynolds also clarified that both the UK joins the PEM and a Brexit vet with dynamic alignment would not cross red lines. pic.twitter.com/woeevmifmg
– Faisal Islam (@faisalislam) January 24, 2025
As we reported on the blog yesterday, Reynolds He does not expect the UK to be badly affected by any tariffs imposed by Trump because we are not among the countries with which the US has a large trade deficit.
Back in the UK, the future of Thames Water is hanging in the balance after the UK government reportedly approached multiple restructuring advisers for the role of special administrator for the company.
Teneo, Interpot AND eye are among the companies said to have been contacted by the government as it prepares contingency plans if Britain’s biggest water company is forced to nationalise.
My colleague knock Hilarious explains:
Thames Water, which provides water and sewerage services to 16 million customers in London and South East England, has been teetering on the brink of collapse for months as it struggles under a £15bn debt pile.
A special administration regime, or SAR, would take the company into temporary government ownership to ensure vital water supplies continue to operate even if the company becomes insolvent. The government previously appointed Teneo to run SAR for Lamp, an energy company that collapsed following Russia’s fallout in Ukraine.
Boj removes interest rates
In Japan, the central bank has raised interest rates – just hours after Donald Trump told Davos that borrowing costs around would fall.
Bank of Japan raised interest rates to their highest since the 2008 global financial crisis, and also revised its inflation forecasts.
Movable Movement Of Japan Short term policy rate from 0.25% to 0.5%.
yesterday, trumpet given Web That he will demand that US interest rates “fall immediately”, adding:
And likewise, they must fall all over the world. Interest rates should follow us.
Intro: US Economy Surpasses as Trump Rocks Davos
Good morning from Davos, where it is the last day of the World Economic Forum.
The global elite here in Davos are catching their breath after being addressed by Donald Trump last night.
In a bombastic speech by VideoLink, Trump declared that he wanted lower global oil prices, interest rates and taxes, as well as a big jump in NATO military spending.
He also appeared to indicate that he would impose tariffs on all imports into the US – though he was few and far between.
As Trump put it:
“Come make your product in America and we’ll give you some of the lowest taxes of any nation on earth.
“But if you don’t make your product in America, which is your prerogative, then quite simply, you will have to pay a tariff – different amounts – but a tariff, which will drive hundreds of billions of dollars and even trillions of dollars into our Treasury to strengthen our economy and pay down the debt under the Trump administration.”
Trump’s comments moved markets, with oil prices plunging after he told Davos he would push Saudi Arabia and OPEC to cut crude prices.
His call for lower interest rates lifted the S&P 500 to a record high.
Ipek Ozkardeskayasenior analyst at SWISS Bankexplains:
With the exception of the goal of lowering energy prices, most of Trump’s wishes are inflationary.
The new US administration has been a major topic of discussion at WEF this week, along with AI, Europe’s lagging economy, the energy transition and the future of globalism.
S&P Global Ratings ‘ Chief Economist, Paula Gruenwalddelegate counts here are used to Trump’s operating model, saying:
The potential volatility and continued uncertainty in Trump 2.0 have been internalized and are now seen as a cost of doing business.
The US economy was seen by all at Davos as outperforming the rest of the world by a wide margin on the back of productivity gains as well as fiscal distance. Non-US participants.
Today we will hear how the policy makers feel about the situation, with the managing director of the IMF Crystalline Georgieva and the President of the ECB Christine Lagarde.
Agenda
9:00 CET / 8AM GMT: Session on Renewing the Promise of Democracy
10.15am CET / 9.15am GMT: A session on the US-EU-China triangle
11:00 CET/10:00 GMT: A session on the global economic outlook with IMF Chief Kristalina Georgieva, Saudi Arabia’s Minister of Economy Faisal Alibrahim, Blackrock CEO Larry Fink, KRB President Christine Lagarde and President of Singapore Tharman Shanmugaratnam.
12:00 CET/11:00 GMT: Closing remarks by Børge Brende, President and CEO, World Economic Forum