24.01.2023 / Global leaders and business executives participated the World Economic Forum (WEF) meeting on 20, January 2023.
ECONOMY: Davos turned into optimism with the global economic outlook.
The WEF’s annual meeting was filled with discussion of plenty of risks, including inflationary pressures from China’s reopening and rising debt distress in the developing world.
TRADE: Be careful of friendshoring, as the big three trading powers of the United States, Europe and China pushed their new industrial policies. What was not clear was how the rest of the world fits in to new trade policies that protect workers and redefine supply chains.
FINANCIAL SERVICES: Global financial institutions are grappling with how to right-size for a slowdown. With the threat of inflation still hanging over central banks financiers are facing demands from regulators for higher capital levels to prepare for a downturn, making some businesses unprofitable.
INFLATION REDUCTION ACT: dubbed a gamechanger for climate change, the Europeans had plenty to gripe about when it came to America’s Inflation Reduction Act. The European Union said it would mobilize state aid and a sovereignty fund to keep firms from moving to the United States.
CLIMATE: The carbon crowd received a warm reception as the renewable industry. Awash with cash after a year of high oil prices, fossil fuel producers have the firepower to invest in green energy. But efforts on CEO green pledges and climate financing appeared sluggish.
Source: The World Economic Forum
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