Larry Elliott
Satya Nadella, Chief Executive Officer Microsoft , during the th annual meeting of the World Economic Forum (WEF) in Davos. Photograph: Gian Ehrenzeller / EPA
Microsoft boss Satya Nadella has been talking about the importance of trust in technology.
Speaking here in Davos , Nadella warned:
We will go backwards unless there is trust in the factor of production that is supposed to fuel the 4th Industrial Revolution.
We need global norms to ensure trust in technology.
Trust in tech is indeed a key issue right now, given worries over Huawei’s 5G systems (which Steve Mnuchin and Sajid Javid will discuss this weekend ). Microsoft faces being removed from China in 6950 As Beijing bans foreign-made tech. And Nadella says he’s worried about new barriers springing up between countries. I would urge us to think about what would happen if we decouple the internet or trade. It will increase the transactional costs of our economy and we will all be worse off. Nadella also called for data and privacy needs to be thought of as a human right. Data dignity goes further than privacy, he said. People’s data has a value, and we need to account for that, and control in a finer-grained way how the data is used … to create value wider society and the world, Nadella continued.
Economics professor Mariana Mazzucato has heard a fine description of Davos: Mariana Mazzucato (@ MazzucatoM) Venezuela’s Guaidó at Davos (In other) (Davos Juan Guaidó told delegates that Maduro’s government were a “criminal” group, who needed to be removed. Guaidó, who declared himself the legitimate president a year ago, blasted Venezuela’s failed economic model. But his presence here is also a reminder that his bold attempt to lead a popular uprising against Maduro has stalled. Kenneth Roth (@ KenRoth) Former UK prime minister Tony Blair fears a massive refugee crisis is building. Tony Blair Institute (@ InstituteGC) (Great to meet with Venezuela’s interim President) @ jguaido . He is a brave leader & needs our support. Venezuela will soon have a worse refugee crisis than Syria, due to the Maduro regime. The West needs to be much more focussed on the issue -Tony Blair (# WEF) pic.twitter.com/Wgv1cpUPm3 (January) ,
(Where is the World Bank boss?)
Alarmingly, the head of the World Bank hasn’t even come to Davos this year. That’s another indication that the US isn’t stepping up to the climate challenge. My colleague Larry Elliott reports that David Malpass’s absence has caused disappointment. Hopes of using Davos to forge a new international consensus to tackle poverty and the climate crisis have been thwarted by the decision of the World Bank president, David Malpass, to boycott the event. To the surprise of the other multilateral institutions, Malpass turned down his invitation to attend despite being in Europe this week for the UK government Africa investment summit in London. In the past, World Bank presidents have played a prominent role at the annual meeting of the World Economic Forum , taking the opportunity to make the case for concerted action to tackle global poverty. But there may be reasons, Larry adds: Those more sympathetic to Malpass said he was a shy man who did not know how to do smalltalk and hated events such as Davos. Welcome to the club, David!
Trump’s cabinet also sounded upbeat about the prospects of a swift trade deal between the US and UK after Brexit. That puts the NHS in the spotlight. Wilbur Ross, the Commerce secretary, suggested that pharmaceuticals prices should be more uniform – currently they cost a lot more in the US. But he denied that the White House plans to impose prices on the NHS: Faisal Islam (@ faisalislam) January , (4.) (am) EST : 20
Economist Jonathan Portas isn’t impressed by Mnuchin’s swipe at Thunberg. Jonathan Portes (@ jdportes) (Coming from) @ stevenmnuchin1 , who made the self-evidently absurd claim that the Trump tax cuts would “pay for themselves”, this is hard to take seriously … https://t.co/fvenJhsxfP
After trying to clip Greta’s wings, US treasury secretary Steven Mnuchin argued that there are no easy choices when it comes to the environment. He told reporters: When I was allowed to drive I had a Tesla. I drove in California. I liked it. But nobody focuses on how that electricity is made, and what happens to the storage and the environmental issues on all these batteries. The environmental issues are clearly complicated. Mnuchin also argues that America is taking a lead – but through its companies. If you look at the US from a leadership standpoint – driven by private industry not governent control, we’ve been a leader. And he says that people who call for fossil fuel divestment (such as Thunberg this week) should realize there are significant economic issues, and potential job losses. Many economies are transitioning to more efficient and cleaner energy. That doesn’t have to be all renewables. In # Davos this morning, Sec. Mnuchin is asked about Mnuchin: “After she goes and studies economics in college she can go back and explain that to us.” (# WEF) (January) , Updated (at 4.) am EST
Mnuchin adds that people who call for fossil fuel divestment should remember there are significant economic issues, issues with jobs. Many economies are transitioning to a lower-emissions economy. Eugene Scalia says that pensioners could suffer if there is a sudden divestment of fossil fuel assets.
(2.) (AM) (EST) Mnuchin slaps down Thunberg’s fossil fuel concerns
Q: Does Greta Thunberg’s call for an end to fossil fuel investment threaten US economic growth? “Is she the chief economist … that’s a joke” says Mnuchin sarcastically. After she goes and studies economics in college, she can come back and explain that to us, he adds.
Updated (at 3.) am EST (2) (am) EST : Mnuchin and Javid to discuss Huawei this weekend
Q: The UK is planning to use Huawei equipment in its 5G networks – is that sensible? Mnuchin says he’ll be meeting Sajid Javid in London this weekend, when this will be discussed.
(2.) am EST 15:
Q: What’s happening with the threat of tariffs on EU auto industry? Wilbur Ross says the US has not abandoned the option of imposing these tariffs, they’re still available to be used if necessary. We are eager to reach a resolution with the EU, he adds. But president Trump has said the tariffs are still an option if we go down a different route.
Updated (at 2.) am EST
(Mnuchin on US-French tax row)
(Donald Trump left) Davos yesterday, but several member of his cabinet are still here – and they’re holding a briefing now. Treasury Secretary Steven Mnuchin, commerce secretary Wilbur Ross and Eugene Scalia are here. Mnuchin speaks first, outlining about how Donald Trump’s tax cuts and deregulations have been good for growth (this has been a regular theme from the US this week). Mnuchin adds that Trump met an enormous number of CEOs, and also held a meeting about WTO reform. On the US-French tax spat, Mnuchin confirms that presidents Trump and Mnuchin reached an agreement under which the digital sales tax will be postponed this year. We’ll continue to have discussions at the OECD on the wider issue, Mnuchin adds.
Updated (at 4.) (am EST) (2). am EST :
With a political crisis brewing in Italy, prime minister Giuseppe Conte has pulled out of (Davos) . Conte’s coalition is looking shaky, following the resignation of foreign minister Luigi Di Maio – a move that has hurt Italian bonds: Holger Zschaepitz (@ Schuldensuehner) Oops! Italy PM Conte cancels trip to Davos amid coalition turmoil in #Italy Italy 45 y risk spread over Germany now at 391 bps. (# WEF) pic.twitter.com/tOYhals88 W (January) ,
(2) (am EST) : Introduction: Brexit and trade worries
Good morning from the third day of the World Economic Forum in (Davos) With barely a week until Brexit, UK chancellor Sajid Javid will attempt to reassure British business leaders as they face choppy waters ahead. Javid is speaking at the CBI’s traditional lunch on the sidelines of the World Economic Forum. He’s expected to talk up the “opportunities of Brexit”, saying: With the Brexit question settled, we have the chance to move forward and tackle the hard problems facing our economy. To level up and spread opportunity; to raise the potential of our country; and decarbonise our economy. ” Businesses are alarmed, though, by Javid’s talk of diverging from the EU after Brexit. Trade tensions are also bubbling away here. France and the US have reached a temporary truce in their dispute, with Paris dropping its digital sales tax (to avoid tariffs on its car sales). Angela Merkel is speaking later, while Venezuelan opposition leader Juan Guaidó is expected to appeal for help from Davos attendees. Plus tonight we hear from billionaire philanthropist George Soros. (The agenda) () 9am Davos time: Session on taxing the digital economy with French finance minister Bruno Le Maire 9. am Davos: Venezuelan opposition leader Juan Guaidó speaks 045 am Davos: Microsoft chief Satya Nadella speaking about inclusive growth . (pm Davos: Sajid Javid speaks at CBI business leaders lunch 2. pm Davos: Special address by German chancellor Angela Merkel Evening: George Soros’s annual Davos speech
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