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This week, the Swiss skies will be ablaze with jets carrying business and political leaders, news experts and billionaires to Davos for the World Economic Forum (WEF). WEF is an annual event where elites discuss the year's most pressing issues over $150 steaks and $40 martinis. .
More than 60 heads of state will be in attendance this year, including Israeli President Isaac Herzog, Ukrainian President Volodymyr Zelenskiy, French President Emmanuel Macron, and China's Deputy Commander-in-Chief Li Qiang. The United States will also send Secretary of State Antony Blinken, National Security Advisor Jake Sullivan, and Special Presidential Envoy for Climate John Kerry.
Corporate executives include Microsoft CEO Satya Nadella, OpenAI CEO Sam Altman, JPMorgan Chase CEO Jamie Dimon, and Bank of America CEO Brian Moynihan. BlackRock CEO Larry Fink, to name a few.
As Hobnob, the world's biggest influencer, here's what we're focused on:
World vote: With several major countries holding important elections this year (half of the world's population will vote in 2024), leaders are wondering how these events will reshape international alliances and economic policy. I am concerned about this.
Of particular interest is how the US Republican primaries and Donald Trump will fare after winning the first Republican election of 2024 in Iowa last night.
“It's a threat and it's something that worries people a lot, but it's also probably a wake-up call[to Europe],” BlackRock Vice Chairman Philip Hildebrand said Monday of Trump's re-election bid, according to CNN's Richard. told Quest. .
This year, important elections will also be held in Taiwan, India, and Mexico.
Climate change: Climate change has become a hot topic as world leaders meet to discuss the balance between economic growth and sustainability.
Davos was held just days after scientists around the world reported that average temperatures last year were the highest on record. This shift moves the world just 100th of a degree away from the climate crisis threshold.
The WEF's Global Risks Report, released last week, found that climate change is one of the biggest risks facing the world.
The report also said there was a lack of cooperation among world leaders on this issue. Leaders are therefore likely to discuss fossil fuel use and green development, but may not reach much agreement.
Meanwhile, the WEF said rising temperatures and an increase in extreme weather events, including widespread flooding and wildfires, could lead to a “global catastrophe” within 10 years.
10 years of wasted opportunities: In a world still recovering from the economic shock of the pandemic and with alarmingly high income inequality, the global economy will likely be the most discussed topic.
The World Bank announced last week that the global economy is likely to slow to its worst growth rate in 30 years. Without a “significant course correction,” this will be a “decade of wasted opportunities,” the central bank said.
“It's very easy to make money,” said Nikolaj Tangen, CEO of Norges Bank, which manages Norway's $1.4 trillion government pension fund and calls itself the world's largest single investor in the stock market. It's going to be difficult,” he told CNN. Quest in Davos.
“I think it will be difficult to contain inflation, and we are seeing wage increases in many parts of the world. The climate is currently affecting inflation, transport routes are being affected, and geopolitics is also in play. “There is no such thing, so it's not a particularly good situation.”
Jobs that are disappearing: The potential for artificial intelligence to transform the economy and its ethical implications will be another focus this week.
According to the International Monetary Fund, nearly 40% of jobs around the world could be affected by the rise of AI, a trend that is likely to further deepen inequality.
In a blog post on Sunday, IMF chief Kristalina Georgieva called on governments to establish social safety nets and provide retraining programs to counter the impact of AI.
“In most scenarios, AI is likely to exacerbate overall inequality, and policymakers must proactively address this troubling trend to prevent technology from further escalating societal tensions.” “No,” she wrote ahead of the WEF conference, where the topic will be high on the agenda. .
Meanwhile, concerns about AI disrupting elections also topped the list of top risks in 2024, according to the WEF report.
OpenAI's Altman and Microsoft's Nadella will speak at Davos as part of a program that will include a discussion on whether generative AI is a flashpoint. Another industrial revolution.
Geopolitical tensions: Geopolitics will also be a hot topic due to conflicts in Europe and the Middle East and rising tensions between the US and China.
Leaders met in Davos on Sunday to discuss Ukrainian President Zelenskiy's 10-point peace plan to end the Russia-Russia war. Zelenskiy is scheduled to speak later Tuesday and meet with JPMorgan's Dimon.
Meanwhile, Israeli President Herzog is scheduled to participate in talks later this week with US Secretary of State Blinken and WEF Executive Chairman Klaus Schwab on “Achieving Security and Cooperation in a Divided World.”
According to my colleague Tami Luby, the five richest people on the planet have gotten even richer in recent years.
Since 2020, the net worth of Tesla CEO Elon Musk, LVMH CEO Bernard Arnault, Amazon founder Jeff Bezos, Oracle co-founder Larry Ellison, and Berkshire Hathaway CEO Warren Buffett has skyrocketed by 114%. The total amount, adjusted for inflation, was $869 billion. According to Oxfam's annual inequality report released on Sunday,
If current trends continue, the world could see trillionaires for the first time in a decade.
At the same time, around 5 billion people around the world are becoming poorer as we battle inflation, war and the climate crisis. It will take almost 230 years to eliminate poverty based on the current trajectory.
Nabil Ahmed, director of economic and racial justice at Oxfam America, said that although inequality is rising, there are some bright spots. Workers have stepped up through strikes and agreements to improve pay and working conditions. Additionally, some governments have taken the side of workers by promoting policies aimed at strengthening workers' rights.
“We are entering a new Gilded Age, but workers, regulators, unions and community organizers are starting to see cracks in it,” Ahmed said.
According to my colleague Jordan Walinsky, champagne sales will lose some of their momentum in 2023 after several years of record sales as COVID-19 lockdowns eased. It is said that
The industry association Comité Champagne, which represents more than 16,000 wine producers and 320 Champagne houses, says in a new report that total shipments of bubbly from France fell to 299 million bottles last year, and that by 2022 It was announced that there was a decrease of 8.2% compared to 2017.
This means that sales have almost returned to pre-COVID-19 levels in 2019, when 297.3 million bottles were shipped. At its peak in 2022, sales jumped 33%, with 325 million units shipped.
But please don't cry for Moe. Despite the decline in total shipments, many Champagne houses sold more expensive labels, so the financial impact was small, allowing them to maintain sales of more than 6 billion euros ($6.6 billion) over the next year, Comité said in a release. Stated.
