IEA calls on oil producers to help avert recession: Davos update

The first day’s main event is a virtual speech from Ukraine President Volodymyr Zelenskiy.

Members of the global elite are back in Davos after a two-year hiatus due to the pandemic.

The World Economic Forum’s annual meeting gets underway on Monday in the Swiss ski resort, albeit with fewer big names from Wall Street and politics. But there’s still much to discuss given the war in Ukraine, including rampant inflation, risks of food shortages and climate change.

The first day’s main event is a virtual speech from Ukraine President Volodymyr Zelenskiy. International Monetary Fund Managing Director Kristalina Georgieva and Bank of France Governor Francois Villeroy de Galhau appear on panels.

Tune into Bloomberg Television for interviews with Standard Chartered Chief Executive Officer Bill Winters, US Special Envoy John Kerry, Carlyle Group Co-Founder David Rubenstein and Qualcomm CEO Cristiano Amon among many others.

Key Developments

  • Davos Forum Is Back With Less Billionaire Starpower and No Snow
  • IMF Warns Against Global Economic Fragmentation From Ukraine War
  • Putin’s War Means Russia’s Rich Aren’t Welcome at Davos Anymore
  • Scholz Among World Leaders at First In-Person Davos Since Covid

All times CET:

Algebris Sees Stocks Tumbling Further (9:10 a.m.)

US stocks have further to fall because expectations for earnings are still too high, according to Davide Serra, chief executive officer of Algebris Investments.

The S&P 500 will fall to a base of 3200 to 3400 points, down from 3901 currently, Serra said in a Bloomberg Television interview. The money manager, who founded Algebris in 2006, also flagged a “sad” mood at Davos because of the war in Ukraine. “Three hours from here, people are dying and shooting each other,” he said. “And so I think that’s why it’s different.”

IEA’s Birol Warns of Global Recession Risk (8:45 a.m.)

Oil producers need to act responsibly to help keep a lid on prices otherwise there is a risk of global recession, according to Fatih Birol, the executive director of the International Energy Agency.

“If we don’t make a positive contribution here we may see prices even going higher, being much more volatile and becoming a major risk for recession for the global economy,” Birol said in an interview with Bloomberg TV from Davos. “This summer will be difficult because as we know in summer oil demand normally goes up,” he said, adding that a major question is whether demand from China will remain flat due to weakness in the economy there.

Credit Suisse CEO Says He Has ‘Clear Mandate’ (8:25 a.m.)

Credit Suisse Group AG Chief Executive Officer Thomas Gottstein, who has been under pressure because of a string of scandals and earnings setbacks, said he has a “clear mandate” from the board to continue in his position.

Responding to questions about his future, Gottstein said in a Bloomberg Television interview that he is focused on executing the bank’s strategy and is working well with other members of the executive board.

Germany Warns of Food ‘Catastrophe’ (8 a.m.)

German Economy Minister Robert Habeck said the WEF can help policy makers coordinate strategy on how to address a looming global food “catastrophe” and reiterated an accusation that Russian President Vladimir Putin is weaponizing hunger.

“We shouldn’t kid ourselves that there are limits to Putin’s brutality,” Habeck said in an interview with Germany’s Deutschlandfunk radio. “The task here at Davos is for us to recognize that hunger is being used as a weapon,” he added. “That’s why it’s good that the discussions are taking place in person here again and so many people are coming.”

WHO Envoy Warns of Cost-of-Living Risks (7:55 a.m.)

A special envoy to the World Health Organization warned that 94 countries are at risk of facing severe hunger or famine and that surging consumer prices threatens disruption.

“This cost-of-living crisis could lead to the worst set of economic and social challenges we’ve seen in four or five decades,” David Nabarro, special envoy for Covid-19 at the WHO, said at the launch of the Edelman Trust Barometer in Davos. Energy shortages are driving up production costs and leading to shortages of fertiliser, potentially affecting 1.7 billion people, he added.

© 2022 Bloomberg


You must be signed in and an Insider Gold subscriber to comment.




Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.

Follow us:

Search Articles:
Click a Company: