WEF Davos 2016 LIVE: “You just don’t know if the oil price will be 20$ or 100$ in the next 2-3 years!” top Harvard economist Kenneth Rogoff underscores from Davos

Preventing Future Shocks: Singer, Sorrell, Zhu, Rogoff

DAVOS/SWITZERLAND, 20JAN16 – (FLTR) Paul Singer, Founder, Chief Executive Officer and Co-Chief Investment Officer, Elliott Management, USA and Martin Sorrell, Chief Executive Officer, WPP, United Kingdom, Min Zhu, Deputy Managing Director, International Monetary Fund (IMF), Washington DC and Kenneth Rogoff, Thomas D. Cabot Professor of Public Policy and Professor of Economics, Harvard University, USA are captured during the session ‘Preventing Future Shocks’ at the Annual Meeting 2016 of the World Economic Forum in Davos, Switzerland, January 20, 2016. WORLD ECONOMIC FORUM/swiss-image.ch/Photo Valeriano Di Domenico

It is the first day of the most important economic forum in the world and economy and financial markets are as every year in the foreground. The session called “Preventing Future Shocks” finished a couple of hours ago in the Sanada room in Davos with Maria Bartiromo, anchor and Global Markets Editor of Fox Business Network, to lead the panel. The financial markets slowdown has been among others the major issue between the guests.

Among them, Paul Singer, Founder, Chief Executive Officer and Co-Chief Investment Officer of the Elliott Management Corporation, Martin Sorrell who is Chief Executive Officer of WPP Plc, Min Zhu, Deputy Managing Director of the International Monetary Fund (IMF) and Kenneth Rogoff, economist and professor of economics at the Harvard University. Carlos Ghosn, Chairman and Chief Executive Officer of Renault-Nissan Alliance couldn’t attend this session even if he was scheduled to do so.

IMF denies market meltdown

The discussion started with a disagreement between the moderator Ms Bartiromo and the representative of IMF, Mr Zhu because the former characterized 2016 as a year of global market meltdown. The Deputy Managing Director’s view is that there is not a meltdown but the market is adjusting due to uncertainty in an era where high volatility is apparent. Min Zhu underlined the fact that there is still global growth of 3.4% even if in the next 5 years potential growth is meant to decrease.

Central banks and financial regulations against global growth

The famous economist Kenneth Rogoff pointed out that the central banks are not helping the economies revive and realise growth. His concern is also that financial regulations are very hard for the Small and Medium Enterprises (SMEs) because they are not helping them to invest. The latter is leading to less competitiveness and less growth. Furthermore, Paul Singer expressed his major concern on liquidity because banks and wealth funds are lowering investment which leads to less growth.

Oil prices are too volatile to be predicted

The slowdown of oil prices is one of the key drivers of the sluggish growth and was addressed by the panel.  “Oil prices are so volatile. You just don’t know if the oil price will be 20$ or 100$ if you are looking in the next 2-3 years”; Ken Rogoff underlines from Davos. The problem is that there is no investment in the sector and global growth can change dramatically in the coming years and drag oil prices along.

The new normal is low growth

The powerful man of WPP Plc talked about the way global growth will be in the next years. There are various and serious problems such as China’s sluggish growth, Brexit possibility, migration, oil price changes and US political situation  which all together are driving the global economy down and make investors very conservative when planning  their budgets for 2016.

The top class panelists mentioned that not only China but also all the emerging markets are too risky, lowering the global economic growth, and that it is most likely to experience a global recession in the coming years.

The latter is meant to raise serious concerns to the political leaders who have to deal with so many issues and be able to find immediate solutions that will boost global economy.

All in all, the outcome of the session that addressed global economic growth and the trends of the financial markets concluded that political uncertainly is one of key risks that drive global growth which is about to slow down in the years to come.

Stay tuned from 20 to 23 January as the Sting will be once more producing top class critical LIVE media coverage from the Congress Centre in Davos, Switzerland. 

Join the Hive!

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Marking international day, UN experts call for urgent action to end racial discrimination, in wake of New Zealand anti-Muslim attack

How speaking ‘parentese’ to your child could make them a faster learner

The EU will always have a stable partner in Montenegro, says President Đukanović

Syrian crisis: EU mobilises an overall pledge of €6.9 billion for 2020 and beyond

EU Council approves visa-free travel for Ukraine and cement ties with Kiev

80 adolescents a day will still die of AIDS by 2030, despite slowdown in epidemic

Libya: Security Council demands commitment to ‘a lasting ceasefire’

US now has most coronavirus cases in the world – Today’s coronavirus updates

A digital tax sounds like a great idea. Here’s why it might not be universally popular

‘Never give up’: UN chief urges all who serve, marking UN Day

Human rights breaches in Hong Kong, Russia and at the US-Mexican border

Does the Erasmus program really contribute to the construction of a solid EU identity?

Asymptomatic, pre-symptomatic, symptomatic: what is the difference?

European tourism remains a strong growth factor

This is the human impact of COVID-19 – and how business can help

Why banks escape from competition rules but not pharmaceutical firms

Climate Change and Human Health: Two Faces of The Same Coin

GSMA Mobile World Congress Americas

North Korea missile tests ‘deeply troubling’: senior UN official

How the technology behind deepfakes can benefit all of society

Germany takes cover from Trump in Eurozone and decides to pay for it

Sudzha gas metering station at Russian-Ukrainian border (Copyright: Gazprom, 2015 / Gazprom’s website, Media)

Gazprom starts suspending gas contracts with Ukraine as Brussels fears limited transit to Europe

How much more political is the new EU leadership? Does this include personal bend?

FROM THE FIELD: Faces and Voices of Conflict

A funding gap is hurting developing countries’ efforts to contain COVID-19

The EU launches € 1 billion plan on supercomputers and tries to catch-up with competitors

How AI can ensure your transition to remote work is equitable

Vĕra Jourová, European Commissioner in charge of Justice

The New EU-US “Shield” for data privacy is full of holes

Concern rising over fate of Rohingya refugees sent home by India: UNHCR

Why economic growth depends on closing the interview gap

Next time you fly, could you be boarding a train instead of a plane?

Aid used for trade is helping developing countries diversify

Leaders need hard data to make the hard decisions about sustainability

Countries must make teaching profession more financially and intellectually attractive

The EU seals CETA but plans to re-baptise TTIP after missing the 2016 deadline

Elections in Europe: No risks for the EU, leaders readying to face Trump-Brexit

Tools of asset development: Renewable Energy Projects case

Be a part of the World Forum on Future Trends in Defence and Security

This is what is still holding social entrepreneurs back

‘Endemic’ sexual violence surging in South Sudan: UN human rights office

The EU responds to US challenges by fining Apple with €13 billion

Pharmaceuticals spend millions to push TTIP while consumer groups spend peanuts

Facebook has built an AI-based tool that fixes the social network when it crashes

Dignified and non-discriminatory heath care: does anyone even know what it means?

Draghi tells the EU Parliament his relaxed policies are here to stay

How to have a good Fourth Industrial Revolution

World Summit Awards 2016: Sustainable impact through digital innovation

Idai disaster: Stranded victims still need rescue from heavy rains as UN scales up response

Q and A on the draft digital copyright directive

‘Never give up’: UN chief urges all who serve, marking UN Day

A breath of fresh air: How three disused industrial areas became beautiful parks

Parliament boosts efforts to improve its environmental performance

Sweden’s forests have doubled in size over the last 100 years

World Wildlife Day: UN chief urges ‘more caring’ relationship with nature

The hidden risk of virtual reality – and what to do about it

Press coverage of migration crisis in Europe: a call for collaborative action

Millions of young people need better job skills. Here’s how businesses can help

Yellow vests, rising violence – what’s happening in France?

COVID-19: Budget MEPs call for quick progress on post-2020 contingency plan

Bias in AI is a real problem. Here’s what we should do about it

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s