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Davos 2020: Greta Thunberg says climate demands have been 'completely ignored' - live Davos 2020: Greta Thunberg blasts climate inaction; Lagarde fears Brexit cliff edge - live updates
(32 minutes later)
Rolling coverage of the latest economic and financial news, as climate activists speak at the World Economic ForumRolling coverage of the latest economic and financial news, as climate activists speak at the World Economic Forum
Germany’s finance minister, Olaf Scholz, tells Davos that his country won’t take an economic hit from Brexit.
It will be harder for the UK, though, Scholz warns -- warning that the City of London will be less important after Brexit.
Speaking on today’s panel on the global economic outlook, Scholz warns that a country simply cannot have all the advantages of being a member of the EU while also enjoying the advantage of being outside as well.
I think we will find solutions, Scholz continues, but he adds that there might not be a “special, competitive advantage of being outside” the EU.
On trade, Steve Mnuchin says the UK will be at the top of the list for a free trade deal, after Brexit.
Asked about the United States’ trade deal plan this year, the Treasury Secretary:
ECB chief Christine Lagarde fears that Europe faces a Brexit “cliff edge” at the end of this year.
She tells Davos that there some positive signs surrounding the global economy - with employment very low, and trade tensions easing.
But the negotiations over Britain’s future relationship with the EU is a concern.
Lagarde says:
Earlier this week, UK chancellor Sajid Javid told the World Economic Forum that a comprehensive deal can be reached by December.
But it’s going to be tough. Yesterday, Dutch prime minister Mark Rutte told Sky News it was a 50:50 chance.....
US Treasury secretary Steven Mnuchin, who took that nasty potshot at Thunberg yesterday, has told Davos that US government spending needs to be reined in.US Treasury secretary Steven Mnuchin, who took that nasty potshot at Thunberg yesterday, has told Davos that US government spending needs to be reined in.
We look at a very robust economic outcome through 2020, Mnuchin predicted.We look at a very robust economic outcome through 2020, Mnuchin predicted.
He’s sitting alongside Zhu Min, Olaf Scholz, Kristalina Georgieva, Haruhiko Kuroda, and Christine Lagarde here at WEF.He’s sitting alongside Zhu Min, Olaf Scholz, Kristalina Georgieva, Haruhiko Kuroda, and Christine Lagarde here at WEF.
Mnuchin adds that “fiscal policy has worked”, and predicts that Donald Trump’s tax cuts will pay for themselves over 10 years (some economists disagree about this, but we’ll see).Mnuchin adds that “fiscal policy has worked”, and predicts that Donald Trump’s tax cuts will pay for themselves over 10 years (some economists disagree about this, but we’ll see).
But looking ahead, Mnuchin says “we need to slow down the rate of growth of government spending, and lower it as a ratio basis.”But looking ahead, Mnuchin says “we need to slow down the rate of growth of government spending, and lower it as a ratio basis.”
That might worry Americans who depend on welfare, for example.That might worry Americans who depend on welfare, for example.
Back in the Davos congress hall, IMF chief Kristalina Georgieva is talking about the global economy.Back in the Davos congress hall, IMF chief Kristalina Georgieva is talking about the global economy.
She has a positive-ish message, saying:She has a positive-ish message, saying:
We are in a better place in January 2020 than we were in October 2019.We are in a better place in January 2020 than we were in October 2019.
There are three reasons:There are three reasons:
Trade tensions are receding - the signing of the US-China trade deal has raised confidenceTrade tensions are receding - the signing of the US-China trade deal has raised confidence
Central banks have ‘served the world well’; 49 central banks have cut interest rates 71 timesCentral banks have ‘served the world well’; 49 central banks have cut interest rates 71 times
The slump in manufacturing and industrial production seems to be bottoming outThe slump in manufacturing and industrial production seems to be bottoming out
That’s why the IMF has raised its growth forecast for 2020 to 3.3% from 3.1%. But that is still “sluggish”, Georgieva cautions.That’s why the IMF has raised its growth forecast for 2020 to 3.3% from 3.1%. But that is still “sluggish”, Georgieva cautions.
The IM wants to see more aggressive fiscal policy, and structural reforms to create dynamism.The IM wants to see more aggressive fiscal policy, and structural reforms to create dynamism.
Greta Thunberg, and her fellow activists are now going to march down the icy pavements of Davos, to conduct their regular School Strike for the climate emergency.Greta Thunberg, and her fellow activists are now going to march down the icy pavements of Davos, to conduct their regular School Strike for the climate emergency.
That will allow them to lobby Davos delegates as they leave WEF and head for the railway station (although the global elite typically travel by chauffeur-driven cars).That will allow them to lobby Davos delegates as they leave WEF and head for the railway station (although the global elite typically travel by chauffeur-driven cars).
Luisa Neubauer says there is “less climate denial, but more climate action denial.” (hardly progress!)Luisa Neubauer says there is “less climate denial, but more climate action denial.” (hardly progress!)
Neubauer reiterates that she met with Siemens CEO Joe Kaiser at Davos this week, to pressure him to ditch the Adani coalmine contract (to provide rail signalling technology).Neubauer reiterates that she met with Siemens CEO Joe Kaiser at Davos this week, to pressure him to ditch the Adani coalmine contract (to provide rail signalling technology).
She then urges all investors, and all companies responsible for making fossil fuel projects, to heed the crisis.She then urges all investors, and all companies responsible for making fossil fuel projects, to heed the crisis.
Our message to Joe Kaiser, and other business leaders, is that if you add up all the contracts that have been signed today on fossil fuel projects, we will be far beyond keeping temperature rises below two degrees C, she says.Our message to Joe Kaiser, and other business leaders, is that if you add up all the contracts that have been signed today on fossil fuel projects, we will be far beyond keeping temperature rises below two degrees C, she says.
Neubauer says:Neubauer says:
Vanessa Nakate says she believes the leaders at Davos have heard the message from climate activists - but they’re choosing to ignore it.Vanessa Nakate says she believes the leaders at Davos have heard the message from climate activists - but they’re choosing to ignore it.
Nakate also explains how social media has helped the climate activist movement -- by letting her get her message out across Uganda.Nakate also explains how social media has helped the climate activist movement -- by letting her get her message out across Uganda.
Climate activists will continue to lobby Siemens over its involvement in the Adani coalmine in Australia, says Luisa Neubauer.Climate activists will continue to lobby Siemens over its involvement in the Adani coalmine in Australia, says Luisa Neubauer.
Neubauer says activists have met with Siemens CEO Joe Kaiser, and explained why the mine will threaten any hopes of keeping global warming below 1.5 degrees.Neubauer says activists have met with Siemens CEO Joe Kaiser, and explained why the mine will threaten any hopes of keeping global warming below 1.5 degrees.
We plan to speak at the Siemens AGM in February, Neubauer says.We plan to speak at the Siemens AGM in February, Neubauer says.
Kaiser has written about the struggle he had about whether to pull out of the project, before deciding not to (a good example of the problem)Kaiser has written about the struggle he had about whether to pull out of the project, before deciding not to (a good example of the problem)
Q: How do you move the Davos community on, to a low-carbon future?Q: How do you move the Davos community on, to a low-carbon future?
Isabelle Axelsson says it shouldn’t be up to the climate activists to find the solutions.Isabelle Axelsson says it shouldn’t be up to the climate activists to find the solutions.
Politicians need to listen to the science, get a plan down on paper, and implement it, she says.Politicians need to listen to the science, get a plan down on paper, and implement it, she says.
Q: The climate emergency isn’t a big issue to India - what’s your message to them, Greta?
My message to India is the same as to every other country, she replies.
Q: How did it feel to be publicly insulted by the US treasury secretary yesterday?
Greta Thunberg replies that it didn’t affect her at all -- she, and other climate activists, are used to being criticised.
Greta Thunberg has said that the World Economic Forum has completely ignored the climate movement’s demands (on fossil fuel divestment) this week.
As long as we do not treat this crisis as a crisis, and as long as the facts are ignored, we will not solve this crisis,Thunberg says.
We need to understand the urgency of this situation, she insists, adding:
As long as the science is being ignored, and as long as the facts are not being taken into account, leaders can continue to ignore the situation, Thunberg continues.
Back in Davos, activist Isabelle Axelsson from Sweden is speaking about the climate emergency.
We cannot rely on technologies that do not exist, she says.
Vanessa Nakate from Uganda says we need to look at climate justice - because we all have a story to tell.
Nakate has been camping with other activists in tents in the Arctic base camp in Davos this week - this shows we have left our comfort zones, she explains
Some instant reaction to the PMIs:
Newsflash: The UK economy has returned to growth this month.
That’s a sign that confidence is rising following December’s election, making an interest rate cut next week less likely.
Markit’s flash PMI, which tracks activity across the economy, has risen to 52.4, which shows growth. That’s up from 49.3 in December, which signalled a contraction.
Meanwhile in the markets, excitement is building ahead of the UK Purchasing Managers’ survey of the British economy this month....
Greta Thunberg is giving a press conference shortly in Davos, along with fellow youth climate activists from the Fridays For Future campaign.
She’s joined by Vanessa Nakate from Uganda, Loukina Tille from Switzerland, Luisa Neubauer from Germany and Isabelle Axelsson from Sweden.
The head of the European Central Bank, Christine Lagarde, has a word of warning for the markets this morning:
She’s told Bloomberg that investors shouldn’t assume that current monetary policy is locked in for the foreseeable future just because officials are focused on reviewing their strategy:
She told Bloomberg TV:
Good morning from Davos, where the final day of the World Economic Forum is getting underway.
The annual shindig of the global elite, and some of their sternest critics, is wrapping up at lunchtime today.
Out on the streets, some of the corporations who took over Davos’s promenade are packing up, taking down their glossy posters.
But it’s not back to normal yet. Inside the Congress Hall, we’ll hear an update on the state of the world economy.
On the panel: Treasury secretary Steven Mnuchin, German finance minister Olaf Scholz, IMF chief Kristalina Georgieva, Bank of Japan chief Haruhiko Kuroda and ECB chief Christine Lagarde.
And outside the hall, Greta Thunberg (who Mnuchin thinks should go and learn economics) will be holding a school strike to focus attention on the climate emergency.
We’ll also get a new healthcheck on the UK economy today, when Markit’s survey of purchasing managers’ is released.
It will measure how businesses are faring this month, and whether there’s really a Boris Bounce taking place after the election. If not, then a weak reading raises the chances of a UK rate cut next week.
Ipek Ozkardeskaya of Swissquote Bank says:
The agenda
10.30am Davos / 9.30am GMT: UK flash PMIs
10.30am Davos / 9.30am GMT: Session on ending single-use plastic
11am Davos / 10am GMT: Greta Thunberg leads a school strike for the climate emergency
11.30am Davos / 10.30am GMT: Session on the world economic outlook with Lagarde, Mnuchin, Georgieva, Kuroda and Scholz.