Oil prices surge around 1% on optimism over China’s recovery

Jan 18 (Reuters) – Oil prices extended early gains to rise around 1% on Wednesday, on optimism that the lifting of China’s strict COVID-19 curbs will lead to a recovery in fuel demand in the world’s top oil importer.

Brent crude futures climbed 76 cents, or 0.88%, to USD 86.68 a barrel by 0721 GMT, following a 1.7% rally in the previous session.

US West Texas Intermediate (WTI) crude futures went up 85 cents, or 1.06%, to USD 81.03, having risen 0.4% on Tuesday.

Both crude futures surged by more than USD 1 a barrel to hit fresh 2023 highs around midday in Asia, with Brent reaching USD 87 a barrel and WTI futures hitting USD 81.42 a barrel.

China’s economic growth slowed sharply to 3% in 2022, missing the official target of “around 5.5%” and marking its second-worst performance since 1976. But the data still beat analysts’ forecasts after China started rolling back its zero-COVID policy in early December. Analysts polled by Reuters see 2023 growth rebounding to 4.9%.

The Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report that Chinese oil demand would grow 510,000 barrels per day (bpd) this year after contracting for the first time in years in 2022 due to COVID containment measures.

But OPEC kept its 2023 global demand growth forecast unchanged at 2.22 million bpd.

“Growing hopes that China’s fuel demand will pick up after a recent shift in its COVID-19 policy lent support to oil prices,” said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd.

“OPEC’s optimistic outlook on China’s demand also supported the market sentiment,” he said, predicting a bullish tone for this week.

The market was also supported by expectations of a drawdown in US crude stocks by around 1.8 million barrels despite higher oil product inventories, according to a Reuters poll.

On the supply-side, oil output from top shale regions in the United States is due to rise by about 77,300 bpd to a record 9.38 million bpd in February, the US Energy Information Administration (EIA) said in a productivity report on Tuesday.

Russia, meanwhile, expects Western sanctions to have a significant impact on its oil product exports and its production, likely leaving it with more crude oil to sell, said a senior Russian source with knowledge of the nation’s outlook.

The market is also closely watching for more demand data from China in the International Energy Agency’s monthly report due later on Wednesday, according to ING analysts in a client note.

(Reporting by Yuka Obayashi in Tokyo and Trixie Yap in Singapore; Editing by Kim Coghill and Jacqueline Wong)

Oil eases 1% as US recession worries offset China recovery hopes

NEW YORK, Jan 18 (Reuters) – Oil prices fell about 1% on Wednesday, surrendering early gains as worries about a possible US recession outweighed optimism that China’s lifting of COVID-19 curbs will fuel demand for crude in the world’s top oil importer.

Brent futures fell 94 cents, or 1.1%, to settle at USD 84.98 a barrel. US West Texas Intermediate (WTI) crude fell 70 cents, or 0.9%, to settle at 79.48.

The session high for both benchmarks was the highest since Dec. 5. For WTI, Wednesday was the first time in nine sessions that the contract settled down.

Oil prices reversed gains early in the afternoon along with Wall Street’s main indexes as hawkish comments from US Federal Reserve (Fed) officials sparked worries the central bank may not pause interest rate hikes any time soon.

Markets at first reacted positively to US data, which showed retail sales and manufacturing production declined more than forecast in December, on hopes the Fed would now ease up on interest rate hikes.

However, the gains were short-lived as St. Louis Fed President James Bullard
and Cleveland Fed President Loretta Mester said rates needed to rise beyond 5% to control inflation.

Microsoft Corp (MSFT) said it would eliminate 10,000 jobs and take a USD 1.2-billion charge, as cloud-computing customers reassess spending and the company braces for potential recession.

“Coming on the back of the weakness in retail sales, the steep drop in industrial production and news of more job lay-offs adds to fears the US could already be in recession,” analysts at ING, a bank, told customers in a note.

Supporting oil prices early in the session, China reported economic data that beat forecasts after the country started rolling back its zero-COVID policy in early December.

China’s lifting of restrictions should boost global oil demand to a record high this year, according to the International Energy Agency (IEA), while price cap sanctions on Russia could dent supply.

Rystad Energy, a consultancy, said the effect of sanctions on Russian crude exports after 1.5 months of the European Union embargo and G7 price cap has not been as devastating as some predicted.

Rystad said the losses were at about 500,000 barrels per day and that India and China remain key buyers of Russian crude.

Analysts expect a drawdown in US crude stocks of about 600,000 barrels last week, a Reuters poll showed, which could provide some price support.

The American Petroleum Institute (API) was set to release industry data at 4:30 p.m. EST (2130 GMT). The US government reports at 11 a.m. on Thursday. Both weekly reports were delayed a day due to Monday’s Martin Luther King Day federal holiday.

(Additional reporting by Rowena Edwards and Julia Payne in London, Yuka Obayashi in Tokyo and Trixie Yap in Singapore; Editing by Marguerita Choy, Kirsten Donovan and David Gregorio)

Japan yields retreat from policy cap, yen eases from 7-month peak before crucial BOJ decision

TOKYO, Jan 18 (Reuters) – Japanese government bond yields eased back from the Bank of Japan’s 0.5% policy ceiling and the yen weakened from near seven-month highs on Wednesday, ahead of one of the most highly anticipated monetary policy decisions globally in years.

BOJ Governor Haruhiko Kuroda and his colleagues have investors on tenterhooks, and anticipation has been sky high for some additional policy change later in the day, from further tweaks to yield curve controls (YCC) to even their full abandonment.

Although it has been only a month since Japan’s central bank shocked markets by doubling the allowable band for the 10-year JGB yield to 50 basis points either side of the 0% policy rate – ostensibly to improve market function – the change emboldened speculators to test the BOJ’s resolve.

The time of the decision is not set but is expected between 0300 GMT and 0500 GMT.

The 10-year yield breached the BOJ’s ceiling for three straight sessions to Tuesday, including a tumultuous Friday, when it spiked to a 7-1/2-year peak of 0.545%, although it closed each day back at the 0.5% limit.

The benchmark yield eased 1.5 basis points to 0.485% as of 0037 GMT, after starting the day flat at 0.5%.

Ten-year JGB futures edged up to 145.04. They had dipped as low as 144.15 on Friday for the first time since March 2014.

“The trade-off for the BOJ here is shocking the market and creating some volatility event versus sort of digging yourself deeper into the hole,” said James Athey, investment director at Abrdn.

Athey, who has a short position on JGBs, said the best course of action for the central bank would be to get rid of YCC.

“Now is the time, because a lot of investors are short,” he said.

Taming yields has come at a cost, with the central bank splashing an unprecedented 10 trillion yen ($78 billion) on bond buying operations over Friday and Monday, calling into question the sustainability of the programme.

Also, signs of a need to end ultra-easy monetary policy are coming from consumer inflation, which in the most recent data was double the 2% target in Tokyo, and the possibility that stubbornly slow-to-rise salaries may also take off after Uniqlo’s parent company said it would raise wages by up to 40%.

The yen strengthened as far as 127.215 per dollar on Friday, the highest since May, amid bets that stimulus was on the way out – if not immediately, then at least after Kuroda retires at the start of April and a new governor comes in.

The currency last traded at 128.65, weakening some 0.4% compared with the previous session.

Japan’s Nikkei share average was 0.35% higher in early trading.

($1 = 128.2200 yen)

(Reporting by Kevin Buckland; Additional reporting by Ankur Banerjee; Editing by Bradley Perrett)

Bond traders get their swagger back in rate-obsessed markets

NEW YORK, Jan 17 (Reuters) – Bond traders are stars again on Wall Street.

Fixed income, currencies, and commodities (FICC) traders bolstered bank profits last year despite dreary deal markets. And traders who have navigated renewed market volatility are set to extend their winning streak, senior bankers told Reuters.

At Bank of America Corp., FICC revenue jumped 49% to USD 2.3 billion, lifting the trading division’s full-year revenue to the highest since 2010, the bank’s earnings report on Friday showed. At Citigroup Inc., revenue from fixed income surged 31% to USD 3.2 billion in the fourth quarter, while at JPMorgan Chase & Co. it climbed 12% to USD 3.7 billion.

“Everybody’s a macro trader now,” said Jim DeMare, president of Bank of America’s global markets division, referring to investors who bet on assets influenced by economic trends.

“Everybody wants to talk about inflation, everybody wants to talk about central bank policy,” said DeMare, who formerly worked at Salomon Brothers, the legendary bond shop featured in Michael Lewis’ 1989 classic book, “Liar’s Poker.”

FICC traders are enjoying a renaissance after years in the doldrums. In a throwback to the 1970s, inflation is roiling economies again. Protectionism is back. And economic data sends a buzz through trading rooms, minus the shouting of previous eras.

“Another strong performance in trading helped make up for the industry-wide decline of investment banking activity,” JPMorgan President Daniel Pinto wrote in a note to employees. The bank’s markets division posted its second-highest annual revenue on Friday.

Bond specialists in the USD 22 trillion Treasuries market are in high demand as the Federal Reserve and other central banks have aggressively raised interest rates over the past two years. The traders expect to stay busy as growth slows, the pandemic recedes, fighting continues in Ukraine, and US-China tensions simmer.

Their comeback coincides with economic policy makers dusting off their pre-2008 playbooks. After the financial crisis, central bankers in the United States and advanced economies steadied markets by holding interest rates near zero. But when the pandemic hit, they ramped up stimulus to avoid economic disaster. The reversal of those policies has roiled markets.

“There has been no shortage of extraordinary, once-in-a-generation-type events, responses and implications,” said Ashok Varadhan, co-head of Goldman Sachs’ newly merged global banking and markets division in New York. “That’s been a catalyst for activity and opportunity” for clients, he said.

Goldman reported a 44% jump in FICC revenue to USD 2.7 billion in the fourth quarter, driven by rates, commodities, and credit, according to earnings filings Tuesday. Morgan Stanley’s fixed income revenue rose 15% to USD 1.4 billion in the same period.

The S&P 500 stock index fell 19.4% last year, when the 10-year US Treasury yield jumped to 3.8%, while the dollar rose 7.9% against major currencies.

On Tradeweb Markets Inc’s electronic bond trading platforms, average daily volumes rose almost 10% in 2022.

“This is the type of market where that old-school fixed income skill set comes into play more than ever,” said Billy Hult, who became chief executive this month. Hult gives the company’s interns copies of “Liar’s Poker” to press his point.

Michael de Pass, head of rates trading at Citadel Securities, sees volatility and activity remaining elevated with participants laser-focused on US inflation data. That has usurped the monthly jobs report as Wall Street’s most-watched economic indicator, he said. Citadel Securities will expand into inflation swaps in 2023.

At Jefferies Financial Group Inc., fourth-quarter bond-trading revenue jumped 71%.

“There’s money to be made in fixed income again” for bond investors, said Jefferies President Brian Friedman. “Before it was the search for yield; now it’s a choice of yield.”

Fed officials on Thursday expressed relief that inflation eased in December, paving the way for a possible step down to a quarter point interest rate increase when they meet Jan. 31. Markets are watching the Fed closely for signals.

“If you went to any one of our traders right now in any asset class – equities, mortgages, commodities – they would tell you they are trading US interest rates,” said Troy Rohrbaugh, global head of markets at JPMorgan, who traded currency options earlier in his career.

“Volumes remained elevated for much of 2022, and investors have been looking for an indication of when inflation is going to turn. When it does, I would expect their risk appetite to immediately increase,” Rohrbaugh said.

(Reporting by Lananh Nguyen; Additional reporting by Davide Barbuscia and Ira Iosebashvili; Editing by Richard Chang and Jonathan Oatis)

Gold prices fall from multi-month highs

Jan 17 (Reuters) – Gold prices on Tuesday fell from a more than eight-month peak hit in the previous session on hopes that the US Federal Reserve would adopt a less aggressive approach to rate hikes going forward.

Spot gold fell 0.7% to USD 1,904.87 per ounce by 1:42 p.m. ET (1842 GMT), after hitting its highest since the end of April on Monday. US gold futures settled down 0.6% at USD 1,909.9.

The US dollar index rose 0.2%. A stronger dollar makes gold more expensive for other currency holders.

“We’re looking at this as more of a slight pullback within our sideways-to-higher trend. We believe the combination of the weaker dollar and sticky inflation concerns continues to support our underlying positive environment,” said David Meger, director of metals trading at High Ridge Futures.

With lower rates translating into lesser returns on interest-bearing assets such as government bonds, investors may prefer zero-yield gold.

Traders expect 90.6% odds of a 25-basis point rate hike from the Fed in February and see rates peaking at 4.94% in June, while most Fed officials see rates landing north of 5% into the next year.

Citigroup Inc. Chief Executive Officer Jane Fraser said in an interview with CNBC that the US Federal Reserve could slow rate hikes in late spring or early summer.

Meanwhile, China saw economic growth slumping in 2022, but officials at the World Economic Forum said the country’s reopening could drive global growth beyond expectations.

Gold buying in China normally picks up ahead of the Lunar New Year holidays, which run from Jan. 21.

“We expect gold prices to trend around USD 1,950/oz in 2023,” Goldman Sachs said in a note dated Friday.

On the US economic calendar, producer price index (PPI) data, retail sales, and manufacturing output readings are expected tomorrow.

Elsewhere, spot silver slipped 2.1% to USD 23.88 per ounce, platinum dropped 2.2% to USD 1,038.79 and palladium was down 0.6% to USD 1,741.00.

(Reporting by Seher Dareen in Bengaluru; Editing by Devika Syamnath and Emelia Sithole-Matarise)

Oil prices settle higher on hopes of China demand rebound

Jan 17 (Reuters) – Oil prices settled higher on Tuesday in choppy trading after China posted weak but expectation-beating annual economic growth data and on hopes that a recent shift in its COVID-19 policy will boost fuel demand.

Brent crude futures settled up $1.46, or 1.7%, to $85.92 while U.S. West Texas Intermediate (WTI) crude settled up 32 cents, or 0.4%, at $80.18. There was no settlement on Monday because of a U.S. public holiday for Martin Luther King Day.

China’s gross domestic product expanded 3% in 2022, missing the official target of “around 5.5%” and marking the second-worst performance since 1976. But the data still beat analysts’ forecasts after China rolled back its zero-COVID policy in December.

“China is making the best out of their economic data, and it’s fair to say it could have been worse,” said Bob Yawger, director of energy futures at Mizuho.

However, New York state manufacturing contracted sharply in January as orders collapsed and employment growth stalled, and little improvement was expected over the next six months, according to a Tuesday Federal Reserve survey.

“The question is how does the Federal Reserve respond to such a mixed bag of economic performance,” said John Kilduff, partner at Again Capital LLC in New York.

Oil was bolstered by a weaker U.S. dollar, which fell against most major currencies on Tuesday due to expectations of a possible Bank of Japan policy shift that could be a precursor to adopting a tighter monetary policy.

A weakening dollar makes greenback-denominated oil less expensive for other currency holders.

Data released on Tuesday showed China’s oil refinery output in 2022 had fallen 3.4% from a year earlier for its first annual decline since 2001, though daily December oil throughput rose to the second-highest level of 2022.

“The country’s crude oil imports were up 4% in December and a considerable demand boost for transportation fuel … is anticipated when the Lunar New Year begins on Sunday,” said PVM analyst Tamas Varga.

The Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report that Chinese oil demand would grow 510,000 barrels per day this year, while it kept its 2023 global demand growth forecast unchanged at 2.22 million bpd.

A monthly report from the International Energy Agency (IEA) on Wednesday will shed more light on the strength of oil demand while recession fears loom.

In a survey released at the annual World Economic Forum in Davos, two thirds of private and public sector economists polled expected a global recession this year.

A survey of chief executives’ views by PwC was the gloomiest since the poll was launched a decade ago.

(Additional reporting by Shadia Nasralla in London, Sonali Paul in Melbourne and Muyu Xu in Singapore
Editing by David Goodman, Will Dunham and Bernadette Baum)

Asia share losses widen after weak China GDP data

HONG KONG, Jan 17 (Reuters) – Asian share losses widened on Tuesday after China reported weak fourth-quarter economic data, although investor expectations for a strong rebound in the country remained high even as concerns increase that the global economy is heading for a recession.

London is set to open flat with FTSE futures up 0.02% at 0512 GMT. E-mini futures for the S&P 500 index were down 0.31% however, indicating a lower opening after Monday’s public holiday.

MSCI’s gauge of Asia Pacific stocks outside Japan increased its losses to stand down 0.65% at 0535 GMT.

Hong Kong’s Hang Seng Index dropped 1.22% and China’s benchmark CSI300 Index slid 0.27% following the China data and as invesotrs sold gains ahead of the Lunar New Year holiday starting on Jan. 21.

China’s economy grew 2.9% in the fourth quarter of 2022 from a year earlier, National Bureau of Statistics data showed on Tuesday, beating expectations but still underlining the toll exacted by a stringent “zero-COVID” policy.

Growth for 2022 of 3.0% was far below the official target of about 5.5%. Excluding a 2.2% expansion after COVID-19 first hit in 2020, it was the worst showing in nearly half a century.

“I think investors will look through the Q4 GDP prints and focus on 2023,” said Redmond Wong, Greater China market strategist at Saxo Markets Hong Kong.

“According to Chinese media, more than half of the 31 provinces and municipalities that have released 2023 work reports are targeting above 5.5% growth for 2023.”

Vishnu Varathan, head of economics & strategy with Mizuho Bank’s Asia & Oceania treasury department, said though that China’s comprehensive policy commitment to inspire bona fide private sector confidence still has some way to go.

“Until then, ‘China cheer’ may be an opportunistic bull trade that is subject to bouts of reality checks along the way,” Varathan said.

Japan’s Nikkei 225 rose 1.28%, following two sessions of heavy losses, as the yen’s relentless rise paused on the eve of a crucial Bank of Japan (BOJ) policy decision.

The BOJ is under pressure to change its interest rate policy as soon as Wednesday, after the central bank’s attempt to buy itself breathing room backfired, emboldening bond investors to test its resolve.

The dollar drifted off multi-month lows on Tuesday, while the yen was perched near seven-month highs against the currency.

Australia’s S&P/ASX 200 closed down 0.09%, after hitting a seven-month high on Monday.

European shares reached a near nine-month high on Monday, with the pan-European STOXX 600 closing up 0.5% at 454.6 – its highest level since April 2022 – as global equities continued to build on a New Year rally spurred by hopes of a rebound in China’s economy and an easing of price pressures in the United States and Europe.

“At the centre of the early 2023 financial market debate is how quickly inflation will fade, and whether or not major economies will be able to avoid hard landings,” ANZ analysts said in a research report on Tuesday.

“The drop in inflation in the US is encouraging, although the fly in the ointment is that this drop is largely coming from energy and goods prices,” the report said.

“Services inflation continues to increase on an annual basis in the US and will likely remain strong so long as the supply-demand mismatch in the labour market persists,” it said.

Two-thirds of private and public sector chief economists surveyed by the World Economic Forum in Davos expected a global recession this year, with some 18% considering it “extremely likely” – more than twice as many as in the previous survey conducted in September 2022.

US crude fell 0.69% to USD 79.32 a barrel, paring some morning losses, while Brent rebounded to gain 0.25% at USD 84.67 a barrel, still near their highest levels this month as easing COVID-19 restrictions in China raised hopes of a demand recovery in the world’s top crude importer.

Spot gold was down 0.34% at $1911.36 per ounce.

(Reporting by Kane Wu in Hong Kong; Editing by Gerry Doyle and Neil Fullick)

Oil mixed amid weak China economic data, hopes for better 2023

MELBOURNE, Jan 17 (Reuters) – Oil prices were mixed on Tuesday after China posted its weakest annual economic growth in nearly half a century, with its late-2022 U-turn in COVID-19 policy underpinning hopes of a recovery in the country’s fuel demand this year.

Brent crude futures edged up by 7 cents, or 0.1%, to USD 84.52 by 0727 GMT, recouping some of the 1% loss in the previous session.

US West Texas Intermediate (WTI) crude futures slid 73 cents, or 0.9%, to USD 79.15 from Friday’s close. There was no settlement on Monday because of the US public holiday for Martin Luther King Day.

“Brent crude has gained nearly 10% over the past 10 days as optimism over China’s reopening boosted sentiment. However, the outlook for the rest of the global economy is uncertain,” ANZ commodities analysts said in a client note.

ANZ also pointed to a jump in crude supply from Russia weighing on the market, with seaborne exports having risen to 3.8 million barrels per day last week, the highest level since April.

China’s gross domestic product expanded 3% in 2022, badly missing the official target of “around 5.5%” and marking the second-worst performance since 1976, as the last quarter was hit hard by stringent COVID curbs and a property market slump.

The poor economic data still beat analysts’ earlier forecasts as Beijing’s roll back of its zero-COVID policy in December shored up consumption.

Data released on Tuesday also showed China’s oil refinery output in 2022 had fallen 3.4% from a year earlier, its first annual decline since 2001, although daily December oil throughput rose to the second-highest level of 2022.

“With a stronger end to 2022 than we had expected, plus indications of stronger retail expenditure ahead, the outlook for GDP growth in 2023 has improved compared to our prior outlook,” ING Chief Economist, Greater China Iris Pang said in a note.

But Pang warned that China still faced considerable headwinds, including likely recessions in the United States and Europe this year.

In a bearish survey released at the annual World Economic Forum in Davos, two-thirds of private and public sector economists polled expected a global recession this year, with about 18% considering it “extremely likely”.

A survey of chief executives’ views by PwC was the gloomiest since the firm launched the poll a decade ago.

A rise in the dollar from seven-month lows also put pressure on oil prices, as a stronger greenback makes oil more expensive for those holding other currencies.

(Reporting by Sonali Paul in Melbourne and Muyu Xu in Singapore; Editing by Kenneth Maxwell, Bradley Perrett and Jamie Freed)

Gold rally takes a breather as dollar regains some ground

Jan 16 (Reuters) – Gold prices edged lower from a more than eight-month high on Monday, but held above the key USD 1,900 per ounce level on expectations that the US Federal Reserve will be less aggressive on raising interest rates.

Spot gold fell 0.3% to USD 1,914.16 per ounce by 1:47 p.m. ET (1847 GMT), after hitting its highest since late April at USD 1,929 in the session.

US gold futures fell 0.3% to USD 1,917.30.

The dollar edged up 0.2%, making gold a less attractive bet for those holding other currencies.

“The fact that gold has managed to surpass USD 1,915 in the last few days was a positive signal, and now gold is briefly consolidating,” said Carlo Alberto De Casa, an external analyst at Kinesis Money, adding the main trend remains positive for bullion as investors see smaller rate hikes from the Fed.

After sharp rate hikes in 2022, markets are now pricing in a 91% chance of a smaller 25-basis-point increase when the Fed announces its policy decision in February, after data last week showed U.S consumer prices unexpectedly fell in December.

Gold, which pays no interest, tends to benefit when interest rates are low as it reduces the opportunity cost of holding bullion.

Buying in top-consumer China normally picks up ahead of the Lunar New Year holidays, which run from Jan. 21.

“Gold prices still look set to retest the USD 2,000 an ounce level in the coming weeks,” Michael Hewson, chief markets analyst at CMC Markets, said in a note.

Spot silver was down 0.1% to USD 24.22 per ounce after hitting a near two-week peak.

“The growing adoption of green energy sources continues to favour fabrication demand for silver… Silver bar and coin demand continued to be high,” ANZ said in a note.

Platinum fell 0.2% to USD 1,062.47 while palladium XPD= dipped nearly 2% to USD 1,754.64.

(Reporting by Kavya Guduru and Seher Dareen in Bengaluru; Editing by Jon Boyle, Jason Neely and Andrea Ricci)

Davos 2023: The World Economic Forum explained

DAVOS, Switzerland, Jan 16 (Reuters) – The World Economic Forum (WEF) returns to its snowy winter residency in the Swiss Alps this week with a record attendance of business and government leaders.

Here’s the low-down on Davos.

WHAT HAPPENS AT THE WEF?

The WEF’s roots stretch back to 1971 when its founder Klaus Schwab invited executives from European companies to the then tiny ski resort of Davos, high in the Swiss Alps.

Schwab’s goal was to create a forum for policymakers and top corporate executives to address major global issues and learn best practices for leadership and management.

Delegates, some with sought-after white badges which given greater access, attend panels and speeches inside the Congress Centre from Tuesday through to Friday.

Much of the action, however, occurs outside. Bilateral meetings between heads of state and corporate chieftains take up much of their schedules.

On the main promenade of Davos, shop fronts and restaurants are taken over by companies and nations, becoming venues for parties and discussion panels that attract attendees and media.

The most exclusive gatherings often occur well off the main drag at dinner parties, fireside chats and cocktail receptions.

WHO IS ATTENDING DAVOS?

More than 600 CEOs will be in town, including Wall Street executives such as JP Morgan’s Jamie Dimon, David Solomon from Goldman Sachs and Morgan Stanley’s James Gorman.

With climate change top of the agenda, chiefs of major energy companies are back after a COVID-related hiatus.

Germany’s Chancellor Olaf Scholz, the presidents of Spain, South Korea, Poland and the Philippines are among 51 heads of state present. Another 56 finance ministers, 19 central bank governors, 30 trade ministers and 35 foreign ministers are also due to make the journey up into the mountains.

Idris Elba and Sabrina Dhowre Elba, cellist Yo-Yo Ma, Renee Fleming, wil.i.am and social media star Nas Daly are all attending.

The Russians are absent, but Ukraine, which dominated last year’s summit, has another high level delegation and several war-related sessions are on the agenda.

Others include IMF Managing Director Kristalina Georgieva, European Central Bank chief Christine Lagarde, NATO General Secretary Jens Stoltenberg, President of the European Commission Ursula von der Leyen and Chinese Vice-Premier Liu He.

World Health Organisation (WHO) chief Tedros Adhanom Ghebreyesus and central bankers such as India’s Raghuram Rajan are also on the list.

Unclear is whether climate activist Greta Thunberg will return to the slopes.

WHAT IS ON THE AGENDA?

This year’s theme, ‘Cooperation in a Fragmented World,’ is a nod to the tectonic shift in global markets and political relationships that has occurred since the pandemic.

The annual event was once regarded as a cheerleader for globalization. Now, the global elite will meet against a backdrop of protectionism, a war that has strained political alliances and deepening ideological divides.

Rising interest rates and a cost of living crisis also threaten to divert attention to matters back home for some.

Climate change topped the WEF’s survey of global risk and energy company executives will mix with climate activists and environment ministers at the forum.

Other themes will include the cost of living, a tight labour market, natural disasters and extreme weather events, how to prevent a global recession in 2023, the resurgence of COVID infections in many countries, an energy crunch and the looming first anniversary of Russia’s war in Ukraine.

The WEF is not without its detractors. In recent years, it has been criticized by activists and commentators as a talking shop for the jetset that just adds to global carbon emissions.

(Compiled by Siddarth K in Bengaluru; Editing by Leela de Kretser and Alexander Smith)

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