Davos 2017: Joe Biden criticises Russia; Al Gore on climate change - as it happened

Graeme Wearden in Davos

from on 2017-01-18 18:47 (#299V2)

Rolling coverage of the second day of the World Economic Forum in Davos

6.47pm GMT

The official Davos sessions are now over for the day, although there are plenty of working dinners taking place (most off the record, alas).

6.35pm GMT

It wouldn't be Davos without a dose of eurozone angst; and Jamie Dimon, the CEO of JP Morgan, has provided it.

Dimon told Bloomberg TV tonight that the euro area could break up unless politicians address the populist anger that has built up.

"What went wrong is going wrong for everybody, not just going wrong for Britain, but in some ways it looks like they're kind of doubling down.

[Unless leaders address underlying concerns] you're going to have the same political things about immigration, the laws of the country, how much power goes to Brussels."

6.03pm GMT

The United States may flip at the end of this week from being a climate leader, to being the leading climate change denier, says Thomas Friedman, the author chairing the climate change session.

How will Trump's election, and the changes in Europe, affect the climate agenda?

I believe the Brits are going to continue being active on this, and that my sister party the Conservatives will hold firm to an agenda against emissions.

The Paris Agreement is in place, it's a long process to get out of it.

But of course, not implementing it is a possibility for a new administration.

People who continue to deny will fall back, and lose out in the future.

5.45pm GMT

Three questions about climate action from @algore: Must we change? No choice. Can we change? Makes business sense. Will we change? #WEF2017

5.35pm GMT

Former US vice-president Al Gore is speaking about climate change now, saying there are only three questions remaining on the climate crisis:

On the first question, must we change, most people in the world are now convinced; but we are reminded by some recent elections and appointments that not everyone is there.

Every night on the television news now is like a nature hike through the Book of Revelations. People are connecting the dots and coming to the realisation that the answer to that first question is yes.

5.03pm GMT

The link between the pound and the FTSE 100 continues to hold. A dip in sterling - partly on profit taking after Tuesday's gains in the wake of UK prime minister Theresa May's Brexit speech - has given a lift to the leading index.

The FTSE 100 - which is full of overseas earners who benefit when the pound is weaker - closed up 27.23 points or 0.38% at 7247.61. The pound is currently down 0.8% against the dollar at $1.2304 and 0.5% lower against the euro at a1.1521. Jasper Lawler, senior market analyst at London Capital Group, said:

Trading on the FTSE was muted the day after suffering its biggest loss in six months. The British pound, drifting lower in a correction of its biggest daily gain since 2008, helped the UK equity benchmark to modest gains.

We view the move in the British pound following Prime Minister's speech as a game-changer and as such don't anticipate a near-term resumption of the record winning streak for the FTSE 100. UK multinationals, like Burberry, still stand to benefit from a weak pound. The shift in sentiment in the pound means that gains could now be more concentrated in specific companies and industries, rather than the entire UK stock market.

4.56pm GMT

Just 21% of delegates at WEF this year are female, despite years of pressure (companies can send an extra delegate as long as one member of the party is a woman).

IMF chief Christine Lagarde has highlighted the scale of the problem.

In order for the IMF to meet its gender quotas, it will have to hire only women for the next 5 years, says @Lagarde at #Davos

3.44pm GMT

We just ran into Liam Fox, the UK's secretary of state for international trade, as he arrived at WEF.

Fox says he's at Davos make the the case for free trade, and make sure that global markets don't "silt up".

3.38pm GMT

Sitting alongside Pierre Moscovici, economist Joseph Stiglitz says that if Europe can't build the institutions to make the euro work it should admit that it has failed.

Unless there is such a mechanism, he says, Europe should "face reality, say this has been an interesting experiment but currencies come and go."

"Fixing #Europe 's disunion" @politico w #Stiglitz #Moscovici, #Marcegaglia #Visentini Key question : jobs, jobs, jobs ...esp for youth pic.twitter.com/tqp7jh1wfS

3.16pm GMT

The answer to Europe's problems is to have more Europe, not less, Moscovici adds (isn't it always?!).

"We need more convergence, more policy tools, a budget and a minster of finance for the EU. We must invest more."

'Trump can be an opportunity for Europe. We need to be more united than ever, that means more Europe' said @pierremoscovici #fixingeurope

'My successor needs to be the European finance minister', says commissioner @pierremoscovici #fixingeurope #wef17

3.08pm GMT

Pierre Moscovici, the EU commissioner for the economy, is speaking at a session on The European Disunion.

He admits that people are not happy.

"People suffer from too weak growth, too high unemployment and too much debt. There's economic anger and cultural anger."

3.02pm GMT

Guy Standing, professor at the School of Oriental and African Studies (SOAS) <corrected> has been telling Davos that the time has come for a universal income for all citizens.

Standing says he has been making the case for a basic income to be paid to everyone regardless of whether they are rich or poor for many years but the idea has recently started to get attention because of the fears of job losses from automation.

"A basic income is not a panacea but it is part of the new redistribution we should be building for the 21st Century."

"The returns to property and intellectual property and natural resources are going to a minority and we must do something about that."

2.59pm GMT

In one of those 'only at Davos' moments, 17 Poki(C)mon Go "Poki(C)stops" have been set up around the ski resort to (possibly) raise awareness of inequality.

It's the brainchild of film director Richard Curtis's development agency, called Project Everyone. Stops include worthy causes like "Zero Hunger" and "Good Health."

"I'm hoping a surprising number might think it is quite an amusing thing to do. I've noticed the Davos audience are quite willing to laugh at even quite weak jokes, because they're looking for entertainment!"

Davos looks like it's tapping into the mood of the moment. https://t.co/JVq0n52UUk pic.twitter.com/UR48LcPVOR

2.24pm GMT

Away from Davos for a moment once more, and US consumer prices rose in December, up 2.1% year on year mainly due to higher fuel prices as crude recovered more ground from its recent lows.

That was the biggest year on year gain since the middle of 2014 and rose from a figure of 1.7% in November, although it was in line with analysts' expectations.

Both headline and core inflation are rising faster than 2% year on year, helping to build the case for further Fed rate hikes.

US consumer price inflation came in exactly in line for December with the headline rate rising 0.3% month on month leading to an annual inflation rate of 2.1% versus 1.7% in November. The core (ex food and energy) rose 0.2% month on month leaving the annual rate at 2.2% versus 2.1% previously. This is the first time that both headline and core US inflation is rising at 2% or more since the second quarter of 2014.

2.22pm GMT

Europe needs to spend more on defence to protect the Transatlantic Alliance, says Germany's defence minister.

Ursula von der Leyen told a panel that:

Europe has to take a fair share of the burden. It's not at that point that now, so we have to invest more in defence.

I'm very confident that this wonderful and precious friendship will last long.

We are fighting for something - for democracy, for the open society, the rule of law.

"Don't count out the transatlantic alliance." stresses @FredKempe at #WEF17 w/ MOD von der Leyen & ADM @StavridisJ #StrongerWithAllies pic.twitter.com/daPQhmJOAH

1.51pm GMT

Facebook's Sheryl Sandberg is also on this panel about 'positive narratives'.

She explains how it's important that people have a 'common understanding' of the past, to help create a shared identity.

A shared identity means a common understanding of your past and a common belief in your future, says Sheryl Sandberg #wef17

1.48pm GMT

If you look at the history of mankind, you see that societal change and progress is a messy thing, Meg Whitman continues.

Her message to leaders at Davos is to "be the change you want to create".

Sometimes these problems are so overwhelming that if you carve out something that matters to you, that you can make a big difference to, that can push the ball down the field.

It's up to leaders in this room, particularly in the technology field, to think 'how do we help manage the transition of people who have been disrupted by robotics or automation' -- which by the way is a far bigger cause of job losses in the US than economic globalisation.

Live from #wef17: Disruptions mostly caused by accelerated technological change rather than trade, @HP's @MegWhitman says. @welt pic.twitter.com/roLTVqqGO3

1.24pm GMT

Despite the gloom in the global economy, is there a 'positive narrative' out there?

On a panel session in the main hall (livefeed here), documentary maker Sharmeen Obaid- Chinoy says technology is giving people more control.

People want to take ownership of their stories, especially young people.

There are a lot of anxieties. Violence against women in many parts of the world has gone up, but so has access to technology and women are now more aware of their rights.

I see less anxiety in the places I work, and more hope.

1.00pm GMT

Here's a video clip of Joe Biden telling the global elite at Davos to pull their weight.

12.49pm GMT

Mike Gregoire, the chief executive of software giant CA Technologies, has criticised the idea that simply taxing the 1% richest more will solve our economic problems.

Speaking to me at Davos, he says the key is to invest more in science, technology, engineering and mathematics skills, to help people in the new economy (a theme Joe Biden touched on in his speech too).

The lack of both business and governments, and I say both, focusing on retraining people in STEM education for the jobs of the future, rather than trying to protect a job of the past, needs a lot more work.

The notion of this 1% - it's a very convenient argument. The math doesn't work.

So what are you doing to prepare people for that economy, rather than the economy of the past?

We're talking about a whole generation of folks who could add value to our economy, and they just don't have the skills because they haven't been trained to be able to participate.

That's something we can all help lean into.

12.27pm GMT

Here's foreign policy expert David Rothkopf on Biden's farewell speech.

Biden's speech frames rise of next president (unnamed) in the context of a true threat to an international order 70 years in the making.

Biden's remarks remind it's not people in US pushing for a new "Cold War". It is Putin himself, who never stopped fighting the old one.

12.21pm GMT

While Joe Biden was criticising Russia, his predecessor Al Gore was speaking at the Davos Arctic Camp - set up by climate scientists to focus attention on global warning.

"If we don't act quickly it could be just the beginning of climate refugees." @algore in reference #Syria #WEFLIVE https://t.co/WJNRETitB2 pic.twitter.com/fElonuAD7I

12.03pm GMT

Here's our economics editor Larry Elliott on today's top-level panel on the middle class crisis.

The head of the International Monetary Fund, Christine Lagarde, has called for urgent action to tackle a middle-class crisis as she warned that inequality, distrust and a lack of hope were fuelling growing political populism.

Speaking at the World Economic Forum in Davos, Lagarde said she had first highlighted the dangers of rising inequality four years ago but had been ignored. "I hope people will listen now," she said.

11.17am GMT

Away from Davos briefly and some more reaction to the UK jobs numbers.

Some analysts, while acknowleding the latest figures are generally positive, wonder if the momentum can continue. Nina Skero, managing economist at the Centre for Economics and Business Research, said:

Given the low unemployment rate and still modest, but accelerating wage growth it may be difficult to think of the labour market as anything but robust. However, other indicators suggest that a labour market softening may not be far off. The latest employment figures saw a decline of 9,000 persons compared to the June to August period. Correspondingly, the proportion of people in work decreased by 0.1 percentage points compared to June to August 2016 and now stands at 74.5%.

The Claimant Count statistics, which are considered experimental by the ONS but are the most timely, also suggest that the labour market may be losing some steam. In December 2016, the number of people claiming unemployment related benefits declined by 10,100 compared to November 2016 but was 26,900 higher than in December 2015.

The main headlines from the UK labour market report continued the recent run of relatively optimistic news on the state of the economy. The unemployment rate held at 4.8%, the fall in the level of employment of 9k 3m/3m was smaller than the 35k decrease expected and average earnings growth picked up to 2.8% 3m/y (inc. bonuses), the strongest since September 2015.

Private sector average earnings growth is now above 3% 3m/y and above 4% 3m/y in the retail/restaurant sector, each for the first time since Q3 2015. The relative weakness in terms of private sector pay is the financial and business service sector where growth is just 1.9% 3m/y. As with the inflation data yesterday, this development won't ease the MPC's concerns about the anticipated period of above-target CPI.

10.37am GMT

London mayor Sadiq Khan is in Davos today, as part of his push to protect the capital, and its financial centre, from harm from Britain's exit from the EU.

He's holding various meeting, and will also address business leaders tonight at a Morgan Stanley dinner.

"Securing privileged access to the single market must be the top priority for the negotiations. It's critical for London. Nothing else will do. It can't be brushed aside - as it was yesterday.

"A hard-line approach to Brexit "". could rip Britain apart.

10.34am GMT

Biden left the stage to a rousing standing ovation - but I suspect it won't be last time we see him at Davos:

10.32am GMT

The FT's Katie Martin has a good take on Joe Biden's sting criticism of Russia, in his final speech as vice-president.

US vice president Joe Biden has pointed the finger of blame specifically at Russia for seeking to "whittle away at the edges of the European project."

The country, he said, is "testing the fault lines between western nations."

Davos: Biden blames Russia for attacking 'European project' https://t.co/1Pr0c9a9ZK

10.15am GMT

Biden ends his final speech as US vice-president with a rousing call for Europe and the US to "lead the fight" to defend the values that created today's world.

That means:

A fight for democracy, a fight to reject isolationism and protectionism".

Biden out. He didn't pull his punches.

10.11am GMT

Biden then turns to geopolitics, and singles out Russia.

Under president Putin, Russia has been testing the fault lines in other nations, says Biden. It is trying to return to a world of 'spheres of influences', even sending 'little green men' across borders to stir up separatism in Ukraine.

Joe Biden goes right after Russia at Davos. Says Putin is trying to undo the liberal world order. #wef17

Biden on Nato: "A sacred obligation that attack on one is an attack on all. that can never be placed in question"

Biden: we must take on Russian aggression, fight for the EU, for NATO. Every line of speech is a not-so-subtle rebuke to @realDonaldTrump

10.04am GMT

Looking into his audience of global leaders in Davos, Biden says a "progressive tax system" where everyone pays a fair share will help address the crisis.

I told a group of you last night - the top 1%'s not carrying their weight

You're not bad guys, you're good guys.

9.57am GMT

Millions of people around the world have benefitted from globalisation and new technology, Biden continues.

But in other places, factories are closing and jobs are being lost.

Taken together, these forces are effectively hollowing out the middle-class, the traditional engine of economic growth and social stability in Western nations.

We cannot undo the changes that technology has wrought in our world, nor should we try.

9.51am GMT

Biden is speaking about how the liberal world order pioneered by the US and Europe after world war 2 delivered unprecedented growth and security; but it is now at threat.

He explains how his father had explained that a job was about more than just a pay cheque; it was also about self respect and worth.

In my country, there used to be a basic bargain since the mid-20th century, agreed by both parties....

If you contributed to the success of the enterprise that you were engaged, you got to share the success and the profits.

9.46am GMT

Biden begins by telling that there is "palpable uncertainty about the state of the world."

And he doesn't mean the transfer of power in America this week.

In two days there will be a new president of the United States...

The challenges we face, and the choices we must make as an international community doesn't hinge exclusively on Washington's leadership.

Whether we reinforce the ties that bind us or whether we unravel under the current pressure. These choices must be made by very single nation.

9.43am GMT

Davos delegates have flooding into the main hall here to watch the set-piece event of the morning, vice-president Joe Biden's final speech in office.

Biden gets a warm, standing ovation as he arrives on stage.

9.43am GMT

The number of people in work in the UK dipped slightly in the three months to November compared to the previous quarter, but average weekly earnings came in higher than expected and the claimant count for December fell by more than forecast.

The jobless rate for the three months held at an 11 year low of 4.8%, in line with forecasts, and unemployment fell from 1.65m to 1.6m. But the number of people in work fell by 9,000 to just over 31.8m. This is the second report in a row to show a dip in the number of people in work, perhaps suggesting a slight degree of reluctance among employers in the wake of the Brexit vote.

We had another set of promising economic data today which has shown that average earnings have increased and unemployment claims have fallen. It was important that the average earning index picks up pace to keep up with inflation.

The inflation data released earlier has already brought headache for the MPC members and it is not a good news for consumers because their purchase power is going to see a dramatic impact. Households will have to dig deeper in their pockets and if their earnings do not match inflation, we have a problem.

Overall, with employment levels still close to record levels and unemployment continuing to fall, the latest indicators confirm that the UK jobs market remains a major bright spot for the UK economy.

While labour market conditions could soften over the next year as economic growth slows, the high degree of flexibility in the jobs market will help limit the extent of any uptick in unemployment.

9.19am GMT

Elsewhere in Davos, delegates have been discussing the gender divide, and how fighting stereotypes can fix it:

Great @Unilever panel on challenging gender stereotypes. Can unlock $28trillion but need all on board #WEF17 #SDGs @UN_Women @sherylsandberg pic.twitter.com/QruSSJMRm0

Unilever researched role women in advertising: 3% showed women as leaders and 1% wo. with a "genuine sense of humor" @Davos #Davos17

Sheryl Sandberg: I tell men all over the world that if they do more laundry, they will have more sex #davos17 #genderequality

9.10am GMT

Another takeaway from that session:

Billionaire Ray Dalio at Davos says populism scares me. #davos #davos2017

9.03am GMT

Italian finance minister Pier Carlo Padoan concludes the session on the middle class crisis with a three-point plan.

1) We need to take populists seriously, he argues, and not just paint them as the bad guys. Often they are the good guys, with genuine concerns about the future.

To fight populism, Padoan says "we need to provide a vision, which in Europe lacking"-Trump/ Brexit show a vision, even if w disagree #wef17

Italy's finance minister Padoan says those voting for populists aren't 'bad guys' but 'good guys' with real concerns for their future #wef17

8.58am GMT

Lagarde insists there is still time for "courageous" politicians to reconnect with the people.

They must create policies that address concerns such, as what future their children face and what safety net will be in place.

8.53am GMT

Lagarde argues that globalisation needs to take "a new turn", and we need more analytical work how jobs are being lost to new technologies.

She says:

To turn our back to globalisation, to helping development, is entirely the wrong approach.

8.51am GMT

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