Davos 2019: Hammond meets business leaders on Brexit - live
Rolling coverage of the third day of the World Economic Forum, as George Soros gives a speech on the sidelines of Davos
- Soros takes swipes at Xi at Davos
- AI can prop up totalitarian states
- Soros: Huawei and ZTE mustn't dominate 5G
Earlier:
8.35pm GMT
Q: Two years ago you were very critical of Trump, but now you're giving him advice. So you see him as less of a threat, asks AP.
George Soros replies that it's important to distinguish between the Trump administration and Trump himself.
8.26pm GMT
Q: Whose side are Facebook on in the privacy war?
Facebook are on the side of their own profits, Soros replies, to a small smattering of applause.
8.25pm GMT
Kenneth Roth of Human Rights Watch now has the microphone, as Soros retakes his seat after delivering a long blast - mainly at China.
He agrees that Xi is a danger, saying he presents himself as a strong man but is actually terrified of the Chinese people.
Not having ethics for AI means for sure that China wont do any better.
8.16pm GMT
Last year, George Soros was putting the boot into Donald Trump.
This year, he's offering him advice, saying:
If they dominated the 5G market, they would represent an unacceptable security risk to the rest of the world
8.08pm GMT
"A global shutdown, err slowdown is the last thing anyone wants to see", says Soros, as he touches on the 90-day trade truce agreed between Washington and Beijing.
Shutdowns and slowdowns are both bad news for the economy, of course. And one often leads to the other...
8.06pm GMT
Soros reminds his audience (who've now polished off the main course and are looking for a passing wine waiter) that the US has declared China a strategic rival in the last year.
This is too simplistic, says Soros, adding
China is an important global actor. An effective policy towards China can't be reduced to a slogan.
8.03pm GMT
Soros's Davos speeches usually have one or two villians - this year, president Xi is in the spotlight.
Soros is explaining how Xi's Belt and Road initiative is hitting potholes, with countries such as Malaysia pushing back against the surge of China-backed infrastructure project.
7.59pm GMT
Soros admits that the number of leaders who support his open society philosophy have thinned out of late -- the EU and US used to be big backers, but domestic changes have undermined that.
7.58pm GMT
Some of the events in the last year have surprised me, says 88-year old Soros.
He says he president Xi Jinping came into trouble this year when -- the rumours say -- he was taken down a few pegs by senior officials in Beijing.
Xi remains supreme leader, possibly for his lifetime.
7.51pm GMT
Citing his Jewish heritage, George Soros is now explaining how he fled to London to escape the Nazis, ending up working in the financial markets.
He then turns to his transformation into a campaigner for open societies through his foundation.
I got hooked on what I like to call political philanthropy
7.43pm GMT
Everyone who prefers to live in an open society should be concerned about the rise of instruments of control, says Soros (to the accompaniment of listeners scoffing their chicken and potatoes).
7.40pm GMT
George Soros, the billionaire investor/philantropist, is giving a speech in Davos, at a private dinner.
And he's kicked off with by warning that machine-learning and artificial intelligence are posing an "unprecedented threat" to open societies.
Xi Jinping wants a one-party state to rein supreme....
He is the most dangerous opponent to those who believe in open societies.
5.34pm GMT
The IMF's David Lipton now warns that America's central bank might not be able to take extraordinary measures in the next crisis, because the political environment has changed so much since a decade ago.
People have been hurt in the last crisis, Lipton says, and they don't appreciate that we came along and cleaned up afterwards.
I wonder if they'll be politically able, and comfortable, extending swap lines as widely as they did last time.
From a policy standpoint, we need to be more careful to have sustained growth, not make errors, not let squabbles lead to problems, and make sure the next recession is only a garden one.
5.26pm GMT
One lesson from the last financial crisis is to impose more responsibility on the sector, Carney says.
Going back to 'Too Big to Fail', he cited the importance that bond-holders pay the price when a bank falls,not taxpayers. Lots of work done, but it's not there yet.
Ignorance is not a defence. it will have consequences.
If you have people doing the wrong thing and they aren't being overseen, haven't been trained, you don't take remedial action, it will have consequences for your remuneration and your position at the firm.
This is...absolutely necessary for the social licence of the industry, and so far there hasn't been a deterioration in the quality of the bankers.
5.06pm GMT
The discussion turns to China, and Mark Carney singles out concerns about the shadow banking sector.
He flags up wealth management trusts, which have invested trillions of dollars into bonds and other assets.
These are substantial proportions of GDP in terms of assets, that don't have the rock-solid guarantee in terms of the liabilities, that do have exposure...and have some echoes to some of the structures that grew up in the UK and the United States prior to the financial crisis.
The question of what goes back on the bank balance sheet, where there are losses.
4.54pm GMT
David Lipton says there is a danger of 'fighting the last war', rather than recognising how risk has moved in the last decade.
4.52pm GMT
Mark Carney weighs in with a timely warning about complacency -- warning his audience that financial stability
Memories are short in finance, financial lobbies are powerful and success is an orphan in financial stability.
The more successful you are, the more people forget, so complacency is an issue.
At some point, some core service or institution might be down for a while. What is the system going to do about it?
4.42pm GMT
Cecilia Skingsley warns Davos that the best way to avoid a new financial crisis is to protect the measures brought in since the last one.
The Riksbank's deputy governor says there have been many important reforms -- banks have more capital and bigger liquidity buffers, and special regulations about 'too big to fail'.
We should be very careful to maintain what we have achieved in these areas.
There is already a lot of creativity and energy going in in different ways, to dilute these reforms.
They best way to avoid the next crisis is remember the last one, and protect what we have achieved.
4.32pm GMT
4.19pm GMT
Outside the Congress Hall, protesters have been demonstrating against Brazilian president Jair Bolsonaro.
The protest is organised by Juso Schweiz, Switzerland's Young Socialist Party.
3.57pm GMT
The introduction of GDPR privacy regulations last year caused some pain for companies...but Microsoft's chief is a big fan.
Speaking earlier today, Satya Nadella argued that US citizens deserved the same protection for data misuse as Europeans.
"My own point of view is that it's a fantastic start in treating privacy as a human right.
I hope that in the United States we do something similar, and that the world converges on a common standard."
Privacy is a human right, we need a GDPR for the world: Microsoft CEO @satyanadella https://t.co/7N4l03dkwb #wef19 pic.twitter.com/t7gP4yD3PC
2.49pm GMT
Greta Thunberg, the 16-year old Swedish climate change activist, is bringing her school strike campaign to Davos.
"We need to hold the older generations accountable for the mess they have created, and expect us to live with.
It is not fair that we have to pay for what they have caused."
"That would have a huge impact, but I'm not going to force anyone to do this."
"Everyone keeps saying that the young people should be more active, and they're so lazy, but once we do something we get criticised."
I was given the opportunity to speak at a lunch in Davos today... On the panel was Bono, Christiana Figueres, Jane Goodall, https://t.co/0SsuJbW9SN and Kengo Sakurada. #wef pic.twitter.com/PpUwQwTotf
2.30pm GMT
The latest US jobs data published earlier showed no sign of a slowdown.
Weekly jobless claims fell by 13,000 in the week to 19 January, to 199,000 which was the lowest since mid-November 1969 according to the Labor Department.
Jobless claims lowest since 1969... https://t.co/Mt72u1Uqv1
2.25pm GMT
David Solomon, chief executive of Goldman Sachs is in Davos and has been speaking to Bloomberg TV.
He economists at the US investment bank believe there is a 50% chance of a US recession in 2020:
I think the US economy is in good shape. There is a possibility that as we get to the end of 2020 we see a slowdown, but it's just as possible that growth will continue.
When you think about recessions ... there's nothing obvious that stands out as, 'hey that's a big problem', right now. But we're always looking out for imbalances and we'll see how things progress.
1.53pm GMT
More from the CBI's annual lunch in Davos, where the UK chancellor Philip Hammond said Britain was strongly supporting the OECD's attempt to find an internationally-agreed way of taxing digital companies.
Matt Brittin, head of European operations for Google said:
We have called for international tax reform because although we pay our tax everywhere there are now countries that want to see tax paid locally rather than the majority paid in the US as current rules dictate.
The UK's push for international reform would help us and other international businesses to be seen to be paying our way.
1.44pm GMT
Mario Draghi is holding a press conference following the ECB's latest policy decision.
He says the risks to eurozone growth are now to the downside, largely because of the rise in protectionist policies and financial market volatility.
Watch the ECB press conference live: President Mario Draghi explains today's monetary policy decisions https://t.co/n3bYCDapGd
1.37pm GMT
European shares have been given a bit of a boost after reassurance from the European Central Bank that it is not planning to hike interest rates any time soon.
Most key markets had already reversed earlier losses but the gains have strengthened. The FTSE 100 is the exception, currently down 23 points.
1.02pm GMT
Philip Hammond has come out strongly against a second referendum.
Speaking at the CBI's annual lunch in Davos the chancellor says it is important for trust in the political system for the 2016 vote to be respected.
Even from the narrowest interpretation of business interests it would be a Pyrrhic victory to meet the needs of the economy but by shattering the broad economic consensus behind our country's political and economic system.
12.54pm GMT
Switching briefly to Frankfurt, the European Central Bank has just published its latest policy decision and has left rates unchanged, as expected.
Policymakers on the governing council reiterated the message that a hike was unlikely unless until at least after the summer.
At today's meeting the Governing Council of the European Central Bank decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively.
The Governing Council expects the key ECB interest rates to remain at their present levels at least through the summer of 2019, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to levels that are below, but close to, 2% over the medium term.
ECB leaves guidance unchanged as well.
to keep rates unchanged at least through the summer of 2019 #euro
12.06pm GMT
A spokeswoman for the Treasury says the chancellor Philip Hammond pulled out of the Davos panel on Europe because his schedule is so packed after Theresa May decided not to make the trip to focus on Brexit.
After stepping in for the Prime Minister at Davos, the chancellor has committed to more than 20 meetings in 48 hours with a wide range of stakeholders. He has accommodated as many speaking requests as possible in the short time available.
11.20am GMT
Carney was asked whether firms are ready for a hard Brexit:
When asked whether he thinks business is prepped for a hard Brexit, Carney says there are still logistical issues that need to be solved pic.twitter.com/YidYh6GvEB
Carney adds firms aren't ready to jump from a seamless trading environment to one with frictions that are not just tariffs. For those relying on ease at the border "minutes matter in that world"
11.18am GMT
Meanwhile Kalyeena Makortoff, the Guardian's banking correspondent, has been attending a Davos session featuring Bank of England governor Mark Carney and the IMF's Christine Lagarde.
The subject was 'shaping the future of finance' but they seem to have veered off-topic:
The audience votes on whether UK should hold second referendum. Most say 'yes', while a smattering of about 10 hands go up for 'no'. As expected, no give away from Carney on where he stands - keeping his hands down during both rounds
10.35am GMT
So Philip Hammond, UK chancellor, pulled out of the panel session on Europe this morning but it's not entirely clear why...
It did mean however that the rest of the panel could focus on the future of the EU, without discussing Brexit once.
10.32am GMT
Q: What should be the next concrete steps to recreate the necessary trust in Europe?
Ireland's Leo Varadkar: Over the next 5-10 years we need to move it from being just an economic power and trading bloc into a group of nations that is politically influential. The US is moving away from that role, China is getting bigger. Europe needs to have a common foreign policy and act as a force for good in the world on a number of key issues.
10.29am GMT
Back at the Arctic Basecamp, Greta Thunberg, the 16-year old Swedish climate change activist, tells delegates she spent last night in a tent at minus 18 degrees celsius.
I want to tell them that if we do not care about the climate crisis then no other issue will matter in the future.
This is what shapes the future.
10.23am GMT
Ireland's Leo Varadkar says the best way to address tax loopholes is through the OECD.
He says the best way to address the digital tax is to tax where the value - and not turnover - is created.
10.16am GMT
Ana Botin, chair of Santander, says Spain has had by far the biggest flow of immigrants than any other country.
(That comment is directed at Dutch PM Mark Rutte who spoke earlier about a north/south divide in the EU.)
We are famously known in the world for being slow in Europe. But we're also trying to do the right thing. Let's prove everybody wrong and do the right thing, but a little bit faster.
10.15am GMT
China, the US and the EU are all major contributors to global emissions.... and Professor Gail Whiteman of Lancaster University points out that companies also have responsibility.
Look at the holdings of asset manager BlackRock, she says. Its passive holdings are melting sea ice the size of Shanghai each year she adds.
10.12am GMT
Up in the mountains of Davos, a group of climate change scientists are updating delegates.
Dr Jeremy Wilkinson of the British Antarctic Survey, warns that the world is losing polar ice at a
10.09am GMT
Cecilia Malmstrom, EU trade commissioner, says that on her travels the key issue that young people raise is no longer migration but climate change.
The Polish PM Morawiecki says a key focus has been addressing inequality, and that it's heading in the right direction in Poland. Eliminating all tax havens from the EU would help bring about a level playing field.
10.04am GMT
Q: What reforms are necessary?
Dutch PM Mark Rutte: Trump is an opportunity.. to make use of his criticism of multilateralism and reform areas that need it.
9.58am GMT
Klaus Schwab asks: what would you tell young people today about the value of European identity?
Dutch PM Mark Rutte: Three words: prosperity, collective safety and values.
9.51am GMT
Klaus Schwab is introducing the panel...
9.47am GMT
Coming up shortly is a panel on "the new impetus for Europe".
Philip Hammond was showing on the list of speakers this morning, but has since vanished...
9.35am GMT
Angel Gurria, head of the the Paris-based Organisation for Economic Cooperation and Development, says he is confident that by next year a way will have been found to ensure the world's tech giants pay more tax.
Countries can no longer politically afford to have these huge companies making billions in profits and paying next to nothing in tax.
Countries need the money and it has become politically unacceptable following the financial crisis. Even the tech companies understand that the time has come when they have to be part of the solution because otherwise countries will have to slam their face on the table and take non-negotiated decisions.
What we are aiming for is a system that ensures there is no further abuse of what is legal but perhaps not right.
9.32am GMT
Sticking with Brexit for a moment, Airbus boss Tom Enders has launched a stinging attack on the UK government's handling of the process, declaring it a "disgrace".
A no-deal #Brexit will lead to @Airbus making "potentially very harmful decisions for [its operations in] the UK", says Airbus CEO Tom Enders.
aiWatch Tom Enders' message: https://t.co/Ahb6NHJTyx pic.twitter.com/UZJzYcgS8H
Please don't listen to the Brexiteers' madness which asserts that because have huge plants here we will not move and we will always be here. They are wrong.
Of course it's not possible to pick up and move our large UK factories to other parts of the world immediately. However, aerospace is a long-term business and we could be forced to redirect future investments in the event of a no-deal Brexit and make no mistake, there are plenty of countries out there who would love to build the wings for Airbus aircraft.
Related: Airbus brands UK government handling of Brexit 'a disgrace'
9.03am GMT
The former UK prime minister Tony Blair is in Davos and says the only way to resolve the current Brexit impasse is to go back to the British people with a second referendum.
It's obviously a complete mess. There's gridlock in parliament, we've had 30 months of negotiation. It's still not clear really what the future relationship between Britain and Europe would be under what's been agreed so far, and I don't think there's a majority in parliament right now for any proposition.
I hope as people go through the different options they will finally realise there is only one way of resolving this and that's to put it back to the people for a final decision.
Brexit is "a complete mess," says Tony Blair, who thinks it's "not responsible" for Theresa May to threaten a no-deal split https://t.co/W6u9Usl0hl #wef19 pic.twitter.com/QH3E7W05O3
8.47am GMT
Away from Davos briefly to the markets, which are pretty subdued across Europe this morning.
Wall Street closed higher on Wednesday after some upbeat corporate results in the US, but traders on the other side of the Atlantic today are in cautious mood as they await the latest policy decision from the European Central Bank, due at lunch time.
Upbeat quarterly results from big names on Wall Street saw all three major US indices close higher. However, gains were capped by continued concerns over slowing global growth and the still unresolved trade issues.
The mixed sentiment resulted in a subdued session in Asia. Europe is also pointing to a lacklustre start to trading as investors look ahead to the ECB rate announcement and a possible end to the US government shutdown.
8.30am GMT
Hancock says the second area of focus, after prevention, will be innovation.
He says there has been a major lack of development of new antibiotics in recent years.
No new innovation in the basic bedrock of every health service in the world which is shocking and deeply troubling.
NICE and NHS England will explore a new payment model that pays pharmaceutical companies based on how valuable their medicines are to the NHS, rather than on the quantity of antibiotics sold.
8.24am GMT
The health secretary says the UK will be looking for advice from the livestock industry, which has successfully reduced the use of antibiotics.
Chicken farmers, for example, have reduced use of antibiotics by 71%, while increasing productivity by 11% at the same time.
8.21am GMT
Matt Hancock says he couldn't look his children in the eye unless he was doing all he could to act on mounting resistance to antibiotics.
Britian's health secretary is speaking in Davos to launch a five year plan of action.
Everyone can play a part by only using antibiotics when they are really needed.
8.14am GMT
Bruno Le Maire, the French finance minister, broke the news in Davos...
Carlos Ghosn has resigned as Renault's chairman and CEO https://t.co/BwGMR9175J
Bruno Le Maire, France's finance minister, broke the news on @BloombergTV: pic.twitter.com/kCzQxQI1hv
8.08am GMT
Up in the mountains around Davos, climate change scientists at the Arctic basecamp will today urge world leaders to do more to rein in carbon emissions.
Despite significant progress in the low carbon economy, scientific evidence in 2018 showed that emissions are again rising, and the sustainable target is 1.5C, not 2C as previously thought.
Furthermore, disappointing outcomes from the COP24 in Katowice did not raise ambitions to a level that will save the planet.
7.52am GMT
Good morning, and welcome to our rolling coverage of the third day of the World Economic Forum.
"Brexit is like Groundhog Day without the happy ending," bemoaned one senior UK economist last night, as anxiety over Britain's exit from the EU continue to rattle Davos.
Related: No-deal Brexit 'poses threat to global stability' - CBI head
Continue reading...