Davos Discussions, UK-EU Relations, and Shifting Trade Dynamics
The final day of the World Economic Forum in Davos centered on the global economic outlook. Discussions featured prominent figures such as IMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde. Topics included slow but stable growth, declining inflation, and positive trade trends. However, challenges like high public debt and geopolitical tensions were also highlighted.
President Donald Trump has withdrawn the United States from a global tax deal negotiated at the OECD, which aimed to implement a global minimum tax and ensure that large multinational companies pay fair taxes where they operate. This move signals a potential shift towards a tax war, with considerations to double taxes on foreign companies as a retaliatory measure.
President Donald Trump delivered a virtual address to the World Economic Forum in Davos, Switzerland. In his speech, he emphasized his administration's commitment to revitalizing the U.S. economy through deregulation, tax incentives, and a focus on domestic production. He declared, "Under the Trump administration, there will be no better place on Earth to create jobs, build factories, or grow a company than right here in the good old USA."
Storm Éowyn hits the UK and Ireland. Storm Éowyn has brought dangerously high winds, reaching 114 mph, causing widespread disruption across the UK and Ireland. Millions have been urged to stay indoors, with red weather warnings in Scotland and Northern Ireland. The storm has led to significant damage, including uprooted trees and power outages affecting more than 715,000 homes and businesses in Ireland.
The UK government has indicated openness to joining a tariff-free trading scheme with Europe as part of its plan to "reset" its relationship with the continent. Business Secretary Kemi Badenoch met with EU Trade Commissioner Valdis Dombrovskis to discuss this possibility. While the government has not committed to joining the Pan-Euro-Mediterranean Convention (PEM), it is consulting with businesses to assess potential benefits.
Sources:
The Guardian
The Times & The Sunday Times
Reuters
Politico
World Economic Forum
Financial Times
