Graeme Wearden 

Davos 2020: Prince Charles, Donald Trump and Sajid Javid speak -Day Two as it happened

Rolling coverage from the World Economic Forum in Davos, where Prince Charles calls on global elite to build sustainable economies
  
  


That’s all for today.

Here’s the moment Prince Charles shakes hands with Swedish climate change activist Greta Thunberg:

One of the more surprising Davos attendees is Mary Beard, the Cambridge classics professor.

She’s been talking about the role and representation of women in antiquity, and cited parallels with Prince Charles’s younger son:

“We have absolutely no idea what has gone on with Harry and Meghan and we will never know. But our press is absolutely convinced that the explanatory tool here is the female interloper.”

(Thanks to WEF for the quote)

Amanda Mackenzie, chief executive of Business in the Community charity, says Prince Charles’ speech highlights the “huge” gulf between words and actions over corporate responsibility.

“Our research shows that while nearly nine in 10 large companies have a purpose statement, which sets out their intentions to improve in areas such as health and wellbeing, the environment and corporate social responsibility, roughly eight in ten have not yet set clear targets about how to implement them.

“The challenge for companies in the 2020s is to implement the positive policies they have signed up to, and not just internally but through their entire supply chains.”

Here’s a clip of Charles’ speech:

The charge of hypocrisy is never far away when the global elite start to lecture us all.

So here’s the Daily Mail’s take:

Charles took a private jet to Davos - which will produce 6 tonnes of carbon per passenger compared to 0.19 tonnes on a commercial flight - Charles jumped in an electric Jaguar at St Gallen airport to drive the two hours to the World Economic Forum, shunning a fuel-guzzling helicopter used by most VIPs.

I caught up with Jos Dijsselhof, the CEO of Swiss financial services company SIX, as Charles left the stage.

Dijsselhof says the Prince of Wales is obviously “personally very engaged” on this issue. And this year, he might get a good reception:

Now more than ever, people will listen.

Q: But will people actually act on sustainability and climate?

Dijsselhof says there’s more to do:

The truth is in the action, always, and I think we need to move a lot of things much faster.

Well!

Charles: Don't go down in history for wrong reasons

Charles ends his speech by calling on the business leaders here in Davos to help.

Channelling Greta Thunberg (who we hear he’s meeting next), the Prince says:

Do we want to go down in history as the people who did nothing to bring the world back from the brink?

We need the private sector lead the world out of the calamity, he says, concluding:

“The only limit is our willingness to act and the time to act is now”.

Updated

Nature is not a new asset class. It is the lifeblood of our markets, says Charles, as he tries to drum up support in the hall for his vision.

We must change our economy to mimic nature’s economy, and work with it, he says.

The prince reminds us that he has cared about this issue for a very long time (he was an early advocate for organic food, and his Poundbury estate is designed on sustainable principles)

Finally, we are ready to change our trajectory, Charles hopes.

He says he is going to be convening round tables. A lot. Covering issues including aviation, water, carbon capture and storage , shipping, plastics, renewable energy, fishing, cement, steel, and agriculture (i missed a few, sorry).

At the end of which I will probably be dead, Charles jokes.

Charles has some suggestions for business leaders to help deliver the bio-economy, and create new markets.

He says investors should heed the demand for green investments, which often outstrips supply, he says.

On aviation, he suggests hydrogen-powered planes could come to market within a decade

For shipping: greener engines could be introduced in a few years if manufacturers and regulators work together

Prince Of Wales's plan for a sustainable economy

Charles has arrived at WEF with a 10-point plan to make the global economy more sustainable, and tackle the climate emergency.

1) We need to put nature and the protection of nature’s capital at the heart of how we operate.

2) We need responsible pathways to decarbonise to reach net zero. It is time for governments and businesses to set a clear plan for how they will decarbonise,

3) reimagine industries through the lens of sustainable market, circular bio-economy

4) Identify gamechangers and barriers -- eg policies or regulations that need to change. Bringing the right people together to push change through -- Charles says his new initiative can play a role here

5) remove perverse subsidies that prevent the economy becoming more sustainable.

The future King drifts close to fiscal policy here, calling for changes to “taxes, policies and regulations in a way that catalyses sustainable markets”.

Charles also cites the “Polluter pays” principle (under which companies which mess up the environment pick up the bill)

6) Invest in STEM and research and development, to help bring emerging technologies to market.

7) invest in nature as an economic driver.

8) Unified metrics to measure environmental, social and governance standards - to provide transparency to company’s supply chains

9) Make it easier for consumers to see which products are ethical and sustainable

10) Realign investing, so that it can support sustainability. There are trillions of dollars in pension funds, sovereign wealth funds looking for projects with long-term value and rate of return, Charles says - so they should be directed towards sustainable initiatives.

Updated

Prince Charles says that after discussing sustainability with experts for decades, he understands that we need a new economic model (that sounds a bit radical!).

It’s not a lack of capital holding us back, but it’s how we deploy it, he says.

That’s why he’s launching the Sustainable Markets Initiative and Council.

Charles says new employment options, entirely new industries, will appear in future, and a sustainable approach will help us get there.

Prince Charles addresses WEF

It’s time to hear from Prince Charles now.... nearly 30 years since he last addressed Davos.

His Royal Highness takes the stage, saying he’s “Most touched” to be here on the 50th anniversary of the World Economic .

We are in the midst of a crisis which is now, he hopes, well understood.

Global warming and species loss is the greatest crisis which mankind has faced, and one it has largely caused itself.

Frankly it has been a bit of an uphill struggle pushing environmental issues and corporate responsibility, Charles says wryly. But now, it’s time to push on to the next level.

Al Gore also points out that “political will is itself a renewable resource”.

Al Gore: Climate emergency worse than you realise

Former US vice-president Al Gore is urging Davos delegates to act on the climate emergency.

The situation is much worse than people recognise, and getting worse much faster than people recognise, Gore warns.

He calls it a “challenge to our moral imagination”, comparing it to famous battles:

This is Thermopylae. This is Agincourt. This is Dunkirk. This is the Battle of the Bulge. This is 9/11.

Interesting...

And with that, Donald Trump, his entourage, and the White House press pack, have left Davos...after making quite a stir.

President Trump’s press conference ended with more discussion about impeachment.

He repeated laid into Adam Schiff, one of the impeachment managers, for ‘lying’ about the Ukraine phone call.

Trump also argues that Bill Clinton shouldn’t have been impeached.

And when asked whether he’ll attend the impeachment, Trump says he’d love to sit in the front row and stare at the “corrupt faces” conducting the probe (but doesn’t actually appear to be planning a visit).

But his highly critical comments about Europe may cause alarm....

Updated

Trump: Boris has a lot of guts

Donald Trump then turns to the UK, and hails prime minister Johnson as a fellow sufferer of EU negotiations.

The US president predicts that Boris Johnson is going to “come out great” from the Brexit negotiations with the EU.

Trump says:

They [the EU] are actually more difficult to do business with than China. All you have to do is ask Boris.

But I think Boris is going to be OK too. I think he’s going to come out great.

He’s got a lot of guts. He’s done a terrific job.

They’re in a good position, which they would never have been able to do before Boris.

Ouch. Trump has taken a swipe at the EU.

Asked about the prospects of a trade deal with Europe, Trump tells his press conference that the EU is actually harder to work with than China.

He says he hoped to sort out China before turning to Europe, is unhappy that the EU imposes trade barriers that hurt US companies. This which makes a trade deal tough.

But, Trump says he’s still hoping to have a deal by the election.

Updated

This is an astonishing reaction to being asked about the climate emergency....

Trump is also batting away questions about the impeachment hearing which began this week.

We’re going very well. The defence team are doing a good job, says Trump, insisting that there’s nothing untoward in his call with the Ukrainian president.

But he won’t say whether he thinks abuse of power is an impeachable offence.

Trump: Thunberg shouldn't criticise US

Unexpectedly, Donald Trump is giving a press conference in Davos now.

It’s a wide-ranging event.

Trump is criticising the WTO for treating the US unfairly, and hitting out at the impeachment trial as “the greatest witch hunt”.

Democrats have been driven crazy by record numbers on unemployment, the tremendous success in the economy, Trump insists (reminder: the US has actually grown fairly slowly in recent quarters, at around 2%)

Q: You had to share the limelight yesterday with Greta Thunberg -- what did you think of her comments, and are you a climate change sceptic?

Trump asks how old Greta is, and is told she’s 17.

She beat me to the front cover of Time Magazine, Trump replies (somewhat irrelevantly)

He denies that he doesn’t take the climate seriously, but criticises activists calling for dramatic change:

Some people put it at a level that is unrealistic, to a point where you can’t live your lives

We want the cleanest water and air on earth, Trump continues.

And he then points the finger towards other countries where pollution levels are rising.

Greta ought to focus on those places, Trump says, hinting that China should do more on the environment.

We have a beautiful Pacific Ocean, and refuse from other countries is floating towards us, Trump says.

Updated

Elsewhere in Davos, Ivanka Trump has taken part in a press conference.

The president’s daughter (and special advisor) spoke about upskilling, and the need to help workers gain new skills.

Steven Mnuchin’s message was pretty clear -- impose a tax on US tech firms and we’ll slap a tariff on your car makers.

He wasn’t explicit about the threat to the UK today, but we can imagine the tone of those “private conversations” that will be taking place .

Here’s some reaction:

Updated

Javid in Davos: snap summary

The chancellor may need that glass of champagne, despite Boris Johnson’s ban on ministers quaffing fizz at Davos.

The UK and US appear to be heading for a bust-up over this digital sales tax, I fear, unless there is a global agreement quickly.

Sajid Javid’s message was clear: the UK hasn’t backed down (yet anyway), and will impose a 2% levy on tech giants from April.

That’s despite Steven Mnuchin’s clear unhappiness, and his coded threat to slap tariffs on UK cars.

Last night, the US treasury secretary warned that Britain and Italy should drop the plan, following France’s lead.

Menacingly, Mnuchin dropped this hand-grenade:

“If not they’ll find themselves faced with President Trump’s tariffs. We’ll be having similar conversations with them.”

There is still hope though. Intensive talks have been going on for days, involving the OECD, Paris and Washington. If that brings a multinational deal closer, peace could yet break out...

Other key points:

  • Javid is holding firm in the face of criticism from UK firms about Brexit divergence, insisting it made sense not to stick to EU rules.
  • He insists that a comprehensive EU trade deal can be done by December -- having just taken the temperature of fellow finance minsters at the Ecofin meeting earlier this week.
  • But the chancellor also got a taste of how tough the Brexit talks will be, when Mnuchin said he was ‘a little disappointed’ not to be first in line for a trade deal with the UK. It’s never wise to disappoint the White House, even though it clearly makes sense to address trading relations with Europe ASAP.

Updated

Javid: UK will introduce digital tax in April

NEWSFLASH: Sajid Javid insists that the UK plans to introduce its digital sales tax in April.

That’s despite the rumblings of discontent from America, and the threat of painful new tariffs on UK exports.

The UK chancellor says countries around the world need to work together and agree a plan for a fairer tax system

“This year could be the year of change,” Javid says optimistically.

Q: So will you introduce it in April, as planned, even though the US might impose tariffs?

Put on the spot, Javid says the government will press on with the plan (to impose a new 2% tax rate against the sales that large digital companies make in the UK.)

But he also points out that the tax would “fall away” if there was an international deal.

We plan to go ahead with our digital services tax in April.

It is a proportionate tax, and a tax that is deliberately designed as a temporary tax.

It will fall away when there is an international agreement.

[Background: we reported last night that the US and France will hold talks today on whether Paris abandons its own digital tax, after Donald Trump threatened retaliatory tariffs on cars]

Updated

Steven Mnuchin is asked whether the US would impose tariffs on UK car firms, if Boris Johnson introduces a digital tax on American tech firms.

We are going to have some private conversations, Mnuchin replies, adding:

This is an important issue that we’ll deal with.

There’s then a show of hands in the audience -- showing that a majority don’t support unilateral taxes (on tech firms such as Amazon and Facebook)

IMF chief Kristalina Georgieva says tech firms need to pay a fair share of tax, but there needs to be a multinational agreement.

Updated

Sajid Javid is now challenged about his recent warning that the UK won’t be aligned with the EU after Brexit, despite what many businesses hoped.

As we leave there is bound to be change, Javid insists.

There is no point leaving the EU and keeping all its rules, he adds, talking about how the UK will become a more pro-business economy after Brexit.

Updated

UBS’s chairman Axel Weber wades in too, saying that the UK and EU can reach a deal in time.

But....

It won’t be a status-quo preserving agreement. It’s a phasing out deal.

Weber says he is very optimistic, as it’s in the interests of both parties to reach a deal.

But it may not tick the boxes for everyone, he warns.

Javid: We can do comprehensive EU trade deal this year

Q: But most senior politicians in the EU think you’re living on another planet if you think you can get a comprehensive trade deal by the end of the year.

Sajid Javid, who met fellow finance ministers in Brussels yesterday, insists it can “absolutely be done’ before the transition period ends in December.

He tells his audience in Davos that the UK is leaving the EU in nine days, and both sides are keen to strike a wide-ranging trade deal before 2021.

Javid says:

There is a strong belief on both sides that it can be done.

Both sides recognise that it’s a tight timetable, a lot needs to be done.

It can be done, And it can be done for both goods where we want to see zero tariffs and zero quotas, and also services.

Chancellor Sajid Javid says the UK is a passionate believer in free trade, and sees it as a way of lowering prices in the UK.

The UK wants a comprehensive new free trade agreement with the EU, he states. The principles have been agreed, there’s still a lot of work to be done, but we’re off to a good start.

And on the US, we’re working closely together. And it’s a huge priority for us, Javid adds.

A trade agreement between the 6th largest economy in the world and the largest economy in the world could benefit all consumers in terms of jobs and prices. It’s hugely important.

IMF and US clash over trade

IMF chief Kristalina Georgieva is very critical of the impact of trade wars on the global economy.

Growth is ‘anaemic’, she says, forcing the IMF to cut its growth forecasts despite recent signs of peace in the trade war.

The IMF will keep lobbying for trade, she insists.

Historically we know trade is good for growth, good for jobs, and good for low-income people in all countries.

Mnuchin hits back, saying we shouldn’t use emotive language like “peace” when talking about trade.

For me, it’s about free, fair and balanced trade, Mnuchin says. America is trying to break down trade barriers, he insists.

It’s not about putting up Berlin Walls....We want other people to take down their Berlin Walls.

Updated

Mnuchin adds that Donald Trump’s tariffs on China have worked, leading to the Phase One trade deal signed this month.

Tariffs may come off in future, if further trade deals are reached, Mnchin adds. But he’s very relaxed about whether that happens before, or after, the November presidential election.

Mnuchin: Disappointed not to be first in line for UK trade deal

Ouch! Steven Mnuchin tells Sajid Javid that US administration is ‘disappointed’ not to be first in line for a trade deal.

The US treasury secretary says:

I know we are very much looking forward to a new trade agreement with the UK.

That is a big priority of ours for this year.

But then, turning to Javid alongside him on the panel, Mnuchin adds:

I was pleased to see that you said you’d do us and Europe at the same time.

I was a little disappointed, I thought we’d go first.

They might be a little harder to deal with then we are anyway.

Updated

Javid in Davos despite Johnson's ban

Sajid Javid’s panel session at Davos is starting now.

He’s sitting with IMF chief Kristalina Georgieva, US treasury secretary Steven Mnuchin, and UBS chairmen Axxel Weber.

CNBC’s Geoff Cutmore, who is chairing the panel, starts by congratulating Javid on breaking Boris Johnson’s ban on ministers attending Davos.

Thank you very much for coming, and drinking champagne with billionaires here at the World Economic Forum.

The panel is on the issue of financial markets, and how to make them more resilient in the face of systemic risks and technology changes.

Javid has experience here, though his time as a managing director at Deutsche Bank before the financial crisis.....

EU: Not enough action on climate crisis

Across Davos, European Commissioner Mariya Gabriel has been talking about the EU’s new Green Deal.

The EU hopes to become the world’s first carbon-neutral continent by 2050,

Gabriel calls this goal:

The greatest challenge and opportunity of our time.

But, echoing Greta Thunberg’s speech yesterday, she warns progress isn’t being made fast enough.

The hope is here, the need to work very hard

It’s time for action, it’s time to speed up. It’s time to deliver, and its time to co-operate and build synergies.

It’s about our children, it’s about our planet.

Updated

Trump: We have great case against impeachment

As he arrived, Trump theatrically told reporters that “we have a great case” when asked about the impeachment trial that began yesterday:

US president Donald Trump has arrived back at the Davos congress centre for another day of meetings.

Mark Carney hails Greta Thunberg

Mark Carney seems to be on Greta Thunberg’s side in her spat with Donald Trump over the climate emergency.

Speaking at Bloomberg’s green event at Davos, Carney says Thunberg is right to point out that the world is rapidly using up its remaining carbon budget and that the US stance makes tackling global heating more difficult.

Asked whether a common understanding is more difficult without the US Carney says:

“It is certainly more difficult.

But, the Bank of England governor adds that some of the leading thinking on climate crisis is coming from US financial sector and tech companies.

On Thunberg Carney says:

There have been many positive contributions from Greta Thunberg.

He points to Thunberg’s argument that climate science shows that the world has only eight years of emitting carbon at its current rate if there is to be a 67% chance of limiting global temperatures increase to 1.5 degrees centigrade.

“That’s a legitimate point to make.”

Carney has been made Boris Johnson’s special adviser for the crucial COP 26 climate conference in Glasgow in December.

He tells his audience that Johnson understands the challenge:

“The prime minister is very focused on this. The full weight of the Government will be engaged with it.”

Updated

Visiting the World Economic Forum is notoriously expensive, with hotels in very short supply.

But even so, the cost of Donald Trump’s visit is eye-watering, at over $4m according to Quartz.

That includes more than $700,000 on car rentals (including $34,000 on vehicles for Ivanka Trump alone). No wonder the streets of Davos were chockablock last night, as the world’s wealthy and important were (slowly) chauffeured home (we walked, of course).

Quartz explains:

The expenditure is posted to a publicly-accessible federal database under the heading, “WEF2020 USSS MARVEL RENTAL OF VEHICLES,” using Ivanka’s Secret Service code name. All payments are being picked up by taxpayers through the State Department budget.

Additional rental car expenses in Davos include $736,000 by the White House travel office, and two more hotel bookings for the president’s entourage—one for $286,000, and one for $29,000—have now combined to make Team Trump’s two-day jaunt to Davos the priciest yet.

The total does not include security costs, salaries, or the estimated $2.2 million necessary to fly Air Force One round-trip between the US and Zurich and the Marine One helicopter flight from Zurich to Davos.

Updated

There’s a certain amount of confusion about Sajid Javid’s movements in Davos, but we’ve been told he’s definitely here.

Updated

Rebecca English of the Daily Mail has some details of Prince Charles’s speech later today:

An addition to the agenda: UK chancellor Sajid Javid is appearing on a panel about the future of financial markets. Details here.

It’s 10.30am in Davos (9.30am GMT), along with US Treasury secretary Steven Mnuchin, IMF chief Kristalina Georgieva, and UBS’s Axel Weber.

Updated

Some early headlines from Mark Carney:

Full details shortly...

Here’s what happened yesterday in Davos, from Greta Thunberg’s call for action to Donald Trump’s dinner with top CEOs.

Updated

Introduction: Climate fears and trade war tussles

Good morning from Davos, where the second day of the World Economic Forum is getting underway.

The climate emergency is one of the big stories at Davos this year, even if the world’s most powerful man hasn’t grasped the issue.

Mark Carney, the outgoing Bank of England governor, is discussing the issue in here in Davos shortly, on a Bloomberg panel. He’s just been appointed as the UK government’s advisor for the next climate change conference (COP26), so could have some valuable insights.

Former US vice-president Al Gore is also in town, speaking with climate scientists about the urgent need to

The British Royal Family will continue its relationship with Davos, when Prince Charles will launch his Sustainable Markets Council (SMC). It’s a project to help financial markets become more sustainable.

ITV News explains:

Charles, who last attended Davos in 1992, created the SMC in June 2019, with the support of the World Economic Forum, to accelerate a transition to sustainable markets and a decarbonised global economy.

The SMC will connect business and charity leaders with philanthropists and sustainability experts to encourage greener future investments.

EC president Ursula von der Leyen is addressing delegates, as is Spanish PM Pedro Sanchez, Pakistan’s Imran Khan and Iraq’s Barham Salih.

There could also be trade developments, with France close to dropping its plan to tax big US tech companies unilaterally. In return, we hear, they’d like Washington help find a multilateral solution to the issue.

Davos has also been rattled by the news that suspected Russian agents were caught here last year, pretending to be plumbers....

Basically there’s masses going on at WEF today. Here’s the programme, and here’s what we’ll be trying to cover

The agenda:

  • 8.40am Davos / 7.40am GMT: Mark Carney and Christiana Figueres on the climate emergency

  • 10.15am Davos / 9.15am GMT: Google CEO Sunder Pichai on AI and quantum computing

  • 11am Davos / 10.30am GMT: Special address by Spanish PM Pedro Sanchez

  • 11.30am Davos / 10.30am GMT: Special address by EC president Ursula von der Leyen

  • 2.40pm Davos / 1.40pm GMT: Prince Charles launches his Sustainable Markets Council

  • 3.45pm Davos / 2.45pm GMT: Special address by Pakistan prime minister Imran Khan

  • 4pm Davos / 3pm GMT: Protecting the Arctic, with Al Gore and Finland’s PM Sanna Marin

  • 6pm Davos / 5pm GMT: Special address by Iraq’s president, Barham Salih

Updated

 

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