We published a Davos primer a few days ago and the conference is now closing out its third day (except for the real business and partying done late into the night). What if anything has transpired of note?
- Record snowfall wreaking havoc with the warmth and footing of those not properly attired, especially those with some fancy leather higher-heeled Church’s shoes. Davos is Europe’s highest city at 5,118 feet of elevation. Eight-foot high snow drifts in places were reported and frequent fresh snowfall.
- Angela Merkel’s keynote opening address really did not get a lot of play here in the States. The address was not considered particularly inspiring and was aimed at reassuring attendees that the Euro zone will weather the current crisis. The two lines most quoted are that, “Germany is ready for more commitment” and an admission that “resolving the current crisis will take some time…there’s still room for improvement and a ‘big rethink’ is needed, but we will be able to master this crisis.”
- A few later speakers took shots at Germany, including George Soros and British PM David Cameron, with Soros critical of “austerity” demands and Cameron of “the lack of leadership and bold action”. Somewhat paradoxically, “Berlin is being accused of both stubbornness in its reform demands and timidity in its leadership role,” according to Der Spiegel.
- Geithner, Summers, Draghi, Lagarde and any number of other political figures spoke and gave interviews with a common theme that ”the Euro zone crisis is urgent and daunting but will be solved”, as though all reading off one script. One commentator said,” The mood here this year is one of what I would call guarded optimism, a sense that in Europe, the debt crisis can be contained, while in the US, an uncertain recovery is steadily gathering pace.”
- Building and sleeping in igloos, “Occupy Davos” protesters are focusing on income inequality
- Bill Gates getting a lot of publicity for his efforts on fighting world hunger and promoting food sustainability, and also his pledge of $750 million to back his words.
- According to the WSJ, delegations from outside the U.S. and Europe are leading in the late night revelry category: “The Asians are certainly dominant in party-throwing, with a little help from the Brazilians. Japan, Indonesia and Korea are hosting clashing events Thursday night, while Thailand and India go head-to-head Friday. Brazil closes out the main event with the biggest bash Saturday night.”
- A big story is the “austerity” and downsizing of global financial firms, with Bloomberg reporting that 238,000 job cuts in the industry since last year’s Davos meeting and significant compensation cuts. Geithner reportedly had a private meeting with major bank CEO’s, no doubt listening to complaints over regulations and capital requirements. A much-publicized Edelman PR study showed the finance and banking industries remain the “least trusted” for the second consecutive year, according to a 20-country survey.
- Sir Mick Jagger was sighted at Davos but it is unconfirmed that he broke out into a chorus of “You’re So Vain” when introduced to a group of financiers.
- A 67-year-old local ski instructor and part-time van driver for the conference might have had the most insightful comments, saying Europe’s problems “are like a ski lift. You have to keep going forward or else you fall down the mountain.”
More to come in a final wrap in a few days.
Good Trading!
David W. (aka The Underground Trader)
Introducing the Option Income Generator. This new service is designed to help tame market volatility by producing monthly income via a proprietary buy-write strategy. Check it out today!
Remember, you are in control your email alerts! You can receive alerts for more than 25 free research report alerts including: The “10.0” Report, The Insiders Report, ETF Leaders Report, and The Focus List.
Great report! Sorry Cary Grant was not there