Will something clean come out of this year's World Economic Forum? Bearing in mind that the main theme of the meeting is the weather and how to make companies more environmentally friendly, and that two of its main protagonists are Donald Trump -that has left the Paris Agreement against climate change – and the activist Greta Thunberg, most likely, there is a considerable sense of confrontation and that the world is now more divided than ever.
The meeting of great world leaders that is held annually in Switzerland and that this year takes place between January 21 and 24, comes at a time of evident global tensions, with the US commercial confrontation with China or Europe, the geopolitical disagreements and with the climatic emergency as a backdrop. For former Finnish minister Alexander Stubb, who will attend the Forum, there is a new "world disorder" that must be addressed. In his opinion, the United States has left power gaps in matters of trade, climate, security and world leadership. "Who is going to fill these gaps?" Stubb asks.
The summit will probably not be able to 'solve' these problems, but it does get a greater commitment from Trump to face the serious climatic threats and if there is an approach between the US and the European Union, especially between the US and France on the 'Google rate', the result could even be received positively by the markets.
END OF DEADLINE TO AGREEMENT ON 'GOOGLE RATE'
France and the US took place on January 7 within 15 days to reach an agreement on the 'Google rate' and avoid 100% tariffs that Washington announced on French products in response to the gala decision to impose a 3% tax on sales generated by technology companies in the country.
French Finance Minister Bruno Le Maire will meet with US Secretary of the Treasury Steven Mnuchin at the Davos Forum, and from this meeting analysts await a certain consensus between the parties.
The OECD (Organization for Economic Cooperation and Development) has been working on the creation of an international framework for taxing digital companies. The French government has argued that it will revoke its own digital tax once there is an international agreement.
"I think a complete agreement is unlikely in the coming weeks, although the OECD has been working on the issue for several months," says Dexter Thillien, senior analyst at Fitch Solutions. "However, it may be possible agree and announce a general framework in Davos, and that the details be finalized in the coming weeks and months", Add.
Morgan Stanley also believes that the most likely scenario that will emerge from Davos regarding tensions between the US and France over the 'Google rate' will be one marked by short-term uncertainty, followed by global cooperation for an agreement with the OECD.
"Our main scenario is that uncertainty will continue in the short term, but with the threat of tariffs and the willingness to reach a global agreement, the result will be the commitment of a pact with the OECD"point from Morgan.
If not stopped, the current conflict between Washington and Paris could become a battle broader with the EU. Italy has also implemented a tax on digital companies, and countries like Spain, United Kingdom and Austria They are also studying the possibility of applying a similar tax.
ALL IN DAVOS
The Davos Forum will bring together 3,000 participants from around the world this year and will aim to "help governments and international institutions to follow the process towards the Paris Agreement and the Sustainable Development Goals," said its organizers. Not only politicians will debate this issue (among them Angela Merkel or the president of the Government of Spain, Pedro Sanchez), also the billionaires will be there to give their point of view.
Bloomberg publishes that Ray Dalio or Jamie Dimon they will be among the 119 'mega-rich' who will go to Switzerland. "The elite group, with an approximate value of 500,000 million dollars, includes regulars like the founder of Bridgewater Associates, Ray Dalio, the president of Blackstone Group, Steve Schwarzman, and the CEO of JP Morgan, Jamie Dimon, "he says.
"The event maintains its status as the main contact center for the richest in the world, with his flock of private jets and hot dogs at $ 43, although he faces more and more criticism for his exclusivity, "it can be read in Bloomberg.
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