World Economic Forum 2023 kickstart
The World Economic Forum’s (WEF) annual gathering began with the first day of formal programming on Tuesday. Europe and China made bold announcements in an attempt to strengthen their standing in the world.
Gold prices are falling
Gold prices fell slightly on Wednesday as the US dollar strengthened, although losses were capped by predictions of a slower pace of US Fed interest rate hikes.
As of 0631 GMT, spot gold was down 0.3% to $1,902.59 per ounce, having hit a session low of $1,896.32. On Monday, prices reached a near nine-month high. Gold futures in the United States declined 0.3% to $1,903.90.
The yen falls sharply
Following the Bank of Japan’s declaration that ultra-low interest rates will be maintained, the yen fell sharply versus other currencies on Wednesday. Investors had hoped that the central bank will loosen its yield curve management strategy even more.
Last month, the central bank surprised the market by lifting its 10-year yield cap to 0.5 percent from 0.25 percent, thus tripling the range it would allow above or below its aim of zero.
Georgieva of the IMF predicts that global economic growth will slow this year
Despite the ongoing Ukraine conflict and rising interest rates, International Monetary Fund Managing Director Kristalina Georgieva stated at the summit that global economic growth is anticipated to peak in 2023.
Georgieva confirmed an IMF prediction for global growth to slow to 2.7 percent this year from about 3.2 percent last year during a World Economic Forum session in Davos.
Oil income agreement with Baghdad is expected within months: Iraq’s Kurdish Prime Minister
Iraqi Kurdish Prime Minister Masrour Barzani told Reuters at the Davos Summit that a disagreement over oil revenue sharing between the Iraqi government and the semi-autonomous Kurdistan region may be addressed within months. He expects the two parties to reach an agreement on a hydrocarbons bill.
“What we have agreed is that all those pressures on the KRG will be halted and stopped for the moment and we will wait until we have the hydrocarbon law,” Barzani said on the sidelines of the World Economic Forum in Davos.
China declares itself open to the rest of the globe
Vice Premier Liu He of China On Tuesday, declared his country open to the rest of the world. He stated that they welcomed international investment after returning after a three-year hiatus.
Liu’s unambiguous plea to the world’s leaders gathered in Davos made it apparent that China wants overseas investors to play an important part in Beijing’s efforts to revitalize its lagging economy.
“Foreign investments are welcome in China, and the door to China will only open up further,” Liu, a top economic tsar, and confidant of President Xi Jinping, said.
Ukraine’s first lady speaks
Ukraine’s first lady, Olena Zelenska, informed the World Economic Forum that she will submit a letter to Chinese Vice-Premier Liu He Liu, who will forward it to President Xi Jinping. The letter will outline President Volodymyr Zelenskiy’s suggestions for halting Russia’s war on Ukraine.