Closing post
Time to wrap up….Donald Trump has claimed the world is “richer, safer and much more peaceful than it was just one year ago” as he hosted a launch event for his “board of peace” initiative at the World Economic Forum in Davos.
At a signing ceremony for the new organisation, the US president said it would be “one of the most consequential bodies ever created in the history of the world”.
US and Palestinian officials also used the ceremony to lay out a blueprint for the next steps in implementing a ceasefire in Gaza, and putting the territory under the day-to-day control of a Palestinian-run technocratic administration, which has been assembled in Cairo.
The president’s son-in-law Jared Kushner outlined a plan for the next 100 days, including a significant increase in aid deliveries, the rehabilitation of essential infrastructure, such as water, electricity and sewage systems, and the reconstruction of hospitals and bakeries. Kushner also presented an aspirational map of a future Gaza in which the territory had a buffer zone around the border with Israel but was unified, rather than partitioned as it is now.
My colleague Jakub Krupa is covering the latest developments on Greenland, and Ukraine, here:
We’ll be back tomorrow for the final day of the World Economic Forum. One more heave….
Sir Tony Blair’s presence at the launch of Donald Trump’s “Board of Peace” has prompted criticism in London, the Financial Times reports.
As we blogged this morning, the former Labour prime minister was hailed by the US president at the World Economic Forum in Davos on Thursday, “Thank you, Tony, for being here, we appreciate it,” Trump said.
However, Trump’s decision to invite Russian President Vladimir Putin to join the Board of Peace has caused unease in Sir Keir Starmer’s Labour government.
“Putin’s possible involvement puts Tony in a really difficult position,” said one senior minister.
“Presumably, he didn’t know about Putin when he agreed to sign up.”
We spotted Blair chatting with a group including Jared Kushner at the end of the board of peace signing ceremony.
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Musk: better to be an optimist and wrong rather than a pessimist and right
On a personal note, Musk says he was inspired by reading books about the future.
He adde he wants to make science fiction “not fiction forever”, talking about a Star Trek-style future of massive space ships zipping around the place.
Larry Fink, on the stage with Musk, likes the sound of this – he’d like to be beamed back to New York at the end of Davos [could I possibly be beamed back to the UK right now, Scotty?]
Q: Do you think you’ll go to Mars in your lifetime?
Musk suggests he does, rolling out an old joke about how he’s like to die on Mars “but not on impact”.
And he wraps up with another gag about how it’s better for your quality of life to be “an optimist who’s wrong rather than a pessimist who’s right.”
This goes down well with the Davos crowd, who give him a cheery sendoff from the stage.
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Musk tells Davos that some insurance companies have said that Tesla’s full-self driving is so safe that they’re offering half-price insurance if drivers use it.
Self-driving cars is “essentially a solved problem at this point”, he declares.
[Essentially is doing a lot of work. Last October, US automobile safety regulators opened an investigation into Tesla vehicles equipped with its full self-driving (FSD) technology over traffic-safety violations after a series of crashes.
Musk then predicts that Tesla will be selling humanoid robots to the public by the end of next year.
[We shall see! Musk has made some optimistic forecasts for robot deployment before; three years ago, he said the goal is to make a useful humanoid robot “as quickly as possible”].
Unfortunately, the US tariff barriers for solar are extremely high, as most of production is in China, WEF hears.
The limiting factor for AI deployment is fundamentally electrical power, Musk continues (rather than production of chips, or the rollout of fabrication plans).
He then talks about China’s ‘tremendous’ growth in electricity output, and tells Davos that a 100 mile by 100 mile area of solar would be enough to power the entire US.
More blue-sky thinking from Musk: he suggests aging is a solvable problem (although isn’t clear how it will be solved), suggesting its highly likely that ways to “extend and maybe even reverse” life will be found.
There would be an “explosion” in the global economy, and unprecedented growth, if the world reaches a point of ubiquitous, essentially free, artificial intelligence and ubiquitous robots, Musk continues.
He’s outlining a future where all human needs are saturated, with everyone on earth having a robot of their own, to watch over their children, pet or elderly parents.
I think we will have those things.
I’m very optimistic about the future. I think we’re heading to a future of amazing abundance.
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Musk says the goal of his companies is about maximising the possibility that civilisation has a great future, and to expand consciousness beyond Earth.
SpaceX, for example, is developing rocket technology that can extend life and consciousness beyond Earth to the moon, Mars and “eventually to other star systems”.
Musk jokes (I think!) that he’s often asked ‘are their aliens?’. He replies “I am one, but they don’t believe me”.
[he’s made this joke, before, so he’s a consistent alien if so]
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Musk: Is it the Piece (of Greenland) Summit?
Musk suggest he may deliver five newsworthy quotes…
And then he suggests that Donald Trump’s new initiative might actually be called the “Piece summit”.
He jokes about getting “a little piece of Greenland”… before insisting “What we want is peace”.
Musk to hold Davos 'conversation'
Elon Musk has battled through his dislike of the World Economic Forum (see earlier post), and appeared on the stage of the main hall here at the Davos congress centre.
There’s some scattered applause – Larry Fink, who is going to interview him, complains that it wasn’t loud enough, so the audience give him a more vigorous chap.
After years of criticising Davos, Elon Musk is here this year.
He’ll shortly appear on the main World Economic Forum stage for conversation with Larry Fink, CEO of BlackRock, and an interim co-chair of WEF.
Musk has repeatedly mocked Davos on his social media platform X, calling it “boring”; three years ago he claimed WEF was an “unelected world government.”
Lack of trust in the international order has been a common theme at Davos this year.
S&P Global Ratings’ global chief economist, Paul Gruenwald, argues that globalization has not gone into reverse, but geopolitical developments are leading trade to be rerouted.
He adds:
With the U.S. pulling back from its traditional guardian of the system role, leadership is in short supply….it is necessary to put a geopolitical lens on everything, including macro.”
AP: Trump has a long drive back to Zurich
Donald Trump has now left Davos, meaning the security levels here have dropped back a few notches.
But the great Associated Press team here report that bad weather kept his helicopter grounded.
That means he faces a drive from the mountain town to Air Force One that could take as long as two hours.
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Video: Kushner outline redevelopment of Gaza
Here’s a video of Jared Kushner speaking at the World Economic Forum today, outlining plans for the redevelopment of Gaza:
Reminder: Julian Borger’s analysis is here.
Arsene Wenger says the world cup will impose a high mental toll on players, because of the number of teams and four knockout rounds.
“This world cup will be more than ever a mental test for the teams,” he tells WEF delegates.
The key to success will be mixing concentration with “a good period of relaxation”, he added.
Infantino: Board of peace has FIFA's full support
Fifa president Gianni Infantino is in full Davos salesman mode as he kicks off a session on the summer’s World Cup, my colleague John Collingridge writes.
He takes to the pulpit clutching a football (the official one) and holds up the winner’s trophy for the tournament to be hosted by Canada, Mexico and the United States this June and July.
“This is not a ball; this is a magic instrument that transforms people,” before tossing it into the audience.
Infantino then praises Donald Trump’s board of peace. “Of course we live in a divided world and of course we support peace,” he says, adding the board of peace has “the full support from Fifa.”
Infantino memorably handed Trump a peace prize at the World Cup draw in December, shortly before the US president ordered the capture of Venezuela’s leader and threatened to take over Greenland.
“We bring people together,” says Infantino. “It changes the mood not just of people but countries.”
John asked Arsène Wenger, the former Arsenal manager and head of global development at Fifa, about calls for teams to boycott the World Cup because of Trump’s disdain for international law.
“We have that before every World Cup; it was in Russia, Qatar,” says Wenger.
“I feel as much as you can be you have to be above that. I want football to be a feast and it is true that at the moment the world is tense but I hope the World Cup will get everyone together in a safe way.”
He says “nothing happened yet” with Greenland before hastily adding, “I’m not a politician. I’m focused on football and I hope the whole world who qualified can play together in harmony.”
Infantino says the tournament will be the “greatest show our planet has ever seen”, with 500 million ticket requests for the 104 games, which will be played between 48 teams.
He admits the tickets are “not cheap” and might get even more expensive when they are resold on resale platforms.
“I was hammered because of the ticket prices because they are so expensive. The main critics were from Germany and England,” he says, adding demand from those countries has been some of the strongest.
“Those tickets will be resold at higher prices and this is incredible.”
Trump threatens 'big retaliation' if Europe sold US debt
Peace only goes so far, of course.
And Donald Trump has threatened a “big retaliation” against European countries if they chose to sell their holdings of US debt.
He told Fox Business Network:
“If that would happen, there would be a big retaliation on our part, and we have all the cards.”
US government officials have been playing down the chances of Europe dumping US Treasuries in a retaliation over Greenland.
And arguably, the risk has receded since Trump abandoned his threatened new tariffs last night.
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Zelenskyy to address Davos now
It’s another busy day here in Davos, with Ukrainian president Volodymyr Zelenskyy about to address delegates here, following a meeting with Donald Trump.
My colleague Jakub Krupa is going to blog the action here:
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Analysis: Why Kushner and Shaath's plans for Gaza matter
Amid all the hot air and narcissism that has accompanied Donald Trump’s appearance at Davos so far, especially the launch of the Board of Peace, the US team laid out some significant and concrete next steps for the future of Gaza.
The board of peace was initially endorsed by the UN security council in November on the understanding that it would focus on the Gaza ceasefire. Since then Trump has spun it into a would-be global body to rival the G7, G20 or even the UN itself, but under his personal control as chairman.
Meanwhile however, the work on how to move from phase one to the much harder phase two of the Gaza ceasefire has clearly progressed, and in Davos today we were shown a plan for the next 100 days and beyond.
First of all, the crossing between Gaza and Egypt is to be reopened for traffic in both directions next week for the first time since it was seized by Israeli troops in May 2024.
The announcement was made by Ali Shaath, a Palestinian engineer and former deputy transport minister who has been appointed the head of an interim Palestinian administration, the National Committee for the Administration of Gaza.
Shaath said.
“Opening Rafah signals Gaza is no longer closed to the future or to the world. This is a real step and it marks a new direction”
Israeli troops still hold Rafah, and much will depend on whether they actually let Palestinians use the crossing both to leave but also to return to Gaza. The Israeli cabinet is meeting today to discuss Rafah and the other issues brought up in Davos.
Jared Kushner also took part in the presentation and laid out an ambitious plan for the next 100 days, including the rebuilding of basic infrastructure - water, electricity, sewage, hospitals and bakeries.
These are vast undertakings and again will depend on the cooperation of the Israelis, who have so far prevented the heavy equipment necessary for that kind of major construction work from entering Gaza.
Even more ambitious was the map Kushner presented of a future Gaza, along with pictures of gleaming skyscrapers. He claimed construction projects of similar scale had been built in a few years elsewhere in the region.
The map completely ignored historical ownership rights of the Palestinians who have lived in Gaza for generations, but it will also alarm those in the Israeli government who are seeking to displace the Palestinian population altogether and build Israeli settlements on Gaza. Kushner’s plan makes clear Gaza would be Palestinian run.
The slogan Kushner and Shaath used was “one authority, one law, one weapon”. The “one weapon” part apparently means that only Shaath’s national committee, the NCAG, can say who should be allowed to have a gun.
The disarming of Hamas remains a serious obstacle to moving forward with the peace agreement. The plan laid out in Davos involves putting the NCAG in charge of disarmament, beginning with the decommissioning of heavy weapons.
It does not lay out how this will be done, but it could involve a Palestinian police force that has been trained in Jordan and Egypt over the past few months. That force is supposed to be backed by an international stabilisation force, with troops from Arab and Islamic countries, but that has yet to come together.
There are still a lot of obstacles, but it was clear from today’s presentation in Davos that the US-led ceasefire effort still has momentum, and most critically of all, that Trump himself sees its progress as critical to his own prestige.
Venezuela has 'the stability of the cemetery"
What next for Venezuela, as it faces huge economic and political uncertainty, a Davos panel are asking.
Ricardo Hausmann, director of Harvard’s growth lab, says the country is experiencing the “ultimate case of whiplash”.
He says the extraction of Nicolás Maduro by the US (along with his wife Cilia Flores) was received as fantastic news.
He says a criminal organisation had taken over a country, and that “Alibabi and the 40 thieves are now Alibiba and the 38 thieves”.
Hausmann explains that the US now controls the Venezuela government, as it is selling its oil.
And he warns there are still 1,000 political prisoners in the country, only a few have been released.
There is still no freedom of speech, or freedom of the press, in Venezuela, he says, explaining that the current stability comes from oppression.
“It is the stability of the cemetery”
There cannot be a recovery without rights, he adds.
Ngaire Woods, the dean of the Oxford’s Blavatnik School of Government, explains that there’s a belief among some policymakers that if you take out a bad guy, a good guy or girl will emerge. That is almost always wrong, she warns.
Analysis: What might Trump and Rutte have agreed on Greenland?
Details remain sketchy on what was discussed between US president Donald Trump and Nato secretary general Mark Rutte over Greenland last night, our security editor Dan Sabbagh writes.
However, emerging clues point to a rewriting of the existing 1951 Greenland defence treaty between the US and Denmark and the creation of an Arctic air policing mission involving European allies.
Public statements by Rutte and Nato have been relatively vague, though Nato insisted that Rutte “did not propose any compromise to sovereignty” in his conversation with Trump.
Diplomatic sources briefed to Associated Press that under discussion was a renegotiation of the 1951 treaty which already gives the US extensive military rights in the autonomous Danish territory.
The 1951 treaty allows the US to “construct, install, maintain, and operate” multiple bases rent free - though the US only currently operates one at Pituffik - which could allow missile defence facilities to be built.
A 2004 addendum says the US must consult with Denmark and Greenland before making “significant changes” to its military operations.
Nato also said that “discussions among Nato Allies on the framework the President referenced will focus on ensuring Arctic security through the collective efforts of Allies, especially the seven Arctic Allies”.
Denmark has asked Nato allies to support a new Arctic Sentry air policing mission, mirroring similar efforts on Nato’s eastern flank, to monitor Russian and Chinese activity. The idea already has the support of the UK.
MEPs to review suspension of EU-US trade deal after Davos Greenland progress
The European Parliament will, next Monday, review its decision to suspend the ratification of the US tariff deal in protest against Donald Trump’s threat to acquire Greenland.
MEP Bernd Lange, chair of the international trade committee, who announced the indefinite freeze yesterday following a decision of the main political groupings in parliament, said on social media:
“Hardly any details are known yet about the proposed Greenland deal. But we need them in order to decide how to proceed with the implementation of the EU-US trade deal.
@EP_Trade will revisit the issue on Monday and discuss the way forward.”
Lange said he remains circumspect, warning there was no room for a false sense of security, following Trump’s climbdown on Wednesday night when he emerged from a meeting with NATO chief Mark Rutte scrapping the threat of tariffs on eight European allies and declaring a “forever” deal on Greenland.
Norway and Sweden have indicated that they won’t participate in the board of peace, after France also said no, Associated Press report, explaining:
French officials stressed that while they support the Gaza peace plan, they were concerned the board could seek to replace the U.N. as the main venue for resolving conflicts.
Slovenian Prime Minister Robert Golob said “the time has not yet come to accept the invitation,” according to the STA news agency, with the main concern being the board’s mandate may be too broad and could undermine international order based on the U.N. Charter.
Rubio: more countries will sign up
Apologies to Kazakhstan, who I managed to miss of the list of countries signing up today.
There were 19 in all (see updated list here)
The White House are indicating that today’s members will be joined by others.
Secretary of State Marco Rubio told Davos that some countries’ leaders have indicated that they plan to join but still require approval from their parliaments.
He also indicated the Trump administration has received queries about membership from countries that hadn’t been invited to participate yet.
There are reports that more than 50 countries were contacted by the White House about the initiative.
Rutte: Agreement with Trump would see Nato allies boost security in Arctic
We’re starting to slowly get more details about Trump’s conversation with Nato chief Mark Rutte, after which the US president announced they had reached a “framework of a future deal.”
A major part of that pact will see Nato allies step up Arctic security, fast, with the initial results of this coming as soon as this year, Nato Secretary General Rutte said.
In an interview with Reuters on the sidelines of Davos, he said that Nato commanders would now need to work through the details of the extra security requirements.
“We will come together in NATO with our senior commanders to work out what is necessary,” Rutte said, adding: “I have no doubt we can do this quite fast. Certainly I would hope for 2026, I hope even early in 2026.“
Asked if NATO allies can take Trump at his word, Rutte responded: “You can always take Donald Trump at his word“.
The interview comes after Rutte previously said that the issue of Danish sovereignty was not discussed with the US president.
Updated
And finally, Donald Trump returns to the lecturn for some concluding remarks, in which he riffs about Gaza’s real estate possibilities.
Look at this location by the sea, look at this “beautiful piece of property”, Trump says, suggesting that people who are living so poorly today will be living so well.
And finally, he promises that the board of peace will be important, and not a waste of time.
Kushner presents 'master plan' for Gaza
Trump’s son-in-law, Jared Kushner, is now on stage, outlining plans for the redevelopment of Gaza.
Kushner says the “master plan” will be conducted in phases, including a push on workforce housing, where he suggests could also be a lot of industry, 100% employment and opportunity for everyone.
He’s now showing Davos a property development map of Gaza, and a computer-generated picture of ‘New Gaza’, with coastal tourism.
Here’s the timeline as Kushner showed on screen to delegates.
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Gaza's Rafah crossing to reopen next week
The ‘board of peace’ ceremony then bring some good news: Gaza’s Rafah crossing will reopen next week.
Davos delegates are being played a video message from Ali Shaath, leader of the Palestinian technocratic committee, who reveal that the crossing between Gaza and Egypt will reopen next week.
Shaath says “this is a real step, and it marks a new direction”.
But he adds that there is much more work to do, none of it is easy.
The Rafah crossing is the only one that was not controlled by Israel before the war. It has been closed since May 2024, when Israel took control of the Gaza side; last October, Israel said it would stay closed ‘until further notice’, to put pressure on Hamas to return the remains of deceased hostages.
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Marco Rubio is now delivering a rather obsequious speech about Donald Trump’s accomplishments, and his ‘historic presidency’.
The US secretary of state cites what’s happening in Gaza, where he says Trump had the “vision and the courage to dream the impossible” for what many thought was an intractable problem.
Rubio says that many of the institutions that have “served us well over 70 years” were unable to do anything about it (which won’t calm fears that the ‘board of peace’ is being set up to supercede those institutions).
Rubio talks about a new era and a new stage, and a model to the rest of the world of what is possible.
The vision of the future for Gaza is “our destiny” if we put the time and effort needed in, he concludes.
Updated
Trump then signs the inaugural resolution for the board of peace’s Gaza mandate, per the UN security council resolution 2803.
Signing ceremony underway
Trump’s remarks are over, and the signing ceremony is underway.
Those country’s signing up are joining Trump at a signing ceremony, two by two, starting with Sheikh Isa of Bahrain and Morocco’s foreign minister Nasser Bourita.
After a moment, White House press secretary Karoline Leavitt declares:
Congratulations, president Trump, the charter is now in full force and the ‘board of peace’ is now an official international organisation.
Other leaders then follow in pairs, showing their paperwork to the room afterwards.
Updated
The world is a region, and we’re going to have peace in the world, Trump muses.
Trump suggests that the ‘board of peace’ will work with the United Nations to end conflict in the world.
(there are suspicious that it could be a ploy to replace the UN).
Updated
On Gaza, Trump says Hamas must return the last, deceased, hostage to Israel.
Peering over to the leaders on the stage, Trump announces that he likes every single one of them.
Usually there’s two or three I don’t like, he jokes (!).
Key event
Trump claims the ‘board of peace’ is one of the most consequential bodies ever created, and that he was “honoured” to be asked to be the chairman.
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Onto Venezuela, Trump claims “all the oil companies” want to go in immediately.
[Oil CEOs have warned that significant investment is needed]
Trump grumbles that while most Nato allies have increased their military spending, under his urging, Spain is lagging.
He suggests Madrid “wants a free ride”.
Trump then diverts into a monologue about his election victory in 2024, and the sweeping turnaround since.
He’s repeating some key points from his speech yesterday about falling inflation and shrinking trade gap.
Getting back to the point in hand, he declares that a lot of fires have been put out, saying:
Today the world is richer, safer and much more peaceful than it was just a year ago.
He adds that the war in Gaza is “really coming to an end”, although there are some “little fires” to put out.
Trump singles out former UK PM Tony Blair (on the front row of the audience), saying he appreciates his presence.
Blair was named last month as a member of the executive board.
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Classic Trump: he tells the assembled ‘board of peace’ members that he’s “truly honoured” by their presence today, saying they are mostly very popular leaders, but in cases not so much.
That’s the way it goes, he muses (indeed…)
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Trump: We'll settle another war pretty soon
Trump says we now have ‘peace in the Middle East’, repeats his claim to having settled eight wars, and then suggests that “another one’s coming pretty soon”.
He means Russia-Ukraine, calling it “the one I thought was going to be an easy one” but turned out to be the most difficult.
29,000 people, mostly soldiers, died last month, Trump says, a “terrible” toll.
He adds “we’re making a lot of progress” in the peace talks, echoing what we heard from Steve Witkoff this morning.
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Trump: An exciting day
‘Now Donald Trump takes the stage, as the chairman of the ‘board of peace’.
Trump says it’s a very exciting day, and claims that “everyone wants to be a part of it” (although several, including the UK, have declined the opportunity).
Trump says the board of peace will work with “many others, including the United Nations”.
Updated
The countries at today's board of peace ceremony
Onto the stage come…
Sheikh Isa of Bahrain
Morocco’s foreign minister
The president of Argentina
Prime minister of Armenia
President of Azerbaijan
Prime minister of Bulgaria
Prime minister of Hungary
President of Indonesia
Deputy prime minister of Jordon
the president of Kazakhstan
president of Kosovo
prime minister of Pakistan
President of Paraguay
prime minister of Qatar
foreign affair minister from Saudi Arabia
foreign affairs minister of Turkey
A representative from the UAE
The president of Uzbekistan
Prime minister of Mongolia
Updated
World leaders are now coming on to the stage here in Davos for the ‘board of peace’ signing.
Updated
As we await the ceremony to kick off, here’s a list of countries who have accepted invitation to join the board, according to the Associated Press.
That list includes: Argentina, Armenia, Azerbaijan, Bahrain, Belarus, Egypt, Hungary, Indonesia, Jordan, Kazakhstan, Kosovo, Morocco, Pakistan, Qatar, Saudi Arabia, Turkey, United Arab Emirates, Uzbekistan and Vietnam.
And these are the ones who won’t join, for now at least: France, Norway, Slovenia, Sweden and the UK.
Others have also been invited but haven’t committed either way: Cambodia, China, Croatia, Germany, India, Italy, the EU’s executive arm, Paraguay, Russia, Singapore, Thailand and Ukraine.
Starmer welcomes Trump dropping UK tariffs over Greenland
It was a “good thing” Donald Trump dropped his threat to slap tariffs on the UK, Sir Keir Starmer has said, as he warned the “hard yards” of beefing up Greenland’s security would now begin.
Speaking to local residents during a visit to Hertfordshire on Thursday, the Prime Minister said:
“I think you will have noticed that the last few days have been incredibly serious in relation to big things happening on the world stage.
“And you may have seen but it is a good thing that yesterday, the threat of tariffs against the United Kingdom was lifted and now we can start hard yards and finding a way forward on security in the Arctic, which may seem a long way away, pretty remote, but actually it does matter to all of us in terms of the safety and security of our country.
“And we’ve got through the last few days with a mix of British pragmatism, common sense, but also that British sense of sticking to our values and our principles.
“But now, as I say, the hard yards of actually finding a better way for security for our country, for Europe and across the globe.”
The logo of the ‘board of peace’ on the screen here at Davos has a rather North American focus, although central America and some of South America also squeeze on:
Updated
There are 20 chairs on the stage here in Davos, presumably to accommodate leaders who are signing up to the ‘board of peace’ today.
Updated
We’re being told the session will begin shortly, so to take out seats.
There are some free, towards the back, unlike yesterday for Trump’s speech which was quite the bunfight to get into.
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Britain won't be signing board of peace treaty today
Britain will not sign Donald Trump’s “board of peace” treaty, Yvette Cooper has said, amid concerns about Russian involvement.
The foreign secretary said the UK strongly supported the US president’s 20-point plan for Gaza, which he is seeking to spotlight at the World Economic Forum in Davos on Thursday.
But asked whether the UK would join the so-called board of peace, she told BBC Breakfast:
“There’s a huge amount of work to do – we won’t be one of the signatories today, because this is about a legal treaty that raises much broader issues, and we do also have concerns about President Putin being part of something which is talking about peace, when we have still not seen any signs from Putin that there will be a commitment to peace in Ukraine.
“And to be honest, that is also what we should be talking about.”
'Board of peace' signing expected in Davos shortly
There’s a buzz building at the World Economic Forum, as Donald Trump appears to be about to launch his Board for Peace.
Delegates are pouring into the large hall here in Davos, keen to see the signing ceremony for the body – which some fear could undermine the United Nations.
To get a better understanding of this new body, you can read this from my colleague Aamna Mohdin:
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Farage: Carney gets everything wrong
Nigel Farage is being interviewed by Bloomberg’s Stephanie Flanders here in Davos this morning, and promising to tear down the pillars of UK economic policy, if his party comes to power.
The Reform CEO - as he described himself, confirmed that he would stop the Bank of England paying interest on QE reserves, accepting it might cost the UK’s banks £20bn.
“This will be tough for banks to accept. I get that. I’m sorry. The drain on the public finances is just too great,” he said.
When Flanders suggested banks would pass the costs on to their customers, he replied, “or they become more efficient, or they cut costs, or they do whatever. They should not have had this money.”
Farage also appeared to call into question the independence of the Bank of England - he said the governor after the EU referendum should have been a Brexiter.
Asked whether he backed Bank independence, he said, “what a catastrophe UK economic policy has been over the last 15 years, and we should challenge every single tenet of it.”
He described current Bank governor Andrew Bailey, whom he met recently, as “a perfectly polite, nice man,” but said, “they should have picked someone who’s Brexiter to take control of the Bank of England and to think totally differently, especially around financial markets.”
He said he wants to bring in experts from outside politics to draw up plans in a series of policy areas, comparing this to the US approach.
Farage also claimed debates here at the World Economic Forum (WEF) show that the Brexit vote was the start of a significant shift in the world order, away from “globalism”.
“Now everyone realises that actually, these were the first tremors of a very, very major change in political conversation and debate, and that, I think that was really large.”
Asked about Mark Carney’s call this week for mid-sized nations to club together in the face of Donald Trump’s disruptive approach to geopolitics, Farage joked, “good old Mark Carney, isn’t he marvellous? A chap who gets everything wrong and he’s been promoted - it’s remarkable.”
Merz: Germany has got the message about rise of world powers
Friedrich Merz outlines the important of raising Germany’s competitiveness, and expand and modernise its infrastructure.
In comments reminiscent of Canada’s Mark Carney’s speech on Tuesday, Merz concluded his speech by urging Davos to look at the “bigger picture”.
He says:
The world around us is changing at unprecedented pace. The direction it takes must worry us. A world of great powers is a new reality. Europe has got the message. Germany has got the message. We must and will live up to this challenge. My Government will do its homework and pursue an ambitious reform agenda revolving around security, competitiveness and European unity.
Our fate is in our hands. It is in our responsibility and our freedom to shape it. This historic task lies ahead of us. Germany wants to play a key role in mastering it.
Merz welcomes Trump's comments on Greenland deal
Turning to the crisis that has rocked Nato, and Europe, in recent days, Germany’s chancellor welcomes Donald Trump’s announcement last night that ‘the framework of a future deal’ on Greenland has been reached.
Friedrich Merz tells Davos that Germany welcomes that the US is taking the threat posed by Russia in the Arctic seriously.
He says this threat is an expression of the great power rivalry he is worried about – which is being aimed at both Europea and the US, such as through hybrid attacks in the Baltic Sea and in Russia’s winter war against the people of Ukraine.
Merz adds that Germany shares the conviction that, as European Nato allies, we must do more to secure the High North as Nato.
Merz says Denmark and the people of Greenland can count on Germany’s support, pledging to
We will protect Greenland, Denmark, and the high North from the threat posed by Russia.
Merz then explains that Germany will “uphold the principles” which the transatlantic partnership is founded on, namely sovereignty and territorial integrity.
As such, they support talks between Denmark, Greenland and the United States on the basis of these principles.
Merz says he has discussed this issue with Trump, Denmark’s PM Fredriksen, Nato’s Mark Rutte and others.
The aim of these talks is to agree for closer cooperation amongst allies in the High North.
And Merz warns it would be ‘unacceptable’ if the US had seized Greenland by force, as Trump ruled out last night.
He says:
It is good news that we are making steps into the right direction.
I welcome President Trump‘s remarks from last night. This is the right way to go.
Ladies and gentlemen, any threat to acquire European territory by force would be unacceptable.
Germany's Merz warns of rise of 'great powers'
Back in the WEF congress centre, Germany’s chancellor is addressing Davos, and warning that we are entering a world of ‘great powers’, which is a serious threat.
Friedrich Merz starts by telling delegates that the calm and peace up here on the magic mountain of Davos (as it is known) is at stark contrast to a world whose old order is “unravelling at breathtaking pace”.
Merz says Russia’s war of aggression against Ukraine has been the most drastic example, but the change runs much deeper, he says, saying China has worked its way into the ranks of the great powers, and the United States’ “global pole position” is being challenged
Merz declares:
We have entered a time of great-power politics. The international order of the past three decades - anchored in international law - has always been imperfect.
Today, its very foundations have been shaken.
Merz says this is “not a cosy place”
And he warns that world where only power counts is a dangerous place - first for small states, then for the middle powers, and ultimately for the great ones.
And harking back to the rise of Nazi Germany, Merz warns Davos delegates sternly:
I do not say this lightly. In the twentieth century, my country, Germany, went down this 6 road to its bitter end. It pulled the world into a black abyss.
Trump/Zelenskyy meeting confirmed for 1pm local time
We now have some extra clarity on the planned meeting between the US president and Ukrainian leader on the sidelines of the World Economic Forum.
The pair plan to meet at 1pm local time (or 12 noon GMT), Reuters report, citing a spokesperson. Ukraine’s international bonds rallied ahead of the meeting with broad hopes that progress could be made towards ending the war with Russia.
(Also happening later today: US envoy Steve Witkoff is set to meet with President Vladimir Putin in Moscow.)
Danish PM rules out negotiations on Greenland's sovereignty as part of Trump's 'deal'
Danish prime minister Mette Frederiksen has issued a statement reacting to the vague agreement apparently reached after talks between Donald Trump and Mark Rutte last night.
Frederiksen says it is “good and natural” that Arctic security was discussed between the US president and the Nato secretary general here in Davos last night.
Frederiksen says she had spoken with Rutte “on an ongoing basis,” including before and after he met Trump.
She also puts a spotlight on the key issue – Nato cannot make decisions on the sovereignty of Denmark and Greenland.
She wrote that NATO is fully aware of Denmark’s position that anything political can be negotiated on, including security, investment and economic issues — “but we cannot negotiate on our sovereignty.”
She adds:
“I have been informed that this has not been the case.”
Updated
Jonathan Powell, the UK’s national security adviser, is at today’s Ukraine breakfast too – he pays tribute to the heroism of Ukraine’s soldiers, some of whom have suffered brutal treatment as prisoners of war.
Powell – who was the chief British negotiator in the Northern Ireland peace process – says it is clear that the war with Russia won’t end with a victory.
Russia can’t win, he argues, due to the resolve of Ukraine’s soldiers, while Ukraine won’t be able to reclaim its territory through physical force.
So there have to be negotations – though he doesn’t see evidence that Putin wants to negotiate. So, financial and military pressure must be applied to Russia.
Powell also remarks, wryly, that he hopes Putin can live up to his membership of Trump’s new ‘board of peace’, by engaging seriously in the negotiations.
And Powell, a veteran of many peace talks – both successful and unsuccessful – cautions that peace talks always take longer than you think.
We should patient, it won’t be solved tomorrow, he adds.
Updated
Rutte: very good discussion with Trump over Greenland
NATO secretary Mark Rutte has said he had a “very good discussion” with Donald Trump yesterdy about how to keep the Arctic region safe from Russia and China.
Rutte says the question is how Arctic countries, such as Canada, Iceland, Denmark, Sweden, Finland and Norway, can collectively work with the US to ensure that the Arctic remains safe, to keep the Russians and Chinese out.
He added that discussions will be taken forward to:
“make sure when it comes to Greenland particularly, that we ensure that the Chinese and the Russians will not gain access to the Greenland economy… [or] militarily to Greenland.”
Updated
Witkoff: We are going to get Ukraine peace deal done
Steve Witkoff, the US Special Envoy, then pops up at today’s breakfast, to declare that “a lot of progress” has been made in the Russia-Ukraine peace talks.
Witkoff, who is meeting Putin later today in Moscow, says:
It’s time to end this. I think we’re going to get this done.
Witkoff says he is “encouraged” and “optimistic”, and that negotiations are now down to “one issue”. Varius iterations of that issue have been discussed, he says, which mean “it’s solvable”, he argues.
He also pays credit to Ukraine’s Voldymyr Zelenskyy, saying “he’s been on this issue, he’s available and accessible”.
Zelenskyy is expected to visit Davos today, and meet with Trump here.
Witkoff adds that he spent last night talking about “the upward trajectory” for Ukraine’s economy.
Alexander Stubb, president of Finland, tells the Davos Ukraine breakfast that he believes Ukraine, the US and Europe will agree a “good package” to create a lasting peace.
But, he isn’t convinced that Russia will approve it – that’s his worry, and he agrees with Nato chief Rutte that support for Ukraine must continue.
Stubb points out that Finland, a new Nato member, can do a lot on arctic security.
He then outlines how Russian president Putin has failed in each and everyone of his strategic aims.
He wanted to take over Ukraine and make it Russian. He won’t, Stubb insists, predicting that Ukraine will become a member of the European Union.
He wanted to prevent the expansion of Nato – instead got two substantive military powers in the alliance, and doubled his border with the alliance
He wanted to project power in the region – look what’s going in central Asia, the southern Caucasus, Iran and Venezuela. “It’s not exactly a success story from the perspective of the Kremlin”.
Stubb also fundamentally disagrees that Russia is winning the war, as it is losing 1,000 soldiers per day, and its economy is suffering, with high inflation and high interest rates.
Fink: Capital wants 'fair and just' return from Ukraine
Larry Fink tells Davos that we are meeting at a moment when Ukrain’s resilience is no longer in question.
The question before us is how the resilience translates into renewal, and how the international community can support a pathway to lasting peace, Fink adds.
Capital follows opportunity, points out the Blackrock chief.
Governments lead on peace and security, the private sector follows once those conditions are in place.
Ukraine’s future depends on whether it can establish economic direction – strong governance, absolute transparent, and a reform framework. That will allow it to attract long-term capital, which seeks returns that are “fair and just”, he outlines.
Fink, a co-chair of this year’s WEF annual meeting, says sovereign wealth funds, pension funds, and insurance companies are “ready to be here” to help.
Victor Pinchuk, the Ukrainian billionaire and philanthropist sponsering this morning’s event, tells delegates here that Ukrainians’ main hope is for a “just and secure peace”.
But our enemy doesn’t want to make peace – we must get them to suspend the war and make peace, and for that we must crush their hope that they can win, Pinchuk added.
Rutte: Must keep military support flowing to Ukraine
Mark Rutte adds that “our main adversary is Russia” – a reminder not to be distracted by the row over Greenland.
And that means Ukraine must be given the military assistance it needs – such as interceptors to repel attacks from Russia.
We have to keep the flow of military support going, and don’t lose sight of this issue, Rutte insists.
Rutte adds that he hopes peace talks will conclude soon, but that probably won’t happen until April or May – in the meantime, cities such as Kyiv, Kharkiv and Lviv, and smaller cities, are being attacked.
We know that the water supply, and the electricity supply, is being brought down by the conflict, he adds.
Rutte: I've never doubted US support on Ukraine
The United States is ‘truly committed’ to supporting Ukraine’s independence and sovereignty, Nato chief Mark Rutte believes.
Rutte is telling attendees at a breakfast event organised by the Victor Pinchuk Foundation and EastOne here in Davos that Donald Trump and his team are pushing to bring the war to an end, to a position where Russia will “never, ever” try to attack again.
Asked if the Trump administration is ‘truly committed’ to supporting Ukraine, and its independence and security,
Rutte replies:
Absolutely, the answer is yes, and I’ve never doubed this.
Introduction: scepticism over Trump's Greenland deal
Good morning from Davos, amid relief and scepticism that Donald Trump has reached a rather vague agreement with Nato over Greenland.
Hours after telling the World Economic Forum that he wouldn’t use force to seize the island from Denmark, Trump surprised us by declaring that “the framework of a future deal” on Greenland had been reached, after talks with Nato chief Mark Rutte.
With Trump lifting the threat to impose new tariffs on eight European countries, the crisis that was threatening to rupture the Nato military alliance may have eased.
But….leaving the forum last night, Rutte told the AFP newswire:
“I think it was a very good meeting tonight. But there’s still a lot of work to be done.”
The scepticism comes from the fact that Nato can’t negotiate the ownership of a country’s territory.
Trump was somewhat vague about exactly was agreed last night, telling CNBC:
“Well it’s a little bit complex but we’ll explain it down the line – but the secretary general of Nato and I and some other people were talking and it’s the kind of deal that I wanted to be able to make.”
A ‘deal’ over Greenland could allow European leaders to refocus on ending the Russia-Ukraine war, which is approaching its fifth year.
Yesterday, Rutte told Davos that focusing on Ukraine should be “our number 1 priority”.
We should hear more from the Nato chief shortly – I’m at a breakfast event organised by the Victor Pinchuk Foundation and EastOne here in Davos.
The agenda
7.30am Davos / 6.30am GMT: Ukrainian breakfast discussion, with Nato secretary-general Mark Rutte, Edgars Rinkevics, President of Latvia; Alexander Stubb, president of Finland; Dick Schoof, PM of the Netherlands, Andrej Plenković, PM of Croatia, and Larry Fink of Blackrock
8.30am Davos / 7.30am GMT: Conversation with Gavin Newsom, Governor of California
9am Davos / 8am GMT: Conversation with Isaac Herzog, president of Israel
9.30am Davos / 8.30am GMT: Special Address by Friedrich Merz, chancellor of Germany
10.30am Davos / 9.30am GMT: Conversation with Kyriakos Mitsotakis, prime minister of Greece
1.30pm Davos / 12.30pm GMT: Session on Venezuela: What Next?
2pm Davos / 1pm GMT: Special Address by Prabowo Subianto, president of Indonesia
