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The 10-Point: My Guide to the World Economic Forum in Davos

The Wall Street Journal
Good evening from Davos, Switzerland, and the second day of the World Economic Forum,

The principal preoccupation of the week was in evidence again today with more signs of a shifting world order, as uncertainties about the incoming Trump administration and Brexit lingered over executives and investors alike, and European leaders expressed caution about the region’s economic recovery.

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Days before the transfer of power in Washington, U.S. Vice President Joe Biden lashed out at President-elect Trump over his recent comments on NATO. In a speech at the forum, Mr. Biden warned against European disintegration and called out Russian President Vladimir Putin for seeking to fracture the liberal international order. While Mr. Trump’s recent comments have heightened concern in European capitals that the U.S.’s decadeslong commitment to European integration and security is wearing thin, Mr. Biden said cooperation between the U.S. and Europe formed “the bedrock of the success the world enjoyed in the second half of the 20th century.”

Meanwhile, Ukrainian President Petro Poroshenko said in an interview that he hopes to meet Mr. Trump in Washington next month and that he believes the incoming administration will continue to support Ukraine. Mr. Trump has taken a number of positions that have caused concern in Ukraine, which has been embroiled in a conflict with pro-Russia rebels since Moscow’s annexation of Ukraine’s Crimea region in 2014. In a common view expressed at the forum, Javad Zarif, Iranian foreign minister, said his country will adopt a wait-and-see approach to the new administration.

In a clear break with the upbeat sentiment among U.S. executives, European corporate leaders and policy makers gathered in Davos expressed concern over what will be a momentous year on the continent, amid a populist wave and national elections in major economies that could endanger the region’s modest upswing.

“The economic recovery, while quite modest, is resilient to different risk factors,” said Valdis Dombrovskis, European Commission vice president for the euro. However, elections in Germany, France and possibly Italy could throw a wrench into the recovery, particularly if populist parties—many of whom oppose the single currency—continue to surge.

We also report that the economic effect of growing automation on jobs has been a subject of debate this week as big leaps in artificial intelligence raise tensions among businesses and policy makers.
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This daily briefing is named “The 10-Point” after the nickname conferred by the editors of The Wall Street Journal on the lead column of the legendary “What's News” digest of top stories. Technically, “10-point” referred to the size of the typeface. The type is smaller now but the name lives on.

Sign up here to receive “Brexit Beyond: Europe in Flux,” a daily email update on the unfolding Brexit process and its global implications for business and finance.

—Compiled by Margaret Rawson

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