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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 third day of the World Economic Forum,

The top news of the day was British Prime Minister Theresa May saying the U.K. would step up as a leading supporter of free trade, presenting in a speech here a strong defense of globalization and an implicit rebuke of policies suggested by U.S. President-elect Donald Trump. “Forces that underpin the rules-based international system that is key to global security are somehow at risk of being undermined,” she said. Though she didn’t mention Mr. Trump by name, she said the U.K. would forcefully back policies of free trade and international engagement that Mr. Trump has called into question. Her commitment to Britain becoming a free-trade leader came two days after she announced the U.K. would be quitting its membership in Europe’s single market, the world’s largest trading bloc.


In an interview in Davos before the speech, London Mayor Sadiq Khan said the city, Europe’s financial capital, would need privileged access after Brexit to the single market and a continued ability to attract talent from abroad. But he said that if business did have to leave London, it would likely also be a losing proposition for the rest of the EU. “The evidence appears to be that businesses won’t leave London to go to Paris, Madrid or Berlin; they will leave to go to Hong Kong, Singapore or New York,” he said. Still, Mrs. May met Thursday with the chief executives of several Wall Street banks, following further warnings by lenders that they would shift jobs out of London to continental Europe after Brexit. Also in Davos, German Finance Minister Wolfgang Schäuble said Germany’s position wasn’t to punish the U.K. in the negotiations.

The possibility of more nationalistic trade policies in the U.K. and U.S. has cast a shadow over the forum, but many executives this week said they had high hopes for lower U.S. tax rates, designed in part to encourage companies to repatriate some $2.5 trillion in cash that has been held overseas. IBM CEO Ginni Rometty said pro-business promises from the incoming administration were getting a warm reception from CEOs.

Of course, Davos draws a large crowd, including not just politicians and CEOs, but celebrities, royalty and, this year, two of the Vatican’s highest officials, who struck a rare spiritual note among the rich and powerful gathered here. Cardinal Pietro Parolin, who as secretary of state is considered the Vatican’s second-highest official, was Pope Francis’ official emissary to the gathering. He was thus the spokesman for the pope’s critique of a “globalization of indifference,” though the cardinal translated the pope’s often-fiery language into gentler terms more appropriate for a veteran diplomat. Australian Cardinal George Pell, the Vatican’s finance chief, also in attendance, is known as the Vatican official most sympathetic to free-market economic policies and thus the Vatican’s unofficial liaison to the business world.
Forest Whitaker: Leaders Must Meet ‘Needs of Their People’
That Was Painless
In light of the changes in political sentiment in the U.S. and parts of Europe, actor and United Nations special envoy Forest Whitaker tells The Wall Street Journal’s Thorold Barker that nations must meet the needs of their people.
The inaugural year of the European Management Forum in Davos, now called the World Economic Forum.
Everybody in the world has the right to look for a better life.
Cardinal Parolin echoed the pope’s forceful call for wealthy countries to open their borders to refugees and other migrants in an interview with The Wall Street Journal.

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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