Reuters blog archive
Day one in Davos showed the masters of the universe fretting about Sino-Japanese military tensions, the treacherous investment territory in some emerging markets and the risk of a lurch to the right in Europe at May’s parliamentary elections which could make reform of the bloc even harder.
Today, the focus will be on Iranian President Hassan Rouhani (and his main detractor, Israel’s Netanyahu). Presumably he’s there to woo the world of commerce now sanctions are to be relaxed in return for Tehran suspending enrichment of uranium beyond a certain level. Anything he says about Syria’s peace talks, which have so far been more hostile than conciliatory, will instantly be headline news.
Other big name speakers are U.S. Treasury Secretary Jack Lew, IMF chief Christine Lagarde, who is going around warning about the threat of European deflation, Australian premier Tony Abbott, who is running the G20 this year, and a session featuring the BRICS finance ministers.
There is clearly a pervading sense of caution, if not alarm, about emerging markets. That aside, with the U.S. recovering and the existential threat to the euro zone over, perhaps delegates will look most nervously to the east.
from Mark Leonard:
The things that probably keep Barack Obama up at night -- terrorist networks, covert nuclear programs and chemical weapons -- can often be countered with off-the-peg reasoning: drones, sanctions, inspections, or even the threat of intervention. Much more difficult is working out how to stop allies from destroying what he hopes will be the signature achievement of his second term: a historic opening to Iran. When it comes to the Middle East, Obama’s thorniest problems come not from his enemies, but from his friends.
With the possibility of bilateral meetings between the U.S. and Iran in Geneva, and supported by the U.S.-Russian deal on chemical weapons in Syria, there is a tantalizing prospect that the Iranian regime could become a partner to the U.S., rather than a rival.