Delegates fret over markets, low oil prices as World Economic Forum kicks off

DAVOS, Switzerland -- A prevailing sense of anxiety was in the air in the Swiss ski resort of Davos as the World Economic Forum kicked off Wednesday with delegates fretting about the turbulence in financial markets, slowdown in China and plunging oil prices.

See Full Article

As global stock markets suffered another day of hefty losses and oil prices sank to fresh 12-year lows, there was a high degree of concern about the outlook for the global economy this year.

High on the agenda was plunging oil prices and how they're connected to China's slowing Chinese economy.

The uncertainty across markets is one factor that's preventing businesses from investing in the future, and using huge cash surpluses to finance new research and development projects, said Min Zhu, Deputy Managing Director of the International Monetary Fund, which on Tuesday cut its global growth forecasts.

Paul Singer, CEO of hedge fund Elliot Management, said banks remain too leveraged eight years on from the global financial crisis that sent the world spiraling into its deepest recession since World War II.

The situation within financial institutions, he said, is "still opaque, highly leveraged."

The plunge in oil prices was also identified as a growing threat to the world's goal to reduce emissions through the increase in renewable energies.

The head of the International Energy Agency, which advises oil-importing countries, said the drop in costs for oil and gas threatens to reduce governments' incentives to improve energy efficiency -- in transportation networks, for example -- as well as the installation of renewable energy plants.

Fatih Birol says energy efficiency has been driven largely not so much by environmental concerns but an interest in saving money, which is disappearing as fossil fuels become cheaper.

World governments agreed in Paris in December to limit the rise in global temperatures, a move that will require a ramp-up in the amount of energy that comes from renewable sources.

Birol warned a panel of energy experts gathered in Davos: "For renewables, life will not be easy."

The head of the International Chamber of Commerce, John Danilovich, told The Associated Press in Davos that adapting investment to meet the lower-emissions goals in the Paris agreement will be among several struggles for global businesses this year.

"On all fronts there are major agenda items, not only economic but also with regards to sustainable development, also with regards to climate and also with regards to civil society," he said.



Advertisements

Latest Economic News

  • Judge hears stay request for ex-Amaya CEO, others

    Economic CBC News
    Even before the first witnesses could be heard at a rare insider trading case that involves former Amaya CEO David Baazov and others, lawyers representing the accused attempted Monday to have the charges stayed. Baazov, 37, has pleaded not guilty to securities-related charges following an investigation by the Autorité des marchés financiers, Quebec's stock market regulator, into the allegations of insider trading. Source
  • Uber charges Toronto customer more than $18,000 for short downtown ride

    Economic CTV News
    TORONTO - Uber is apologizing to customer who was charged more than $18,000 for a short ride in downtown Toronto. Photos posted on social media over the weekend showed that an Uber rider was billed $18,518.50 for a 21-minute Uber ride. Source
  • Conservatives ask OPP to investigate ineligible expenses by power generators

    Economic CTV News
    TORONTO -- The Progressive Conservatives have asked the Ontario Provincial Police to investigate millions in ineligible expenses -- including scuba gear and raccoon traps -- filed by nine power generators in the province. Auditor general Bonnie Lysyk reported last week that the generators claimed up to $260 million in ineligible costs between 2006 and 2015, under a program designed to pay power generators for fuel, maintenance and operating costs when the system operator puts them on standby to…
  • Onex Corp. to buy venue manager SMG Holdings for undisclosed price

    Economic CTV News
    TORONTO -- Onex Corp. (TSX:OCX) says it has agreed to acquire a U.S. company that manages hundreds of sports, entertainment and business venues including Soldier Field, home to the NFL's Chicago Bears. The Toronto-based private equity company didn't disclose how much it will pay for privately held SMG Holdings Inc. Source
  • Apple buys music identifying app Shazam

    Economic CBC News
    Shazam has been valued at roughly $1 billion US. (Simon Dawson/Bloomberg) Apple is buying Shazam, a popular app that identifies music for users by listening to a short snippet of it. Technology website Techcrunch first reported on the possibility of the merger last week before Apple made it official in a statement Monday. Source
  • Securities-related trial underway in Montreal for ex-Amaya CEO David Baazov

    Economic CTV News
    MONTREAL -- The securities-related trial of former Amaya CEO David Baazov and others accused of insider trading is underway at the Montreal courthouse. It is opening with a request by the defence to have the case tossed due to unreasonable delays in getting evidence. Source
  • Stay request at insider trading trial for ex-Amaya CEO David Baazov, others

    Economic CTV News
    MONTREAL -- Even before the first witnesses could be heard at a rare insider trading case that involves former Amaya CEO David Baazov and others, lawyers representing the accused attemped Monday to have the charges stayed. Source
  • Calgary-based water pipeline company accepts $509M offer from New York partner

    Economic CTV News
    CALGARY -- A Calgary-based water pipeline technology and inspection company says it has agreed to be sold for more than half a billion dollars to New York-based Xylem Inc. Pure Technologies Ltd. says the offering price of $9 per share or $509 million in cash is more than double its closing share price last Friday. Source
  • Of government and golf courses: Mulroney's East Coast experiment, 30 years later

    Economic CTV News
    HALIFAX -- Ben Cowan-Dewar was a bright-eyed 25-year-old entrepreneur when he visited Inverness, N.S., and saw a jaw-dropping landscape fit for a luxury golf course. Past the abandoned mines and hardscrabble edges of the Cape Breton village, he envisioned a boutique 18-hole course and upscale resort perched atop craggy cliffs. Source
  • Bitcoin futures contract flirts with $19K US, even as current price hovers near $16K

    Economic CBC News
    After jumping out of the gate, the first bitcoin futures contracts to trade on a mainstream exchange stabilized on Monday at around $18,000 US. The Chicago Board of Options Exchange started trading a bitcoin derivative contract on Sunday evening. Source