The global elite in Davos are catching their breath after being addressed by Donald Trump last night. In a bombastic speech by videolink, Trump declared he wanted lower global oil prices, interest rates and taxes, as well as a big jump in Nato military spending. He also appeared to indicate he would impose tariffs on all imports to the US – although there were few details really. As Trump put it: “Come make your product in America and we will give you among the lowest taxes as any nation on earth. “But if you don’t make your product in America, which is your prerogative, then very simply, you will have to pay a tariff – differing amounts – but a tariff, which will direct hundreds of billions of dollars and even trillions of dollars into our treasury to strengthen our economy and pay down debt under the Trump administration.” Trump’s comments moved the markets, with the oil price dipping after he told Davos he would push Saudi Arabia and Opec to lower crude prices. His call for lower interest rates lifted the S&P 500 to a record high. In Japan, the central bank has raised interest rates – only hours after Trump told Davos that borrowing costs around the would should come down. The Bank of Japan raised interest rates to their highest since the 2008 global financial crisis, and also revised up its inflation forecasts. The move lifts Japan’s short-term policy rate from 0.25% to 0.5%. Yesterday, Trump told the World Economic Forum that he would demand that US interest rates “drop immediately”, adding: "And likewise, they should be dropping all over the world. Interest rates should follow us." The agenda • 9am CET/8am GMT: session on renewing the promise of democracy • 10.15am CET/9.15am GMT: a session on the US-EU-China triangle • 11am CET/10am GMT: a session on the global economic outlook with IMF chief Kristalina Georgieva, Saudi Arabia’s economy minister Faisal Alibrahim, BlackRock CEO Larry Fink, ECB president Christine Lagarde, and Singapore’s president Tharman Shanmugaratnam • 12pm CET/11am GMT: closing remarks by Børge Brende, president and CEO, World Economic Forum We'll be tracking all the main events throughout the day …
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