Irish Prime Minister Leo Varadkar said Thursday that he was "somewhat optimistic" that a deal could be struck in the coming months between the European Union and the U.K. over Northern Ireland's trading status, an issue that has created diplomatic tensions on all sides since Brexit and threats of a trade war. Speaking at the World Economic Forum Mr. Varadkar said that "trust had built up" between the U.K. and EU recently, with both sides meeting this week to negotiate. But Mr. Varadkar said it was important that any potential deal "stick," noting that previous agreements on Northern Ireland have either been water-down or failed to get political support in the U.K.
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The Inflation Reduction Act is "one of the most brilliant pieces of legislation I've seen in years," said Thomas Buberl, chief executive of French insurance giant AXA. That's a rare vote of confidence for the law from a European executive. Passed last year by Congress, it creates massive incentives for manufacturers to base production of things like electric vehicles and batteries in the U.S. European and Asian companies have objected that the measure unfairly helps U.S. companies and could steal manufacturing capacity away. "People in Europe are shocked about it. I don't understand the shock. People for years criticized the U.S. for not doing enough," Mr. Buberl said. While he finds the America first components of the law "less than inspiring" he hopes that Europe moves quickly to match the incentives to investment.
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The world's elite are pondering how to expand access to banking and other financial services. Here are some takeaways from a Davos panel Thursday on financial inclusion:
--Without a phone-often a smartphone-access to banking is difficult. Add the need for cellphone signal and identity documents, and financial inclusion can vary widely by country and region, said Queen Maxima of the Netherlands.
--Understanding who needs financial services is key, said Shivani Siroya, founder of Tala, a smartphone-lending app. That insight comes from data gleaned by interacting with locals.
--Such data can show, for example, when mothers are saving for school fees, or crops are being harvested, so companies can create financial products accordingly, Queen Maxima said.
--Remittances, an important part of finance, show why making payments needs to be easy and digital, said Visa Chief Executive Alfred Kelly Jr.
--Blockchain could help expand the reach of some financial services, but the panelists were skeptical it could be an immediate solution. Networks can be electricity-intensive, and volatility in digital assets makes it difficult to build trust.
--Mr. Kelly of Visa argued for helping small businesses with low-tech solutions like point-of-sale devices that can allow payments even when the power is down.
MARKET TALK HIGHLIGHTS
Climate change is a serious issue which should be taken seriously, and society isn't doing a good job at it, JPMorgan Chairman and CEO Jamie Dimon tells CNBC in an interview at the World Economic Forum in Davos. The world will need oil and gas for 50 years, and a transition and global deals are needed as it is no good if deals are made in some countries but not others, he says. "We need a real plan that is thoughtful," he says, adding investment in oil and gas isn't enough to keep prices low as the price of oil could rise again.
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The relationship between the U.S. with China should be competitive, not adversarial, JPMorgan Chase Chairman and CEO Jamie Dimon tells CNBC in an interview at the World Economic Forum in Davos. The West needs to do some restructuring when it comes to the country, while China has to open up and grow its economy to the world for itself, and what some call unfair competition needs to be negotiated, he says. China is going to be a large, civilized nation for 50 to 100 years, so if you are thinking about making long-term investments there, you should, he said.
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The European Central Bank will still need to increase interest rates by 50 basis points on more than one occasion in order to tame price growth, Dutch central bank's governor Klaas Knot says in a CNBC interview at the World Economic Forum in Davos. "Most of the ground we have to cover, we will cover at a constant base of multiple 50 basis-point hikes... It will not stop after a single 50 basis-point hike, that's for sure," he said.
Full Davos coverage at: bit.ly/3wdVWSc
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(END) Dow Jones Newswires
01-19-23 1232ET
