world-economic

Bill, Melinda Gates Pledge $10 Billion to Develop Vaccines for the Poor

January 29, 2010

By Phil Serafino and Yuriy Humber Jan. 29 (Bloomberg) — Bill and Melinda Gates said their foundation will commit $10 billion over the next decade to help develop vaccines for the world’s poorest countries, a project that may save the lives of 8.7 million children. The initiative aims to vaccinate 90 percent of children in developing nations, including new immunizations for pneumonia and severe diarrhea, the foundation said in a statement today. The funding is in addition to $4.5 billion that the charity already pledged to vaccine research and delivery. Governments and the private sector need to contribute more money as well, Gates said. “Here is where you can take a donation and really map it, see it saving lives,” Bill Gates , the co-founder and former chief executive officer of Microsoft Corp., said at a news conference in Davos, Switzerland, the site of the World Economic Forum this week. Gates’s Seattle-based charity, the world’s biggest, has made health care for the poor the focus of its work in an effort to tackle infectious diseases like AIDS, malaria and tuberculosis. The foundation has helped fund GlaxoSmithKline Plc ’s research into a malaria vaccine and has contributed to Sanofi-Aventis SA’s work on a shot for dengue fever. The foundation used a model developed at the Johns Hopkins Bloomberg School of Public Health to project the impact of vaccines on childhood deaths over the next decade. Vaccinations By vaccinating 90 percent of the population in developing countries, the deaths of about 7.6 million children under the age of 5 could be prevented in the next decade, according to the Gates foundation. An additional 1.1 million lives would be saved by the introduction of a malaria vaccine beginning in 2014, the foundation said. The United Nations will pay an average of about $2.94 a shot this year for a vaccine against five deadly childhood diseases, officials said in November. Four companies make the five-in-one shots — Crucell NV , Glaxo, Panacea Biotec Ltd and Sanofi’s Shantha Biotechnics. The shots are given to children in their first year of life to protect against Haemophilus influenzae type B, hepatitis B , tetanus, diphtheria, and pertussis. Glaxo wants to file for regulatory approval by early 2012 for its malaria vaccine, Chief Executive Officer Andrew Witty said last week. The foundation has spent $200 million developing the shot, while the company has invested $300 million, Alexandra Harrison, a Glaxo spokeswoman, said in an interview. ‘Transformative’ The Gates announcement “is transformative for research into diseases of the developing world,” Jean Stephenne , the head of Glaxo’s biologicals unit, said in an e-mailed statement today. “After clean water, vaccines are the most effective public- health intervention that can be offered in these countries.” The foundation is part of the GAVI Alliance , a health partnership from the private and public sectors that was formed 10 years ago at the World Economic Forum to reduce the price of vaccines for people in poor nations. “Investments in global immunization have yielded an extraordinary return,” Julian Lob-Levyt , the alliance’s chief executive officer, said in the statement. The alliance has saved 5 million lives by increasing access to vaccines, he said. “The potential to make bigger strides in the coming decade is even more exciting.” The Bloomberg School of Public Health, located in Baltimore, is named for New York Mayor Michael Bloomberg , founder and majority owner of Bloomberg News parent Bloomberg LP. Other charities have teamed up with vaccine manufacturers to develop immunizations for diseases that mostly strike the poor. Merck & Co. and The Wellcome Trust in September formed a not-for- profit venture in India that aims to create new immunizations and make existing vaccines more effective in the developing world. To contact the reporter on this story: Yuriy Humber in Davos at yhumber@bloomberg.net ; Phil Serafino in Paris at pserafino@bloomberg.net

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Larry Summers’ Davos Speech: Obama’s Top Economic Adviser Adamant Reform Is Coming

January 29, 2010

DAVOS, Switzerland — Confronting bankers head on, President Barack Obama’s top economic adviser told them Friday to put their customers first and insisted the U.S. government would push through new banking reforms despite pressure from lobbyists. “Our challenge now is to put in place a new system,” said Lawrence H. Summers, telling a crowd at the World Economic Forum that the reforms wouldn’t last forever but should be able to protect a generation from banking excesses. Summers, the top U.S. official in Davos this year, said there needed to be rules restraining how risky these banks can become. His session came after three days of complaints from senior officials in the banking industry that governments – and the U.S., in particular – risked choking off growth with a glut of new financial regulations. The level of anxiety among financiers at the new populist push was reflected in a series of closed-door meetings at Davos on the subject of the regulation proposals, and bankers and financial regulators were expected to meet again Saturday on the forum’s sidelines to discuss a range of issues, officials said. Summers was adamant that “we are going to put in place a set of reforms that will make a real difference.” He said banks should be aware of their obligations to their communities in making lending decisions and to contain risk, especially when they benefit from taxpayer support after getting into trouble. He also questioned the bank’s “paying out bonuses in large quantities.” The impact of government support for the banks has been far-reaching, he said. “Half a trillion dollars of market value exists today that would not have existed” if the government hadn’t acted. He said Obama’s proposed banking fees did not stem from populist pressure for revenge. “Our focus is not on trying to pick a fight with anyone but getting the economy rolling again,” he said. Summers didn’t appear to engage his audience of business leaders at their annual gathering in the Swiss Alps, and looked more like he was talking to American voters at home. He lamented the current situation in Washington where there are three banking lobbyists per member of Congress, saying it raises questions when some of them are even pushing for financial institutions to be able to jack up credit card rates without letting customers know. Banks must accept new constraints on their activities, he said. “They need to think very carefully about their obligations to their customers,” Summers said. He also welcomed the latest figures showing strong economic growth in the U.S., but said now is not the time to celebrate. The 5.7 percent increase in fourth-quarter growth that came under Obama’s economic policies has helped “moved the economy back from the brink of depression,” but the figure does not mean that “we are in any position to pop any champagne corks” or be satisfied. Joaquin Almunia, EU competition commissioner, supported Summers. “I fully agree with the objectives and with the way he has explained the need for financial regulations to avoid the imbalances and the accumulations of risk that brought about this crisis,” he said. Summers’ session was generally well received, though there were a number of empty seats in the crowd as some top executives left after the preceding debate featuring Google CEO Eric Schmidt. Summers tone “makes a businessman more comfortable,” said Francisco Rubiralta, CEO of Spanish steel company Celsa. Manuel Teehankee, a Philippine trade envoy, said Summers may have helped ease business tensions even as the U.S. seemed to be proposing something akin to the Depression-era Glass-Steagall Act, which separated commercial from investment banking in a bid to limit speculation. Most of the Glass-Steagall restrictions were repealed by Congress and President Bill Clinton in 1999. “I think it calms the general public, and the middle class that the lobby, or the Davos elite, won’t stem the tide of financial reform,” Teehankee said. “He’s making clear Washington’s commitment to substantial financial reform, in a reasonable way.” ___ Associated Press reporter Bradley S. Klapper contributed to this report. _____ To see more about the World Economic Forum or discuss the topics being talked about, go to AP’s World Economic Forum discussion page at http://bit.ly/amY7Sp

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Huff TV: Arianna Huffington At Davos: Obama Still Not Doing Enough For Jobs (VIDEO)

January 29, 2010

In an interviews with CNBC and Bloomberg TV at the World Economic Forum’s annual gathering in Davos, Switzerland, Arianna said the Obama administration is still not doing enough to help on the jobs front, despite new proposals announced in the President’s State of The Union speech on Wednesday. Davos attendees in the financial sector have called for global uniformity on banking reforms, but Arianna noted that the economy is in dire need of effective job creation efforts. “We still don’t see how growth is going to be filled,” Arianna told CNBC. “Where is consumption going to come from? And where jobs are going to come from? I think that’s the fear.” Arianna added that the Obama administration is still not adequately communicating the severity of the financial crisis for most Americans: “The administration, at least the majorities in Congress need to make it very clear to the public that we are not out of the woods, that we don’t see a clear path to job growth…So what they need to bring to the table is the same kind of urgency that they brought to the table a year ago, when some how they put everybody in a room and made things happen. That urgency is missing now.” Responding to the President’s recent proposal for a child care tax credit, Arianna said “the problem isn’t that you can’t find a babysitter, the problem is that there are six applicants for every job.” “The middle class is suffering and there is a kind of downward mobility,” she added. WATCH the full interview: WATCH Arianna’ interview with Bloomberg TV:

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Pandit Says Citigroup’s Goal `Profitability Now’ After Two Years of Losses

January 29, 2010

By Erik Schatzker and Michael J. Moore Jan. 29 (Bloomberg) — Citigroup Inc. Chief Executive Officer Vikram Pandit said his goal is “profitability now” as the bank works through credit costs after two years of losses. “We’ve come a very long way as a company and 2010 is an important year, because we can start to see the underlying strength of our operating businesses ,” Pandit, 53, said today in an interview on Bloomberg Television at the World Economic Forum in Davos, Switzerland. “Our goal is profitability now and sustainable profitability.” Citigroup, which is 27 percent owned by the Treasury Department, last week reported its second straight annual loss on costs to repay $20 billion of government funds in December. Pandit said it was “the right time” to repay taxpayers and said the government and the bank have “the same objectives.” Pandit, a former hedge-fund manager who took over at Citigroup in December 2007 after the ouster of Charles O. “Chuck” Prince , said while the credit crisis in the capital markets is likely finished, lenders will still face issues in consumer credit and commercial real-estate. The size of credit losses at the bank will probably depend on the broader economy and jobs creation , he said. “We’re just now in the process of peaking, or close to peaking in the consumer cycle,” Pandit said. “The commercial real-estate cycle is just starting to happen, that’s ahead of us.” Obama Plan President Barack Obama ’s reform proposals are “aligned” with the steps Citigroup has taken to reduce its size and shed proprietary trading businesses, Pandit said. Obama announced plans last week that may force large banks to limit their size and curb investments in hedge funds and private equity. The bank unloaded its Phibro LLC commodities- trading unit last year, and Pandit said it plans to sell several hedge funds. “We have to admit that not everything bankers did worked in the last few years, so there is a need for reform,” Pandit said. “We shouldn’t confuse the need for reform necessarily with bashing.” Pandit, who last year said Citigroup would focus on emerging markets for growth, said consumers in those regions are set to spend more and that returns on emerging-market investments are likely to be “robust.” “We were in these markets way before it was cool to be in the emerging markets, and so we have a lot of experience and a lot of relationships, and frankly we like what we’re seeing,” Pandit said. To contact the reporters on this story: Erik Schatzker in Davos, through the London newsroom at eschatzker@bloomberg.net ; Michael J. Moore in New York at mmoore55@bloomberg.net

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Video: Arianna Huffington Sees `Deficit of Trust’ at Davos: Video

January 29, 2010

Jan. 29 (Bloomberg) — Arianna Huffington, author and editor-in-chief of the Huffington Post, talks with Bloomberg’s Margaret Brennan about sentiment among participants at the World Economic Forum in Davos, Switzerland. (Source: Bloomberg)

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Video: Jordan’s Queen Rania Discusses Aid for Education: Video

January 29, 2010

Jan. 29 (Bloomberg) — Jordan’s Queen Rania talks with Bloomberg’s Margaret Brennan about the importance of maintaining aid for education in developing countries. Rania speaks at the World Economic Forum in Davos, Switzerland. (This is an excerpt of the full interview. Source: Bloomberg)

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Video: Scaramucci Sees `Global Policy Fatigue’ From Governments: Video

January 29, 2010

Jan. 29 (Bloomberg) — Anthony Scaramucci, managing partner at SkyBridge Capital, talks with Bloomberg’s Margaret Brennan about the outlook for banking regulation. They speak from the World Economic Forum in Davos, Switzerland. (Source: Bloomberg)

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Video: Copetas Sees Google Davos Party With `Cast of Thousands’

January 29, 2010

Jan. 29 (Bloomberg) — Bloomberg’s A. Craig Copetas talks with Francine Lacqua about the party scene in Davos, Switzerland, as it plays host to the annual meeting of the World Economic Forum.

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Video: Harvard’s William George Sees Need for Global Regulator: Video

January 29, 2010

Jan. 29 (Bloomberg) — William George, a professor of management practices at Harvard Business School and former chief executive officer of Medtronic Inc., talks with Bloomberg’s Erik Schatzker about financial regulation. George, who is also a board member at Goldman Sachs Group Inc., also discusses public sentiment toward Goldman and the need to focus on job creation. They speak at the World Economic Forum in Davos, Switzerland. (Source: Bloomberg)

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Video: Frank Says Banks `Deluded’ if They Resist Regulation: Video

January 29, 2010

Jan. 29 (Bloomberg) — U.S. Representative Barney Frank, a Massachusetts Democrat and chairman of the House Financial Services Committee, talks with Bloomberg’s Erik Schatzker about bank regulation. Frank, speaking at the World Economic Forum in Davos, Switzerland, also discusses the outlook for Federal Reserve Chairman Ben S. Bernanke’s second term. The Senate voted 70-30 to confirm the 56-year-old Bernanke. The opposing votes were the most since the chamber started confirming Fed chiefs in 1978. (Source: Bloomberg)

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Video: WPP’s Sorrell Says Economy `Less Worse,’ No Recovery Yet

January 29, 2010

Jan. 29 (Bloomberg) — Martin Sorrell, chief executive officer of WPP Plc, talks with Bloomberg’s Linzie Janis about the global economy and the outlook for the world’s largest advertising company. Sorrell speaks in Davos, Switzerland, where the World Economic Forum’s annual meeting is taking place.

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Video: Papaconstantinou Says Greece May Make Deeper Budget Cuts

January 29, 2010

Jan. 29 (Bloomberg) — Greece’s Finance Minister George Papaconstantinou talks with Bloomberg’s Andrea Catherwood about the country’s fiscal situation. They speak in Davos, Switzerland, where the World Economic Forum’s annual meeting is taking place. (Source: Bloomberg)

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Bank Chiefs Plot Response to Financial Regulators in Private Davos Huddle

January 29, 2010

By Christine Harper and Aaron Kirchfeld Jan. 29 (Bloomberg) — Brian Moynihan, Oswald Gruebel and Josef Ackermann , leaders of some of the world’s biggest banks, met during the World Economic Forum in Davos, Switzerland, to plot how to reassert their influence with regulators and governments. Chief executive officers including Bank of America Corp. ’s Moynihan , UBS AG’s Gruebel and Deutsche Bank AG’s Ackerrmann convened yesterday, a week after U.S. President Barack Obama shocked financiers with plans that may force large banks to limit their size and curb investments in hedge funds and private equity. The private meeting, held down a hallway near the back entrance of the Davos conference center, aimed to prepare executives for another private gathering in Davos on Jan. 30 with top policymakers and regulators, including U.S. House Financial Services Committee Chairman Barney Frank . “We’re trying to figure out ways that we can be more engaged,” Moynihan said in an interview after he left the meeting with about 30 financial CEOs. “Because, honestly, we were not considered to be the right kind of people to talk to for the ideas on how to fix this thing.” Moynihan said that much of the discussion was about tactics, such as who the executives should approach and when. He said the bankers were concerned that too much regulation could hamper economic growth and that conflicting national approaches need to be avoided. ‘In Consensus’ “It was a positive meeting, we’re in consensus,” Gruebel said during a break in the three-hour session, declining to provide further details. “Global banks would like to have a level playing field, but regulators have a national view and politicians too.” The attendees included Credit Suisse Group AG CEO Brady Dougan , Barclays Plc President Robert Diamond and HSBC Holdings Plc Chairman Stephen Green . Leaders of many industries hold private meetings at the World Economic Forum every year. Nobel laureate Joseph Stiglitz , the Columbia University economist who was also in Davos, said bankers welcome the focus on a global accord on regulation. “The bankers are loving this because they know we will never get an agreement and we’ll never get regulation and we’ll go back to where we were,” he said. Kravis, Bernstein, Loeb In a separate private gathering next door, Congressman Frank spoke to about 50 investors, including KKR & Co. co- founder Henry Kravis , Carlyle Group Managing Director David M. Rubenstein and Third Point LLC CEO Daniel Loeb . “The purpose of the meeting was to have a good sense of how do you develop good regulation at a time when there’s so much friction in the market,” said Jack Ehnes , CEO of the California State Teachers’ Retirement System, the second-biggest U.S. public pension fund, who attended the meeting. Frank, wearing snow boots and an untucked shirt under his pinstriped suit, said after the session that he was going to “crack down” on hedge funds. He didn’t elaborate. French Finance Minister Christine Lagarde said in Davos that there should be a “dialogue” between governments and banks on the technicalities and principals of regulation. “That’s the only way we’re going to get out of it,” she said. Two participants at the bank CEO meeting said that Obama’s proposals didn’t dominate the discussion. ‘Pay, Pay, Pay’ “It’s a little hard to figure out exactly what the words mean, and that will be shaped over time,” Bank of America’s Moynihan said. He said Bank of America and some other banks have a “minimum” amount of profit and revenue derived from so- called proprietary trading and investments. Executives interviewed after the meetings said they understand that new rules are inevitable and urged national regulators to coordinate through the Group of 20 or other international bodies. Some executives said they think the biggest challenge for the industry is overcoming public anger about bonuses and compensation. “When you talk to politicians, the big issue is pay, pay, pay,” UBS’s Gruebel said. Even though the industry has taken steps to reform its pay practices, the public isn’t satisfied, he said. “You can’t say to anyone who’s lost his job that we used to pay someone 10 million and now we’re paying 1 million,” Gruebel said. To contact the reporter on this story: Christine Harper in Davos at charper@bloomberg.net ; To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net

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Almunia Says EU Has No `Plan B’ for Greece, Deficit Won’t Lead to Default

January 29, 2010

By Francine Lacqua and John Fraher Jan. 29 (Bloomberg) — European Union policy makers have no “plan B” to help Greece, the bloc’s top economic official said, seeking to persuade investors that officials in Athens can cut the region’s highest budget deficit. “There is no bailout problem,” said Monetary Affairs Commissioner Joaquin Almunia in an interview with Bloomberg Television at the World Economic Forum’s annual meeting in Davos, Switzerland. “Greece will not default. In the euro area, default does not exist.” Greek bonds have declined as speculation mounts that the country will need help from the EU. Prime Minister George Papandreou yesterday said Greece is being victimized by rumors in financial markets and he denied seeking to borrow from European partners. Almunia dismissed as “sensationalist” newspaper reports that the euro region was discussing options to bail out Greece. Handelsblatt cited a draft EU document today as saying euro region finance ministers have “grave concern” about the currency bloc given the problems facing Greece and other nations. “Don’t look for secret papers that don’t exist,” said Almunia. Credit and currency markets underscore declining investor confidence in Greece. The euro has declined to a six-month low of $1.3913 after weakening 2.4 percent so far this year. Greek government bonds are the world’s worst performers in January, losing 4.19 percent in local currency terms and extending their decline over the past three months to 10 percent, Bloomberg/EFFAS indexes show. Credit-default swaps tied to Greece trade at about the same levels as Dubai when it got a $10 billion bailout from Abu Dhabi in December. To contact the reporter on this story: John Fraher at jfraher@bloomberg.net

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Video: London Mayor Johnson Says It’s `Bonkers’ to Slam Bankers

January 29, 2010

Jan. 29 (Bloomberg) — London Mayor Boris Johnson talks with Bloomberg’s Andrea Catherwood about the future of the finance industry in the U.K. capital. They speak at the World Economic Forum’s annual meeting in Davos, Switzerland.

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Video: Levy Says Publicis Benefiting From Digital Investments

January 29, 2010

Jan. 29 (Bloomberg) — Maurice Levy, chief executive officer of Publicis Groupe SA, talks with Bloomberg’s Francine Lacqua about the growth of the company’s digital business. Speaking at the World Economic Forum’s annual meeting in Davos, Switzerland, Levy also assesses the outlook for individual industry groups.

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Video: VTB’s Kostin Doubts New Rules Will Hurt Russian Banks

January 29, 2010

Jan. 29 (Bloomberg) — Andrei Kostin, chief executive officer of VTB Group, Russia’s second-largest bank, talks with Bloomberg’s Francine Lacqua about proposed changes to financial industry regulation. They speak at the World Economic Forum’s annual meeting in Davos, Switzerland.

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Video: EU’s Almunia Says `No Plan B’ to Plug Greek Deficit

January 29, 2010

Jan. 29 (Bloomberg) — European Union Economic and Monetary Affairs Commissioner Joaquin Almunia talks with Bloomberg’s Francine Lacqua about Greece’s finances and whether the country will receive EU help in cutting its budget deficit. They speak in Davos, Switzerland, at the World Economic Forum’s annual meeting. (Source: Bloomberg)

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Moynihan, Gruebel, Ackermann Plot Response to Regulators in Davos Meeting

January 28, 2010

By Christine Harper and Aaron Kirchfeld Jan. 28 (Bloomberg) — Leaders of some of the world’s biggest banks met today on the sidelines of the World Economic Forum in Davos, Switzerland, to plot ways to reassert their influence with regulators and governments. Chief executive officers, including Bank of America Corp.’s Brian Moynihan and UBS AG’s Oswald Gruebel , convened one week after U.S. President Barack Obama shocked financiers with plans that may force large banks to limit their size and curb investments in hedge funds and private equity. The closed-door meeting, held down a hallway near the back entrance of the Davos conference center, aimed to prepare executives for another private meeting in Davos on Jan. 30 with top policy makers and regulators, including U.S. House Financial Services Committee Chairman Barney Frank . “We’re trying to figure out ways that we can be more engaged,” Moynihan said in an interview after he left the meeting with about 30 financial CEOs. “Because, honestly, we were not considered to be the right kind of people to talk to for the ideas on how to fix this thing.” Moynihan said that much of the discussion was about tactics, such as who the executives should approach and when. He said the bankers were concerned that too much regulation could hamper economic growth and that conflicting national approaches need to be avoided. ‘In Consensus’ “It was a positive meeting, we’re in consensus,” Gruebel said during a break in the three-hour session, declining to provide further details. “Global banks would like to have a level playing field, but regulators have a national view and politicians too.” The attendees included Deutsche Bank AG CEO Josef Ackermann , Credit Suisse Group AG CEO Brady Dougan , Barclays Plc President Robert Diamond and HSBC Holdings Plc Chairman Stephen Green . Leaders of many industries hold private meetings at the World Economic Forum every year. In a separate private gathering next door, Congressman Frank spoke to about 50 investors, including KKR & Co. co- founder Henry Kravis , Carlyle Group Managing Director David M. Rubenstein and Third Point LLC CEO Daniel Loeb . “The purpose of the meeting was to have a good sense of how do you develop good regulation at a time when there’s so much friction in the market,” said Jack Ehnes , CEO of the California State Teachers’ Retirement System, the second-biggest U.S. public pension fund, who attended the meeting. Frank’s Snow Boots Frank, wearing snow boots and an un-tucked shirt under his pin-striped suit, said after the session that he was going to “crack down” on hedge funds. He didn’t elaborate. Two participants at the bank CEO meeting said that Obama’s proposals didn’t dominate the discussion. “It’s a little hard to figure out exactly what the words mean, and that will be shaped over time,” Bank of America’s Moynihan said. He said Bank of America and some other banks have a “minimum” amount of profit and revenue derived from so- called proprietary trading and investments. Executives interviewed after the meetings said they understand that new rules are inevitable and urged national regulators to coordinate through the Group of 20 or other international bodies. Some executives said they think the biggest challenge for the industry is overcoming public anger about bonuses and compensation. “When you talk to politicians, the big issue is pay, pay, pay,” UBS’s Gruebel said. Even though the industry has taken steps to reform its pay practices, the public isn’t satisfied, he said. “You can’t say to anyone who’s lost his job that we used to pay someone 10 million and now we’re paying 1 million,” Gruebel said. To contact the reporter on this story: Christine Harper in Davos at charper@bloomberg.net ; To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net

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Lula Cancels Davos Trip After Being Hospitalized for High Blood Pressure

January 28, 2010

By Laura Price and Helder Marinho Jan. 28 (Bloomberg) — Brazilian President Luiz Inacio Lula da Silva has left a hospital after spending a night undergoing emergency medical exams for high blood pressure. Globo TV showed a smiling Lula leaving a hospital in the northeastern city of Recife accompanied by his Cabinet Chief Dilma Rousseff. The network said he was traveling to his home in Sao Bernardo do Campo to rest. Two medical exams performed on the 64-year-old Lula came back normal, Cleber Ferreira told journalists at the hospital, according to a posting on the presidential palace’s blog . As a precautionary measure Lula will no longer travel to the World Economic Forum’s annual meeting in Davos, Switzerland, Communications Secretary Franklin Martins said, according to the blog. Folha de S. Paulo newspaper said Lula became ill while on the plane ready to depart for Davos. Lula, who does not suffer from hypertension, saw his blood pressure rise to 180 over 120 after a full day of work in 86 degree Fahrenheit (30 degrees Celsius) heat, the doctor said. Central Bank President Henrique Meirelles will receive the forum’s first “Global Statesman” award on Lula’s behalf, Martins said. Editors: Joshua Goodman To contact the reporter on this story: Laura Price in London at lprice3@bloomberg.net ; Helder Marinho in Rio de Janeiro at hmarinho@bloomberg.net

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Lula Leaves Brazilian Hospital After Blood-Pressure Increase Prompts Tests

January 28, 2010

By Laura Price and Helder Marinho Jan. 28 (Bloomberg) — Brazilian President Luiz Inacio Lula da Silva has left a hospital after spending a night undergoing emergency medical exams for high blood pressure. Globo TV showed a smiling Lula leaving a hospital in the northeastern city of Recife accompanied by his Cabinet Chief Dilma Rousseff. The network said he was traveling to his home in Sao Bernardo do Campo to rest. Two medical exams performed on the 64-year-old Lula came back normal, Cleber Ferreira told journalists at the hospital, according to a posting on the presidential palace’s blog . As a precautionary measure Lula will no longer travel to the World Economic Forum’s annual meeting in Davos, Switzerland, Communications Secretary Franklin Martins said, according to the blog. Folha de S. Paulo newspaper said Lula became ill while on the plane ready to depart for Davos. Lula, who does not suffer from hypertension, saw his blood pressure rise to 180 over 120 after a full day of work in 86 degree Fahrenheit (30 degrees Celsius) heat, the doctor said. Central Bank President Henrique Meirelles will receive the forum’s first “Global Statesman” award on Lula’s behalf, Martins said. Editors: Joshua Goodman To contact the reporter on this story: Laura Price in London at lprice3@bloomberg.net ; Helder Marinho in Rio de Janeiro at hmarinho@bloomberg.net

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Soros Says Obama’s Financial Plan May Not Resolve `Too Big to Fail’ Issue

January 27, 2010

By John Fraher and Gavin Finch Jan. 27 (Bloomberg) — Billionaire investor George Soros said the largest financial institutions may be “too big to fail” even under President Barack Obama’s plans to rein them in. “Some of the banks will spin off investment banks that will still be too big to fail,” Soros said. He made the remarks in Davos, Switzerland, where he is attending the World Economic Forum. Soros’s comments came as bankers criticized Obama’s proposal last week to limit the size of banks and prohibit them from investing in hedge funds and private-equity funds as a way to reduce risk-taking and prevent a repeat of the credit crisis. Robert Diamond , president of London-based Barclays Plc, urged governments to coordinate regulation and resist the temptation to act in isolation before elections in the U.K. and the U.S. “It’s very important to step back and be very thoughtful about the role of trading and the role of risk in banks, because without risk we don’t have a banking industry,” Diamond said. Banks “willing to take cross border risks are essential to have jobs and economic growth,” he said. Deutsche Bank AG Chief Executive Officer Josef Ackermann also said the Obama initiative risked hindering global economic growth. “If you have fragmented, small players in the financial sector, meeting the requirements of global trade and production, you will have a dichotomy which is not going to work and would not be for the benefit of the real economy at the end,” Ackermann said. Soros also said it’s counterproductive to tax banks before the consequences of the financial crisis have been fully dealt with. To contact the reporters on this story: Gavin Finch in London at gfinch@bloomberg.net

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Weber Says ECB Could Take Further Steps to Exit Stimulus in the First Half

January 27, 2010

By Francine Lacqua and Simone Meier Jan. 27 (Bloomberg) — European Central Bank council member Axel Weber said the bank may take further steps in the first half of this year to withdraw liquidity from the banking system as the economy gathers strength. “As the economy improves, we’ll take some of the exceptional measures back,” Weber said in an interview with Bloomberg Television at the World Economic Forum in Davos, Switzerland, today. “Not all measures are needed to the same degree, so I don’t rule out that we take some additional steps even before the second half.” One of the cornerstones of the ECB’s strategy to fight the financial crisis has been to lend banks as much money as they want at its benchmark interest rate of 1 percent, a record low. The central bank has already started to scale back its emergency longer-term lending as the economy shakes off its worst recession since World War II. Weber said the ECB will have to discuss a return to a normal auction procedure in its refinancing operations, though this would not be reintroduced to all tenders at once. The 16-nation euro region will have a “protracted” economic recovery, he said, adding it may take two to three years to return to pre-crisis conditions. The euro rose against the dollar after Weber spoke to $1.4059 from $1.4043. To contact the reporters on this story: Simone Meier in Dublin at smeier@bloombert.net ;

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Gregory Unruh: Davos: Copenhagen, Take 2

January 26, 2010

Maybe the World Economic Forum in Davos at the end of the month can provide an opportunity for the negotiations that didn’t happen in Copenhagen. Let’s face it; the world is very different from when the original Framework Convention on Climate Change was signed by George H.W. Bush in 1992. Back then the big negotiating players were the United States, Europe and Japan. In Copenhagen the players were the US, China, India, Brazil and South Africa. The international power shift is obvious. As new powers arise their concerns have to be accommodated. But outside the diplomatic world of nation-states, the hierarchy of economic influence looks far more stable. Exxon, Ford, GM, Chevron, Mobile, Texaco all made the top 10 of the Fortune 500 when Bush was negotiating in 1992. And even after the recent economic battering, they appeared in the top 10 again when Barack Obama was negotiating in Copenhagen last month. Ask any diplomat not from the US and they will tell you Copenhagen was a debacle. Copenhagen was solely a nation-state event, so businesses were not invited. They are, however, key players in any negotiated solution. No matter what the hardcore environmentalists envision, fossil fuels are not going to be phased out any time soon. The urgent need is to therefore ensure that a sustainable carbon economy is not an oxymoron. Those Fortune Top 10 companies in many cases own the technological capabilities that can make a sustainable carbon economy a reality. And, of course, they have the most to lose if we don’t. Just like the rise of new political powers, the roles of these companies needs to be accepted in climate deal making. That’s difficult to swallow for nation-states accustomed to having the sole say on international rules. It will also drive protectionist types out of their mind to let corporations have a say in international governance. And it will sorely test CEOs’ commitment to the new zeitgeist of socially responsible corporate behavior. But the truth is these companies already have this power and concomitant responsibilities. Thanks to the liberalization of trade, communications and financial markets, global corporations are major players in the structure and governance of the global economy. Policy decisions made in executive boardrooms can have far greater impact on countries’ economic development than most international aid programs. That’s a reality that climate policy needs to face. And the truth is that without the support of the companies economically dependent on fossil fuels, the climate problem can’t be solved fast enough to stave off unwanted disruptions. You can’t have these conversations at UN climate meetings. The role of corporate lobbyists here is backroom arm twisting. But one place where these types of conversations can be publically held is in Davos. The World Economic Forum has 1,000 corporate members and Davos is a place where they confab with their political counterparts. The conversations will be difficult. Politicians have to respond to their political constituencies (presumably voters) and Chief Executives have to respond to their financial constituencies (presumably shareholders). But both can gain by a deal. And so can the world. Gregory Unruh is Director of the Lincoln Center at Thunderbird School of Global Management and author of “Earth, Inc.” published by Harvard Business Press.

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Davos 2010 LIVE: Video, News, Twitter Updates In Real-Time From World Economic Forum

January 25, 2010

Davos 2010 is being held by the World Economic Forum (WEF), a Geneva-based nonprofit organization, from Jan. 27 to Jan 31. The annual event in Davos, Switzerland, will be attended by more than 2,500 people this year, including more than 900 chief executives from several industry sectors. The goal of the event is to “improve the state of the world.” Follow all the action from Davos 2010 LIVE on this page, including video, news, and real-time updates from Twitter. Know of someone who would be great for one of these lists? Email us at twitterlists@huffingtonpost.com !

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John Hope Bryant: When Leaders Screw Up

December 11, 2009

When leaders screw up, more often than not, their immediate response is so often what I would call a classic fear-based model; huddle up, hunker down, ride it out.

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Video: Survey Says – Nordic Countries Continue to Bridge Gaps

October 27, 2009

Global Gender Gap Report ’09 – Interview with Saadia Zahdi of World Economic Forum (InBusiness)

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