Davos 2025 live updates: Jamie Dimon compares Musk to Einstein; UK finance minister touts U.S. ‘special relationship’ in Davos

JPMorgan Chase CEO Jamie Dimon on Wednesday called the U.S. stock market inflated and said that he felt more cautious than others in the business world because of the risks from deficit spending, inflation and geopolitical upheaval.

“Asset prices are kind of inflated, by any measure. They are in the top 10% or 15%” of historical valuations, Dimon told CNBC’s Andrew Ross Sorkin at the World Economic Forum in Davos, Switzerland.

Read the full story here.

— Hugh Son

British Chancellor of the Exchequer Rachel Reeves listens during the 11th China-UK Economic And Financial Dialogue on January 11, 2025 in Beijing, China.

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The U.K. is “not part of the problem” when it comes to “persistent” trade deficits that President Donald Trump wants to tackle, the country’s finance minister told CNBC Wednesday.

“I do understand that President [Donald] Trump is concerned about countries that are running large and persistent surpluses on the trade balance with the U.S. That’s not the case for the U.K.,” the U.K.’s Chancellor Rachel Reeves told CNBC’s Andrew Ross Sorkin.

Read the full story here.

— Holly Ellyatt

Switzerland’s central bank has said it still has “quite some flexibility” to bring inflation to its target before needing to cut interest rates below zero.

Martin Schlegel, chair of the Swiss National Bank (SNB) said the central bank would be open to negative rates “if necessary,” but suggested the conditions for such a monetary policy move haven’t arrived yet.

The SNB surprised markets by cutting rates by 50 basis points in December to lower its key rate to 0.5%. The central bank’s decision came after the annual inflation rate in Switzerland fell to 0.6% at the end of 2024.

“I can also tell you that in Switzerland, no one likes negative interest rates. Also, the Swiss National Bank doesn’t like negative interest rates,” Schlegel told CNBC’s Steve Sedgwick at Davos. “But you cannot exclude it. If necessary, we will do it.”

The SNB has forecast inflation to stay within its target range of zero to 2% over the medium term in its December statement.

“We define price ability as an inflation from zero to 2% but temporary inflation can also be outside of the range,” Schlegel said.

“We have this as a medium target in the medium term, inflation has to be inside this range. So we have quite some flexibility,” the SNB chair added.

Goldman Sachs economists led by Sven Jari Stehn, who correctly forecast the SNB’s 50 basis point rate cut in December, have previously said they expect rates to hit zero by the end of 2025.

“We continue to expect two additional 25bp cuts in [second half of 2025] to a terminal rate of 0%, as we see a potentially sizeable hit to activity in the pipeline, and further appreciation pressure on the franc from increased geopolitical uncertainty and European risk, only partly offset by today’s rate cut,” they said in December.

— Ganesh Rao

The IMF’s first deputy managing director Gita Gopinath branded the looming threat of U.S. tariffs as far from the “typical rules-based” trade environment, but said that it was too soon to gauge the global economic impact.

“This is very far from being in the very typical rules-based international trade environment,” she said, adding that it was important to “wait and see where the dust settles” in terms of the exact number, level and reach of U.S. tariffs — as well as how other countries react.

The IMF kept its global growth forecast broadly unchanged Friday, forecasting economic expansion of 3.3% in both 2025 and 2026, below the historic average of 3.7%. It said the forecast was due to an upward revision of U.S. growth offsetting downward revisions in other major economies.

Gopinath clarified that the forecast had not taken into account President Donald Trump’s recent comments on global tariffs, including fresh threats delivered Tuesday to the EU, Canada, China and Mexico.

Gopinath noted, however, that there was a lot that countries could do to counter the potential negative impact of trade levies, including “investing in domestic reforms to raise productivity” and boost domestic growth.

The UN agency’s World Economic Outlook also saw global inflation falling to 4.2% in 2025 and 3.5% in 2026 — a convergence back toward target that it said would happen earlier in advanced economies than in emerging and developing ones.

— Karen Gilchrist

Europe’s climate chief described U.S. President Donald Trump’s decision to withdraw from the landmark Paris Agreement as “unfortunate,” warning that Europe has no choice but to continue trying to tackle climate change.

“It is unfortunate. Not completely unexpected but it is unfortunate,” Wopke Hoekstra told CNBC’s Dan Murphy at the World Economic Forum in Davos, Switzerland on Wednesday.

“Also given the pivotal role the U.S. is playing at a global stage. It is the largest economy, it is the most dominant power, it is the second-largest emitter. So, losing them in the cycles of international diplomacy as far as climate is related, is unfortunate,” he added.

Asked whether Europe can carry the torch on global climate goals now that the U.S. has left the building, Hoekstra said, “Look, they will be missed, and we would have loved to keep them on board. And again, we will continue to engage with them. But the problem will not go away.”

He added: “So, we don’t have a choice. We don’t do this out of luxury. We will have to deal with this crisis in a way that is wise, that is viable for climate itself, for our economies and for the middle classes all across the globe.”

— Sam Meredith

Aon CEO Greg Case said business leaders were watching a number of sources of volatility this year.

“We call them the four megatrends,” Case told CNBC’s Dan Murphy at the World Economic Forum in Davos, Switzerland.

“Trade — the issues around the global supply chain — technology and generative AI and all the implications of that, weather [and] climate more than ever before, and for the first time really around workforce and talent.”

— Chloe Taylor

Speaking to CNBC’s Dan Murphy on Wednesday morning, Israeli Economy Minister Nir Barkat explained his stance on his country’s ceasefire deal with Hamas, which he said had been “tough to vote for.”

“We need peace in the region,” he said. “We must have neighbors that seek peace with us and do not want to destroy us.”

The Gaza ceasefire deal, which took effect over the weekend, has led to a pause in the 15-month war between Israel and Hamas, as well as the release of three Israeli hostages.

— Chloe Taylor

Sweden’s Finance Minister Elisabeth Svantesson said Europe needs to focus more on defending its own interests and positioning itself as a viable economic competitor to other global markets.

“Europe must be better,” Svantesson said. “Europe is a rich continent but we are getting behind the U.S.,” she said, pointing to the region’s low productivity levels and stagnant growth rates.

“We can be richer but we don’t focus enough on the things that can make our economy grow,” she said, alluding to investment in emerging technologies and growth industries.

— Karen Gilchrist

Prosus, one of the largest technology investors, has $20 billion in cash and is ready to invest in Europe, according to its chief executive Fabricio Bloisi.

Bloisi told CNBC’s Squawk Box Europe in Davos, Switzerland, that the technology-focused fund — which has a major stake in China’s Tencent — was looking for companies to invest in that would generate returns over the next 10 years.

The tech investor said Europe has repeatedly had the “wrong conversation” on AI and complained that lawmakers on the continent had moved to regulate the nascent industry even before it took off.

“The right conversation is: in three years, everything we do from broadcasting here, to running every business, is going to be highly reliant on AI,” Bloisi said. “Are we going to be asking for permission to have the right technology from our partners, or are we going to lead the world?”

— Ganesh Rao

The European Central Bank’s Lagarde adds that she is “not overly concerned” by the impact of inflation abroad on the euro zone.

Asked about the potential effect on Europe if inflation resurges in the U.S., Lagarde says: “If there is reigniting of inflation in the United States it will be an issue for the United States for sure, that is where the first and prime consequences will be.”

“We are not overly concerned by the export of inflation to Europe.”

— Jenni Reid

France will have a new budget designed to bring down its deficit in the coming weeks, a top official told CNBC in Davos on Wednesday.

The country is aiming to cut its national deficit so that it falls below 3% of GDP in compliance with EU rules, but has faced political turmoil in previous attempts to do so. Former Prime Minister Michel Barnier’s bid to force through his own budget culminated in his ousting by lawmakers at the end of 2024.

Speaking to CNBC’s Dan Murphy in Davos, Laurent Saint-Martin, France’s minister delegate for foreign trade, said he was confident the government’s new deficit-trimming plans would soon be approved in the French Parliament.

“Don’t panic, there will be a budget for France, I can assure you that, and it will be in the coming weeks – maybe at the middle of February,” he said. “And better than that, it will be a budget that will preserve our strengths.”

“What is new is that we reduce public spending, this is what we have to do in France,” he said.

— Chloe Taylor

European Central Bank President Christine Lagarde speaks to CNBC’s Karen Tso on Jan. 22, 2025, at the World Economic Forum in Davos.

CNBC

Europe must “be prepared” and anticipate the potential trade tariffs of newly inaugurated U.S. President Donald Trump, European Central Bank President Christine Lagarde told CNBC on Wednesday.

“What we need to do here in Europe is to be prepared, and anticipate what will happen in order to respond,” she told CNBC’s Karen Tso.

Read more here.

— Sophie Kiderlin

The President of the Government, Pedro Sanchez, speaks during the forum ‘Housing, fifth pillar of the Welfare State’, organized by the Ministry of Housing and Urban Agenda, at the Railway Museum, on 13 January, 2025 in Madrid, Spain. During the event, the President of the Government made a new announcement on housing, and highlighted access to housing as a key issue within the legislature, in the midst of escalating property prices, especially in large cities.

Europa Press News | Europa Press | Getty Images

A trade war is not in the interest of the European Union or the U.S., Spain’s prime minister told CNBC Wednesday.

“We share a strong transatlantic bond … our economies are very interlinked and I believe a trade war is not in the interest [of either party], neither for the U.S., neither for the European Union,” Pedro Sanchez told CNBC’s Steve Sedgwick on the sidelines of the World Economic Forum in Davos, Switzerland.

“A trade war is a kind of a zero-sum game,” he added. “We need to focus on how we strengthen our transatlantic relationship, which is now more important than ever.”

Read the full story here.

—     Holly Ellyatt

Merck CEO Belén Garijo said she was “confident” that Europe can become more globally competitive, doubling down on the German pharmaceutical group’s investment into the region, even as it pursues opportunities in the U.S. and elsewhere.

“We have heavily invested in Europe because we are confident the ship can be turned around,” Garijo said, as talked has swirled around Davos of Europe’s waning ability to fend off economic competition from the U.S. and China.

It comes as U.S. President Donald Trump on Tuesday reiterated plans to hit the EU and China with tariffs in the face of what he dubs are unfair trade practices.

Garijo noted that the company was preparing for such an eventuality, increasing its presence in the U.S. and pursuing local strategies in the event of such trade levies.

“We have been diversifying our supply chain to be closer to our customers and, of course, to be better positioned in case of potential trade restrictions,” she said.

— Karen Gilchrist

Denis Machuel, chief executive officer of Adecco Group, pictured in Dec. 2024.

Benjamin Girette | Bloomberg | Getty Images

Denis Machuel, CEO of global recruitment firm Adecco, told CNBC on Wednesday morning that a new $500 billion AI initiative announced overnight by U.S. President Donald Trump was “no surprise.”

“It just complements the billions of investment that are already on the way, and [the spend] is necessary to get the best out of AI,” he said.

He nevertheless cautioned that increasingly powerful AI should be seen as “both an opportunity and a responsibility.”

“We have to ensure that people do not become obsolete, the upskilling, the reskilling, the embarking everyone on this journey is critical,” he said.

— Chloe Taylor

Europe will respond to any tariffs imposed by U.S. President Donald Trump in a proportionate way, the European Union’s commissioner for the economy told CNBC Wednesday.

“If there is a need to defend our economic interests, we will be responding in a proportionate way,” Valdis Dombrovskis told CNBC Wednesday.

“We’re ready to defend our values and also our interests and rights if that becomes necessary,” he added, speaking to CNBC’s Steve Sedgwick on the sidelines of the World Economic Forum in Davos, Switzerland.

Since his inauguration on Monday, Trump has repeated his threat to impose tariffs on EU goods entering the United States, telling reporters that the EU was “very, very bad to us. So they’re going to be in for tariffs. It’s the only way … you’re going to get fairness.”

He also said his administration was discussing imposing an additional 10% tariff on goods imported from China, starting in February.

Dombrovskis said the U.S. and Europe were strategic allies and it was important for them to work together, both geopolitically and economically.

Read the full story here: Europe ready to respond ‘in a proportionate way’ as Trump touts tariffs, top EU official says

— Holly Ellyatt

Artificial intelligence is the topic du jour at this year’s World Economic Forum Annual Meeting — a major gathering of political and corporate leaders — in Davos, Switzerland.

Fabrice Coffrini | AFP / Getty Images

Of all the corporate buzzwords, artificial intelligence is by far the one that’s been on every major corporate leader’s lips at this year’s World Economic Forum gathering in Davos, Switzerland.

Numerous big-name company CEOs and investors in industries spanning financial services to marketing talked up the potential of AI technology.

For more on what CEOs — from Mistral’s Arthur Mensch to Lloyds Bank’s Charlie Nunn — had to say about AI, read the full story.

— Ryan Browne

UN Secretary-General Antonio Guterres arrives for a meeting with French Minister of Foreign Affairs Stephane Sejourne at UN headquarters in New York on February 23, 2024. 

Charly Triballeau | AFP | Getty Images

On Wednesday, high-profile figures giving keynote speeches at the forum include António Guterres, secretary-general of the United Nations, who’s due to speak at 11:30 a.m. Davos time and Spanish Prime Minister Pedro Sanchez at 15:45 p.m. local time.

The day’s panels include a look at Russia’s growth outlook and “decoding” China’s economy, with both events due to start at 9a.m. Davos time.

Later in the morning, experts will take a look at the start-up landscape and the trajectory for global interest rates, while the afternoon will see a range of public figures consider the rise of economic nationalism, the future of healthcare and whether Latin America’s economic tide is turning.

Javad Zarif, Iran’s vice-president for strategic affairs, will also be speaking in the afternoon.

— Holly Ellyatt

Mark Rutte, incoming secretary general of the North Atlantic Treaty Organization (NATO), during a transition ceremony at the NATO headquarters in Brussels, Belgium, on Tuesday, Oct. 1, 2024. Mark Rutte, the affable and meticulous former Dutch premier, has a daunting task ahead to keep the defense alliance a global force.

Bloomberg | Bloomberg | Getty Images

It’s day 3 of Davos and CNBC is back with a raft of interviews with global heads of state, presidents and CEOs.

The day’s top interview will be with ECB President Christine Lagarde, due to take place at 09:15 Davos time.

Spanish Prime Minister Pedro Sanchez will be interviewed by Steve Sedgwick at 8:40 a.m. local time.

Other guest highlights on Wednesday morning include Mark Rutte, the head of NATO, Polish President Andrzej Duda, and Dick Schoof, the Netherlands’ prime minister, as well as Saudi Arabia’s Finance Minister Mohammed Al Jadaan and Finnish President Alexander Stubb, among others.

An interview with the International Monetary Fund’s First Deputy Managing Director Gita Gopinath will also be broadcast Wednesday afternoon.

We’ll also be interviewing a range of CEOs including the chief executives of Aon, Philips, Merck and Infosys.

Our anchors will also be moderating panels on ‘Digital Health,’ with the panel including Mayo Clinic CEO Gianrico Farrugia, and the ‘Changing Landscape of Food,’ with guests including Stefaan Decraene, the chair of Rabobank and Nestle CEO Laurent Freixe.

— Holly Ellyatt