Reuters - Video

Edition: US | UK | IN | CN | JP

video Video

Davos talks global risk: politics high on the list

Friday, January 20, 2017 - 01:41

A strengthening dollar and a ''race to the bottom'' on taxes, deregulation and trade policy are major risks to the global economy, financial leaders said on the final day of the World Economic Forum in Davos. But as Laura Frykberg reports, political uncertainty was also high on the list.

▲ Hide Transcript

View Transcript

(SOUNDBITE) (English) CHRISTINE LAGARDE, HEAD OF THE IMF SAYING: "Higher interest rates as a result of higher inflation, and a U.S. economy working at full regime." Plus a big question mark over future US policies - all spell trouble for the world economy. Christine Lagarde and other financial leaders - speaking of economic risks - at the end of the World Economic Forum in Davos. Whether Trump's rhetoric can be implemented in reality, also of major concern. (SOUNDBITE) (English) CEO OF BLACKROCK, LAURENCE D. FINK SAYING: "They want to be loud, noisy and strong in the first 100 days. I think that will continue to create some optimism. On the other hand we still have quite a bit of uncertainty about how we are going to pay for this." The UK's Finance Minister didn't appear worried, saying Britain's economy - despite Brexit - is proving resilient. Philip Hammond once again suggesting that Britain could remain so - without Europe at all. (SOUNDBITE) (English) UK FINANCE MINISTER, PHILIP HAMMOND SAYING: "If we are driven out of that market, if we are denied access to our most important market, then we will for sure reinvent ourselves and create another way of being competitive." With elections coming up in several major European nations... It's politicians riding the populism wave of most risk to the economy - according to Germany's Finance Minister. And the threat that poses to the stability of the European Union. Perhaps why Lagarde ended the conference - calling on stronger countries to support weaker ones. And that without that, any growth - in the long term is unsustainable.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Davos talks global risk: politics high on the list

Friday, January 20, 2017 - 01:41