By Ann Saphir

(Reuters) -San Francisco Federal Reserve Bank President Mary Daly on Friday said she believes the U.S. economy and monetary policy are in a “good place,” and the risks have grown more balanced while work remains to bring down inflation. 

“We have to calibrate very carefully to ensure that we continue to bring inflation down and we ensure that we do it gently, as gently as we possibly can,” Daly told the San Diego County Economic Roundtable.

“We know that policy is in a good place, the economy is in a good place, and we can start to be more patient to see what we need, as a Fed, to do next,” she said. “It takes patience. It takes gradualism.”

The words calibration, patience and gradualism suggested Daly believes Fed rate cuts will arrive but are not imminent.

Unlike last year, when the focus was on fighting inflation, Daly said this year there is more need for attention to the Fed’s other mandate – achieving maximum employment.

“The risks to the economy are balanced, and the risks to both sides of our mandate are balanced,” she said.

Earlier on Friday Daly said it would be “premature” to think interest-rate cuts were around the corner. Inflation has come down from its 2022 peak but is still too high, she said, noting December core consumer price inflation was 3.9%.

“There is a lot of work to do. There is no denying it,” she said.

The Fed targets 2% inflation, though by a different yardstick than Daly cited. By that measure, the personal expenditures price index, year-over-year inflation measured 2.6% in November, the latest reading available.

Daly is likely the last Fed policymaker to speak publicly before the Fed’s Jan 30-31 policy meeting, due to an agreed-upon quiet period running up to each meeting.

Comments from other policymakers this week and stronger-than-expected economic data have prompted traders to temper bets on a first Fed rate cut in March, pricing in a May start to rate cuts instead.

Markets took particular note of Fed Governor Christopher Waller, who said inflation is within “striking distance” of the Fed’s goal but that the central bank should move carefully and methodically.

(Reporting by Ann Saphir; Editing by Jonathan Oatis, David Gregorio and William Mallard)

By Lananh Nguyen

NEW YORK (Reuters) -Goldman Sachs’ board named David Viniar as its next independent lead director, succeeding Adebayo Ogunlesi when he steps down at the bank’s annual meeting in April, according to a filing on Friday.

Viniar joined the board in 2013 after serving as Goldman’s finance chief for more than a decade. He will also become chair of the board’s governance committee.

Tom Montag will become leader of the board’s risk committee, according to the filing. He joined the group last year after retiring as chief operating officer at Bank of America in 2021. Earlier in his career, Montag spent 22 years at Goldman, rising to co-head of its securities business.

Ogunlesi will step down from Goldman’s board after BlackRock announced last week it would buy Global Infrastructure Partners, where he also serves as chairman, for $12.5 billion. Ogunlesi will join BlackRock’s board after the deal closes.

(Reporting by Lananh Nguyen in New York; Editing by Leslie Adler)

By Stephen Culp

NEW YORK (Reuters) – Tech shares helped power the S&P 500 to its first record high close in two years on Friday to confirm a bull market, while European stocks registered weekly declines amid fading expectations for central bank interest rate cuts.

Treasury yields inched lower, while supply concerns arising from simmering tensions in the Middle East pushed oil prices higher for the week.

In establishing its first all-time closing high since January 2022, the S&P 500 confirmed, by one measure, that it entered a bull market after touching its Oct. 2022 trough.

All three major U.S. stock indexes surged more than 1% on the day, and ended the holiday-shortened week with gains over last Friday’s close.

“The rally in November and December was impressive,” said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. “So while a period of consolidation was not unexpected, ultimately you want to see things move higher.”

“It’s a real positive even at a time when rates have ticked a little bit higher, and investors are calling into question how soon the Fed will cut interest rates,” Mayfield added. “And yet the market has marched on anyway.”

A sunnier-than-expected consumer sentiment reading added to the list of solid economic data released this week, notably retail sales and jobless claims.

The robust indicators dampened expectations that the Federal Reserve would start cutting its key policy rate as soon as March, while also providing assurance that the U.S. economy was under no immediate threat of recession.

“The data has been strong on the economic side, and inflation came in slightly above consensus,” Mayfield said. “If something doesn’t meaningfully change by then, I don’t see why the Fed would cut interest rates in March.”

Even so, at last glance, financial markets have priced in a 46.2% probability that the central bank will cut the Fed funds target rate by 25 basis points in March, according to CME’s FedWatch tool.

Market participants will increasingly focus on fourth quarter earnings next week as the reporting season shifts into high gear.

To date, just over 10% of the companies in the S&P 500 have reported results for the Oct-Dec period, 85% of which have beaten analyst expectations, according to LSEG I/B/E/S.

The Dow Jones Industrial Average rose 394.99 points, or 1.05%, to 37,863.6, the S&P 500 gained 58.86 points, or 1.23%, to 4,839.8 and the Nasdaq Composite added 255.32 points, or 1.7%, to 15,310.97.

European shares clocked a weekly decline on fading optimism that major central banks would soon begin reducing borrowing costs.

The pan-European STOXX 600 index lost 0.26% and MSCI’s gauge of stocks across the globe gained 1.06%.

Emerging market stocks rose 1.05%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.23% higher, while Japan’s Nikkei rose 1.40%.

U.S. 10-year Treasury yields edged lower, pausing after several sessions of gains.

Benchmark 10-year notes were last down rose 3/32 in price to yield 4.1341%, from 4.144% late on Thursday. The 30-year bond rose 16/32 in price to yield 4.3437%, down from 4.372%.

The dollar inched down against a basket of world currencies, but remained poised for a weekly advance amid cooling rate cut optimism.

The dollar index fell 0.26%, with the euro up 0.18% to $1.0894.

The Japanese yen strengthened 0.01% versus the greenback to 148.14 per dollar, while sterling was last trading at $1.2701, down 0.03% on the day.

Crude prices dipped but were higher for the week as supply concerns arising from mounting tensions in the Middle East outweighed worries over softening demand.

U.S. crude dropped 0.90% to settle at $73.41 per barrel, while Brent settled at $78.56 per barrel, down 0.68% on the day.

Spot gold added 0.3% to $2,028.16 an ounce but appeared set for the biggest weekly decline in six.

(Reporting by Stephen Culp; Editing by Chizu Nomiyama, Kirsten Donovan and Marguerita Choy)

By Stephen Culp

NEW YORK (Reuters) -Tech shares helped power the S&P 500 to a record intraday high on Friday, while European stocks registered weekly declines amid fading expectations for central bank interest rate cuts.

Treasury yields continued to climb, while supply concerns arising from simmering tensions in the Middle East pushed oil prices higher for the week.

Should the S&P 500 hold at its current level, it will establish its first all-time closing high since Jan. 2020, confirming the benchmark index entered a bull market after touching its Oct. 2020 trough.

All three major U.S. stock indexes advanced, and were on track to end the holiday-shortened week higher than last Friday’s close.

“The rally in November and December was impressive,” said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. “So while a period of consolidation was not unexpected, ultimately you want to see things move higher.”

“It’s a real positive even at a time when rates have ticked a little bit higher, and investors are calling into question how soon the Fed will cut interest rates,” Mayfield added. “And yet the market has marched on anyway.”

A sunnier-than-expected consumer sentiment reading added to the list of solid economic data released this week, notably retail sales and jobless claims.

The robust indicators dampened expectations that the Federal Reserve would start cutting its key policy rate as soon as March, while also providing assurance that the U.S. economy was under no immediate threat of recession.

“The data has been strong on the economic side, and inflation came in slightly above consensus,” Mayfield said. “If something doesn’t meaningfully change by then I don’t see why the Fed would cut interest rates in March.”

Even so, at last glance, financial markets have priced in a 46.2% probability that the central bank will cut the Fed funds target rate by 25 basis points in March, according to CME’s FedWatch tool.

Market participants will increasingly focus on fourth quarter earnings next week as the reporting season shifts into high gear.

To date, just over 10% of the companies in the S&P 500 have reported results for the Oct-Dec period, 85% of which have beaten analyst expectations, according to LSEG I/B/E/S.

The Dow Jones Industrial Average rose 404.24 points, or 1.08%, to 37,872.85, the S&P 500 gained 54.17 points, or 1.13%, to 4,835.11 and the Nasdaq Composite added 226.96 points, or 1.51%, to 15,282.61.

European shares clocked a weekly decline on fading optimism that major central banks would soon begin reducing borrowing costs.

The pan-European STOXX 600 index lost 0.26% and MSCI’s gauge of stocks across the globe gained 0.99%.

Emerging market stocks rose 1.05%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.22% higher, while Japan’s Nikkei rose 1.40%.

U.S. 10-year Treasury yields continued to climb on the growing likelihood that the Fed will keep policy rates in restrictive territory for longer than many had anticipated.

Benchmark 10-year notes were last down 1/32 in price to yield 4.1456%, from 4.144% late on Thursday. The 30-year bond rose 12/32 in price to yield 4.35%, down from 4.372%.

The dollar was lower against a basket of world currencies, but remained on course for a weekly advance amid the cooling rate cut optimism.

The dollar index fell 0.21%, with the euro up 0.14% to $1.0889.

The Japanese yen weakened 0.01% versus the greenback to 148.20 per dollar, while sterling was last trading at $1.2691, down 0.11% on the day.

Crude prices dipped but were higher for the week as supply concerns arising from mounting tensions in the middle east outweighed worries over softening demand.

U.S. crude dropped 0.90% to settle at $73.41 per barrel, while Brent settled at $78.56 per barrel, down 0.68% on the day.

Spot gold added 0.3% to $2,028.56 an ounce but appeared set for the biggest weekly decline in six.

(Reporting by Stephen Culp; Editing by Chizu Nomiyama, Kirsten Donovan)

By Nia Williams and Sabrina Valle

HOUSTON (Reuters) -Chevron on Friday said it will put its shale-gas business in Canada’s Duvernay Shale for sale as it continues to streamline global operations following several big acquisitions.

The assets, which produce about 40,000 barrels of oil and gas a day from about 235,000 acres in the Duvernay field in central Alberta, could fetch up to US$900 million.

Chevron has said it plans to offer between $10 billion and $15 billion in assets following deals with Hess Corp, PDC Energy and Noble Energy that will significantly expand its oil and gas output.

“We have a strong position and are proud of our performance in the Duvernay,” a spokesperson told Reuters. “The business holds significant value in both its current production as well as potential growth opportunities, which we expect to be attractive to other companies with complementary portfolios.”

The company’s other Canadian operations are unaffected, the spokesperson said.

Brian Lidsky, director of Houston-based advisory firm Energy Advisors Group, estimated the properties could be worth $900 million based on recent acquisitions of Duvernay properties by Crescent Point and others.

Chevron first announced plans to develop the East Kaybob region of the Duvernay play in Alberta in 2017 after three years appraising the area. At the end of 2022, 243 wells in the field had been tied into production facilities.

In 2021, Chevron shelved plans to build a major liquefied natural gas project exporting up to 10 million tonnes per year from Kitimat on Canada’s west coast.

The Duvernay is one of Canada’s top shale plays. Other companies with significant positions in the region include Crescent Point and PetroChina’s Canadian unit. Last month, Athabasca Oil and Cenovus Energy formed a joint venture to accelerate their activity in the play.

The field has seen a surge in licensing activity and productivity improvements, with costs coming down from as high as C$20 million ($14.85 million) per well a decade ago to C$10 million-C$15 million today, analysts at brokerage Eight Capital said.

“The Duvernay is starting to become a key focus for the industry, and is thus likely to get investors’ attention in 2024,” its analysts wrote in a research note this month.

“Operators have done enough drilling to understand how to optimize the technology.”

($1 = 1.3467 Canadian dollars)

(Reporting by Nia Williams in British Columbia and Sabrina Valle in Houston; editing by Gary McWilliams and David Gregorio)

By David Shepardson and Lisa Barrington

WASHINGTON (Reuters) -An Atlas Air Boeing 747-8 cargo plane made an emergency landing in Miami late Thursday shortly after departure after suffering an engine fire.

The plane with five crew members safely returned and no injuries were reported.

The Federal Aviation Administration (FAA) and National Transportation Safety Board are investigating. The FAA said a post-flight inspection showed a softball-size hole above the engine, while the NTSB said it “has opened an investigation and is collecting information to evaluate and determine scope of the investigation.”

Unverified videos on social media platform X showed flames shooting out of the left wing of the aircraft while in flight.

“The crew followed all standard procedures and safely returned to (Miami International),” the air freight company said, adding that it would conduct an inspection to find the cause.

Boeing said it is supporting Atlas and “will support the NTSB investigation into this incident.”

The Atlas Boeing 747-8 is eight years old, according to the FAA and is powered by four General Electric GEnx engines.

GE Aerospace said is providing technical assistance to the FAA and the NTSB as they investigate.

The engine failure comes against the backdrop of two high-profile jetliner accidents this year.

An Airbus A350 passenger plane operated by Japan Airlines collided with a Coast Guard aircraft in Tokyo, killing five crew members on Jan. 2.

A few days later, a Boeing 737 MAX 9 jet made an emergency landing following a cabin panel blowout, which prompted the FAA to temporarily ground 171 jets for safety checks.

SNAG OCCURRED ON THE CLIMB

The Atlas Air Flight was headed for San Juan, Puerto Rico, from Miami International Airport late Thursday.

The pilot made an emergency call to report an engine fire and requested to return to the airport, according to multi-channel recordings of conversations between air traffic control and the plane available on liveatc.net.

“We have a engine fire,” one of the plane crew said, adding the fire occurred “on the climb out” of the airport.

Atlas Air, whose customers include parcel delivery giants DHL and FedEx, went private last year when it was bought by a group led by private equity Apollo Global Management.

A freighter version of the last commercial Boeing jumbo was delivered to Atlas Air last year.

(Reporting by Lisa Barrington in Seoul, David Shepardson in Washington Maria Ponnezhath in Bengaluru, additional reporting by Nilutpal Timsina and Rishabh Jaiswal; Writing by Abhijith Ganapavaram; Editing by Christina Fincher, Jason Neely, Arun Koyyur and Jonathan Oatis)

(Reuters) -The U.S. Departments of Transportation and Energy will invest$325 million across three programs to advance EV technologies, repair chargers and cut battery costs, the White House said in a statement on Friday.

“This new funding for EV chargers will repair and replace existing, non-operational chargers across the country, reduce costs for deploying charging in underserved communities, and cut battery costs”, the statement added.

On Thursday, the U.S. awarded nearly $150 million for projects in 20 states to repair or replace nearly 4,500 existing electric vehicle charging ports.

The new funds are part of the $5 billion National Electric Vehicle Infrastructure (NEVI) program funded by a $1 trillion 2021 infrastructure law. Under the program, states need to operate federally-funded charging ports for at least five years, which must work 97% of the time.

(Reporting by Urvi Dugar in Bengaluru; editing by Christina Fincher)

GAZA/DOHA/TEL AVIV (Reuters) – The Palestinian Red Crescent accused Israel of firing on Friday at a hospital in Khan Younis, as a major advance in the main city in the southern Gaza Strip threatened the few healthcare facilities still open.

The Red Crescent said displaced people were injured “due to intense gunfire from the Israeli drones targeting citizens at Al-Amal Hospital” as well as the rescue agency’s base. The military said it was checking the report.

Nearby in the same city, Israeli tanks were also approaching Gaza’s biggest remaining functioning hospital, Nasser, where people reported hearing shellfire from the west. Residents also reported fierce gun battles to the south.

Israel has launched a major new advance in Khan Younis this week to capture the city, which it says is now the primary base of the Hamas fighters who attacked Israeli towns on Oct. 7, precipitating a war that has devastated the Gaza Strip.

The Gaza health ministry said 142 Palestinians had been killed and 278 injured in Gaza the past 24 hours, taking the death toll from more than three months of war there to 24,762.

The World Health Organization says most of the enclave’s 36 hospitals have stopped working. Only 15 are partially functioning and those are operating at up to three times their capacity, without adequate fuel or medical supplies, it says.

Israeli officials have accused Hamas fighters of operating from hospitals, including Nasser, which staff deny.

More than 1.7 million people – around 75% of Gaza’s population – are estimated to be displaced, many forced to move repeatedly, according to U.N. Palestinian refugee agency (UNRWA) figures. Many have sought refuge in tents that do little to protect them from the elements and disease.

Among them, Mohammed al-Ghandour wanted to give his bride a beautiful wedding but they had to flee their homes in Gaza City and the couple finally got married this week in the tent city in Rafah, near the Egyptian border, where they now live.

“My happiness is maybe at 3% but will get myself ready for my wife. I want to make her happy,” Ghandour said.

NETANYAHU REJECTS STATEHOOD

While saying he was not shying away from the “human tragedy” inflicted on Gaza civilians, Israeli President Isaac Herzog cast the offensive as a step towards more peaceful relations with the Palestinians in the future, and bolstering global security, during his appearance at the World Economic Forum in Davos.

In the north, where Israel says it has started pulling out troops and shifting to smaller scale operations, 12 people were killed in Israeli strikes on a residential building near the largely non-functioning Al Shifa Hospital in Gaza City, Palestinian health officials said.

An Israeli strike on a house in Al-Nusseirat refugee camp in the central Gaza Strip killed five Palestinians, health officials said.

Israel’s onslaught on Gaza was triggered by Hamas attacks in which around 1,200 people were killed and 253 taken hostage, of whom about half are still in Gaza, according to Israeli tallies.

Washington has had scant success in persuading its ally to alleviate the plight of the civilian population, deprived since October of most of the regular aid on which they had depended, let alone of adequate medical care for the more than 62,000 people who have been wounded.

Israel says it will fight on until Hamas is eradicated, an aim Palestinians call unachievable because of the group’s structure and deep roots in an enclave it has run since 2007.

Diplomats were dealing on Friday with the repercussions after Israeli Prime Minister Benjamin Netanyahu appeared to rule out an independent Palestinian state, rejecting a long-standing pillar of U.S. strategy in the Middle East.

“Israel must have security control over the entire territory west of the Jordan River,” Netanyahu told a briefing in Tel Aviv on Thursday. “It clashes with the principle of sovereignty, but what can you do?”

U.S. State Department spokesperson Matthew Miller responded at a news briefing that the establishment of a Palestinian state was the only way to provide lasting security to Israel itself, along with reconstruction, governance and security for Gaza.

RUSSIA PUSHES FOR HOSTAGE RELEASE

In one of countless protests in Israel since Oct. 7 to push for action to secure the release of the hostages, some 200 women marched in Tel Aviv on Friday, including one pulled along in a cage. They chanted “Their time is running out, bring them back”.

Israeli cabinet minister and former military chief Gadi Eizenkot has said a deal will soon be needed if the hostages are to be released alive.

“I think it is necessary to say boldly that it is impossible to bring the hostages back alive in the near future without a deal,” Eizenkot told the Channel 12 programme Uvda.

The Russian foreign ministry said on Friday it had received a delegation from Hamas and had urged it to release the hostages, including three Russian nationals. Hamas said both sides emphasized the importance of reaching a ceasefire.

Apart from Gaza, Israel has also carried out raids in the occupied West Bank, which has seen the worst violence in many years.

A Palestinian-American teenager was killed by Israeli security forces there on Friday, Palestinian health officials said. The Israeli military did not immediately respond to a request for comment.

(Reporting by Nidal al-Mughrabi in Doha, Ibraheem Abu Mustafa in Gaza, Henriette Chacar in Tel Aviv, Emma Farge in Geneva; Writing by Kevin Liffey and Alison Williams; Editing by Philippa Fletcher, Peter Graff and Toby Chopra)

By Steve Holland and Jarrett Renshaw

WASHINGTON (Reuters) – Democrats are trying to temper expectations for U.S. President Joe Biden in next week’s Democratic primary election in New Hampshire, as supporters scramble to gin up write-in support for him since his name is not on the ballot.

The primary on Jan. 23 offers the first at-the-polls gauge of Biden’s political strength this election cycle, and the unprecedented situation will be closely watched amid polls showing him tied with likely Republican challenger Donald Trump .

A poor showing against Democratic longshots Dean Phillips, a Minnesota congressman, and self-help author Marianne Williamson is likely to fuel concerns that Biden is weak heading into the general election.

Biden did not register for the New Hampshire contest after the state refused his demand that it cede its top spot in the presidential primary calendar to the more diverse South Carolina.

But his New Hampshire supporters can still vote for him because many U,S, states allow voters to write the name on a ballot paper of a candidate who is not officially running. That candidate wins if they receive more votes than the registered candidates.

Andy Smith, director of the University of New Hampshire Survey Center, said Biden should achieve “a fairly significant win,” but added that he didn’t really know what that looks like.

“What is a big enough win to count? Right now we see Biden with upwards of 70% of the vote. Is that enough? Does that mean the Democratic Party is behind him, or does it show division in the party?” Smith told Reuters.

Supporters say the unpredictable race should not be viewed as some type of national litmus test, because turnout will be low, write-in campaigns are notoriously hard and Biden angered Democrats there by booting the state from its historical role as the party first-in-the-nation primary.

Jim Demers, one of the organizers of the shoe-string Biden write-in campaign said he’s seen polls that range from less than 50% to 60% of the vote for Biden.

State officials expect to declare a Democratic winner on Tuesday after tallying write-in votes.

Biden allies say the benchmark should be the 2010 write-in campaign of Alaska Senator Lisa Murkowski, the first U.S. senator to win that way in 50 years, taking about 40% of the vote and besting a Tea Party favorite.

“She won with 39% of the vote as a candidate in a write-in effort she led and Joe Biden and his campaign aren’t even participating in an effort to write his name in for this one,” said Jim Messina, who was then-President Barack Obama’s campaign manager in 2012.

The Democratic National Committee ruled that the New Hampshire election effectively won’t count and the winner won’t amass New Hampshire’s 23 delegates in the march to the party’s nomination.

Some New Hampshire Democrats are definitely upset.

“When it comes down to it, we’re in the Democratic primary and Biden has chosen to take his name off of the New Hampshire ballot,” said state representative Jonah Wheeler, a Democrat who supports Williamson.

Biden’s high-profile supporters including California Representative Ro Khanna, Illinois Gov. J.B. Pritzker and Boston Mayor Michelle Wu have been helping rally the faithful, and organizers have a shoe-string budget to teach voters how to write in a candidate.

A CNN poll conducted by the University of New Hampshire Survey Center in mid-November showed 65% of likely Democratic primary voters in New Hampshire plan to write in Biden’s name, with 10% going for Phillips and 9% for Williamson.

In 2020, Biden finished a disappointing fifth in a crowded Democratic primary that saw some 300,000 votes cast. State officials expect less than 100,000 votes this year.

Lyndon B. Johnson, then the Democratic incumbent, shunned the New Hampshire primary in 1968 due to over-confidence, only to see an insurgent campaign from Minnesota, U.S. Senator Eugene McCarthy and his anti-Vietnam War platform. Johnson supporters mounted a barely successful write-campaign, but a weakened Johnson dropped out of the race weeks later.

David Watters, a write-in advocate and Democratic state senator in New Hampshire, said the best way right now to register rejection of former President Donald Trump, his likely Republican challenger, is to write-in Biden on Tuesday.

“We’ve got to stand up for Joe Biden,” Watters said.

Elliot and Edith Smith, a married couple, attended a Dean Phillips campaign event in Nashua earlier this month. Like many U.S. voters, they are dissatisfied by a choice between of Biden and Trump, but they don’t see any other viable options.

The were both planning to vote for Biden in the state’s primary, but not enthusiastically, over deep concerns about Biden’s vigor and whether the 81-year-old president can withstand a second term.

“I am disgusted with both parties, but we can’t elect Trump,” said Elliot Smith, 72. “I’m a Democrat, but would consider other Republicans like Haley or Christie in the general election, but there’s no chance they can beat Trump.”

(Reporting by Steve Holland and Jarrett Renshaw; Editing by Heather Timmons and Alistair Bell)

DAVOS, Switzerland (Reuters) – World leaders and business executives left the freezing temperatures of the Swiss mountain resort of Davos after a week of high-stakes meetings about key world issues.

Here’s what we learned:

MIDDLE EAST

Gaza dominated the agenda of the World Economic Forum (WEF), but leaders failed to produce clear details on any practical pathway to Palestinian statehood, or a ceasefire between Israel and Gaza’s Palestinian militant group Hamas.

The war is slowing down the economy of the entire region, said Qatar’s finance minister. The head of the Palestine Investment Fund estimated at least $15 billion would be needed to rebuild houses in Gaza alone. Arab states said they would not fund reconstruction unless there was a lasting peace.

“We agree that regional peace includes peace for Israel, but that could only happen through peace for the Palestinians through a Palestinian state,” Saudi foreign minister Prince Faisal bin Farhan told a WEF panel.

RED SEA

Attacks by Yemen’s Iran-aligned Houthi group on ships in the Red Sea would drive the cost of goods from Asia to Europe much higher, logistics giant DP World said. CEOs at Davos said they were gaming out alternative supply routes. Yemen’s vice president and Iran’s foreign minister said the attacks would not stop until Israel ended the war in Gaza.

“If it’s in the short term, tankers might be available … But if it’s longer term, it might be a problem,” said Amin Nasser, CEO of oil giant Saudi Aramco.

CHINA

Premier Li Qiang told Davos China’s economy was open for business and highlighted its potential for foreign investment, but investors remained cautious amid sluggish post-pandemic recovery and tensions with the United States. Asked how helpful a closed-door lunch with Li was, one CEO said “medium”, underscoring the scepticism about China’s charm offensive.

“I’m glad that people are all talking,” JPMorgan CEO Jamie Dimon after the Li lunch.

ARTIFICIAL INTELLIGENCE

Talk of AI rippled through Davos meeting rooms and panels, its promise touted on signs and its security risks invoked by China’s premier. While conversations included how to regulate the burgeoning technology and how to apply it to scientific discovery, the question of how to monetize it persisted.

“Everyone’s like, yeah, I can build these cool demos,” said Cloudflare CEO Matthew Prince, “but where’s the real value?”

DEBT RESTRUCTURING

Argentina’s newly-elected President Javier Milei made his debut with a speech on the main Davos stage – and then quickly sat down with the International Monetary Fund’s managing director Kristalina Georgieva to discuss his plan to navigate his country’s debt maze. Ghana will re-engage with its international bondholders as the country seeks to build on momentum in debt restructuring.

“Free enterprise capitalism is the only tool we have to end hunger and poverty,” said Milei.

ECONOMY

Heads of global banks warned of inflationary pressures from increased shipping costs and the possibility of oil price rises. Bank executives fear the market is mispricing interest rate cuts, and that geopolitical risks could cause volatility.

“It’s a big year in general with many elections around the world which could change potentially the way fiscal stimulus is handled around the globe,” said Suni Harford, President Asset Management and Group Executive Board Lead for Sustainability and Impact at UBS.

BANKING

Consolidation of European banks was discussed behind closed doors, but executives say cross-border mergers are difficult to achieve without uniform regulation across the region. Selective mergers of national players were seen as more likely.

ENERGY

While several panels focused on the end of fossil fuels, the head of Aramco told Reuters demand for oil would not peak any time soon. The number of energy executives in Davos was smaller than in years past. Oil bosses from Shell, TotalEnergies and Aramco met on the sidelines to discuss how to help decarbonise industries they supply, three industry sources said.

UKRAINE

With other crises jostling for attention, President Volodymyr Zelenskiy put Ukraine on the Davos agenda early. Talks with more than 80 national security advisers from around the world led to Switzerland offering to host peace talks. Zelenskiy also met with Wall Street’s Jamie Dimon and other bank leaders to seek financing for Ukraine’s reconstruction.

“Ukraine can prevail in this war but we must continue to empower their resistance,” European Commission President Ursula von der Leyen said, urging Kyiv’s Western allies to continue arms deliveries and financial support.

GENDER

The WEF said that around 28% of the total of 3,000 participants, including 350 heads of state and government and ministers, who gathered in Davos this year were women.

“This year marks a significant milestone in the 54-year history of the Annual Meeting, as we expect to welcome more than 800 women to Davos — the highest number in our records,” it said.

(Reporting by Reuters Davos team; Editing by Leela de Kretser, Alexander Smith and Mark Potter)