U.K.'s May Opens Door to Uber Restart in London: Davos Update

Follow our full coverage of Davos 2018 here.

Billionaires, world leaders and investors are gathered in Davos, Switzerland, for the World Economic Forum’s annual meeting to hobnob and discuss topics ranging from the global economy and sexual harassment, to the risks and opportunities of artificial intelligence. Not to mention hear a speech on Friday by President Donald Trump.

Here are the latest developments, updated throughout the day. (Time-stamps are local time in Davos.)

May Opens Door to Uber (2:34 p.m.)

Uber Technologies Inc., which has gotten things wrong but should not be shut down, U.K. Prime Minister Theresa May says in a speech. May said U.K. employment law should be updated to ensure that gig economy workers are not exploited, while at the same time allowing flexible work arrangements.

Barclays Presses May to Mull Single Market Exit (2:30 p.m.)

Barclays Plc Chief Executive Officer Jes Staley told British Prime Minister Theresa May to be prepared to sacrifice access to the single European market after Brexit if it means gaining control of its own financial rules, people with knowledge of the discussions said.

Ukraine May Receive Next IMF Tranche by April (2:19 p.m.)

President Petro Poroshenko has his “fingers crossed” that the country will have its IMF tranche by April, he said in an interview. Tranche will “definitely” arrive in first half of the year, with 80 percent of requirements for next review completed.

Bridgewater Co-CIO Likes Commodities (2:17 p.m.)

Investors are underweight global commodities and real assets which are due for a turnaround as the economy improves, according to Bridgewater Co-Chief Investment Officer Bob Prince. Falling prices and increasing demand have “reversed the supply-demand dynamics” in commodity markets, Prince said in an interview.

WTO Chief Warns Against Trade-War Complacency (2:09 p.m.)

Roberto Azevedo, director general of the World Trade Organization, told reporters in Davos that there are no immediate signs that the world is about to descend into a trade war, but policy makers can’t afford to be complacent. He also said that the actions of the Trump administration are not consistent with those of a country that plans to turn its back on the WTO. 

Climate Change Making Basements Uninsurable (2:08 p.m.)

Private property below ground in some cities may not be insurable in the next decade if climate change advances, the head of one of Europe’s largest insurers said. “If you go much further to 2020, 2030, we can clearly say that at a scenario between 3 and 4 degrees, it’s not insurable anymore,” Thomas Buberl, chief executive officer of AXA SA, said on a panel. “Your basement shop in New York, your basement shop in Mumbai will at this point not be insurable anymore.”

BlackRock Warns Against Sitting on Cash (2:02 p.m.)

Larry Fink, chief executive officer of BlackRock Inc., is urging investors around the world to stop keeping money in cash as stock markets reach new highs. There’s too much savings on the sidelines of financial markets in countries from the U.S. to China despite the stock market rally, Fink said in a Bloomberg Television interview.

Polish Rates Seen Stable in 2018 (1:56 p.m.)

Polish central bank Governor Adam Glapinski says he expects interest rates to stay on hold at least until the end of 2018, with potential changes next year hinging on inflation developments abroad, including the price of oil, he tells Bloomberg in an interview. “Stability of rates is something important for entrepreneurs and the rest of the economy,” he said.

No U-Turn on Brexit, Hammond Says (1:55 p.m.)

On a recent trip to Berlin, “I was surprised to find myself still getting asked whether Britain’s decision to leave the EU was reversible,” U.K. Chancellor of the Exchequer Philip Hammond at CBI Lunch. “So let me be clear, Britain will be leaving the European Union on the 29th of March 2019. This decision is not going to be reversed. That is statement of political reality. The challenge is not to debate the merits or otherwise of that decision.”

IPO Talk ‘on Steroids’ (1:52 p.m.)

Proceeds from initial public offerings globally will increase dramatically in 2018, with the largest deals coming from Asia as more Chinese companies sell shares, according to a Deutsche Bank AG executive. “The dialogue on going public globally in 2018 is on steroids right now,” Mark Hantho, global head of capital markets at Deutsche Bank, said on the sidelines of the World Economic Forum in Davos, Switzerland.

Wednesday at Davos: Five Things You Need to Know

EU Must Avoid ‘Inflated’ Budget: Rutte (1:04 p.m.)

The European Union budget must be reduced by the same size as the U.K’s contribution when Britain leaves the bloc, according to Netherlands Prime Minister Mark Rutte. “Otherwise we’ll have an inflated budget and I very much believe the EU focus on where it adds value, the internal market, border control, migration,” Rutte said in an interview with Bloomberg Television.

Merkel Wants Government by Easter (12:35 p.m.)

Chancellor Angela Merkel’s Christian Democratic-led bloc aims to form a coalition government with the Social Democrats by Easter on April 1, Defense Minister Ursula von der Leyen said in an interview with Bloomberg Television.

Rutte Wants ‘Workable’ Trump Relationship (12:24 p.m.)

Rutte said he wants to maintain a “workable relationship” with President Trump even if he doesn’t always agree with him. “The most crucial thing with Donald Trump is to have a debate about an international order where we have a strong U.N., in which we have a strong World Trade Organization,” Rutte said in an interview with Bloomberg Television.

Germany Stands by Defense Goal (12:22 p.m.)

Germany will stick to a goal of lifting defense spending to 2 percent of gross domestic product by 2024, von der Leyen said. “Europe has to carry a fair share of the burden and therefore we have to increase our share of defense spending,” she added.

EU-Mercosur Trade Deal Close (12:18 p.m.)

Delegations will meet in Brussels next week to continue negotiating the most difficult points of the European Union-Mercosur trade deal, Argentine President Mauricio Macri said during a discussion panel. Macri said the biggest sticking point is France’s reluctance to open up agricultural imports, but said he expects “good news” when he meets with French President Emmanuel Macron on Friday.

IMF Wary of Cryptocurrencies (12:09 p.m.)

The International Monetary Fund is aware there will be innovations but believes crypto-anonimity and its use to conceal illicit trades such as terror financing and money laundering is “unacceptable,” Managing Director Christine Lagarde said during a discussion panel.

Banks Uncertain on Brexit Transition (11:57 a.m.)

There will be transitional Brexit periods but banks can’t base their planning on that assumption for as long as it’s uncertain, according to Deutsche Bank AG Supervisory Board Chairman Paul Achleitner. “We find ourselves in the ironic situation that you don’t have the flexibility to wait for whatever happens in the end,” Achleitner said during a panel discussion.

WTO Warns on Trade War ‘Domino Effect’ (11:48 a.m.)

World Trade Organization Director General Roberto Azevedo warned against a new trade war and called on nations to respect existing rules. “Because, if you do that you know you start this but the others will respond and you get into a domino effect that is very difficult to control and reverse,” Azevedo said in an interview with Bloomberg Television.

Hammond Wants ‘Win-Win’ Deal on Financials (11:44 a.m.)

There has to be “a win-win solution” for the City of London and the European Union when it comes to financial services, according to U.K. Chancellor Philip Hammond. The idea that the City of London can be recreated somewhere else in continental Europe is a “fantasy,” Hammond said during a panel discussion.

May ‘Appalled’ by Presidents Club Report (11:37 a.m.)

U.K. Prime Minister Theresa May condemned the attitudes of men at the top of British business after revelations of a London charity dinner where hostesses were harassed and groped. “I was frankly appalled when I read the report,” May said in a television interview with Bloomberg’s Editor in Chief John Micklethwait.

Bitcoin Needs ‘Very Serious’ Monitoring (11:35 a.m.)

The risk that cryptocurrencies can be used by criminals means Britain and other governments should be looking at them “very seriously,” according to U.K. Prime Minister May. Technology companies must focus on the issue of social responsibility, especially in the areas of terrorism and child pornography, May said.

Trump Wants 3% Growth (11:32 a.m.)

U.S. President Trump is aiming for gross domestic product growth of 3 percent or higher, according to Treasury Secretary Steven Mnuchin. “Our focus is on economic growth and we couldn’t be happier with the response of American companies, of international companies,” Mnuchin said during a panel discussion.

Lagarde Urges ‘Fair, Clear’ Trade Rules (11:19 a.m.)

The IMF doesn’t support measures that could restrict global economic growth, Managing Director Lagarde said. Trade rules have to be fair and clear, she said during a panel discussion.

Weaker Dollar Brings Benefits, Costs (11:12 a.m.)

“There are benefits of where the dollar is and there are costs of where the dollar is,” Mnuchin said during a panel discussion. “It’s not a shift in my position on the dollar at all. It is perhaps slightly different from previous Treasury secretaries. We do support free and floating currencies reflective of the market.”

Drug Price Negotiations Tougher (11:10 a.m.)

Drugmakers don’t have business as usual on pricing anywhere in the world, including the U.S., according to Roche Holding Chairman Christoph Franz. “Price negotiations are tougher,” Franz said in an interview. “We see this, and the pricing pressure is substantial. Still for us, the most important way to counterbalance pricing pressure is simply to develop medicines which are superior.”

Irish PM Sees ‘Norway Plus’ Brexit Deal (10:55 a.m.)

The U.K. may end up in a ‘Norway plus’ style relationship with the European Union after Brexit, according to Irish Prime Minister Leo Varadkar. There are “different perspectives” within the bloc on a trade future deal with Britain, Varadkar said in an interview with Bloomberg Television.

Mnuchin Mulling China Trip (10:37 a.m.)

Mnuchin said he’s considering a trip to Beijing this year to discuss sanctions on North Korea and how to shrink America’s trade deficit with China. “I discussed a possible trip of mine to China later this year to review with them the sanctions as well as various different opportunities over there,” Mnuchin told reporters. “We also talked very candidly about the trade issue.”

Strong Euro Brings Benefits (10:30 a.m.)

A stronger euro has benefits for the single currency area, according to Irish PM Varadkar. “Bear in mind it keeps inflation down and interest rates down,” Varadkar said. He urged the U.S. not to restrict free trade, which he said brings advantages for all nations.

U.S. Warns Turkey on Syria (9:41 a.m.)

Tom Bossert, the U.S. homeland security adviser, warned of “grave consequences” from any miscalculation as Turkey’s military pushes deeper into Syria to confront U.S.-backed Kurdish militant groups. Turkey should be mindful of conflict with proxy forces, especially if there are possible U.S. advisers in the area, Bossert told reporters.

Dollar Move May Placate U.S. (9:22 a.m.)

Wednesday at Davos: Five Things You Need to Know

A weaker dollar may help alleviate U.S. concerns about the “fairness” of global trade, Hammond said. “Hopefully, the depreciation of the U.S. dollar and the opportunities that creates will help to create a sense of a more level playing field without having to reach for tariffs,” he added.

Hammond Happy With Pound (9:16 a.m.)

“We’re very happy with where the currency is at the moment,” Hammond said, adding that a stronger pound will tame inflation and help real wages.

Dollar to Stay Dominant (9:10 a.m.)

The U.S. dollar isn’t going to be replaced by China’s yuan as the world’s top reserve currency any time soon, according to HSBC Holding Plc. “I don’t think the U.S. dollar’s position at this point is anything other that dominant,” Mark Tucker, the bank’s new chairman, said.

Mnuchin Defends Dollar Comments (8:54 a.m.)

Mnuchin defended his comments on Wednesday when he said a weak dollar is good for U.S. trade. “I thought my comment on the dollar was actually quite clear yesterday,” Mnuchin said. “I thought it was balanced and consistent with what I said before.”

BBVA Warns of Bitcoin Risk (8:48 a.m.)

Bitcoin is a highly risky asset, BBVA CEO Carlos Torres says in an interview
with Bloomberg Television. “If you invest in Bitcoin, it has to be money that
you can afford to lose.”

No Time For Currency War, Lagarde Says (8:10 a.m.)

The IMF supports floating currencies and market-determined rates, according to Managing Director Lagarde. “It’s not time to have any kind of currency war,” Lagarde said in an interview with Bloomberg Television. Lagarde also urged Germany to use its surplus to increase government spending and said mining cryptocurrencies is far too energy intensive.

Waiting on Trump (7:05 a.m.)

President Trump lands in Davos on Thursday, planning to tell the global elite that his "America First" agenda is good for globalization and that the growing U.S. economy and booming stock market show they were wrong to doubt him. European leaders are nevertheless still banging the drum for free trade.

While it’s Trump’s first time at the World Economic Forum’s gathering he knows plenty of people here as our DataViz shows. Scientists and academics visiting the Alpine town are also concerned about the outlook.

Thursday’s Highlights:

• U.K. Prime Minister Theresa May’s speech and interview with Bloomberg Television
• U.S. Treasury Secretary Steven Mnuchin, BlackRock Chairman Laurence Fink and IMF chief Christine Lagarde discuss Bitcoin and the future of the dollar in the session “The Remaking of Global Finance”
• Israeli Prime Minister Benjamin Netanyahu speaks to attendees
• Discussion with Jordan’s King Abdullah II
• Argentina’s President Mauricio Macri talks about the G20’s 2018 agenda

Here’s What Happened Wednesday:

• President Donald Trump’s top economic advisers set the stage for the rollout of his “America First” manifesto, as Treasury Secretary Steven Mnuchin endorsed the dollar’s decline and Commerce Secretary Wilbur Ross said the U.S. is set to engage in a trade war.
• A more robust European single market rather than a trade war will be the “right answer” to challenges presented by protectionist policies such as the tariffs imposed by the U.S., Eurogroup President Mario Centeno said.
• German Chancellor Angela Merkel warned against the “poison” of populism that leads states to become increasingly inward-looking, as she made the case for a common European approach to more areas of policy making.
• Wall Street cozied up to Trump as JPMorgan Chase CEO Jamie Dimon and Goldman Sachs boss Lloyd Blankfein gave credit to the U.S. president for policies that they said will help boost economic growth and drive markets higher. Most of them also said the stock market will survive higher interest rates.
• Italian Premier Paolo Gentiloni said his party has no plans for a coalition with former Prime Minister Silvio Berlusconi.
• French President Emmanuel Macron delivered a new message for the global elite: invest, share and protect.
• China will introduce more reform measures to open up its economy this year, according to Liu He, the top financial and economic adviser to President Xi Jinping.

— With assistance by Andrew J Barden, and Chad Thomas