Davos Diary: As the WEF party rolls out of town, a tale of two Davoses

A Swiss national flag waves in the wind on the last day of this year’s World Economic Forum annual meeting, in Davos, Switzerland. (AP Photo)
Updated 26 January 2019
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Davos Diary: As the WEF party rolls out of town, a tale of two Davoses

  • There is something sad about the Congress Hall on the last day of the World Economic Forum Annual Meeting
  • The corridors and staircases that throbbed to the chatter of the ‘masters of the universe’ are poignantly silent

DAVOS: The Central Lounge is thinning out, the Global Situation Space is deserted. The Public Figures Lounge — the abode of the global elite these past few days — is spookily vacant, though the specter of Tony Blair still hangs in the air.

The Davos party is over, and it is time to call it a day.

There is something sad about the Congress Hall on the last day of the World Economic Forum Annual Meeting. The corridors and staircases that throbbed to the chatter of the “masters of the universe” are poignantly silent. Even the Swiss cloakroom attendants — the most efficient and welcoming WEF staff — are bored and looking at their watches for the last shuttle back to base camp.

To hear some cynics talk, that’s more or less how it was for the duration of the annual meeting. “There’s nobody here this year” was a common refrain. “Everyone has stayed away” was another.

Well, if by everyone you mean the presidents of the US and China, I suppose they have a point.

While there was plenty going on at Davos 2019, it did lack the big beasts that attended the past couple of years. There was no real focal point, no plenary session you simply had to attend.

Actually, this made the main drag of the Congress Hall a rather more pleasant place to be. It was easier to get around, and it was possible to find some space to work or have a quiet conversation.

But in many ways, it was a tale of two Davoses. Outside the Congress, in the snowy streets and promenades of the Alpine resort, it was if anything more hectic than ever.

The Belvedere, as ever, was the hub of this activity. How much longer the Steigenberger hotel can fulfil this role must be open to question. On Wednesday night, the place was absolutely packed, its narrow corridors and comparatively small salons and cafes bursting at the seams.

One British wag compared it to the intergalactic bar in the movie “Star Wars,” where furry monster aliens got involved in fist-fights. An exaggeration, but not by much.

Outside the Belvedere, the WEF-izaton of Davos was almost complete. Virtually every shop, cafe and restaurant on the Promenade, the town’s main thoroughfare, was taken over by a bank, or a management consultancy, or sometimes a whole country — Ukraine, Poland and Russia rubbing shoulders uneasily in converted stores — for the duration of WEF. I wonder what the Promenade looks like for the rest of the year?

One notable exception is the souvenir shop across the promenade from the Morosani Schweizerhof hotel. The local lore is that the proprietors have no need of the inducements of the WEF because they already make a fortune during the week. Even the global elite have to buy their fake Swiss gold bars, Davos mugs and tacky Swiss branded fondue sets somewhere.

The nighttime hustle along the Promenade seems to get more hectic every year. My big regret at Davos 2019 is that I did not make it inside the legendary Piano Bar in the Hotel Europe, a must-visit every previous year.

I got to the hotel, but security staff refused to admit any more would-be crooners to the bar. A quick peek around the door showed why — it was jammed to the rafters with furry aliens and green creatures with two heads.

  • Frank Kane is an award-winning business journalist based in Dubai. Twitter: @frankkanedubai

G7 countries to release oil reserves in global push to tackle Iran war energy price surge 

Updated 8 sec ago
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G7 countries to release oil reserves in global push to tackle Iran war energy price surge 

  • IEA expected to recommend the largest oil reserve release in the agency’s history

RIYADH: Germany, the US, Japan and Austria will release part of their oil reserves after the International Energy Agency recommended the release of 400 million barrels of oil ‌from stockpiles, the largest ‌such move in IEA ​history.

Germany’s Economy ⁠Minister ​Katherina Reiche ⁠confirmed on Wednesday the government plans to limit petrol price increases at filling stations to once a day and to introduce more stringent antitrust regulation of the sector.

She did not ⁠give an exact timing for ‌those measures, but added that ‌the US and ​Japan would be the ‌largest contributors to the release of the ‌oil reserves.

The announcements did not stop oil prices rising, with Brent crude up 3.26 percent to $90.66 a barrel at 4:29 p.m Saudi time, and West Texas Intermediate up 3.12 percent to $86.05. Both were some way below the $119 a barrel seen earlier in the week.

“The situation regarding oil supplies is tense, as the Strait of Hormuz is currently virtually impassable,” Reiche said.

“We will comply with this request and ‌contribute our share, because Germany stands behind the IEA’s most important principle: mutual ⁠solidarity,” Reiche ⁠said about the IEA’s request.

According to a statement by Reiche’s ministry, Germany will contribute 2.64 million tonnes of oil. This corresponds to 19.51 million barrels.

Reiche stressed there was no supply shortage in the country, which has a legally mandated reserve of oil and oil products intended to cover 90 days’ demand.

The IEA’s move comes as countries are grappling with ​soaring crude prices amid ​the US-Israeli war with Iran. 

Austrian Economy Minister Wolfgang Hattmannsdorfer said his country was releasing part of the emergency oil reserve and extending the national strategic gas reserve, adding: “One thing is clear: in a crisis, there must be no crisis winners at the expense of commuters and businesses.”

Acting ahead of the IEA move, G7 ​member Japan announced plans to release 15 days' worth of ‌private-sector oil reserves and one month's worth of state oil reserves.

“Rather than wait for formal IEA approval ‌of a coordinated international reserve release, Japan will act first to ease global energy market supply and demand, releasing reserves as early as the 16th of this month,” Prime Minister Sanae Takaichi said in a broadcast statement.