Open the White House Watch newsletter for free
Your guide to what the 2024 US elections mean for Washington and the world
Dealmaking, deregulation and threats to global trade are expected to dominate the conversation among executives gathered in Davos this week, as Donald Trump's return to the White House shifts business leaders' focus away from social issues and toward growth.
Several senior executives are scheduled to travel to the Swiss Alps to attend the annual gathering of global decision-makers at the World Economic Forum, and will first attend events in Washington marking Trump's inauguration on Monday.
The new US president, who is scheduled to address the Davos meeting later this week via video link, has promised to sign dozens of executive orders when he takes office, including moves to increase US energy production and cut red tape.
“It's all about growth,” said Simon Freckley, chief executive of consultancy Alix Partners. “Every investor worships the altar of growth, and every CEO serves the altar of growth and is thinking about how to drive growth in this environment.”
The prospect of a Trump administration has boosted corporate optimism in the United States, where the economy is already outperforming much of the rest of the world and whose stock markets are near record highs. A survey of 900 experts from academia, business and government conducted by the World Economic Forum ahead of this week's event showed a sharp decline in the perceived risks of an economic downturn or higher inflation compared to this time last year.
However, the potential impact of the trade tariffs promised by Trump has become a major cause for concern. The survey showed that “geoeconomic confrontation” is now considered one of the biggest risks over the next two years.
“I expect the World Economic Forum to be dominated by geopolitical uncertainty,” said Christian Klein, CEO of German software company SAP. “As we face the challenges and opportunities of 2025, adapting to new regulatory policies will also be a top priority.”
Jim Ruan, chief executive of Volvo Cars, in which Chinese automaker Geely is a majority stakeholder, said the world was becoming “more turbulent and complex”. He identified the disruption caused by trade tensions, as well as the need to decarbonize and deliver on the promise of artificial intelligence.
Davos attendees “have rarely been so divided about their investment outlook,” said Hugh van Stennis, vice president of management consultancy Oliver Wyman.
“Among American financiers, there is a common narrative about animal instincts and deal momentum,” he said. “Whether the new Trump administration will amplify American exceptionalism and diverge from Europe and China is on almost everyone’s minds.”
As the world prepares for Trump's second term, regular attendees at Davos expect to see a change in tone, despite a formal program packed with sessions on issues ranging from clean technology, water use and gay rights. Trump's swearing-in ceremony is scheduled to clash with the opening event in Davos on Monday: a concert to highlight the threat facing Antarctica's glaciers.
“We expect a rebalancing of the Davos agenda this year, with CEOs finally wanting to get things done,” said Christoph Schweitzer, global CEO of Boston Consulting Group. He said the top priorities would be productivity, generating returns from artificial intelligence, and preparing for increased merger and acquisition activity.
For decades, Davos has been a fixture in the corporate calendar and an opportunity to set the tone for the year ahead.
The list of nearly 3,000 attendees this week includes Uber CEO Dara Khosrowshahi, Bank of America's Brian Moynihan, Pfizer's Albert Bourla, Salesforce's Marc Benioff and Coca-Cola's James Quincey. Among the world leaders who will take the stage are European Commission President Ursula von der Leyen, German Chancellor Olaf Scholz, and Argentine Javier Miley, who is scheduled to arrive after attending Trump's inauguration.
But the event faces growing questions about its purpose, with critics complaining that it does not reflect conversations taking place in the real world.
One frequent Davos participant said he would not attend this year because it was “too expensive given the value proposition” and “less relevant.” A Silicon Valley executive, who has attended frequently in the past, said the inauguration was “completely overshadowed” by this year's gathering, adding: “What Trump says is far more important than anything there.”
