Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.
+1 212 318 2000
Europe, Middle East, & Africa
+44 20 7330 7500
+65 6212 1000
The most serious discussion on the first day of the World Economic Forum at Davos is whether or not Europe, Asia and the rest of the globe can “decouple” from the declining US economy. I went to a great session called “When the US Sneezes…” where this was hotly debated.
C.Fred Bergster, of the Peterson Institute for International Economics and an old hand at global economics said “reverse coupling” is under way. US companies, such as IBM, GE and Caterpillar, see their US growth falling but their overseas growth in Asia and the Middle East rising even faster. So the faster-growing emerging markets are mitigating the decline in the US economy that is taking place because of the housing/subprime financial crisis.
Michael Klein, Chairman and co CEO , Markets and Banking, Citi, gave a brilliant talk on the greats shifts under way in the global economy. Wealth and ownership are moving away from the US and Europe toward the Middle East, China and Russia, thanks to the sharp rise in commodities prices and the move of manufacturing away from the west are having tectonic affects.
This is all happening with another significant sectoral change—the true globalization of financial markets in the last five years. That means that the walls between emerging markets in Asia, the Middle Easgt and the US and Europe are down. There is a free flow of capital, labor and goods. This is accelerating the big shifts in wealth and ownership—and power—underway.
This big shift is triggering a backlash. Europe is angry at the US rating agencies and the subprime mess that is melting down their stock and credit markets. The US is worried about the Sovereign Wealth Funds that are buying into American banks and companies.
The final big shift taking place is the movement of wealth, ownership and power away from democratic governments toward non-democratic governments. This is hugely important and plays into the worries about Sovereign Wealth Funds that are controlled mostly by one-party state, China, Middle East shieks and the KGB-governed Russia.
Think about it.
Want to stop talking about innovation and learn how to make it work for you? Bruce Nussbaum takes you deep into the latest thinking about innovation and design with daily scoops, provocative perspectives and case studies. Nussbaum is at the center of a global conversation on the growing discipline of innovation and the deepening field of design thinking. Read him to discover what social networking works—and what doesn’t. Discover where service innovation is going and how experience design is shaping up. Learn which schools are graduating the most creative talent and which consulting firms are the hottest. And get his take on what the smartest companies are doing in the U.S., Asia and Europe, far ahead of the pack.