Davos, the end: How to trump Trump?

In Davos, all heads of states are treated equally. But some are more equal than others. Not only were entire sections of the Congress Center and Davos itself temporarily paralyzed because of US-President Donald Trump. He also somehow got a traditional marching band as an opening act, which set the tune for what was about to come.

Yet it all turned out a little differently. His communication advisors had clearly briefed the US Commander-in-Chief well on the WEF tonality. Which is why there was no shouting or wild gesticulating on stage, but instead an almost solemn Trump who plainly read off the teleprompter. He said phrases like “America First does not mean America Alone.”

At first, he even seemed to come close to a concession on the fiercely debated topic of free trade, declaring that “we need a system that does not only work for the US but for all countries”. But, in typical Trumpist fashion, “via bilateral agreements.” Plus, if the past is any prologue, words out of Trump’s mouth are as fickle as his toupee in a storm.

With his rather moderate address, the American head of state showed gratitude for his particularly friendly welcome at the WEF. Forum chief Klaus Schwab heaped praise on his tax reform and opened by saying “You cannot imagine how much we’re looking forward to your speech.” Which prompted the first round of angry murmur in the crowd. Then he adds, addressing Trump: “I am aware that your strong leadership is open to misconception and biased interpretation.” Now boos and hissing shot through the hall. No need for such kowtowing.

While many executives denounced Trump in hushed voices, one African colleague was much more resolute. Tony Elumelu is one of the most successful business leaders in Africa and one of the wealthiest Nigerians. Though he initially intended to stay in Davos until the end, the derogatory description by the US President of countries like Elumelu’s as “shitholes” prompted him to depart by 11:30am. Trump’s address was at 2PM.  

Rumor has it there are some people who are in fact not exhausted after a week of WEF mayhem (we, however, are). A local convenience store owner at Davos Platz train station in fact “likes it, when something’s going on”. Did she follow Donald Trump’s visit? “Oh yes, thoroughly, on TV. I watched his landing live.” Why? Because the lady is “very interested in helicopters.”

“Today, artificial intelligence really doesn’t have to be magical anymore – it’s not a black box. We should be able to look inside and design it according to our taste.” Jean Yang, Carnegie-School of Computer Science  

We know what’s coming – or perhaps we don’t. Marc Walder, CEO of Swiss publishing house Ringier, notably remarked: “Today, when you invite an expert to talk about the data economy, the entire advisory board has no clue about the subject.” What triggered this self-criticism was a talk by Palantir CEO Alex Karp. He’s not just a philosopher but also the founder of the most secretive data-mining companies in the world. At the WEF, he is spotted wearing a woolen beanie – indoors.

But there’s more to Walder’s frank admission. Mathematician Nassim Nicholas Taleb once forecasted the financial crisis. Today, he writes: ?We are [...] witnessing a complete riot against some class of experts, in domains that are too difficult for us to understand, such as macroeconomic reality, and in which not only the expert is not an expert, but he doesn’t know it.“ According to ex-US Secretary of Defense Donald Rumsfeld, this is the worst kind of ignorance: the unknown unknown.

Digit of the day: 9 million. That’s the combined cost in Swiss francs of all security measures for this year’s World Economic Forum. Among other things, it paid for 4,400 soldiers securing Davos and the city’s airspace.  

Movement is underrated. An important WEF-visitor travels by car, a smart one by foot. Davos’ traffic situation was a nightmare this year. For hours on end, every vehicle on the Promenade, the central road bearing the bulk of traffic, came to a complete still stand. Endless lines of cars, waiting for the impossible, their engines running. “Instead of constantly talking about sustainability and climate change, we should just forego using our cars now and then. People wouldn’t get stuck in hour-long traffic jams, either,” said Herbert J. Scheidt, President of the Swiss Association of Banks. As many participants live outside of Davos during the WEF and depend on taking the shuttle busses, that’s easier said than done. Mobility is the new economic inequality.

War on institutions: Up next, after the uprising against expertise, mainly propelled by populist parties, is the downfall of self-assurance. Exhibit A, overheard as two WEF men converse on the side of the road: “I don’t fucking understand the blockchain. But people are making billions with it - and I want a piece of that shit!”

In Davos, the blockchain even had its own physical hub, with no involvement of a central bank as an independent body of control. For four days, it resided in a hotel opposite the Congress Center. “At the beginning, interest in it was scarce,” says an employee, “but then people’s reluctance evaporated.” US Secretary of the Treasury Steven Mnuchin could hardly wait to discuss bitcoin – only to then announce strict regulations. The Swedes are a little more progressive. The Scandinavian nation plans to introduce a digital currency, the e-Krone. “It complements traditional bills and coins,” says Deputy Head of Sweden’s Central bank, Cecilia Skingsley. “Cash is going out of fashion.”

When one door closes, another one opens. Our WiWo discussion session at the WEF this morning focused on the question of whether Germany and Europe would once more miss the door to the next digital revolution, the industrial Internet. A short but telling back-and-forth ensued: “It’s too late,” said CEO of Kl?ckner, Gisbert Rühl. Allianz advisory board member Jacqueline Hunt retorted: “I am positive it’s not too late”. Truth might be found somewhere in between. The Chairman of France’s Central Bank, Fran?ois Villeroy de Galhau, maintained: “The wars of yesterday are lost, the wars of tomorrow are still being fought.” A wise statement for the entire World Economic Forum.

We hope you have a wonderful weekend!