All week amid the bullish tone, some participants felt they had to search for something to worry about. Now as the conference wraps up, they may find a toppling Egyptian government is what was needed to be discussed the whole time.» Read More
For once, Davos attendees had a good excuse for looking bleary-eyed in the morning. They weren’t at the Piano Bar, they were up at 3 a.m. watching Barack Obama's State of the Union address.
Billionaire financier George Soros has often been looked as an authority on where global market stands. Soros sat down with Bartiromo for a look at the U.S. economy, China and more importantly, where investors can find opportunities.
BARTIROMO: How do you see things right now, in terms of the environment globally speaking and in the U.S. right now. Where are we in the cycle?
GEORGE SOROS: The markets are now stabilized. The premiums have shrunk back to normal levels. So that's fine. And the economy has begun to move forward. But it's only moving forward because it's pushed by the stimulus. And that's particularly true in the United States. At the same time now, there's increasing concern about the budget deficit and the growing national debt. And that will stand in the way of additional stimulus. And that creates-- I think a real threat-- of a double dip.
BARTIROMO: What are your thoughts on the President's proposals in the banking industry?
There are huge debt problems brewing in Europe, while the U.S. is facing the prospect of more job losses before the employment landscape shifts, Harvard economics professor Kenneth Rogoff said Thursday.
“If you took away the props of the (European Central Bank) and the (International Monetary Fund) half a dozen countries in Europe would fail tomorrow,” Rogoff told CNBC on the sidelines in Davos.
There’s no way that, following the banking crisis, that the next 10 years will go by without a sovereign debt crisis, he added.
A string of positive earnings reports gave a lift to Wall Street this morning as Ford Motor joined some key Dow components in beating expectations.
Ford posted its first annual net gain since 2005 and quarterly earnings of 25 cents a share, sending its shares up 2.7 percent in premarket trading.
The company was joined on the earnings parade by Procter & Gamble, which beat expectations and saw its shares rise 0.5 percent, and Nokia, which surged about 12 percent premarket.
The only significant disappointment for the morning came from AT&T, which met expectations but saw a mixed bag on the revenue front, sending shares 0.5 percent lower but well off the bottom for the morning.
But futurer came under some pressure from a disappointing jobs report. The Labor Department said jobless claims fell to 470,000, a decrease of 8,000but well short of what analysts estimated. A separate report showed a 0.3 percent rise in demand for long-lasting goods.
The rise in futures follows Wednesday's late turnaround that pushed the major averages into positive territory for the day.
But they're still lower by about 1.5 percent to 2 percent for January with two trading days left in the month.
President Barack Obama’s State of the Union address was well received by European markets, which were broadly higher in morning trading.
In addition to sorting out the implications of the State of the Union, investors once again have plenty of earnings and economic numbers to consider this morning.
At 8:30 am New York time, there will be the Labor Department's weekly report on initial jobless claims and the monthly government report on durable goods orders. Economists think jobless claims will drop to 450,000 from last week's reading of 482,000, while durable goods orders are seen rising 2 percent for December after increasing 0.2 percent in November.
Among the other earnings reports this morning: Becton Dickinson, Bristol-Myers Squibb, Cardinal Health, Colgate-Palmolive, Dominion, Eastman Kodak, Estee Lauder, Goodrich, Eli Lillly, Lockheed Martin, Altria, and Motorola.
On the second day of Davos there atmosphere relaxes some. There’s a kind of adjustment that takes place and the VIP mentality wears off a bit as attendees meet each other to discuss the morning news.
There is a "serious risk" the global economy could slip back into recession if worldwide government stimulus measures are taken away, George Soros, chairman of Soros Fund Management, told CNBC Wednesday.
The working day draws to a close at the World Economic Forum. That is, if you believe most of the work is done at the Congress Center and in the sessions and not in the bars and hotels at night.
One of the busiest early sessions on WEF’s opening day, the CNBC debate “Back to the Future: The Next Global Crisis”, had big names on the panel and the audience.
Stock index futures pointed to a flat her open for Wall Street Wednesday, with investors looking for news both from companies reporting earnings and from economic leaders gathered for the World Economic Forum in Davos.
Ford Motor shares gained 2.3 percent in premarket trading on the bid news out of the auto industry overnight: Toyota is suspending US sales of eight models due to a massive safety recall. Toyota shares fell 4 percent overnight in Tokyo.
Toyotais suspending the sale of eight models involved in its recall for accelerator pedals that stick. The models involved are the RAV4, Corolla, Matrix, Avalon, Camry, Highlander, Tundra, and Sequoia.
But early earnings news from Dow components wasn't helping the market's fortunes.
Dow component Caterpillar beat analyst estimates on the bottom line, but with the market focusing on revenue growth and forecast the results were a disappointment. Shares fell more than 4 percent premarket.
Boeing reported results ahead of analyst estimates while acknowleding a difficult year. Traders initially sent the stock down but it rebounded and was up 2.8 percent.
Fellow bluechip index stock United Technologies reported a $1.15 per share profit that was slightly ahead of expectations. Shares were flat premarket.
European shares were lower and Asian shares closed down on continuing fears over China's monetary tightening and the euro zone's debt problems.
China’s economy will grow in 2010 at a similar rate to the previous year, but it is starting to see signs or inflation forming, People’s Bank of China Deputy Governor Zhu Min told CNBC in Davos.