Economic Tensions and Discussions on the 2nd Day of the Davos Summit

Second Day in Davos: The Game of Economic Power and Debates

Bloomberg HT Editor-in-Chief Açıl Sezen and Research Director Çağlar Kuzlukluoğlu continue to report significant developments from the second day of the World Economic Forum (WEF).

Trump's Arrival at the Summit and Peace Plan

The second day of Davos became more dynamic with the participation of U.S. President Donald Trump. The main theme of the summit, “spirit of dialogue,” was overshadowed by Trump’s more “monologue” and “economic dominance” approach.

One of the most discussed topics was Trump’s proposed “Peace Plan”, which anticipates a contribution of 1 billion dollars from each of the approximately 20 countries. This plan aims to reach a total volume of 20 billion dollars and envisions the creation of an alternative structure to the United Nations for the reconstruction of Gaza.

France and Trade Tensions

However, after French President Emmanuel Macron refused to participate in the plan, Trump threatened to impose a %200 customs tariff on wines and champagnes imported from France. This situation brings the scenario of “using economic power as a weapon,” which occupies a significant place in global risk reports, into concrete terms.

Europe's Reaction and Bond Discussions

Observations indicate that Europe has not been able to display a united leadership in response to Trump’s harsh statements. With Macron approaching the end of his term and the German Chancellor maintaining a pro-dialogue stance, UK Prime Minister Keir Starmer’s use of a soft tone allows Trump to portray a more dominant profile in Davos.

Additionally, the possibility of selling approximately 3.3 trillion dollars worth of American bonds was also brought to the agenda at the summit. However, it is noted that such a large sale could create uncertainty in the markets. U.S. Treasury Secretary Scott Huntington’s speech at the summit will be closely watched.

2030 and Beyond: Future Projections

Under the current geopolitical tensions, long-term projections were also opened for debate. In a survey conducted among participants, the most important topics for 2050 were ranked as follows: %37 climate change, %29 space and technology, %20 the future of food, and %14 longevity. Although sessions were planned on the effects of artificial intelligence on healthy living, Trump’s agenda pushes these topics to the background.

Experts in Davos continue to seek solutions for how the new global order will be constructed while providing a historical warning about the transformations in global power dynamics.