World Economic Forum (WEF) 2024

Nasdaq CEO says there are “signs” about interest rate cuts, but “the question is when they will start.”

Nasdaq CEO Adena Friedman said markets expected there would be rate cuts, and added that she would be “a little concerned” about doing so too early, speaking to a panel moderated by CNBC in Davos.

Friedman added that the Fed will likely want to reach a state of stability before it takes significant steps.

The UAE is eyeing an ambitious growth target

The UAE Minister of Economy talks about the latest efforts to diversify the non-oil economy

UAE Minister of Economy Abdullah bin Touq Al Marri reiterated Abu Dhabi's intentions to achieve economic growth of 7% of national GDP in 2024, with a focus on expanding the country's revenue sources.

“In terms of non-oil GDP, we are already at over 5% and are already diversifying our economy,” he told CNBC in Davos, Switzerland. Traditionally reliant on sales of crude oil and petroleum products, the UAE has embarked on an ambitious journey to amplify its economy and achieve a targeted GDP of 3 trillion dirhams ($817 billion) by 2030.

Al Marri pointed to the efforts made by Abu Dhabi over the past three years to liberalize the corporate law and grant 100% full ownership to foreign stakeholders, as well as revamping the country’s visa system to attract global investors.

Roxandra Iordas

Cisco's CEO says valuations of private companies are “deteriorating again.”

Cisco CEO Chuck Robbins participates in the World Economic Forum in Davos, Switzerland, on January 18, 2023.

Holly Adams | Bloomberg | Getty Images

According to Reuters, the valuations of some private companies are “deteriorating again.” ciscochief executive officer.

Valuations of companies focused on new technologies, such as artificial intelligence, have returned to the peaks seen during the low interest rate environment of the pandemic, Chuck Robbins said.

“When you come in [generative] “AI and some of these other things, we're seeing some private valuations deteriorate again,” he said during a panel discussion moderated by CNBC at the World Economic Forum in Davos, Switzerland.

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“It's ironic to me that we're doing this so quickly after what we saw 48 months ago. It's unbelievable,” he said.

– Karen Gilchrist

Nasdaq CEO says the IPO market may open up again in the second quarter

Adena Friedman, CEO of Nasdaq, at the World Economic Forum in Davos, Switzerland on May 24, 2022.

Adam Gallica | CNBC

Adina Friedman, Chairman and CEO NasdaqHe said the IPO market could “open up again” as investors gain confidence in the second half of the year.

“What's happening in the markets? As a result of this idea that there may be a lower cost of capital as the year goes on “It's so that investors can start thinking about how the company's earnings model again,” she said, speaking on a panel moderated by CNBC.

Friedman added that while last year's market performance was “very heavy,” the broader market including small caps is starting to see improving valuations.

“They know that the cost of capital is likely to be stable or low in the future, and I think that will also interest investors who want to put risk capital into play which means IPOs… We could actually have an open IPO market,” she said. : “Backup again.”

Friedman added that about 85 companies have applied for an IPO on Nasdaq and wish to offer their shares for public offering, with activity concentrated in the second quarter.

-Lucy Handley

The International Monetary Fund expects interest rates to fall in the second half of the year

It's too early to conclude that central banks will cut interest rates “aggressively” this year, according to Gita Gopinath, the IMF's first deputy managing director, who spoke on CNBC's “High Rate Reality” panel in Davos.

She added that despite the decline in inflation, “the mission is not complete,” with labor markets in the United States and Europe tightening. The International Monetary Fund expects interest rates to fall in the second half of the year.

Compared to the period following the global financial crisis in 2008, Gopinath said she expects interest rates to be higher in the next three to four years.

-Lucy Handley

European Central Bank Member De Galhau: We do not rely on the calendar, we rely on the data

François Villeroy de Galhau, Governor of the Bank of France.

Bloomberg | Bloomberg | Getty Images

French Central Bank President François Villeroy de Galhau stressed that it is not possible to determine the season in which the European Central Bank may cut interest rates this year.

“About the season, why don’t I say anything? I said it should be this year, barring major surprises,” he said during a panel moderated by CNBC. “But… we don’t rely on the calendar, we rely on the data.” During the World Economic Forum activities in Davos, Switzerland.

Regarding the path of inflation, he added: “It is too early to declare victory… The job is not over yet. However, the tightening of interest rates has been very successful so far, and more successful than we even imagined in Davos one year ago.”

“What we can see on both sides of the Atlantic is a soft landing so far.”

The European Central Bank's De Galhau says monetary policy tightening has been more successful than expected

The European Central Bank's Centeno highlights the progress of inflation in the eurozone

Centeno says the ECB remains data-driven, and that inflation is moving in the right direction

Portuguese central bank governor Mario Centeno said on Tuesday that inflation in the euro zone is on a “very positive” path, although his counterparts on the European Central Bank's Governing Council have taken a more hawkish tone in recent days.

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“We are still data-driven, and that is how we frame our decisions… One of the greatest successes of the ECB recently is its ability to hold medium-term inflation expectations at 2%, and that is because we have credibility, we have credibility,” Centeno said. “Let it stay that way.”

Read the full story.

Jenny Reed

World leaders discuss 'the reality of high rates'

Join CNBC at 7.15am UK time, where presenter Steve Sedgwick will moderate a panel discussion on “The Reality of High Prices,” with guests Adena Friedman, CEO of Nasdaq, and Gita Gopinath, Senior Deputy Managing Director of the International Monetary Fund ( IMF), and Chuck. Robins, Chairman and CEO of Cisco, and François Villeroy de Galhau, Governor of the Bank of France and member of the Governing Council of the European Central Bank.

The European Central Bank may delay the start of interest rate cuts in 2024, which would upend market expectations, with Governing Council member Robert Holzmann saying on Monday that those who had hoped for interest rate cuts to start this spring will leave Davos “feeling deeply disappointed.” .

The committee will talk about whether higher interest rates will become the “new normal” and what that means for markets.

Headline inflation rose to 2.9% in the euro zone in December, compared to 2.4% the previous month. The European Central Bank targets inflation at 2%.

Lucy Handley

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