The Financial Times reports that the World Economic Forum (WEF) in Davos this year is pivoting toward dealmaking, deregulation, and growth, with a sharp focus on adapting to Donald Trump’s second term as U.S. president. Business leaders and financiers gathering in the Swiss Alps are shifting priorities, moving away from broader social concerns to concentrate on corporate productivity, regulatory adjustments, and mergers and acquisitions (M&A).
The tone of the forum, historically a platform for global collaboration on social, environmental, and economic challenges, is heavily influenced by Trump’s return to power. The U.S. president is expected to address the gathering via video link later this week, following his inauguration, which clashes with Davos’ opening concert on Monday evening. Trump’s promises to sign executive orders aimed at increasing U.S. energy production and slashing red tape have already reignited “animal spirits” among American financiers.
Simon Freakley, CEO of consultancy AlixPartners, highlighted this renewed enthusiasm for growth, saying, “Every investor worships at the altar of growth, every CEO serves at the altar of growth and is thinking about how to drive growth in this environment.” The optimism is reflected in a WEF-conducted survey of 900 experts from academia, business, and government, which revealed a sharp decline in fears of economic downturns or inflation compared to last year.
Trade Tariffs and Geopolitical Risks
Despite the bullish sentiment on growth, Trump’s aggressive trade policies and potential tariffs remain significant concerns for global executives. The survey identified “geoeconomic confrontation” as one of the biggest risks over the next two years.
Christian Klein, CEO of SAP, expressed apprehension over geopolitical uncertainty, which he expects to dominate Davos discussions. Jim Rowan, CEO of Volvo Cars, echoed these concerns, noting the disruption caused by trade tensions and the pressing need to address decarbonization and artificial intelligence (AI) deployment.
Huw van Steenis, vice-chair at management consultancy Oliver Wyman, observed that U.S. financiers are grappling with mixed investment outlooks. “Amongst U.S. financiers, there is a shared narrative of animal spirits and deal momentum,” he said. “Whether the new Trump administration will amplify American exceptionalism and divergence from Europe and China is on almost everyone’s minds.”
Corporate Heavyweights and World Leaders Gather
As always, the Davos event attracts a powerful mix of business and political leaders, with nearly 3,000 attendees. This year’s roster includes CEOs such as Dara Khosrowshahi of Uber, Brian Moynihan of Bank of America, Albert Bourla of Pfizer, and Marc Benioff of Salesforce. Prominent political figures include European Commission President Ursula von der Leyen, German Chancellor Olaf Scholz, and Argentina’s President Javier Milei, who will attend after Trump’s inauguration.
However, some regular attendees have expressed skepticism about the forum’s relevance in today’s political and economic climate. One Davos veteran told the Financial Times he was skipping this year’s event, calling it “too expensive given the value proposition” and “less and less relevant.” A Silicon Valley executive similarly remarked that the gathering has been “totally overshadowed” by Trump’s inauguration.
Rebalancing the Davos Agenda
While the WEF program still features sessions on clean technology, LGBTQI+ rights, and water conservation, the emphasis this year is expected to shift toward pragmatic corporate strategies. Christoph Schweizer, global CEO of Boston Consulting Group, predicted a recalibration of priorities. “We’re anticipating a rebalancing of the Davos agenda this year as, ultimately, CEOs want to get stuff done,” he said, citing productivity, AI, and M&A as the top issues.
The FT notes that Davos has long served as a barometer for corporate sentiment, offering executives an opportunity to set the tone for the year ahead. However, with Trump’s policy direction and geopolitical tensions taking center stage, this year’s forum may mark a critical inflection point for global business.
