Jan 21, 2025

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GOOD MORNING FROM DAVOS, where attendees are waking up to a new world order after Donald J. Trump was sworn in as the 47th president of the United States. More below on how the Davos crowd took in the news last night. (At the Washington Post party, journalists looked askance at footage of owner Jeff Bezos sitting meters from Trump as he took the oath of office.)

But it was a politics-free zone over at Goals House, where David Beckham dropped in for a late-night drink.

BACK TO BUSINESS: Today, the World Economic Forum really kicks off in earnest. Among the big names taking to the stage in the main Congress Center: Chinese Vice Premier Ding Xuexiang, European Commission President Ursula von der Leyen, Israeli President Isaac Herzog and Ukrainian President Volodymyr Zelenskyy (more on Ukraine below).

WHAT'S FOR DINNER? Klaus Schwab, the 86-year-old founder of the World Economic Forum who retains an iron grip on Davos despite nominally stepping back from day-to-day management of the forum last year, will host his leaders’ dinner tonight at the Eiger Kurpark Village. The dinner attracts top-tier talent, including most foreign leaders.

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THE MORNING AFTER

TRUMP'S BACK: It’s official. Just as the WEF was kicking off in Switzerland last night, over in D.C. Trump was being sworn in after pulling off the biggest political comeback in American history. He issued a blitz of executive actions within hours of settling in at the White House, declaring a national emergency at the border, slashing regulations around oil drilling, pulling the U.S. out of the Paris Climate Agreement for the second time, scrapping Joe Biden’s AI safety rules … sought to delay enforcement of a ban on TikTok by 75 days … pardoned about 1,500 supporters who took part in the Jan. 6, 2021 attack on the Capitol … laid the ground for the U.S. to withdraw from the World Health Organization … and more. We wrapped up the main themes of the Day 1 policy barrage in this piece.

Trade update: There was some reprieve for the international trading system after Trump stopped short of announcing new tariffs. But he later told reporters in the Oval Office that he could impose tariffs of 25 percent on imports from Canada and Mexico as early as Feb. 1, because they’re letting illegal migrants and fentanyl flow unchecked across their borders into the U.S. He said tariffs against China would hinge on a deal over TikTok’s ownership.

Rock and a hard place: Trump is pushing Europe into making a lose-lose choice on China: either bend to his will and fully “de-couple” from reliance on Chinese goods, or make an enemy of his administration. Both options risk testing EU unity and are likely to trigger retaliation, either from Beijing or Washington. You can read the full story from our own Camille Gijs.

All eyes on Beijing: Chinese Vice Premier Ding Xuexiang’s speech this morning will be closely watched for early signs of Beijing’s reaction to the new political reality in Washington. EU-watchers will be wondering whether European Commission President Ursula von der Leyen, in only her second public engagement since being hospitalized with severe pneumonia, will reveal if the European Union really has a plan to deal with Trump, apart from her promise to buy more LNG from the U.S.

The new power nexus: If Davos feels a little quiet this year, it may be that most of the big names in tech and finance were paying homage to Trump on Monday. Jeff Bezos wasn’t the only billionaire at the inauguration — Google’s Sundar Pichai, Meta’s Mark Zuckerberg and Apple CEO Tim Cook were all at the Capitol.

Catch up here: In this morning’s edition of Power Play, host Anne McElvoy talks to POLITICO’s Global Editor-in-Chief John Harris and chief Washington Correspondent Ryan Lizza about the historic day in America.

Power shifts, razor-thin margins, and a high-stakes agenda. We’ve transformed our coverage—more reporters, more timely insights, and unmatched policy scoops. From leadership offices to committee rooms, caucus meetings, and beyond, our expert reporting keeps you ahead of the decisions that matter. Subscribe to our Inside Congress newsletter today.

UKRAINE IN FOCUS

ZELENSKYY MAKES HIS CASE: Ukrainian President Volodymyr Zelenskyy is expected to address Davos-goers in person at 2.30 p.m. today, as Russia’s full-scale invasion of his country is set to enter its fourth year. It comes at a grim point in the war, with Moscow’s forces continuing to strike civilian targets (a McDonald’s in Kyiv was hit on Saturday), and as the Russians push deeper toward the Dnipro region.

Waiting for Donald: Ukraine is anxiously waiting to see what Trump will do now that he’s in power. There have long been concerns he may push Zelenskyy into making a quick and dirty peace deal with Russian President Vladimir Putin. But in his nightly video address on Monday, Zelenskyy presented an optimistic view. "Right now, there is a good opportunity" for peace, Zelenskyy said. "Donald Trump. He is a strong person ... Ukrainians are ready to work together with Americans to achieve peace, true peace. This is an opportunity that must be seized."

View in Davos: Hundreds of Ukrainians and their supporters gathered at Ukraine House on the promenade on Monday for an inauguration watch party and networking evening sponsored by the American Chamber of Commerce Ukraine. The mood was cautiously optimistic, with guests expressing hope the Republican could succeed where his predecessor failed.

Under Trump, “it might not be good, but it will be much better than under Biden,” said Kyiv School of Economics President Tymofiy Mylovanov over (excellent) coffee and Carpathian tea in the bunker-like Ukrainian House café. “Biden managed the war as a crisis — he thought if he holds out long enough, the storm will pass. But it’s not passing. Trump takes the perspective that we have to stop the storm.”

Zoya Lytvyn, the head of the Global Government Technology Centre in Kyiv, said Ukrainian opinion on Trump is split between two bubbles: those who lionize Western values and align with the U.S. Democratic Party, who are “afraid of Trump and [Vice President] JD Vance.” Meanwhile, “those in the second bubble are saying we already have seen everything that Biden could do, and the level of support he could provide, and it was not enough.” Trump, at least, “has enough power to bring stabilization.”

EVANGELIZING FOR UKRAINE: A key focus for Kyiv’s backers is getting Trump’s Republicans on board with their cause. Ukraine Freedom Project founder Steven Moore spent seven years on Capitol Hill, mostly as chief of staff for former chief deputy GOP whip Pete Roskam. Now based in Ukraine, he's working to inform members of Congress about the plight of Evangelical Christians in Russian-occupied Ukraine. The campaign has been widely credited for convincing House Speaker Mike Johnson to back a $60 billion aid package for Ukraine.

The power of god: “Evangelicals have a massive influence within the Republican Party,” said Moore, speaking en route to Davos from Ukraine on Monday. “We’re trying to make them realize that this is a battle of good vs. evil. The Russians are doing the worst things in the world to people who worship God in the way they and many members of Congress do.” Ukraine House will host a panel today at 12.30 p.m. on “Faith Under Siege” in Russian-occupied Ukraine, during which they’ll screen this short film, titled The Pastor of Kherson.

Unholy war: “The Russian Orthodox church is essentially a working arm of the Kremlin. So when Russians come to Mariupol or Kharkiv or Kherson and meet Baptist pastors, they say ‘this is an American religion, you must be an arm of the U.S. government’,” Moore said. “They have tortured pastors and targeted prayer meetings with drones."

OTHER UKRAINE HOUSE HIGHLIGHTS: Polish President Andrzej Duda is expected to tour Ukraine House at 10 a.m. today ... on Wednesday at 2 p.m., there’s a panel on “Investing in Ukraine’s Economic Resilience” featuring First Deputy Minister of Ukraine Oleksiy Sobolev, French President Emmanuel Macron’s Special Envoy for Ukraine Pierre Heilbronn and Italian Special Envoy for Ukraine Davide La Cecilia ... On Wednesday evening, there’s a Ukrainian networking evening featuring local cuisine ... On Thursday at 4 p.m., a panel on frozen Russian assets features anti-corruption campaigner/financier Bill Browder.

TASTE OF WAR: Ukraine House Executive Director Ulyana Khromyak’s opening address last night was interrupted by a recording of the sound of air raid sirens, to give the audience a sense of what life is like for ordinary Ukrainians.

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RACE AGAINST THE MACHINE

AI FEST: Another Davos, another AI love-fest, as the world of Artificial Intelligence dominates discussion in and around the promenade. The AI House is hosting programming throughout the week, while dozens of AI panels take place inside and outside the Congress Center (including our own POLITICO debate at lunch today).

Telling it like it is: In a bid to navigate the fiendishly complex, rapidly developing technology, Global Playbook spoke with a real-deal expert in artificial intelligence (rather than one of the consultants, investors or think tankers who've jumped on the AI bandwagon).

Demis Hassabis is the co-founder and CEO of Google DeepMind and Isomorphic Labs. He's in Davos just a few months after winning the Nobel Prize in chemistry (with Director of DeepMind John Jumper) for their work developing an AI model that predicts proteins’ complex structures. A child chess prodigy who cut his professional teeth developing video games, Hassabis reportedly converted British Prime Minister Keir Starmer to the benefits of AI after a dinner in October.

The modest Londoner refused to be drawn on the details of that conversation, saying that he's “happy to advise wherever is useful.” He added: “I’ve always wanted to try and help … so if that was a useful conversation, that's good.”

Taking stock: As the AI revolution gathers pace, Hassabis said things are at an interesting inflection point: “There's a lot of really exciting things going on. AI is a little bit overhyped in the short term … but in some ways it's still under-appreciated how transformative it's going to be in the medium to longer term.”

Threading the needle: Balancing regulation and innovation is a constant challenge, Hassabis said. “I’ve spent my whole life working on AI because I believe it will be one of the most beneficial technologies ever invented for things like science, medicine and so on … But it’s also a dual-purpose technology, so I worry about the risks.” Ensuring the tech stays safe is crucial. “We can get that right as a society, but it's going to require careful threading of the needle.”

International focus: “There needs to be international dialogue and ideally cooperation on things like regulation, it's very hard at the moment, obviously, given the geopolitical climate we're in, but I think we have to try,” he said, name-checking the coming AI summit in Paris and recent AI announcements by the U.K. government.

Prepping for Trump: Hassabis expressed cautious optimism about the new U.S. administration, after Trump vowed to turbocharge the United States’ capacity on AI and appointed David Sacks as his AI czar. “I know a lot of the technology people coming in. I think that's a good thing. I think they obviously really understand the technology. And look, let's see what actually happens.”

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AROUND TOWN

FORECAST: Low of minus 6C/21F; high of 2C/35F.

FIRST DAY HITCHES: Delegates entering the Congress Center Monday afternoon were left waiting in line after the security staff ran out of airport-style security trays to help shepherd through the hundreds of delegates. We’re assured it’s just a temporary hitch.

MAKING A SPLASH: Activists splashed green and orange paint across the Amazon House front window on Monday (pic here). The trio hoisted a “DROP Fossil Subsidies” banner and chanted anti-oil slogans as bemused passers-by looked on. A couple of hours later, the window was pristine again.

(Not) arrested development: Rumor had it that Austrian-German heiress activist and philanthropist Marlene Engelhorn was arrested Sunday after taking part in the protest that blocked Davos traffic for hours. Not so, she told Global Playbook. While she did join a protest held by wealth taxation activist group taxmenow, she wasn’t part of the larger demonstration broken up by the Polizei.

OVERHEARD ... at the Migros cafeteria on the promenade: “I have to stay away from Zurich, because the tax on hedge fund withdrawals is brutal.”

PICK-ME-UPS: Out the front of Qatar House is a cart serving Gulf coffee — an orange-hued concoction with hints of cardamom. For the tea lovers, stroll a couple of doors up to Tata House and you can get a chai or green tea at the Tata Tea stall (they also have filter coffee).

SPOTTED

— At the Time100 Dinner: CEO of Salesforce and owner of TIME Marc Benioff; CEO of Anthropic Dario Amodei; TIME's Sam Jacobs and Jessica Sibley; IMF’s Gita Gopinath; First Deputy Prime Minister of Ukraine Yulia Svyrydenko; former World Bank Vice President Obiageli "Oby" Ezekwesili.

— At the Opening night dinner and inauguration watch party hosted by Brunswick with POLITICO: POLITICO CEO Goli Sheikholeslami and Editor-in-Chief John Harris; Brunswick's Adm. Mike Rogers, Nikhil Deogun, Lanhee Chen and Philip Honour; Laura Clare from OpenAI; Accenture's Rachel Frey; POLITICO's Cally Baute, Anne McElvoy, Sarah Wheaton and Cristina Gonzalez; Pinterest's Caroline Nolan.

— At Bloomberg Opening Night Reception at Bloomberg House: Zurich's Claudia Cordioli and Wendy Liu; Invesco's Marty Franc; Revolut Chair Martin Gilbert; Bloomberg's Jean-Paul Zammitt and Stephanie Flanders; JP Morgan's Filippo Gori; Lord Mayor of the City of London Alastair King; Condé Nast's Roger Lynch; Oliver Wyman's Huw van Steenis; Serpentine Galleries' Hans Ulrich; Goldman Sachs' Jason Wiesenfeld.

— At Goals House Monday night: Legendary footballer David Beckham; former U.K. Chancellor George Osborne; Vilas Dhar of the Patrick J McGovern Foundation; Brian Moynihan of Bank of America; Google’s Stuart McLaughlin and Hannah Pawlry; Freuds’ Rachel Kinnock; Wikipedia founder Jimmy Wales; Bill Nye the Science Guy; Yasmin Green of Jigsaw; U.K. Special Adviser on Business and Investment Varun Chandra; World Wide Web inventor Tim Berners-Lee.

— At the Nasdaq Capitol Hill, Canapés & Cocktails event at Nasdaq Basecamp: Richard Kaye of JP Morgan; Charles Pretzlik, Brunswick; Caroline Vasquez, DRW; Palantir’s Lisa Gordon; Tony Connelly of RTE; Ben Richardson of Semafor; Dave Cetola of Syensqo.

— At Ukraine House opening ceremony on the promenade Monday night: Ukrainian oligarch and philanthropist Victor Pinchuk; former U.S. Deputy Secretary of State Stephen Biegun; Swedish economist Anders Åslund; Kyiv School of Economics President Tymofiy Mylovanov; Head of the Global Government Technology Centre Zoya Lytvyn.

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AGENDA

Headliners

— Special Address by President of the European Commission Ursula von der Leyen; Congress Hall; 10:20 a.m.

— Special Address by Chinese Vice Premier Ding Xuexiang; Congress Hall; 11:20 a.m.

— Special Address by German Chancellor Olaf Scholz; Congress Hall; 2 p.m.

—Special Address by Ukrainian President Volodymyr Zelenskyy; Congress Hall; 2:30 p.m.

— Special Address by President of South Africa Cyril Ramaphosa; Congress Hall; 2:45 p.m.

— U.S. Economy in 2025; speakers including Rich Lesser, Global chairman of Boston Consulting Group, Bank of America CEO Brian Moynihan, Coca-Cola CEO James Quincey; President of Occidental Petroleum Vicki Hollub; 4:15 p.m.

— A conversation with Prime Minister of Vietnam Pham Minh Chinh; Aspen 1; 4:30 p.m.

— A conversation with Israeli President Isaac Herzog; 5 p.m.

Other highlights

— Bridging Borders: Transforming Health care in the Intelligent Age; Saudi House; The Loft; Promenade 105; 7:30 a.m.

— Launch of DP World Trade in Transition Global Report; DP World House, Promenade 63; 7:30 a.m.

— Coinbase CEO Brian Armstrong in conversation with historian Niall Ferguson, and former U.K. Chancellor George Osborne; Coinbase House in Steigenberger; 10 a.m. Livestream here.

— “This House believes that the only way to develop AI safely is to implement a kill switch,” POLITICO Oxford-style debate; Ameron; 12:30 p.m. Register to watch online here.

— Risk and Reward: New Paradigms in Global Finance; Semafor Haus; Belvédère; 1 p.m.

— “Unlocking a Skills-Based Future with AI;” the Equality Lounge @ Davos; 2:30 p.m.

— World Health Organization Director-General Tedros Adhanom Ghebreyesus at the Davos Alzheimer’s Collaborative; Brain House, ICON Building; Symondstrasse 7; 2:30 p.m.

— Launch of the FemAI Leaders for Africa: A Path to Informed Governance; Women Political Leaders; Hilton Garden Inn; 3 p.m.

— UNICEF fireside chat with David Beckham and UNICEF’s Catherine Russell; Goals House, 4 p.m.

— CEO of DeepMind Technologies Demis Hassabis in conversation with FT Editor Roula Khalaf; Google Haus at the Alpine Inn; 5:15 p.m.

— Klaus Schwab's leaders’ dinner; Eiger Kurpark Village; 6 p.m.

— Semafor Media Party; Semafor Haus at the Belvédère; 6:30 p.m.

— POLITICO Davos Party; Schatzalp; 7 p.m.

THANKS TO: Camille Gijs, Alex Spence and producer Dean Southwell.

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Suzanne Lynch @suzannelynch1

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