Mag 7, crypto, AI, Trump, tariffs, Fed, and everything else that will dominate Davos
5 hours ago
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Coverage of the World Economic Forum in Davos, Switzerland, each year is something I view as a competitive sport.
I actually start training for the intense week over the summer, as my few close friends know (and yes, they all make fun of me). The number of workouts every week in the lead-up rises incrementally so I can easily sprint up and down the two-mile promenade with a backpack to stuff in as many meetings as humanly possible (yes, I do this).
My one cheat meal a week gets replaced by green drinks and extra doses of vitamins to ensure I don't get sick. I meditate twice a day and carefully pick out clothes I know will help me execute at the highest level. Look good, feel good, good things happen.
To me, this one event is the closest I will get to being like Michael Jordan in the playoffs — and I am very lucky to be in attendance.
And this year, the gathering of the elites flying in on private jets to wax poetic on the world's biggest problems will be extra nutty.
The conference unofficially kicks off on Trump's Inauguration Day. Some CEOs I know who normally would be at Davos all week are dropping in mid-week after working the inauguration party rounds. By Tuesday, the newly minted president may have uncorked a host of executive orders that could impact the businesses of the top CEOs on the ground. And, of course, impact the global markets.
This is why this year's WEF will be more important than the norm for you, the average investor. The headlines will be coming in hot and heavy as CEOs look to challenge Trump or get on his good side. They will also look to talk up their businesses ahead of the start of earnings season, and with markets getting a little rockier of late.
Here's what yours truly and our very own Jennifer Schonberger will be watching while bundled up in five layers all week. Be sure to bookmark the "streaming now" section on Yahoo Finance to catch all our market-moving interviews in real-time. Or tune in where you normally catch us, whether that's on Samsung TV or our nifty app.
Unlike our previous trips to Davos over the past decade, I will be taping several special episodes of the Opening Bid podcast on the ground. I could tell you who those guests will be, but where is the fun in that? Best to be surprised!
Now, on to that guide...
Big bank CEOs: The biggest names in banking, such as JPMorgan (JPM) CEO Jamie Dimon, Bank of America (BAC) CEO Brian Moynihan, Goldman Sachs (GS) CEO David Solomon, Citi (C) CEO Jane Fraser, and Morgan Stanley (MS) CEO Ted Pick will be in attendance. While this group will all get asked about Trump policies, it's going to be their outlook on interest rates that will be most key to market sentiment. Most have not spoken publicly since the Fed signaled a likely halt in rate cuts last month, and they will want to be heard ahead of the Fed's Jan. 28-29 policy meeting.
The tariff CEOs: Retail will have a nice showing at Davos, with the CEOs of Polo Ralph Lauren (RL), Williams Sonoma (WSM), and Gap (GAP) (their CEO's first time at the event) making the rounds. These companies are right in the middle of the tariff debate. I'll be interested in how they are preparing for Trump tariffs from a supply chain perspective. I am also interested in how much they could raise prices post-tariffs — it could offer up valuable insight into the 2025 inflation outlook and Fed policy.
The race to catch Nvidia: It will be another year of AI chatter throughout the halls of Davos. This time, I think the discussions will take two forms. First, unlike last year, where the AI discussions were mostly about potential, investors are going to want to see clear lines to revenue and profits. So I encourage AI CEOs to bring it. And two, we will probably hear more about how Big Tech players in Microsoft (MSFT) and Alphabet (GOOGL) are aiming to develop their own high-powered AI chips to catch Nvidia (NVDA), or at least make good enough chips to diversify. Leaders from OpenAI and Anthropic will also be in attendance, and their thoughts on chips could be key. I'll be watching Nvidia's stock price like a hawk this week, and you should be as well.
Crypto delegation: The crypto industry has had a solid presence at Davos in the past five years. This year the industry is expected to be out in force, headlined by an appearance from Coinbase (COIN) CEO Brian Armstrong. I'll be quite attuned to what the crypto crowd thinks about the latest volatility in bitcoin, MicroStrategy's (MSTR) bitcoin buying binge, what they are hearing from the pro-crypto Trump administration, and early assessments on Paul Atkins as the likely next SEC chairman.
Stocks: Stocks are beginning to look top-heavy (especially the Magnificent 7), as I have reported. I'm eager to hear from market pros such as JPMorgan's Mary Erdoes and economic experts like Nouriel Roubini on if they are seeing red flags on the horizon. Any calls they make at this Davos may hold greater weight given more volatile market conditions and increased Trump policy uncertainty.
The political wild cards: As of this writing, contacts have told me President-elect Donald Trump plans to send delegates to Davos. Who precisely gets the nod is the wild card. (I fancy it will be potential Commerce Secretary Howard Lutnick, a Davos party scene regular for many years. Elon has long hated Davos, so hard to see him appearing). Trump himself is slated to give a speech remotely on Thursday, a source told Yahoo Finance.
But who ultimately shows up from Trump's orbit — and what they say once touching down — could set the tone on US international relations right out of the gate. If a delegate arrives at Davos days after Trump takes actions that could weigh on the economic growth of foreign countries and then aims to explain the actions, best believe the inevitable headlines may not be so market-friendly.
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Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram and on LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com. Three times each week, Sozzi fields insight-filled conversations with the biggest names in business and markets on Yahoo Finance's Opening Bid podcast. Find more episodes on our video hub. Watch on your preferred streaming service. Or listen and subscribe on Apple Podcasts, Spotify, or wherever you find your favorite podcasts.
