DAVOS, Switzerland (AP) — The Latest on the World Economic Forum in Davos, Switzerland (all times local):
Stock markets around the world are flying high amid a synchronized global upturn but a leading U.S. investor is warning of a potential “reckoning.”
Stephen Schwarzman, chairman and CEO of Blackstone, told an audience at the World Economic Forum that the markets have responded to a positive global economic growth story. It is, he said, a time of “enormous ebullience.”
However, he said there are “lurking” geopolitical risks out there that could put the knock markets off track and there will come a time when some of these problems are “not contained.”
U.S. stock markets have been in particularly strong, with the Dow Jones industrial average hitting a run of record highs on the back of confidence around the U.S. economy and President Donald Trump’s big tax reform package.
The World Economic Forum officially gets underway Tuesday with Indian leader Narendra Modi delivering the keynote speech.
Modi was meant to be the event’s highlight until President Donald Trump decided to come as well. Trump is due to speak Friday, though the U.S. government shutdown has put his presence in doubt.
There will be much interest in Modi, who follows on from Chinese President Xi Jinping’s address to the global elite at last year’s event. Xi portrayed his country as a champion of free trade on the same week Trump was inaugurated president.
Modi will likely tout India’s economic successes and stress that his country is also open for business.
Canadian Prime Minister Justin Trudeau is later due to address the Davos crowd, which is gathering in unusually heavy snowfall.