e' coming. ronnie roberts: and we ain't givin' up. now that's all for this edition of "dateline." i'm craig melvin. thank you for watching. good morning welcome to "street signs" live from davos and london. i'm joumanna bercetche these are your headlines chinese annual gdp growth slows notching the second worst showing since the revolution the economic picture will improve as china's reopening progresses >> the border will open up and the economy will grow back there is pent-up demand there and necessity.

as china opens up and the competent continues to grow, recovering from the last two or three years, hong kong will benefit from that as well. imf managing director tells cnbc fragmentation risk is a major blow to the economy. >> 76% will translate into $7 trillion wiped out the size of germany and japan gone clearly this is not a desirable path to follow. the decline for the month of december for germany and hamers says the inflation is sticky more in the u.s. >> it is on the way back in the u.s. as in europe. we feel there is going to be an

issue here in europe earlier than the u.s i'm julianna tatelbaum also coming up on the program, global recession fears weigh on markets with euro trading in the red and wall street also looking to open lower. a big welcome to "street signs" for myself in davos we are here for the world economic forum there is so much to look forward to this week and we will kickoff the snow edition of "street signs" with a stacked lineup starting with the interview with bill winters and the ceos of onv and the chairman of the property developer dammak

we will be joined by unilever ceo and bank of portugal governor central bank is topical this week the focus on the bank of japan the two-day meeting has just start. the rest of the week is interesting as we get more answers later. chinese annual gdp has marked the lowest reading on record excluding 2022 it saw the weakest growth since the end of the culture revolution gdp growth was better than expected at 3% that is well shy of the target rate of 5.5% and a long way off 2021's 8.4%. china gdp growth sank to the lowest reading on record last

year excluding the on covid hit, 2022 saw the weakest growth since 1976 imf managing director told cnbc what she sees happening next >> for the first time in 40 years, chinese growth is at or below global growth. in 2023, we expect the reopening of china will trend growth upwards. how long will it take is the unknown. china needs to stay the course with reopening if china does so, china at the end of the year will be in where our projections are today which is 4.4%. >> i don't think this is a surprise to anyone inflation has dominated headlines for the past year. davos is no exception. here is what business leaders

told us at the conference so far. >> you will see strong economic growth in china. that will have an impact on the rest of the world. inflation reduction act and other hmeasures are having a positive impact. those two big economies are both getting their act together central banks are starting to panic with the rise of inflation. it is more temporary cause like the unjust cruel invasion of ukraine. >> in the u.s., compared to other parts of the world, headline inflation is starting to ease. in europe, we have seen headline reduction inflation, but not on the core which is pretty resistant to measures that are deployed in the u.s., we see that we have achieved a turning point >> it will be a softer landing

for europe than what we anticipated a few months ago i think personally, i think inflation has pecuaked europe had the ukraine war and the energy hike in prices. then they had the food and general inflation pressure >> europe's energy crisis is increasing price pressures business leaders have been speaking out take a listen. >> i will tell you if there is one word to describe europe, resi resiliency that is true if you talk to the large investors, that is true. if you think about what europe is going through energy crisis, war and europe just keeps moving along. the biggest issue is a long-term issue which is demographics. frankly, that is facing the u.s.

as well. both europe and the u.s. need more workers >> we are very much o overestimating short-term problems think about germany. everybody said we withould have cold winter and that was managed well the way we retool our energy supplies and business model and actually get proper defense in line and become less dependent has not been solved. >> we think this is the year of reflection we will have more data points and more news. what you see and also what kind of the subject of the imf here is that it is the fragmentation we see in specific areas also for the years to come on energy and on food security and

on technology security as well a little closer to home, we talked to the ceos of ubs here in davos we asked for the take on the european economy >> central banks have been clear what they want to find is inflation. at any cost which was a clear signal from the beginning. i think if we see will be a trend and central banks will not have to go as far on the rate side or have to come off the rate hike program earlier than expected >> our base case for 2023 is we will have recession. mild recession 1% previous year gdp unemployment staying strong because of the supply side

interest rate is about 4% and recovery coming into 2023. >> let's get out to geoff who dashed from the platform here to another location and joining him is a very special guest. geoff. >> thanks, joumanna. we're at the bevedere hotel on the terrace. down the platform from the congress center. i'm pleased to be here with bill winters. bill, nice to see you again. can i start off with the china story? let's go in on that. we're obviously in the process of reopening today, we got a couple of pieces of evidence that the economy still looks challenged weak gdp print and also a shift in the demographics that shows the population is decreasing how meaningful are these figures

for you and what is your take on the opening process? >> i think the figures today are not too meaningful there is a challenge in china that has been there for a while. the chinese birth rate dropped to low levels. not unique to china. china is ahead of the curve. it presents a challenge. more and more of the manufacturing labor for the product that chinese design and build is happening outside of china. we see that with the china plus one and countries like indonesia and malaysia are benefitting from that. the gdp number was as expected slightly better than what economists were calling for. 3% growth in 2022. that is a tough number we know why. because of covid had china persisted with zero covid, it would be another tough year it was a tough december.

things slowed down a lot in december they stayed slow and are staying slow in january. there is a high infection rate in china no one knows the exact numbers some estimates are 90% of the population will be infected by the end of the month this puts stress on the healthcare system. it does mean this will be behind us and in much of the same way europe and asia got covid behind them the hard way combined with the easy way with vaccines we are optimistic about a good strong rebound in china. toward the end of the first half of the year and strong growth in the second half. fiscal and monetary policy is similar. china has reembraced private markets. the market, the jury is still out on exactly what that means trying to decipher the crackdown on tech and the reemerging of the tech sector might mean the signals are pointing in a

friendly direction for china >> you have your ear closer to the ground when it comes to the market and obviously you have access to corridors of power that we don't. in terms of policy uncertainty, that made it difficult to feel comfortable investing in that market particularly in the tech sector. is that done >> i don't think you can say it's done. the chinese leadership surprised the market with the regulatory changes. not just in the tech sector, but education and some other areas interestingly, all consistent with the objective of addressing the inequality challenge that china has, but in other parts of the world becoming toxic right intentions that unbalanced the market the rhetoric is shifting the other way. there is some support given rhetorical and monetary to the property developers.

it hasn't turned around yet. the tech sector has been declared back in business. didi is taking customers again ant has been deemed to complete remediation. at a rhetorical level, things are turning around that means something it doesn't always mean something around the world, but in china it does mean something of i think we will see a slow pace of external investment into china for some time. the equity market is voting. we have seen a big bounce in china. the market is beginning to say they're on the right track keep a watchful eye. >> if you talk to a lot of investors and even the banks are starting to pivot, actually, the fed should be done here. inflation is not going to be a problem for the rest of the year interest rates don't need to go a lot higher

pile into the emerging markets that is the narrative. anything wrong with that >> i think it may be too simplistic inflation is not done. we had the big energy price spike and decompression partially. the job market in the u.s. is strong labor shortages around the world. wage inflation will possibly moderating a bit, i think is structural i don't think the fed is done. i think they have a couple of hikes left they will keep a watchful eye of the impacts of the actions on the economy. corporate balance sheets are in good shape consumer balance sheets are in good shape that means the economy is able to absorb higher interest rates than earlier in cycles i think the fed has a way to go. in the meantime, we have seen a substantial growth in the emerging markets when china kicks back in at 5%

and 6%, important parts of the middle east growing at high single digits. this is all going to be a good pick up for the time when europe and the u.s. slowdown. we rotate from the big developed economies into the rest of the world and growth momentum is pretty good. that should be good for economic activity i think it will mean inflation pressures will be there for a little bit longer. i would not get too excited about the end of the fed hiking cycle. >> let's talk about the banks. everybody knows the aviation unit has a for sale sign above it i don't know why are you worried about the credit quality in that business or are you worried about the momentum in that business why would you be selling that asset right now if you think positively about the economic cycle? >> we do feel positive about that business.

we're relatively small we have a little bit over 100 plans. it is a consolidating industry they have scale advantage. it is harder and harder to own assets on the balance sheet. the basel 3.1 rules are still in the uk, they are in the consul s tation process it doesn't look too burdensome we thought this was a good time to look at the alternatives. we don't have a for sale sign, but what can we do with this that business needs to be scaled it will be scaled by us or scaled by somebody else. we will review that process and come back with our thoughts. >> the german regulator on markets gave you a slap about capital buffers. is that an isolated case or do we need to be worried about

capital buffers? >> i don't think issue is capital buffer the issue is and pretty much every bank that set up a brexit response bank. frankfurt in germany is our eurozone bank. like most banks, we started off with an interaction with the german bank and rest of the group. i think what the european regulators would like to see is less and less interaction and more self contained operations and controls in the unit itself. so this was not news to us we have been working on this for a couple of years. you are making progress, but not enough until you complete the process, it is disengaging from the parent company and you have to carry extra capital. >> interest rates have been a good news story for the banks generally. the cost of living issue and reluctance of ceos to take risks

right now will dampen client activity can you give us some sense of that balance and how it is playing off at the moment for you? >> yeah. clearly when interest rates dropped to zero, it has had an impact on profits. it has come back to pre-covid levels and exceed those levels we are getting that money back that is good for us. we are obviously happy about that we're in a sweet spot right now at 4.5% up to 5% rates where it is not too damaging to the economy. i think there will be an impact. we saw substantial impact on emerging market countries. we are seeing the flood come back in. it is countries and companies that are well prepared for a higher interest rate environment. i would put india in that category other countries are having a tough time sri lanka already in default

we have a presence in those countries. we are working with the governments to help work through a difficult time it is tough. creditors are taking losses. most likely in sri lanka we are providing for that. the terms of our profit and loss is manageable. in terms of the economies, it is a problem. if interest rates continue to go higher or higher for longer, then that puts pressure on currencies and the economy if that is accompanied by slowdown in growth and the big consuming nations, then the overleveraged markets are in for a tough time >> bill, that is the story thank you very much for being with us here bill winters ceo of stanchart back to you. >> geoff, thank you for bringing us the interview

interesting to hear what bill has to say. ukraine allies are looking for unity at davos as the russian invasion approaches the one-year mark. i spoke to the president of latvia who says more sanctions are needed in order to deter the russian offensive. >> serious sanctions from the eu and the united states and canada and from other democratic states there is still potential to increase sanctions i think that european union will also prepare the new package of sanctions and that effect of sanctions is not immediate after several months we can see some positive results of the sanctions that means impact pof russian

economy and is visible and in the next month it will be more serious impact on the russian economy. there is still a potential to increase sanctions > >> i'm pleased to say alfred stern is joining us. what a year for european energy. one big surprise if you look at what happened with the course of 2022 is how agile europeans were at diversifying energy sources how would you rate the diversification efforts that took place >> you are correct it has been amazing. when we first started the year, nobody thought such a crisis could happen when the crisis happened, everybody was concerned how we get through the winter season. in particular with gas supplies not coming from russia in that extent as we can see now, storage is still full and we have seen people diversify to gas supplies

and oil. we actually managed it now we can supply 100% of customer obligations with no russian gas. that is a big achievement. >> who are your biggest partners who is the replacement source? >> we looked at our own production in norway and we also fully booked our lng terminal in amsterdam. we made new long-term supply contracts in norway and italy to bring the gas to austria austria is a land-locked country. it was necessary to book the pipeline capacity. >> alfred, one topic in the context of european energy security is what happens next winter this winter looks okay we will make it through. up until now it has been a mild winter storage capacity has been high as you mentioned what about coming winters? you talk about the replacement

sources of energy and how long are you signing deals? are these long-term deals? >> a mix of deals. the thing we learned is the diversification of supply is important. taking contracts of different lengths with different partners is important for us at this point. the advantage we have now is already at the end of last year, we started to look ahead at the next season. we have bought ourselves more time >> china is the major difference china coming back online again, it was easier to source lng in an environment where china was not importing a lot of lng. what does china coming back to the market do to the ability to diversify? >> the lng market is global liquid market. the shipment will go where the

prices are best. this is the dynamics we have to look forward when china comes back and demand goes up. we have to expect lng prices to come back up we have seen in the recent weeks in particular in europe the gas prices have trended down significantly. less stress in the markets and supply chains. i think as we go through the winter, when and if china comes back, we will see those markets and prices firming up. >> the price of gas could go >> i think speculation at this point is not a good idea you have to remain agile >> what is your view on the price cap? the european price cap proposal put forth? one of the criticisms is it was set at a way too high a price and renders it a moot point. it is not effective when push comes to shove

what is the opinion? >> i think the high price caps have been set now and they prevent arbitrary effects that happened due to certain events in the market. they can cause a lot of issues on the hedging positions and so on that will prevent this i think it is important to keep the market free to a large extent so we are able to attract enough gas last year we had price hikes that were very high, but allowed us also to prevent security of supply situation that is the most important thing. the most expensive gas we can have is the one that we don't have. >> the other side is it costs the governments a lot with the cost of living crisis.

they introduced stimulus to counter the rising utility bills. before we let you go, i want to ask about oil and where it is headed another surprise for this year, you would have thought given the political uncertainty the price of oil would be higher we are sitting at depressed levels because of the global economy. what is the outlook for 2023 >> we see it trending down in the second half of the year in particular in the fourth quarter. i think supply and demand situations were more balanced than people expected despite the russian situation, i think it is still that russia exports into different regions to different countries that are not participating in the sanctions. that keeps the global balance more even. >> the supply is still there we will have to wrap it up thank you so much for joining me enjoy the rest of the week here in davos that was alfred stern. ceo of omv

we are going to take a break. coming up, there is a lot more from davos we will speak with borje ekholm. >> thank you, joumanna i want to give you a check of european markets and tell you what is happening in london. we have red across the board loss as coes accumulating all m. you have the ftse mib with the losses down .6%. dax in germany down .3%. similar in the swiss market. we are seeing selling there. ftse 100 down .20% as i mentioned earlier this morning, the level to watch is 7903 we will hit a new all-time high if we hit that level cac 40 is down .20%. ibex is pulling back

the split from the sector perspective. travel is out in front up .20% insurance and oil and gas trading at the flat line on the down side, we are seeing an out sized pull back in technology that sector down .90%. it is interesting to see how stocks trade this week stateside. netflix is the one to watch in the tech sector. retail also under performing down .76%. auto down .76% as well turning to currency markets. 122.17 is the dollar to sterling and dollar/yen we were trading right now at 128.77 we could see movement depending on the bank of japan as they meet starting today. this was the first of two days the central bank will meet to

discuss yield curve control and interest rate policy dollar dollar/yuan at 6.76. joumanna, back out to you. >> thank you, julianna joining me now is the ceo of erickson back in sedecember, you came out with a bleak outlook why? >> our networks are driven by data traffic growth. what you see is data traffic continues to grow. we also see the uncertainty in the general economy. that leads to our customers to be more careful with investment. they can do that for a couple of quarters after that, they are subjected

to the growth and data traffic yes, we see chopping waters ahead. we want to be careful. >> can you break that down for me how things are playing out in north america and asia >> we are in the restricted period we will release our earnings in a few days i can't comment on any specifics. what with you see is frontrunner markets around the world have been a bit more careful from th summer and onward. you see growth in the number of other markets. for example, we are building fast in india for example in india, creating a digital society in india they are on a strong path with 4g they are building up 5g at a

faster pace. >> you talk about the mobile network. how is the rollout of 5g >> 5g is continuing to grow. it is driven by a couple of things the growth of data traffic 5g technology is going to be needed in order to just give consumer a basic experience in mobile broadband that drives the build out. then over time we see applications launched on 5g. when you use the features with improved positions you can do a number of things in 5g >> your case is there in your view >> the basic use cases mobile broadband is what you see today. the unique use cases where you use the 5g capabilities, they

are not there yet. they will come >> what about the involvement from the public sector i thought it was interesting when with the eu came out with the recovery package that 150 billion euro was earmarked for 5g is that significant? how much of an impact is that in the 5g technology? >> it is significant, but we have seen it is not allocated to real investment yet. the amount is a headline number, but reality is we see very little on the ground switzerland happened to be a bit of a different example here, 5g is built out quite well if you take large parts of europe, it is really not built out. >> where will it go next why is that the case >> i would say it is back to our customers and service providers. they are not making high enough

return on capital. if you don't make return on capital, you invest less you know, that's what we are seeing in europe our customers are careful with investing. i think this is driven by largely a regulatory environment. europe has elected to lead with regulation which i think is a dangerous path we need to think about how to create good investment climate for the operators to make the network investments. >> interesting you say that. 5g has emerged as a battle front between the u.s. and china are europe falling behind in the race for 5g? >> europe is clearly falling behind china is building out very fast. we see the u.s. building out we are actually seeing a number of other countries -- australia,

india. they will shortly have the best digital infrastructure outside of china india is really on the forefront of the build out driven by two of the biggest operators in the world they are building out very fast. that will help india digitalize. if you compare that to europe, we are behind. >> sober assessment there. what is the opinion of the inflation reduction act in the u.s. has that been pushing the trend? >> what it does is it makes investment in america more attractive we will see that affecting not only industries that are included in the inflation reduction act, but you will see it in other parts because the u.s. becomes a more investment friendly continent

that is likely to attract more inve investment. >> i would love to continue the conversation i know you can't speak about the company. interesting perspective. the ceo of ericsson. also coming up, we will speak with rajesh gopinathan we'll be right back.

welcome back to "street signs" live from davos and london i'm joumanna bercetche these are your headlines the hong kong chairman says the picture will improve as the reopening progresses >> china opens up and the economy will come back and there is a pent-up demand there

as the economy opens up, recovering from last two or three years, hong kong will benefit from that as well. standard charter ceo bill winters says the u.s. has more to do to get inflation under control. >> we are having the energy price decompression partially. the job market in the u.s. is still strong i would not get too excited about the end of the hiking cycle. and the imf managing director says fragmentation risks a major blow to the global economy. >> translates in $7 trillion wiped out. the size of germany and japan gone clearly this is not a desirable path to follow

and spanish prime minister tells cnbc the eu has something to learn from america when it comes to fighting inflation. adding he hopes a trade war can be avoided >> this is something i would say mandatory for the administration and european union as a whole and member states. this is what we have been advocating apart from that, i think internally, we have homework to do welcome back one of the top stories today is chinese annual gdp with the lowest reading on record 2022 saw the weakest growth since 1976 the end of the culture revolution gdp growth came in at 3% better for the year. that is shy of the target rate of 5.5% and long way off

202202 202202 2021's 8.4%. china's population fell to the lowest in six decades. it expected to shrink three times in the coming decade the managing director told me on the sidelines of davos that he was optimistic about the indian outlook this year. >> the economy is well poised right now. the government has taken a number of quick actions in terms of increasing interest rates and at one point levying taxes on key products to keep inflation down in india. that has worked. we are present in over 20

industries in india. what we are seeing is positive indivisible will get impacted. when the world goesthrough recession, it is not as if we feel left out. the impact will be less on india because of the inherent fundamentals of the country and the fact that inflation in india hasn't gone away it is under control. given the actions we have taken so far, we see india in a very good spot. >> joining me now is rajesh gopinathan ceo of tata consultants. one bright spot is india we talked about europe being on the brink of recession if not in recession. u.s. with the growth moderating and china numbers came out this morning very low at 3% india stands out what is the outlook for growth this year?

>> we are optimistic on india. one is a stable environment and forward looking government that is taking the hard decisions and making the infrastructure for being able to power india. clear mission and very strong execution focus. there are other elements india is one of the only countries going through the energy transition. building out to the new with the manufacturing and telecom. india is building out something new and into the new technology and new element. we don't have the issue of legacy infrastructure we need to get out. there is a lot of global issues for the economy. you combine the demographics and the capital ability and the upside is significant. it needs to be executed

carefully. it is there for realization. >> the possiitive macro story. how much is the government going to impact the firm like yours? >> significantly one is the physical infrastructure more on the financial infrastructure the government's approach on the financial buildout means we have been strong partners we looking at the applications and other industries with the build out. financial infrastructure payment structure in india is probably world class second to none far ahead of other developed countries. many others approach to the visible stack has been made available to the private sector. that is unique in the way

indivindia has been going about a it >> one thing i want to talk about with you is this phenomenon of on-shoring a lot of countries have started rethinking the supply chain and how they can be resilient to future shocks. how does that affect a businesslike yours which is reliant on off-shoring in. >> if you think about the services capacity or technology capacity or manufacturing capacity, manufacturing is a fixed movement from here to there depending on the political situation. technology capacity is unbound if you look at the developing markets, the demand to capacity available, we are off by millions in terms of what the

capacity requirement is with the volume and nature. i believe of considering the significant expansion in the overall demand for technology capacity and services capacity, it is growing and shift from one to the other is not a very material element on the services side unlike manufacturing side. >> what is the pipeline looking like from the customer perspective? is it strong or do you feel demand is dwindling over the macro economy? >> it is strong. the pipeline is strong we have seen a bit of slowdown in the last couple quarters in decision making. that is a very regional story. it is different in the u.s it is different in the european markets. the u.s., i think, is more of a boss rather than a major issue we believe by the middle of the year we should see significant

bounce back there. the european story is a bit more dependent. the external is playing out with the political situation. they are driven by triggers that come from outside. as the u.s. looks into it, it may see the amount of the froth taken off. underlining companies balance sheets are in good shape we should see good growth there. >> i have been read bengal head co -- i have been reading about head count reductions in the industry >> that is the big tech area they are volatile by nature. they are super aggressive in building out the capacity to capture demand you will see a slight slowdown they are aggressive on the down cycle. if you see it over the cycle,

actually it is considering the total hiring that happened, the ones they are letting go are cut off. overall, that is the product business product business is more volatile than services business. on the services side, that is very significant growth momentum it is continuing. >> thank you so much for joining me today that was rajesh gopinathan coming up, hadley will speak to hussain sajwani a first on cnbc. joumanna thank you. wall street will open after the long weekend and you have three indices looking for a negative start to trade after last week earnings with the u.s. banks reporting on friday and investors did to the seem to

like what they saw they were disappointed by the comments around a likely recession. the base case now for jpmorgan chase and other lenders also with bank of america talking about likelihood of recession. by the end of the day on friday, all three majors ending higher goldman sachs ending the banking sector they have been pushing through a number of layoffs. w one question for that bank is are more layoffs in the pipeline goldman sachs ramped up hiring in the pandemic to take advantage of deal making now, of course, the down turn in deal making, means they don't need all those people and under pressure to cut costs. that is something to watch in the banking space. we have p&g to deliver results in the consumer goods space. give us a sense of how they are dealing with inflation and pushing through input costs into prices and how the u.s. consumer

holding up as well and we have a glimpse in the tech sector. a lot to look forward to this week. turning to europe, we have taken a cue from asia and trading lower. all regions are fairly broad based in terms of the declines worth noting we are looking off the lows of the day. we were looking at steeper losses ftse mib leading the way lower modest in terms of losses. ftse 100 and dax and cac 40. here is the split in europe. a fairly split board here. travel out in front up .30%. insurance also catching a bid this morning chemicals and industrials as well up .20% financial services and household goods in the green on the down side, technology pulling back investors selling the european tech stocks. interesting to hear the comments

with the eu andu.s. relations from davos the two regions have been solid and showing a lot of solidarity over the course of the year with regards to ukraine, but there is a lot of tension brewing with chips and subsidies that the u.s. is pushing through to attract investment in the country. something to watch in the tech space as the davos discussions continue back to markets. autos under performing do down .80%. media and banks and retail turning to fx markets. euro/dollar holding steady sterling is strong against the gree greenback. do d joumanna, back out to you. the imf has cast a shadow over davos with the gloomy prediction that one-third of the

global economy will slide into recession this year. the managing director told cnbc she sees countries focusing on growth rather than international cooperation. >> that countries are building structures for growth that are more dependent on what they do domestically on how they work internationally. trade is trending in the wrong direction. trending down. this is why we decided it is time to carefully look at what are the costs of fragmentation >> and hadley is joining me with a special guest. >> thank you, joumanna it is great to have you on the program. chairman of damac properties walk us through how you see the economy in the uae through 2023? obviously there was a very, very big move in the property market

last year. projection is 5% for 2023. how does that look to snu. >> -- how does that look for you? >> i thinkcovid changed the phase three. we had phase one in 2000 through 2009 with high growth. then 2009 to 2019. then post covid. it is a global city. everybody wants to live in dubai and influence of asian and especially the wealthy ones of the companies coming to make dubai their headquarters with securities and taxes i'm bullish going forward. >> does that mean we will see dubai become more expensive? >> yes dubai is becoming more e expensive. influence of wealthy people on

the large corporation, the demand goes up and they can afford to pay higher prices for a driver and cook and so forth the cooks at my house are demanding more money >> who can afford to pay that? wealthy and russians how many russians are your customers? >> i know 15% is russian which is acceptable. we have certain caps on speculators. dubai has a very interesting strategy air by land is 15 minutes drive from the road when there is no traffic. huge parcels of land is available. we developed 15 million square feet we have other companies

developi developing there will be others developing that >> people won't be priced out of dubai? >> i don't think so. >> walk through the political situation is impacting your business >> dubai has been a hub. dubai benefitted from the iran and iraq war and kuwait and american and iraq war and so forth. everybody continues to benefit today with respect to the russian and ukraine war. unfortunately, dubai benefits from the higher taxes in europe and london and paris and other european cities. >> crisis is good for dubai. >> yes. >> lots of questions of the future of the uae. you have seen the crown prince become the president of the country. lots of questions if his son will become the next crown prince and if that is one of his brothers what is the long-term challenge for the country?

>> uae is blessed with fourth or fifth largest volume and trillion dollar of ground investment globally and blessed with good leadership and first class infrastructure the leadership transfer of power took place everybody spoke about his brothers and this and that they were like one family. in 48 hours, things were clear dubai has a conference and after that, he is the one who leads. his younger brother in power and they are working closely. >> it is not succession. what is the long-term challenge for the uae? >> reasonable complex. if you get another major war between iran, israel, america, i

don't know that will have an impact on the country. >> no doubt. before we let you go, when you think of what happens next, where are you looking to expand beyond dubai >> we bought land in miami we are excited about the project. we are working on it day and night. >> are you working with the former president >> no, we bought it on our own we have nothing to do with the former president it will be the most luxurious apartments in north america. >> all right >> thank you very much for joining us hadley, thank you. that is it for "street signs." stay with cnbc for much, much more from davos. hi. i'm shannon storms bador. when we started selling my health products online our shipping process was painfully slow. then we found shipstation. now we're shipping out orders 5 times faster

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it is 5:00 a.m. in new york. 11 11:00 a.m. in davos. nasdaq doing something for the first time in more than a year. turning point in china the first population drop in 60 years. growth also down what happened to the price of oil? self proclaimed the king of meme stocks picking a fight with the head of alibaba. >>