find out from the founder and chairman, klaus schwab. ♪ scarlet: i'm scarlet fu. "what'd you miss?" missed. he spoke with klaus schwab who said the crash and commodity a crisis thateate will dwarf the refugee crisis and weighed in on global markets. klaus: let's not forget we are moving in cycles. the world has become much more interconnected. vulnerability takes part practically everywhere and in every sector. reinforced it has the consequences of the industrial revolution. joe: do you think a slowdown could bring down the economy of the u.s. and europe? i think we see a small acceleration of economic growth in the developed world and this acceleration in the emerging world i would say we should not underestimate the consequences of lower commodity notes, oil, we should discount the vulnerability in terms of foreign exchange exposure of some countries. i would be positive that i would see the potential for substantial shocks. fed has commenced a tightening cycle a lot of people think may not be a wise idea or good timing for that. how do you see the feds role in this? are in unchar

established in 1971 by german professor klaus schwab, the forum is known for its exclusive guest lists. at davos, colored badges define a delegates access to events. still, this years forum is focused on climate change, terrorism, and fears over the global economy. one key concern is energy prices. with iran now entering the already heavily supplied global oil market and chinas economy in trouble, some believe oil prices could decline even further. dennis nally, chairman of pricewaterhousecoopers says, quote, "some people are a barrel." endquote. have energy prices bottomed out or will they continue to drop? clarence: i don't know because nobody knows for sure but i think they're going to go down more simply because of the saudis are flooding the market trying to actually undercut our tracking and our oil capacity in the u.s., among other sources. eleanor: steel containers that you put the oil into the transport it now are more expensive than the oil. it's a dramatic change and it's reshaping the politics of the middle east. now, if iran wants to come in and flood the market with cheap

swap -- is with carl klaus schwab of the world economic forum. that china would still be willing to intervene if necessary to make sure that the speculators in the market would not be dominating and making a bad party for these small mom and pop investors. but there have been a lot of these steps in the market, with the circuit breakers and forced iservention, or whether it crackdown on shortselling, or a which funds towards hedge funds in china. there is a lot of uncertainty outside of china, and this guy was trying to as wage those fears. assuage those fears. rishaad: are there any crack in his view about the chinese economy? reporter: everyone knows there are headwinds in the chinese economy. he tried to paint a broader picture, saying they are blowing it between 6% and 7% annually, and they will for the next five years, he says. they will continue to be an engine of growth. here is what he had to say. translator: the world economy is now at a crucial stage in the shift of the force that drives -- that drives growth, and the chinese economy ha