Davos 2012: as it happened, January 26, 2012 16.58 Louise Armitstead has filed a report on that flattering analysis that Ireland is the 'poster child' for debt-striken Europe (see 15.39): Dublin's rapid implementation of its austerity package is swiftly turning the country into a posterchild for the rest of debt-stricken Europe. By measure including cutting public sector jobs and pay and increasing the state pension age, Ireland turned 10 years of budget deficits into a surplus last year. Enda Kenny, Taoiseach of Ireland, said the medicine had not been pleasant but determined countries could see a result "very quickly."" 16.36 Here's Reuters' Ryan McCarthy on the quality of Davos pundits. 15.39 An animated Enda Kenny in discussion with Danish PM Helle Thorning-Schmidt: Mr Kenny said people will take the pain but only if the government properly explains the process and how long it would last. Ms Thorning-Schmidt of Denmark said: "People will accept austerity if you talk of jobs and growth too." Everyone must be part of austerity. People are prepared to make sacrifices but they will not be sacrificed. We must not sacrifice parts of society. She said there had been much debate about banks being "too big to fail" but some people "think they are too small to matter." Jyrki Tapani Katainen, the PM of Finland, suggested Ireland is becoming the posterboy for eurozone recovery: "The Irish model [of recovery] is the one we all need. 15.18 More from Louise Armitstead at the Rebuilding Europe session, where Enda Kenny, Taoiseach of Ireland, has some stark words: He said the EU should remember it "grew out a mood and change to prevent human slaughter... it was built on co-operation, solidarity and trust." He argued that the reason for the crisis was "incompetence of some governments, a lack of trust and internal wrangling about national issues." Markets have lost trust in the EU. But, on the bright side, he said there were signs that EU co-operation had vastly improved. He said big decisions had been achieved relatively smoothly, including the draft wording of fiscal pact; to bring forward the European Stability Mechanism; to run the ESM alongside the EFSF; while the "political controversy" surrounding the role of the ECB in the crisis had diminished. Bronislaw Komorowski, President of Poland, made EU competition his main point, warning of the threat of emerging markets and urging leaders to be bold. He said so far leaders had had a "far too legalistic approach to the problems."" 15.14 They think of everything at Davos, as Richard Fletcher has discovered: with the media centre five minutes from the congress hall, the organisers lay on golf buggies to whisk journalists from one to the other: 15.08 Louise Armitstead is at an interesting session with the Prime Ministers of Denmark, Finland, Ireland and the President of Poland on "Rebuilding Europe." Helle Thorning-Schmidt, of Demark, reckoned Europe "doesn't need rebuilding" claiming that the "core problem is not Europe but bad discipline in budgets among some members states." She added the crisis emerged "not because we are Europe but because we had too little Europe." She said that at the EU leaders summit on Monday "I can assure you and the rest of the world we will do everything we can to restore Europe and get it back on track and restore discipline." Jyrki Tapani Katainen said that the lesson Finland learned from its own crisis at the start of the 1990s was "you can't have any growth without confidence." He said Europe needs to impose austerity measures and better rules - and make decisions as a whole rather than between governments. 15.01 Echoing points made by others at Davos (see 10.10), World Trade Organization director-general Pascal Lamy says the West has a skewed view of China which Beijing has to fix. The problem in non-Chinese public opinion is that there's a Chinese official behind every Chinese business person. That's the perception - that China is grabbing resources, that's what they are trying to do in new colonial something, that they're after technology, stealing. All these extremely negative views which overall translates into: this is a country that doesn't play by the rules. 14.50 Jeremy Warner has just heard some positive reaction for David Cameron's speech from an unlikely quarter: 14.32 Barclays boss Bob Diamond says bankers are "somewhat more comfortable" on sovereign debt risks than they were a year ago since the European Central Bank's loans have eased the situation. 14.12 Seb Coe has been busy promising a decent Olympics and legacy despite Europe's financial woes, claiming it has been a "Godsend" for Britain. He added that spending has been responsible. When we were bidding, we were bidding at the high water mark of the global economy but we were still talking about delivering the games responsibly. The beauty of the Olympics is that they are all different. Cities do not set out to compete with one another. The opening ceremony will be proportional but we will be respecting the fact that there will be over 200 nations present and over 100 heads of state. It will be a fabulous opening ceremony, an opportunity to showcase Britain. He said future generations of Londoners will enjoy the fruits of an upgraded public transport system and a regeneration of the traditionally deprived east end. 14.05 According to Google's Eric Schmidt, the new "wealthy generation" are less selfish than the last crop. Although he didn't quite phrase it like that, as Kamal Ahmed tweets: The next tech generation will become "the biggest donors in the world," Schmidt said. 13.46 China appears to be a source of both hope and concern for most at Davos. Nariman Behravesh, chief economist at IHS Global Insight, sums it up neatly: People worry on two fronts. One is that China is still far too export dependent and that makes it very vulnerable. The second worry is the housing situation. It is tricky because there are very few countries that were able to deflate a housing bubble without creating some other damage," he told Reuters. China has a low-key presence at Davos, although that's probably simply down to a clash with a public holiday. 13.40 Could be a more tricky journey home tonight than usual following the parties: the sun has come out in Davos, and it's turning the snow to slush: 13.33 Richard Fletcher has been at a lunch to talk about the London Olympics and its legacy: Speakers included Lord Coe and Boris Johnson. But perhaps the most interesting contribution came form Joan Clos. He organised the Barcelona Olympics, widely seen as a huge success both in terms of the games and its legacy. But he argued that it was very difficult to make comparisons with London. Not least becuase when he organised the Barcelona games they had just six mobile phones for the whole team running the event. Sir Michael Rake, chairman of Olympic sponsor BT Group was also speaking - if he even knows how many mobiles the London Olympic team has,he certainly wasn't being drawn. 13.14 Mr Rehn's comments mark the first time a top EU official had spelled out that more public money than the planned $130bn would be required for a second Greek bailout package. Germany, France and other eurozone states have so far described the $130bn figure agreed in October as a line that must not be crossed. 13.09 Economic and Monetary Affairs Commissioner Olli Rehn has said that more public money will be needed to make up a shortfall in a second bailout of Greece if private bondholders agree to take a share of losses, with eurozone governments and EU institutions needed to make up the difference. He also said Greece is close to a deal with private sector investors in the coming days on a debt swap under which they would take voluntary writedowns on Greek bonds. In fact, we're quite close to a deal between the Greek government and the private sector community. I would expect it will be concluded in the coming days, preferably still in January, not February," he told Reuters in Davos. 13.02 Some business reaction to David Cameron's speech is coming through. Sir Nigel Knowles, managing partner at law firm DLA Piper, said: David Cameron absolutely nailed it today and it was so refreshing to hear him put in context the eurozone crisis but also moving on and emphasising the need to return to entrepreneurialism of the past where people can be encouraged to invest and create employment in Britain and Europe. It is this entrepreneurialism that will have the biggest impact on youth unemployment. 12.56 AP reports that Chinese investors are trying to follow the rules when spending money abroad, according to the head of one of China's biggest private equity firms: The vast majority of Chinese companies are trying to follow the rules as they understand it," said John Zhao, chief executive of Hony Capital, whose company controls PC maker Lenovo, which bought IBM's computer division in 2005. But many Chinese companies are still trying to learn the rules. The director general of the World Trade Organization, Pascal Lamy, said China will continue to face "public perception problems" from its investments abroad. We will see in the years to come, as China's investments grow and grow. ... We will have the same sort of political turbulences as we have had on trade for the last 10 years," he said. One way for China to ease the rest of the world's fears about its extravagant corporate shopping sprees is be more open about its vast poverty problem at home, said Lamy. "In order for this to result in a win-win game a number of public perception issues have to be addressed," he said. 12.32 But Reuters' Alexander Smith writes that some bankers are choosing to keep a low profile at Davos, with the chief executives of Unicredit and Royal Bank of Scotland giving it a miss altogether. He adds that those who have made it to the Swiss Alps feel the need to convince the world that they have a role to play in getting economies back on their feet: For those who made it to the Swiss ski resort, including top executives at JP Morgan, Citigroup, HSBC and Barclays, there are back-to-back meetings. They are advising corporate clients, meeting potential investors, testing the economic pulse or seeking to persuade governments and regulators to loosen the regulatory vice, which was tightened in response to 2008's financial crisis. The few who have chosen to speak out say they need to win over a sceptical public, also stressing the need for their services if economies are going to grow. "We should all recommit ourselves to a robust financial system, a system that balances safety and soundness on one hand but also addresses the need for growth," Citigroup chief executive Vikram Pandit said. "It is important for the financial system to recognise there is a great deal of anger that is directed at it for the crisis, and trust has been broken and we've got to start addressing that," Pandit said, adding banks must "serve clients and not themselves." 12.26 Bloomberg has compiled the sentiments of a clutch of bankers. Both Barclays' Bob Diamond and Deutsche's Anshu Jain told the wire that the European Central Bank's unlimited loans to the region's lenders have boosted investor optimism this year. Speaking to Bloomberg Television in Davos, Mr Diamond said: We are seeing a big change driven by somewhat more confidence in the U.S. economy and, most importantly, that Europe is on the right path. There is a bit more confidence in the market today. That was echoed by Mr Jain, who said: We are beginning this year on a mildly better note than the one we finished on in the fourth quarter. Citigroup's Vikram Pandit added: Sentiment is a lot better than it was a few weeks back and that's because of the very strong actions taken by the ECB. A lot of the actions that are happening are moving in the right direction of a stronger euro and euro zone. 12.09 Here's a video wrap-up of what David Cameron had to say during his speech in Davos earlier: 12.04 Oh, seems that TB isn't there after all: 12.03 Kamal Ahmed lets us know that he is now at a debate about philanthropy with none other than Tony Blair, Eric Schmidt, Sean Parker and Yuri Milner. 11.57 Remember Sir Martin Sorrell's stripy scarf that Kamal Ahmed mentioned earlier (10.39)? Vanessa Friedman, the Financial Times' fashion editor, has written a blog on appropriate accessorizing in Davos, including an honourable mention for that scarf: Mr Sorrell, for example, also wore an eye-catching Crayola-bright striped scarf that when combined with his furry gloves made him look distractingly like a child's teddy bear. Dennis Nally, chairman of PwC, had on some black leather gloves that probably seemed innocuous enough when he tossed them in his carry-on, but that in photos call to mind all sorts of associations with bad guys pulling on gloves so they don't leave fingerprints - not exactly the image an executive wants to convey these days. 11.38 It's not just bankers and business leaders at Davos. Long-distance yachtswoman, Dame Ellen MacArthur, is also there to talk about the work of her foundation and its latest report, "Towards the Circular Economy: Economic and business rationale for an accelerated transition." The report, featuring analysis from McKinsey, is the first comprehensive study of the economics of the circular economy and aims to outline a pathway for organisations to realise the new business opportunities associated with circular business models. For those not familiar with the concept of a circular economy, here's a brief description: The essence of the circular economy lies in designing goods to facilitate disassembly and re-use, and structuring business models so manufacturers can reap rewards from collecting and refurbishing, remanufacturing, or redistributing products they make. Dame Ellen is clearly having a busy time of it. She's just tweeted: 11.29 Away from David Cameron, Barclays' boss Bob Diamond has been talking to Bloomberg Television at Davos. Asked about the challenges faced by the bank, he said: I think the other has to be the regulatory environment. I think it is an environment we have been expecting to be more intrusive and high levels of capital. The challenge there is simple. We know we want to make the financial system safer and sounder. But we also know the importance of driving the economy, providing opportunity for job creation, I think, importantly, keeping a balance amongst the G20 or amongst the major economies so that we encourage the continued development of international banking and not the return to protectionism and Balkanisation. In all those areas, we continued to move forward. And when asked on British regulation in particular, he added: I think you are referring to the Vickers Report and to the Independent Commission on Banking. That is a type of example of the Balkanisation I am talking about. We have been very public, one, that we would have preferred a different route. That ring fencing of the retail banking operations will increase the costs of retail and business banking in the U.K. We have also been clear that the decision is made, we are moving on, we are beginning to implement, and we will make the best of the situation. 11.23 Richard Fletcher, the Telegraph's City Editor, tells us his thoughts on David Cameron's speech: As David Rubenstein, co-founder and managing director of Carlyle Partners, commented at one of the very first sessions of this year's annual meeting: "no one is going to call for more regulation." So David Cameron's call for structural reform of the single market and the scrapping of unnecessary red tape, went down very well in the main hall here at the World Economic Forum annual meeting in Davos. Dave wants a target to reduce the overall burden of EU regulation; and a new proportionality test to prevent needless barriers to trade in services. 11.16 Rowena Mason tells us that during the Q&A, David Cameron drew a laugh by searching for female questioners in the audience, saying he needed to "get the gender balance right." She adds that the Mayor of London has made an appearance... Now Boris Johnson has popped up and is making everyone watch a video about the London olympics. He appears to be the "special treat" Cameron promised the audience earlier... 11.13 Kamal Ahmed writes that David Cameron's speech was "typically robust" and certainly different in tone from Angela Merkel's last night: The problem is, Europe really dislikes being told what to do, particularly by someone outside the Brussels club. Having said that, business leaders in the audience will have lapped it up. They completely understand the need for clearly defined solutions that are then implemented. Cameron appears one of the few leaders who can articulate such a programme convincingly. 11.07 Rowena adds that on Europe, David Cameron has summed it up in a nutshell: It's a little bit better than it was but it's still not fixed 11.03 A dispatch from the Telegraph's political correspondent, Rowena Mason. She writes: The Prime Minister risked fueling tensions with France and Germany by weighing into the debate on the future of the single currency. Speaking at the World Economic Forum in Davos, a gathering of the globe's business elite, Mr Cameron held up the United Kingdom's pound and the United States' dollar as good examples of currency unions. But he said it was difficult to have a single currency without deep financial integration across the currency's area, collective debt and a strong central bank behind it. "Currently it's not that the eurozone doesn't have all of these, it's that it doesn't really have any of these," he said, drawing laughter from the audience. He urged European leaders To take "radical, difficult steps" to address these shortcomings. The Prime Minister said Europe is still at a "perilous time" because of its debts and must stop throttling growth with excessive bureaucracy. In particular, he attacked the "madness" of European regulation, especially a tax on financial transactions that will cost thousands of jobs at such a fragile time. 10.56 David Cameron has told delegates that the European Union's plan for a financial transaction tax is "simply madness." 10.53 Angela Monaghan, our economics correspondent, brings us the inside information on who is watching David Cameron's speech. And who isn't: Mandy, Boris and Seb Coe in front row of Cameron's speech in Congress Hall. Not quite Mick Jagger but... Notice Gordon and Sarah Brown didn't stick around for the speech after his session in same room. 10.48 Our colleagues on the Telegraph's debt crisis live blog are bringing you all the details of David Cameron's speech at Davos. He has taken to the stage and told delegates that Davos meets at a "perilous" time for economies. He mentions the poor UK growth figures and EU unemployment, saying this is "not a moment to pretend there is not a problem." 10.39 The Sunday Telegraph's business editor, Kamal Ahmed, tells us that Sir Martin Sorrell, boss of WPP, is cutting a dash at Davos: There are certainly a lot of business titans here at Davos - Sir Martin Sorrel is sporting a particularly bright multi-coloured scarf which he says means no-one can fathom which football team he supports. Not quite in Sir Martin's league is Philip Hughes, who runs a small company of 15 employees in Vauxhall, London. Today he is the Davos star. Mr Hughes and his team from IceBox worked for five days creating the ice sculpture to mark London 2012 here in the Alps. They then put it on a truck and drove it here (it took two days) to be unveiled by the Mayor, Boris Johnson, and Sebastian Coe. Boris made much of the "bringing ice to Switzerland" line. He also pointed out that London makes bikes that are exported to the Netherlands and chocolate cake that finds its way to France. Among all the gloom of the eurozone its good to see Mr Hughes, who started his business 15 years ago, making a name for his firm. "This is London's year," Boris said. 10.10 More from Louise Armitstead at an earlier debate on 'putting China's trillions to work': Richard Levin, president of Yale University, said 'American public opinion is hostile to China, [it's seen as] taking away American jobs. The perceptions are unfair and ungrounded.' Pascal Lamy, director general of the World Trade Organisation, said Chinese overseas investment will hit publc perception problems, both inside China and outside. This is a political issue that needs to be dealt with or it's going to be 'one more mess in the system', he said. He added that inside China, trillions of reserves are seen by theChinese as theirs, and government spending triggers a backlash. Outside China, the world wonders if it's a poor country with many rich people, or a rich country with many poor people. 09.48 Our head of business, Damian Reece, reports from a debate on whether prosperity and prosperity are mutually exclusive featuring economist Larry Summers and a controversial argument from Prudential boss Tidjane Thiam: Summers reckons the idea of expansionary contraction (ie the sort of fiscal consolidation being pursued by the UK) is not only oxymoronic but can be accurately described without the pre-fix oxy. But other panelists are more accepting of austerity as a route to recovery if accompanied by reforms to labour laws to boost competitiveness and infrastructure stimulus from both public and private sector. Most compelling was Thiam's argument that the minimum wage has become a "machine to destroy jobs," keeps young people out of the job market and allows extreme politicians such as the National Front in France to thrive." 09.44 Bill Gates, who was speaking at the food debate earlier this morning, (see 09.00) has announced that the Bill & Melinda Gates Foundation has committed $750m to the Global Fund to Fight AIDS, Tuberculosis and Malaria. "These are tough economic times, but that is no excuse for cutting aid to the world's poorest," he said. 09.29 Here's Boris Johnson and Seb Coe unveiling that ice sculpture. "Yes, we brought ice to Switzerland," said Boris. 09.20 Back at the food debate (see 09.00), Bruno Le Maire, French agriculture minister, had this to say on the G20's role, according to Angela Monaghan. He said the most important achievement of the French G20 leadership was to put food and agriculture back on the agenda. He said Mexico, taking over the G20, had a responsibility to keep this going. 09.14 Raymond Baker of the unwieldy sounding 'Task Force on Financial Integrity and Economic Development' has warned that politicians' and regulators' failure to supervise the financial system is resulting in widespread disillusionment with mainstream politics that "threatens to undermine faith in democracy. World leaders need to respond quickly, and the finance community must play its role," he said. He also said a "new age of financial transparency and accountability is required." There is money in the global financial system that, if accessed and used wisely, could go a long way to mop up deficits and reinvigorate the global economy. That treasure trove includes the $3.1tn of tax, equivalent to 5.1pc of global GDP, which is illegally evaded in 145 countries, covering 98.2pc of the world's population, as well as the billions that go missing due to corruption. Developing countries alone have lost $903bn in illicit outflows during 2009. 09.06 Coco Chanel's maxim that it's always better to be slightly underdressed doesn't apply in Davos, as Richard Fletcher has discovered to his cost: 09.00 Angela Monaghan reports from a session on global food security featuring Bill Gates and Unilever boss Paul Polman. The main Congress Hall is about half full (if that) as Gates, Polman and others gather to discuss food security. More pressing issues on delegates' minds? One of the key points made in this debate is that the G20 must not lose sight of the issue as they grapple to contain the financial crisis. Gates: 'It is only in last 3/4 yrs that agriculture has got back on agenda but unfortunately that's coincided with the financial crisis. He said he was optimistic though that the 1bn hungry in the world could be reduced, with both public and private investment, science and improving farm productivity. 08.51 David Cameron's other main message from Davos this morning will be that eurozone leaders need to "stop tinkering" and be "bolder" if Europe is to avert an escalating debt crisis. This is a time for boldness not caution - boldness in what we do nationally, and together as a continent," he's expected to say. He will also warn that competitiveness remains Europe's "Achilles heel," with the single market incomplete, and "unnecessary" measures from Brussels that were burdening businesses and "can destroy jobs." 08.39 In this morning's Telegraph, Jeremy Warner writes from Davos that it's now "up to China to save capitalism." 07.57 Louise Armitstead has battled through the snow to arrive at what could either be a fascinating session or a damp squib. Here's a morning view from our own Louise Armitstead: