Davos 2012: as it happened, January 27, 2012 Eric Schmidt, the executive chairman of Google, rejected accusations by Mr Murdoch, the chairman and chief executive of News Corporation, who said that the internet company was a "piracy leader." Mr Murdoch claimed earlier this month via his Twitter account that Google allowed links to appear on its search results to illegal copies of films such as Mission Impossible - the Ghost Protocol. Speaking at the World Economic Forum at Davos, Mr Schmidt said that legislation was needed to "follow the money" to stop pirate sites creating revenue from material breaking copyright laws. Greek government official says aiming for a debt swap deal in principle by Sunday evening, Reuters reports. 16.20 Talking about celebrities, Richard Edgar of ITV, has found a real one and taken a pic: 16.14 Jeremy Warner, the Telegraph columnist, says Britain is edging towards agreeing to stump up more money for the IMF - and more political infighting. Britain is edging towards agreeing its $30bn share of the $500bn of extra funding demanded by the IMF for eurozone bailouts, a sum so large that it will require parliamentary approval. That's the clear message I've taken from a speech made by the Chancellor, George Osborne, to British business leaders here in Davos. I may be jumping the gun a bit, but it seems to me, listening to other European policymakers gathered for the World Economic Forum annual meeting in this Swiss Alpine resort, that the conditions he listed are quite likely to be satisfied. He has his concerns: I'm not convinced that even €2trillion is going to be enough given the downward spiral in debt dynamics Europe now finds itself in, where economic contraction increases the size of the debt burden regardless of measures to fix deficits, which in themselves are contractionary. It's a vicious cycle. But my main concern is the same as that of the US administration. This is a crisis the Eurozone is easily rich enough to solve itself through collectivisation of the debt burden and fiscal union. Why should comparatively poor countries such as China and India be expected to contribute to the bailout of relatively rich ones? Morally, it's indefensible. As he concludes, the great firewall debate is set to run and run. 15.30 There's seems to be a dearth of celebritiies in Davos this year - besides the stars of business and politics. Sir Mick Jagger hit the headlines when he snubbed David Cameron to go partying with Boris Johnson and Holly Vallance, but that seems to be it. Where's Bono? Colleague Angela Monaghan, says: Tell me about it ... the closest I've come to a celebrity is Prince Andrew and that doesn't really count! Not exactly Mick Jagger... 15.20 Martin Sorrell, the WPP chief, is addressing the issue of whether emerging markets deliver growth and he's bullish ... 14:50 Here's a summary of the some of the key economic developments from Davos today: European Central Bank president Mario Draghi said that the eurozone had made "outstanding" progress in its efforts to resolve the sovereign debt crisis. US Treasury Secretary Tim Geithner signalled the United States is ready to go along with an increase the IMF's ability to loan to Europe if Brussels boosts its own rescue kitty first. EU economic commissioner Olli Rehn said he expected Greece to agree a deal with private creditors to write down its debt this weekend as the US praised efforts to combat the eurozone crisis. Britain's Treasury will have the power from next year to take charge in any future banking crisis, including being able to tell the Bank of England to pump money into the financial system, George Osborne confirmed. 14:45 Chancellor George Osborne stressed that RBS bonuses were not set by the Government. Speaking to broadcasters at the Davos World Economic Forum in Switzerland, Mr Osborne said: "They were determined by the board of RBS under arrangements set up by the previous government. The alternatives of either a larger bonus of the kind he would have got a couple of years ago, or the British Government taking over the running of RBS and putting even more taxpayers' money at risk, I think would have been worse for the British people. 14:18 More evidence that business leaders are in a more optimistic mood about the eurozone's future - a top Nomura executive has said the worst of the crisis may be over. John Phizackerley, Nomura's chief executive officer for Europe, Middle East and Africa, said in an interview on the sidelines of the WEF in Davos: There is evidence Europe is starting to turn a bit of a corner. If we can free up European markets and access non-government money, it's the beginning of the end. 14:14 Mr Osborne wooed his audience of company executives by claiming Britain is more business-friendly than the US, Rowena Mason reports. "We are a liberal Anglo-Saxon economy and even more open to trade and investment than the US," Mr Osborne said. 14:11 Rowena Mason sums up the Chancellor's speech in Davos. Europe needs to "show the colour of their money" before Britain will stump up more cash to bail out its struggling countries, George Osborne has said. Speaking at the World Economic Forum in Davos, the Chancellor has said the UK is willing to contribute more for a global bail out pot through the International Monetary Fund. However, he will not commit billions of pounds of British taxpayer money until Europe has done more to help itself. In a challenge to European leaders, he said: "The world needs to see the colour of their money before it contributes any more." Mr Osborne also said Britain is not "anxious" about closer ties between the 27 other European Union countries, after opting out of a treaty to bind the group's finances closer together. He said closer cooperation between Europen countries with the single currency is "welcome" because it is the best way of solving the financial problems. A resolution of Europe's debt problems would provide "the biggest boost" possible to Britain's economy, Mr Osborne said. 13:54 It's a brave new world out there... In fact, if you want a historic look at the World Economic Forum, you only have to take a trip down memory lane through this historic picture gallery. German economist Klaus Schwab welcomes participants to the inaugural European Management Symposium (the WEF) in 1971. 13:48 Meanwhile, European Central Bank President Mario Draghi said bond spreads are the "most potent engine" for government reforms in the euro region. They have to undertake the necessary fiscal consolidation, it's unavoidable. There will be a short-term contraction. We have to rebuild trust among the countries of the euro area. He added the ECB's loans to banks have averted a major credit crunch but credit remains seriously impaired in parts of the euro area. 13:46 The afternoon session is underway with Lord Adair Turner, chairman of the FSA, delivering his speech. He warns that breaking up some of the largest banks to reduce the adverse affects of their failure "would be very, very difficult." 13:44 Davos delegates listen intently to the speeches at the World Economic Forum in Davos. 13:36 Some thoughts from Kamal Ahmed, The Sunday Telegraph Business Editor, on the small matter of the RBS bonus fiasco and George Osborne's subsequent words on the subject at Davos: It is good to see George Osborne resisting the idea of playing to the gallery over Stephen Hester's bonus. As he argued at the CBI business lunch here in the Alps, people may think salaries in the financial services sector are high but it is not a matter for Government to set the amounts. Stephen Hester was not the cause of the collapse of RBS, he is the man hired to fix the bank. He will be paid half of the amount of last year and less than his peer group. His contract was agreed by the last Labour government. The Government does not want to keep the bank in state hands, therefore it needs to maintain market rate salaries at the top. The RBS board would not have accepted anything else. The alternative is maintaining the public ownership of a bank which is surely not the role of government and is certainly not government policy. 13:30 New York Times journalist Julia Werdigier says the talks seem to have shifted at Davos, with a bit more optimism in the air over the euro disaster: 13:26 Meanwhile, leaders of the Arab Spring sought to assure the world's elite in Davos that the rise of political Islam is not a threat to democracy, and pleaded for help creating jobs and satisfying the hunger of their people for a better life. Tunisian Prime Minister Hammadi Jebali told a Davos panel: I do not believe the new regimes should be called political Islamist regimes. We must be careful with our terminology... For the first time in the Arab world, we have free and honest elections that led to democratic regimes. 13:15 The head of the World Economic Forum has invited members of the 'Occupy' movement to meet him in person to discuss their concerns about the annual gathering of global business and government leaders. An Occupy protester took shelter in an igloo at shivering Davos earlier this week. Forum founder Klaus Schwab offered to meet the activists on Saturday, but protester David Roth says the group is mulling whether to accept the offer. Earlier on Friday, half a dozen protesters peacefully attempted to enter the high-security venue in the Swiss ski resort of Davos but were turned away. 13:10 Davos: Who to watch - CNN rounds up the key topics and business people speaking today, just in case you needed a reminder... 13:05 Delegates mull over the key issues at the Davos forum. Still to come on the agenda today are speeches from Lord Turner, chairman of the FSA, Peter Sands, chief executive of Standard Chartered and economist Nouriel Roubini. They will ask: Big Banks: cure or curse for the global economy? 13:03 Back to George Osborne's speech in Davos, and he's on to the controversial news that RBS chief executive Stephen Hester is in line to receive a £1m bonus. The Chancellor is arguing the bonus is going to be a lot less than other people running banks are going t get. He also backs Mr Hester, saying hs is shrinking the bank's balance sheet. 13:00 Brian Moynihan, chief executive officer of Bank of America, said action to stem the European debt crisis has eased concern about contagion. The efforts have "calmed the markets and allowed financing around the world to open," he told Bloomberg in an interview from Davos. 12:54 And there's a good piece by Time magazine on German Chancellor Angela Merkel's speech earlier in the week and a presentation by by outspoken financier George Soros. 12:50 Meanwhile, an interesting blog from journalist Jane Martinson says there hardly any women at Davos this year - despite the quota system designed to boost female participation. Is Davos an "old boys' club"? 12:47 George Osborne says businesses should think less about competition from Frankfurt or Paris and more about Hong Kong and New York. 12:40 Sir Mike Rake of BT warns the Chancellor of building anti-business rhetoric at Davos. He's not the only one, according to Damian Reece, head of business at the Telegraph. 12:36 George Osborne continues: We need to redouble our commitment to open markets and free enterprise. We still understand the British insight of 150 years ago that when you open your markets you benefit even if others don't do the same. We welcome foreign investment for the jobs and prosperity it brings. This is a source of huge strength for the British economy. 12:31 Richard Fletcher tweets live from Davos: 12:30 German Foreign Minister Guido Westerwelle declared his opposition on Friday to eurozone governments increasing the amounts of their loans to Greece to compensate for a shortfall in a bank write-down. "I see no interest in speaking every week about new funds," Mr Westerwelle said on the sidelines of talks between European Union counterparts ahead of a summit on Monday, not when "we don't know if promised reforms will really be implemented." 12:28 Link to the full George Osborne speech online now 12:10 Reporting on George Osborne's speech in Davos, Phil Aldrick writes: 12:06 Chancellor George Osborne proposed laws to give the British Treasury sole power over when to bail out banks, sweeping aside opposition from the central bank as he seeks to end confusion over who should take charge during a crisis. The Financial Services Bill, laid before Parliament in London on Friday, will give the chancellor power to order liquidity support for an institution, unwind its operations and all other aid for the financial system that requires taxpayers" money. The central bank wanted those powers to be exempt from the bill, lawmakers said this month. Speaking at the WEF in Davos, Mr Osborne said: Independent central banks should not be put under pressure to do what governments do not have the courage to do on their own account. There will be no ambiguity about who is in charge. During normal times, the independent Bank of England will be responsible for prudential regulation and systemic stability, accountable to Parliament. But in a crisis, when taxpayers" money is at risk both, the responsibility and, crucially, the power to act will rest with the chancellor of the day. 11:57 Billionaire investor George Soros said he's "now on the side of the angels" who believe that financial markets have a responsibility to preserve human civilization. In an interview with Bloomberg TV, he said he is among those trying to "keep the system together." He added Germany is "dictating" austerity for the euro area that needs to be offset with an economic stimulus as a "second phase." 11:55 Speaking from Davos, Mark Spelman, managing director, strategy at Accenture shares insights from a new Accenture study on seizing growth opportunities. Just four in 10 retail stores and online businesses are integrated, the study reveals. 11:47 European stocks fluctuated, after the Stoxx Europe 600 Index yesterday entered a bull market, as private bondholders continued to discuss a debt swap with Greece's government. US index futures and Asian shares rose. John Plassard, director at Louis Capital Markets SA in Geneva, said: "The haircut that will be applied to the Greek debt is a key issue that will both enliven and worry markets at the same time. The discussions will go on, but the tension will rise as there has been no agreement yet. 11:46 Davos delegates are gearing up for the Chancellor George Osborne's speech in Davos shortly. Follow @fletcherr and @angelamonaghan for breaking news and views. 11:40 Meanwhile, speaking from the sidelines at the WEF in Davos, London's mayor Boris Johnson has slated the big bonuses being awarded at RBS bank, one of the biggest finance stories of the day. Boris Johnson told BBC television in Davos: I find it absolutely bewildering because RBS occupies the same status in the economy as Gosbank did in the Soviet Union: it's a state-owned bank. People will not understand how someone can get a whacking great bonus like that when they're running a state-owned bank. 11:39 Back to the serious topics of the day and Tim Geithner has said China's currency is still below almost all measures of fundamentals, adding it is going to have to rise over time. The US Treasury Secretary said he would like China to do more on currency flexibility - and faster 11:30 Guests including Chelsea Clinton, Lord Adair Turner, Lord Peter Mandelson and Imran Khan attended the FT CNBC event in Davos last night. Pictures are coming through from the evening - here's a few to give you a flavour: Chelsea Clinton and Mark Hoffman, chief executive, CNBC Sir Michael Rake, chairman, BT Group Salmin Amin, Pepsico and James Cahn, a former Dragon 11:25 US Treasury Secretary Tim Geithner reitereated that China's currency is undervalued and urged policy makers there to make changes to trade and subsidy policies. 11:15 Mats Persson, director of Open Europe, the independent think tank campaiging for EU reform, digests yesterday's speech from David Cameron in Davos for the Telegraph. In a new blog, he says the Prime Minister outlined some "sensible" proposals for how to deal with Europe's economic crisis. But, he writes: Almost in passing, he also called for a eurozone "central bank that can comprehensively stand behind the currency and financial system," implicitly suggesting that the ECB must be ready to provide more cash to struggling banks and governments around Europe. Unfortunately this statement completely misses the intricacies which the ECB and the eurozone face in the coming months. 11:10 Back to Tim Geithner, who says Europe must errect a larger firewall of money if it is to defeat the debt crisis. Speaking in Davos, he said: The only way Europe's going to be successful in holding this together, making monetary union work, is to build a stronger firewall. That's going to require a bigger commitment of resources. If Europe does provide more cash then the International Monetary Fund is likely to be "supportive." "But not as a substitute for a more effective euro zone response," Geithner said. My sense is Europeans recognize that. 11:07 Spain's finance minister Luis de Guindos said the euro region can withstand a Greek default, however. 11:05 The head of Germany's top bank, Deutsche Bank, said on Friday he was confident a solution could be found to Greece's woes amid reports of progress in talks between Athens and banks on a debt writedown. Speaking to German television channel NTV on the sidelines of the World Economic Forum in Davos, Josef Ackermann said: "I am confident that a solution can be found." He said the "haircut," or losses that banks were being asked to take on their holdings of Greek debt, was "almost 70pc." That is a great, great deal. But everyone has to make their contribution and then we will see where we are. We're going to carry on," said Mr Ackermann. 11:00 Elsewhere in Davos, Denis O'Brien, the Irish telecommunications and media billionaire, said he would invest in Bank of Ireland, as it has "cleaned up its balance sheet." 10:58 US Treasury Secretary Tim Geithner said it's "realistic" for the US economy to grow by about 2pc to 3pc. That's a realistic outcome for the U.S. economy so long as we see a little more progress in Europe and we don't see a lot of risk come from Iran on the oil front. We still face tremendous challenges as a country. 10:55 The UN's refugee chief warned the leaders meeting in Davos that the global economic crisis is fueling conflicts around the world. Antonio Guterres told The Associated Press on Friday that rising food prices and growing unemployment are hitting those already at the bottom hardest. Five countries warned of fines. Olli Rehn says he warned Belgium, Cyprus, Malta, Hungary and Poland of fines in November if they didn't stick to fiscal rules. 10:50 Tensions between the EU and UK likely to mount further as Wolfgang Schaeuble takes a pop at the UK during the eurozone debate. He said: "I would like to give you the mobile number for David Cameron" when quizzed about the failure to agree the treaty. As Richard Fletcher tweets: 10:45 Meanwhile the conversation among Davos followers turns to other pressing matters... 10:40 After the Friday the 13th downgrade by Standard and Poor's, Francois Baroin said the development was "not a catastrophe" and insisted that the government rather than the ratings agencies would decide French policy. 10:35 Luis de Guindos Jurado, Spain's finance minister, said: For sure we will need firewalls with ample liquidity, but at the end of the day the vital element to restore confidence will be the institutional framework we put in place. 10:30 And Francois Baroin on the ECB: The unlimited liquidity provided by the ECB's three-year LTRO has reduced pressure on European banks and will help confidence to return... Now we have to think together about how we can support growth. 10:25 And here's exactly what Wolfgang Schaeuble said about firewalls: Greece is a very specific case. You can't take any consequence for any member state in the euro, it is a totally different case. We are negotiating the final negotiations on the PSI. We need a new programme for Greece of debt sustainability, that is not over 120pc of GDP in 2020. It is not easy but it will be done in the coming days. Greece has not only to commit itself, Greece has to deliver. Not all of the commitments have been fulfilled. That is one of the critical issues to confidence. 10:20 Exactly what Olli Rehn said about Greece: We are very close to a deal. If not today then over the weekend and preferably in January, not February. We are very close. 10:15 EU's Olli Rehn said European Central Bank actions are "very important" to avoid a credit crunch. The French finance minister Francois Baroin said ECB 3-year liquidity has reduced pressure on European banks, which will help confidence to return 10:07 The German finance minister Wolfgang Schabule says without a common fiscal structure, eurobonds give the wrong incentive. He says Greece must deliver to regain confidence. But he's seeing more confidence in Italy and Spain now. Spain's finance minister Cristobal Montoro said the firewall has to be big enough and flexible enough so as not to be needed Olli Rehn says he is very close to agreeing a deal with Greece's private sector creditors. "Today or this weekend," he said. 10:05 Meanwhile, speaking on TV, International Monetary Fund Managing Director Christine Lagarde said that she's not satisfied with the progress Greece has made on structural reform. "We're not terribly positive about what has been done but we want to put together a program for the country," Ms Lagarde said in an interview with Bloomberg in Davos. 10:00 For some Davos delegates, however, it's all a bit too much... 09:55 France's Francois Baroin says: The higher the firewall, the less it will have to be used. That is the deterrent effect. 09:53 Richard Fletcher, who's listening to the eurozone debate live in Davos, tweets there is pressure on Greece to deliver: 09:51 The European Union's top economic official Olli Rehn has said countries need to increase the resources of the IMF and called for support "from our British and American friends" in a speech at Davos. Olli Rehn He's sitting with France's Francois Baroin and Germany's Wolfgang Schabule to discuss the future of the eurozone. 09:50 Back to the economic jitters in Turkey. According to central bank Governor Erdem Basci, Turkish authorities are working to suppport the development of long-term financing in the lira currency, Bloomberg reports from Davos. 09:46 A reminder from Paulo Coelho, the Brazilian author, to keep things in perspective. He tweeted this at Davos: 09:45 Former US Treasury Secretary Larry Summers said the recovery in the US economy is underway, though it is not yet at "escape velocity." "Recovery is reasonably well established," he said in an interview with Bloomberg in Davos, on Friday. Is escape velocity - at a sufficient rate to get us back to full employment in a reasonable interval - yet established, I think one would have to say the answer to that question is no. Larry Summers was President Obama's chief economic adviser for his first two years in office and also served as Treasury Secretary under Bill Clinton. 09:40 The twittersphere is alive and kicking in Davos. KPMG has put together a summary of what's being debated on the social networking site: 09:30 Angela Monaghan has just been to a lively debate on capitalism, featuring OECD secretary general Angel Gurria and crisis predictor Nouriel Roubini. Mr Gurria forcefully argued that eurozone policymakers know what the solutions are but have so far failed to step up the plate. He said: "We know what the solutions are, we know we have to deal with Greece; banks; capitalism; the size of firewalls; and unemployment. And we know we have to deal with inequality, but we don't. The firewall, the big bazooka, needed to be there 6 months ago but it's still not there today and the losses accumulate. He also suggested the creation of the euro was ill-thought out, and that countries were now paying the price for failing to get the sequence of events correct. We decided to have a common currency before we decided to have a common fiscal policy. 09:25 Having said that... The main European indices are all down slightly this morning. The FTSE 100 is down 16.64 or 0.29pc at 5778.59 The CAC 40 is down 12.08 or 0.36pc at 3351.15. And the DAX is down 7.17 or 0.11pc at 6532.68. 09:20 World markets and delegates in Davos have begun to show signs of cautious optimism that a deal on Greece is near, and that Monday's European summit will draw a line under the debt crisis and allow governments to move on to pro-growth measures. Key policy-makers from Europe and the United States are thrashing out ideas for pulling the eurozone out of its debt crisis at the forum on Friday, ahead of the EU summit in just a few days' time. Greek Prime Minister Lucas Papademos is in talks with banks and insurers on a voluntary exchange of bonds that would wipe EUR 100bn ($130bn) off the country's debt of EUR 350bn. 09:15 Following Google's Patrick Pichette speech to Davos delegates not to underestimate the power of the internet, a closer look at the BCG report launched alongside it pulls up some staggering facts: By 2016, 70pc of the internet users in the G20 will be from emerging markets By 2016, China will have 800m internet users which is about the same number as France, Germany, India, Japan, UK and US combined In the UK, overall sales of businesses with a medium or high internet presence rose by 4.1pc each year from 2007-2010 - about seven times faster than so-called 'low-internet' businesses 09:09 In case you missed it, here's something which proves business leaders are hard at work debating the future of the dollar, euro and yuan... 09:03 Meanwhile, big talk of restoring the American Dream is setting the scene at Davos. 08:57 Egypt's Amr Khaled, who runs the activist website Right Start Foundation, said that a survey of 1.4m young people in the region had showed that unemployment was their number one concern. It depends on how fast the governments will find some solutions. Finding jobs for youth is the major issue," he said, pinning the success of the Arab Spring movement on economic progress. By far the most populous country in the Arab World, Egypt is seen as key to regional stability, and scenes of thousands of frustrated young people in the streets of Cairo and Alexandria have spooked the regional elite. Protesters in Tahrir Square carry an obelisk bearing the names of those killed during the uprising. Hundreds of thousands marked the first anniversary of the revolution (AFP) News wires are reporting that there was also some bitterness among Arab delegates at Davos that the support promised the region by the G8 and G20 rich world powers at last year's Deauville summit has not lived up to expectations. "The global economy is not supporting us," lamented Tunisian central bank chief Mustafa Kamel Nabli, saying of French President Nicolas Sarkozy's "Deauville Partnership": "Big words, very small action, I have to say." 08:55 More Arab leaders were due to attend Davos debates on Friday, including Tunisia's new Islamist Prime Minister Hamadi Jebali. They follow new leaders from the countries of the Arab Spring seeking to reassure their Western counterparts at the Davos forum that the rise of Islamist parties poses no threat to democracy. "There is no contradiction between democracy and Islam," said Mohamed Najib Boulif, Morocco's minister of administration and a member of the country's new Islamist majority party, the Justice and Development Party. As an example of his Islamist group's supposed moderation, Mr Boulif noted that his was the only party to appoint a female minister to the coalition cabinet. 08:50 As Davos attracts thousand of tweets and social networking ramblings across the globe (see earlier posts from 08:10), there are plenty of bloggers, commentators and industry insiders sharing their thoughts on this year's conference which gathers the business elite. You might find some little gems among this lot: Davos Newbies Davos does data Techcrunch Europe 08:45 Brilliant. 08:41 Europe is focusing more on boosting growth through reforms that increase confidence, Finland's Prime Minister Jyrki Katainen said in an interview on Bloomberg TV today from Davos. "We cannot afford to stimulate the economy," Katainen said. Growth comes when the confidence comes back and the confidence comes back when you do structural reforms even though it takes time. 08:40 Google's Patrick Pichette tells Davos delegates every business model is going to be tested. Says geography doesn't matter anymore and everyone is on an equal footing. It's the big thinking you'd expect from the internet search giant. 08:35 Bill Gates, the Microsoft chairman, has been tweeting at Davos: