Davos forum kicks off, a warning from Stephen Hawking and the automation paradox

The global elite are today convening in Davos, Switzerland, for the annual conference of the World Economic Forum. Discussions look set to be centred around four key areas : economy-changing technologies, emerging markets, the possibility of Brexit and slowing growth in China.

Global markets have been rocked since the start of the year by uncertainty surrounding China's economy, with traders mostly bearing the brunt. However, thousands of foreign companies connected to China may be in even greater danger.

Still, former Fed chairman Ben Bernanke cautions against overreaction. He told an audience in Hong Kong that he doesn’t “think China’s economic slowdown is that severe to threaten the global economy”. (FT, NAR)

In the news

Drowning in oil The market “could drown in oversupply” as Iran’s return offsets oil production cuts, paving the way for a further slide in prices , the world’s leading energy forecaster said on Tuesday. In a stark assessment of the oil market, the International Energy Agency warned of an oil overhang of at least 1m barrels a day for a third consecutive year in 2016. (FT)

Humans risk lethal ‘own goal’ Stephen Hawking warned that nuclear war, global warming and genetically engineered viruses pose threats to humanity, which will be compounded by scientific progress that will create “new ways things can go wrong”. (BBC)

Cyber attacks: ‘gloves off’ A new wave of cyber attacks will occur this year as nation states take the “gloves off” following the nuclear agreement with Iran, a senior Israeli military officer has predicted. Cyber attacks on power plants in Ukraine and banks in Turkey last month could be a foretaste of those to come, said the commander. (FT)

Palin stumps for Trump Sarah Palin, the former Alaska governor and 2008 vice-presidential nominee, has endorsed Donald Trump for the Republican party nomination and the US presidency. The seal of approval from the darling of the Tea Party movement provides Mr Trump with a potentially significant boost less than two weeks ahead of the Iowa caucus. (FT)

EU to upend migration rules Brussels is to scrap laws that make the first country a refugee enters responsible for any asylum claim, revolutionising the bloc’s migration policy and shifting the burden from its southern flank to its wealthier northern members. (FT)

It's a big day for

US economy New data is set to show inflation rose to 0.8 per cent in December from 0.5 per cent the month before. (FT)

Food for thought

When big data meets big brother China’s internet companies are testing out experimental algorithms to determine credit ratings using an absurd list of factors: how often you change smartphones, whether you buy curtains for your office, when you log into the internet, whether you’ve purchased scuba gear. But the ratings may one day affect a lot more than your ability to get a loan — some believe it could determine your access to health, education, employment and status as a “good” citizen. (FT)

Name a CEO, any CEO Nearly 70 per cent of Britons cannot name a single CEO, according to a study by public relations group Edelman. The company called the results “deeply disturbing news” for world business leaders and said it highlights the “yawning trust gap” between thegeneral public and the elites. (Quartz)

Spies among friends MI5, Britain’s domestic security agency, has topped an annual workplace equality index, which ranks the best employers for lesbian, gay, bisexual and transgender people. A socially and sexually monochrome workforce is poorly suited to gathering intelligence in the modern world and even worse at efficiently analysing it, the UK’s spymasters believe. (FT)

The automation paradox Fears that increasing automation and the use of robots will lead to massive unemployment are misplaced. It turns out that workers will have greater employment opportunites if their occupation undergoes some degree of computer automation. And — of course — they can learn how to use the new tools. (The Atlantic)

Another kind of Chinese growth China is getting bigger. Over 300m Chinese adults are now deemed overweight or obese, more than any other country in the world. This will push up medical costs as people start suffering from lifestyle diseases such as diabetes, which is certain to erode state finances further. (NAR)

Video of the day

Apathy could swing Brexit vote As pollsters dissect their failure to correctly predict the UK general election results last year, FT editor Lionel Barber and political columnist Janan Ganesh discuss what apathy among UK voters means for David Cameron and the EU membership referendum. (FT)

Author: FirstFT is the Financial Times’ editors curated free daily email of the top global stories from the FT and the best of the rest of the web.