Global week ahead: Hopes that cooler heads can prevail in Davos

I have been going to the World Economic Forum since 2009, when I was a young news assistant on “Squawk Box Europe” and had no idea what I was getting into.

Back then, and still now, it is CNBC International’s biggest outside broadcast of the year, and it’s still thrilling to attend.

The heady combination of world leaders, the most powerful players in business and a splash of celebrity — all navigating the snowy streets of Alpine ski resort Davos — makes for a unique experience.

Over the years, I have seen many versions of Davos: the fall-out from the Great Financial Crisis and European debt crunch; the trading scandal that rocked French banking giant Societe Generale; the surge of the Arab Spring; the rise and fall of Russia; the spread of the Covid-19 epidemic and now the upending of the world order that has been in place since the end of the Second World War.

Everyone has an opinion about this meeting, but one thing is true — it is never dull. And 2026 will certainly be no different.

The tension between countries that call themselves allies is palpable going into this meeting.

U.S. President Donald Trump has started 2026 by shocking the international community with a series of actions that challenge sovereignty and alliances that have been in place for decades.

His latest threat to impose fresh tariffs on European countries for not supporting his advances on Greenland has drawn sharp criticism from Brussels to Paris, and from Copenhagen and Nuuk. The move will sharpen what was already set to be a tense week in Davos as he will cross paths with European leaders in the hallways of the Congress Centre.

He will speak at the Forum on Wednesday, as the global community struggles to assess the impact of his action in Venezuela, his hardline stance towards Iran and slow progress toward a peace deal for Ukraine.

The World Economic Forum designated this year as “The Spirit of Dialogue,” but the organization itself has warned in its latest Global Risk Report that “rules and institutions that have long underpinned stability are under siege in a new era in which trade, finance and technology are wielded as weapons of influence.”

Ahead of Trump’s speech, we will hear from a number of other world leaders on the first full day of the Forum.

This includes European Commission President Ursula von der Leyen, French President Emmanuel Macron and Canadian Prime Minister Mark Carney. It is likely that all three will urge the importance of the role of NATO as it faces the most significant challenge since it’s inception.

President Trump’s threats of military force in Greenland have put what was previously inconceivable — the end of the NATO alliance — on the table. Reports suggest the G7 could convene on the side-lines of the event, ostensibly to progress a peace deal between Russia and Ukraine, but the tensions with NATO will inevitably be debated.

Tuesday will also see Chinese Vice-Premier He Lifeng speak, as a tentative trade truce seems to be holding with Washington D.C, despite recent data showing China recording the world’s largest ever trade surplus for 2025, topping $1 trillion. Corporate leaders with significant interests in China, like Nvidia boss Jensen Huang, will also speak at the Forum as they look to navigate an increasingly political business landscape.

Outside of geopolitics, the debate over the independence of central banks is set to heat up the frosty peaks of Davos. Central bankers across the globe were outraged by the announcement of the Department of Justice launching a criminal probe into Federal Reserve Bank Chair Jerome Powell.

In a statement, Powell said the probe “is about whether the Fed will be able to continue to set interest rates… or whether monetary policy will be directed by political pressure or intimidation.”

His peers from across the globe issued an astonishing letter of support, including signatures from ECB President Christine Lagarde and Bank of England Governor Andrew Bailey, alongside others. Former ECB boss, Jean-Claude Trichet told Squawk Box Europe that markets were not taking the threat seriously enough, calling the situation “extremely grave.”

If I had told my 20-something year old self back in 2009 that in 2026 these would be the big debates for Davos, I’m sure I would not have believed it.

Today, the influence of the G20 and G7 have been tested, making the World Economic Forum an even rarer occasion for face-to-face diplomacy. As someone who values diplomacy in all aspects of my life — at work, at home, in the content I consume and the people I am influenced by — I hope that cooler heads can prevail in the Alps.

Tuesday: European Commission President Ursula von der Leyen; Chinese Vice-Premier He Lifeng, French President Emmanuel Macron

Wednesday: U.S. President Donald Trump

Thursday: Israeli President Isaac Herzog; German Chancellor Friedrich Merz