CEO of World Economic Forum quits after Epstein ties scrutinised
The president and CEO of the World Economic Forum, Børge Brende, is stepping down, after the forum launched an independent investigation into his relationship with Jeffrey Epstein.
Brende, a former Norwegian Minister of Foreign Affairs, has announced he is stepping down from WEF to avoid “distractions”.
In a statement just released, Brende says:
After careful consideration, I have decided to step down as President and CEO of the World Economic Forum. My time here, spanning 8½ years, has been profoundly rewarding.
We have seen a record number of partners join us, and we have had a very successful Annual Meeting in Davos behind us, where we engaged with governmental leaders from all over the world like never before.
I am grateful for the incredible collaboration with my colleagues, partners, and constituents, and I believe now is the right moment for the Forum to continue its important work without distractions.
His departures follows disclosures from the US Justice Department that showed Brende had three business dinners with Epstein and had also communicated with him via email and text message.
It also comes just a month after WEF’s annual meeting in Davos.
Key events
Børge Brende’s resignation also comes as former US secretary of state Hillary Clinton prepares to testify behind closed doors later today before a congressional committee investigating Jeffrey Epstein and his accomplice Ghislaine Maxwell.
More here:
US Senator Elizabeth Warren is stepping up pressure on regulators to investigate Wall Street executives who may have assisted Jeffrey Epstein, according to a letter seen by Bloomberg.
They report that Warren has called for officials at the Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. to publicly announce investigations by March 12.
Bloomberg say:
Finance leaders have faced increasing scrutiny in recent weeks after the Department of Justice released more files tied to Epstein.
In her letter dated Wednesday, Warren called out executives at JPMorgan Chase & Co. and Goldman Sachs Group Inc.’s Kathryn Ruemmler, as well as Jes Staley, the former chief executive officer of Barclays Plc.
Børge Brende has now joined a growing list of figures from business and finance to vacate their jobs over their links to Jeffrey Epstein.
Two weeks ago the boss of P&O Ferries owner DP World, Sultan Ahmed bin Sulayem, resigned after the publication of messages with Epstein.
Kathy Ruemmler, the top lawyer at Goldman Sachs and a former White House counsel to Barack Obama, resigned earlier this month after emails showing a close relationship between her and Epstein.
And former US treasury secretary Larry Summers is retiring from his roles at Harvard university after its review into his ties with convicted sex offender Jeffrey Epstein.
Børge Brende’s resignation statement doesn’t actually mention Jeffrey Epstein.
But a month ago, he told Bloomberg that if he’d known about Epstein’s criminal background, he would have declined the dinner invitations.
“I could have conducted a more thorough investigation into Epstein’s history, and I regret not doing so,” he said, adding that “a few emails and SMS messages were the extent of my interactions.”
WEF co-chairs: We respect Brende’s decision to step down.
The co-chairs of the World Economic Forum, André Hoffmann and Larry Fink, have issued a statement on behalf of WEF’s Board of Trustees.
In it, they say that the review into Børge Brende’s links to Epstein has concluded, and had not uncovered any concerns beyond what had been “previously disclosed”.
Hoffmann and Fink say:
We wish to express our sincere appreciation for Børge Brende’s significant contributions to the World Economic Forum. His dedication and leadership have been instrumental during a pivotal period of reforms for the organization, leading to a successful annual meeting in Davos. We respect his decision to step down.
We are pleased to announce that Alois Zwinggi will serve as Interim President and CEO and looking forward to his continued collaboration and partnership over time. The Board of Trustees will oversee the leadership transition including the plan to drive a proper process to identify a permanent successor.
The independent review conducted by outside counsel has concluded. The findings stated that there were no additional concerns beyond what has been previously disclosed.
CEO of World Economic Forum quits after Epstein ties scrutinised
The president and CEO of the World Economic Forum, Børge Brende, is stepping down, after the forum launched an independent investigation into his relationship with Jeffrey Epstein.
Brende, a former Norwegian Minister of Foreign Affairs, has announced he is stepping down from WEF to avoid “distractions”.
In a statement just released, Brende says:
After careful consideration, I have decided to step down as President and CEO of the World Economic Forum. My time here, spanning 8½ years, has been profoundly rewarding.
We have seen a record number of partners join us, and we have had a very successful Annual Meeting in Davos behind us, where we engaged with governmental leaders from all over the world like never before.
I am grateful for the incredible collaboration with my colleagues, partners, and constituents, and I believe now is the right moment for the Forum to continue its important work without distractions.
His departures follows disclosures from the US Justice Department that showed Brende had three business dinners with Epstein and had also communicated with him via email and text message.
It also comes just a month after WEF’s annual meeting in Davos.
LSEG: We can’t be replaced by AI
Julia Kollewe
The boss of the London Stock Exchange Group (LSEG), David Schwimmer, has stressed the company’s resilience against the threat of artificial intelligence, saying he had ben telling investors about “how unlikely, verging on impossible it is that it could be replicated or replaced by AI”.
“We have made great progress in terms of providing clarity to our investors about how much of our data is proprietary,” he said. The LSE, traditionally an exchange operator, in 2021 bought the data provider Refinitiv, and sells access to financial markets data including bonds, equities and commodities to banks and brokers.
The company’s shares were recently caught up in a broader sell-off of stocks seen as vulnerable to AI. Schwimmer said:
“What you’ve seen over the last several months, and again, this is not just about LSEG, this is about whole swathes of the market and whole sectors, there’s a lot of uncertainty and a lot of lack of clarity amongst investors as to what this technology will do.
“We are explaining to the market and to our investors how strong our positioning is in data, and we are seeing great traction. And we have partnerships with new AI channels like ChatGPT and Claude, and we’re seeing our customers want to access our data through these new channels.”
His comments came as the LSEG announced £3bn of share buybacks over the next 12 months, its biggest ever, after it came under pressure from the activist investor Elliott Management, a New York-based hedge fund, to improve its performance. Last year, the LSE bought back £2.1bn of shares and raised its dividend by 15%.
Schwimmer said the company had held some discussions with Elliott, but added that the board was talking to all of its shareholders. “We’re trying to do the right thing for all of our shareholders.”
LSEG’s share price has jumped nearly 6% this morning, but is down about a quarter in the past year, amid fears about the impact of AI on its business. The firm reported a 57% jump in profit before tax to nearly £2bn in 2025.
Batting off suggestions that it could sell its 51% stake in the bond trading platform Tradeweb, Schwimmer said: “We have no intentions or no plans at this point to conduct any disposals.” Elliott is reportedly pressing the LSE for a review of its businesses.
Euro zone economic sentiment has deteriorated in February, in a blow to hopes that Europe’s economy was reviving.
The European Commission’s Economic Sentiment Indicator (ESI) has decreased in both the EU and the euro area this month, falling by one point to 98.3 in both areas.
Employment expectations also dropped.
UK NEETS rise as more young people look for work
The number of young people in the UK not in employment, education or training has risen, amid growing concerns that artificial intelligence is eliminating entry-level job opportunities.
The Office for National Statistics has reported that the number of NEETS rose to 957,000 in October-December, up from 946,000 in July to September.
David Freeman, joint head of labour market division at the ONS, says:
“The final quarter of 2025 saw a slight increase in the number of young people not in employment, education and training compared to the previous quarter. This was driven by higher unemployment, with more young people actively looking for work.”
Lagarde: Not seeing signs AI is cutting jobs, yet
Artificial intelligence is boosting productivity in the euro zone but it is not yet causing a wave of layoffs due to greater automation of labour, European Central Bank President Christine Lagarde has claimed.
Testifying to the European Parliament’s Economic and Monetary Affairs committee this morning, Lagarde said:
“What we are seeing for the moment is that it’s increasing productivity. But we are not yet seeing consequences in terms of labour market and waves of redundancies that are feared, and that you know we will be extremely attentive going forward.”
Staff at Ocado, worried that the jobs-cuts axe will fall on them today, may disagree.
Jobs are also being cut at advertising group WPP, which this morning announced a radical restructure to counter the threat posed by the AI revolution, including merging its ad agencies and cutting jobs.
Chart: FTSE 100 at new high
FTSE 100 pushed to record high by Rolls-Royce, Howdens and LSEG
The UK’s blue-chip stock index has hit a fresh record high this morning, lifted by some upbeat company news.
Engineering firm Rolls-Royce is among the top risers, up 5.5% to a new record after reporting a 40% jump profits last year, as its turnaround plan pays off. It also cheered shareholders by upgrading its mid-term financial targets.
Tufan Erginbilgic, CEO, told shareholders:
“Our transformation continues with pace and intensity. We are consistently achieving outcomes that were not possible before our transformation. With our new capabilities and mindset, we have navigated challenges from supply chain to tariffs, and delivered a strong performance in 2025, all while we built the foundations for significant growth for years to come.”
Howden Joinery is leading the risers, up 7.4%; it reporting a 5.1% rise in pre-tax profits this morning.
London Stock Exchange Group (4.8%) is also enjoying a good morning, after posting a 56.5% rise in pre-tax profits.
LSEG has suffered from fears that artificial intelligence would eat into ite revenues.
But today, CEO David Schwimmer said the company was using technologies such as AI to “deliver material operating leverage”, with earnings growing faster than revenues.
These gainers have helped to lifted the FTSE 100 share index to 10,825 points, up 18 points or 0.15%.
Job cut announcements often thrill the City, pushing up a company’s share price.
Ocado, though, have dropped by almost 10% in early trading.
Investors clearly aren’t impressed by today’s financial results, which show that cash flow was still negative, despite a 12% rise in revenues.
Ocado says its core priority is to turn cash flow positive during the current financial year.
The firm, which sells automated warehouse technology, recently suffered a blow when its US partner, Kroger, announced the closure of three warehouses using Ocado’s high-tech equipment. Canadian partner Sobeys is also closing a warehouse that uses Ocado’s robots and automation technology.
At 215p this morning, Ocado’s shares aren’t much above the the 180p price at which it debuted on the London stock market in 2010. Back in 2020, amid the pandemic boom in deliveries, they rose over £26.
Ocado to cut 1,000 jobs in cost-cutting drive
Online grocery firm Ocado is planning to cut around 1,000 jobs as it cuts costs and uses artificial intelligence systems to become more efficient.
Ocado has announced that it expects to slash £150m of its technology spend and support costs, partly through “AI efficiencies, and associated reductions and cost discipline in Support functions”.
According to PA Media, around 1,000 jobs are being axed, or around 5% of Ocado’s global workforce, with about two thirds of the job losses impacting its UK operations.
Tim Steiner, CEO of Ocado Group, said this morning that Ocado has largely finished a “very significant” investment phase in its robotics and automation capabilities, and would now focus its R&D investment on areas with the clearest path to value creation.
Steiner added:
These changes will also reflect the lower structural cost base that we have signalled over recent years. Regrettably, this means a significant number of roles will no longer be required. We are grateful to colleagues who are affected by these changes, and whose talent and hard work have made a lasting contribution to Ocado. We will support those impacted through this process.
Richard Clode, portfolio manager at the Global Technology Leaders Team of Janus Henderson Investors, explains how the debate over Nvidia’s value has shifted in recen months:
“Nvidia’s stock has derated materially over the past six months, with the share price stagnating despite 50% positive earnings revisions.
As a result, the debate has shifted away from near-term results and toward the sustainability of AI capex spending, amid concerns around its quantum, monetisation and potential cashflow degradation. The muted reaction to Nvidia’s blowout guidance mirrored last quarter and reflects this ongoing debate.
Whether Jensen can move the conversation forward at next month’s GTC event remains to be seen, but in the interim, despite broader market concerns about an AI bubble and elevated technology valuations, Nvidia continues to derate. It now trades at a significant discount to AI peers and on a similar multiple to McDonald’s.”
EBRD warns of uncertainty swirling in trade and geopolitics
Heather Stewart
“Uncertainty continues, both on the trade front and the geopolitical front,” the chief economist of the European Bank of Reconstruction and Development (EBRD) Beata Javorcik warned with some understatement, as she launched the London-based lender’s latest forecasts (released here this morning).
The taxpayer-backed EBRD once focused on rebuilding central and Eastern Europe after the collapse of the Berlin Wall, but now extends its reach into the Balkans, Africa and even Iraq.
Javorcik said the countries in which it operates had been more resilient in the face of volatile US trade policy than expected, forecasting GDP growth of 3.6% this year, up from the 3.4% expected in September.
She said:
“Economies across the EBRD regions are proving more adaptable in the face of persistent trade tensions than many expected.
“Supply chains are evolving rather than retreating, creating new opportunities for diversification and integration into emerging industries, including those linked to AI.”
However, she suggested the full impact of tariffs may not yet have been felt, because of significant front-loading of imports ahead of their imposition last year.
The EBRD’s analysis also underlined the hefty debt burden faced by some economies – which could make them vulnerable if global credit conditions tightened.
“Government interest payments reached 89% of government revenues in Egypt in 2025 and are estimated to account for over 30% of revenues in Kenya, and over 20% in Nigeria, Ghana, Senegal and Jordan,” it said.
Traders in Tokyo should start ordering their “Nikkei 60,000” hats!
Japan’s Nikkei share index has closed at a record high, as software-related stocks surged today, shrugging off recent losses.
This pushed the Nikkei over the 59,000-point mark for the first time, hitting 59,332 points at one stage before ending the day at 58,753 points, an all-time closing high.
Yutaka Miura, senior technical analyst at Mizuho Securities, says:
“Since it was widely expected that NVIDIA would post strong results, and it did, this has prompted some profit-taking for the moment.”
Ipek Ozkardeskaya, senior analyst at Swissquote, says Nvidia announced “another spectacular set of results” last night:
The company posted $68.1bn in revenue, 73% higher than the same period last year, with 90% of that coming from its data-center division.
Net income almost doubled, and gross margin improved to 75% — all significantly better than analysts had expected.
Addressing concerns that Google’s TPUs — designed for AI inference, far more energy-efficient and cheaper than Nvidia’s — could steal business, Jensen Huang said that his company is “the king of inference today” and that the Blackwell and next-generation Vera Rubin platforms “will extend that leadership further”, adding that adoption of agentic AI is skyrocketing.
Although his words may sound over-the-top, Huang has delivered consistently on his promises over the past three years.
Introduction: Nvidia fails to wow Wall Street with blockbuster quarter
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
What’s a tech firm gotta do to get a share price bump these days?
Nvidia may be asking that question after reporting strong earnings last night, alongside a solid growth forecast, only to receive a shrug from Wall Street.
The chip-making firm certainly had another extremely strong quarter – it posted record quarterly revenue of $68.1bn for October-December 2025, up 20% compared with the third quarter of last year and a sizzling 73% more than a year earlier.
The company said sales were being driven by accelerated computing and AI, with customers scrambling to get their hands on its high-powered Blackwell chip.
Jensen Huang, founder and CEO of Nvidia, told investors that take-up of AI agents by companies was accelerating:
“Enterprise adoption of agents is skyrocketing. Our customers are racing to invest in AI compute — the factories powering the AI industrial revolution and their future growth.”
Nvidia also predicted another jump in sales in the current quarter, when revenue is expected to rise to $78.0bn, beating forecasts.
But while its shares did briefly rally in after-hours trading when the results hit the wires, this didn’t last – the stock then turned negative, and finally finished just 0.2% higher.
As Jim Reid of Deutsche Bank puts it:
The initially positive reaction faded as the company’s conference call offered limited detail on the revenue outlook, leaving the chipmaker’s shares little changed by the end of extended trading. So perhaps a sign of investors’ increased anxiety over AI valuations.
Nvidia’s problem is partly that its share are already ‘priced for perfection’ – up 1,300% over the last five years. So even stellar sales growth is already priced in.
Also, these results landed in a market where investors are fretting that AI will drive up white-collar unemployment, take business away from software-as-a-service companies, payment providers and travel and estate agencies, and trigger a mortgage crash.
Kathleen Brooks, research director at XTB, says there are a few factors behind the muted reaction to what she calls “Nvidia’s A* earnings report”:
Nvidia and the semiconductor space has outperformed the broader tech sector so far this year. Nvidia’s results suggest that demand for AI is strong, and fears of an AI bubble are overdone. Thus, investors could pile into the less loved parts of tech, for example software, before going headfirst into Nvidia. The Nasdaq e-mini contract is higher by 1.4% after Nvidia’s earnings report.
Secondly, this report did not generate much reason for disappointment, but even so, some investors may have hoped that CEO Jensen Huang would boost sales pipeline estimates for this year above $500bn. Huang was also asked about hyperscalers’ and their future capex plans now that there was some pressure on their cash flows. This did not bother Huang, but it could sow a seed of doubt in the mind of investors.
Overall, the initial reaction to Nvidia’s results suggest that investors are still unwilling to chase a higher trend in tech stocks right now, even after Nvidia’s stunning earnings report. This report will likely be pored over in detail on Thursday, but for now it is not driving a significant rally in the share price.
The agenda
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8.30am GMT: Christine Lagarde testifies to the Committee on Economic and Monetary Affairs (ECON) of the European Parliament
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9.30am GMT: UK’s ONS publishes latest quarterly NEETs data
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1.30pm GMT: US weekly jobless claims
