overlooking the atlantic ocean

European market decline
European stocks started the week on a weak note as the World Economic Forum opened in Davos, Switzerland on Monday. Investors also digested data showing Germany, the region’s largest economy, will contract by 0.3% in 2023. US markets were closed on Monday in observance of Martin Luther King Day.

ECB could rebel against the market
European Central Bank policy hawk Robert Holzmann said the ECB may not cut interest rates this year. Holzmann told CNBC at the World Economic Forum in Davos, Switzerland, that there is a possibility of a zero rate cut this year, contrary to market expectations.

China needs fixes
Kristalina Georgieva, managing director of the International Monetary Fund, warned that China needs major structural reforms to avoid a significant slowdown in growth. Georgieva told CNBC on the sidelines of Davos that the world’s second-largest economy faces both short-term and long-term challenges.

AI helps you do your job
According to the International Monetary Fund, nearly 40% of jobs around the world could be displaced by the rise of artificial intelligence. AI could also exacerbate inequality, the IMF warned, potentially impacting high-income countries more than low-income ones.

[PRO] The market only cares about interest rate cuts
Markets are now more hopeful than ever that the Fed will cut interest rates, especially after Friday’s negative December producer price index. But so-called sticky inflation, which includes a variety of things including housing costs, is still rising. That could mean the market and the Fed are not aligned on their views on rate cuts this time around.

Normally a quiet day when U.S. markets are closed, activity continued from across the Atlantic as the World Economic Forum opened Monday in Davos, Switzerland.

The first day of the forum featured discussions on everything from China and artificial intelligence to cryptocurrencies and the European Central Bank. World leaders and thinkers have raised some important points and concerns about these hot topics.

China, for one, doesn’t seem to be able to catch its breath. IMF chief Kristalina Georgieva has warned that growth could cool further significantly if the world’s second-largest economy’s real estate and debt crisis is not addressed through major structural reforms.

“Ultimately, what China needs is structural reforms to continue opening up its economy and rebalancing its growth model more towards domestic consumption, which in turn creates more confidence in its people. [they] Spend more instead of saving,” Georgieva said.

The fund also reiterated its outlook that China’s GDP could slow if the real estate sector does not improve, forecasting growth of 4.6% this year.

The IMF also noted that AI could eliminate around 40% of global jobs, with an even greater impact on high-income economies.

Considering their respective AI exposures, we predict that approximately 60% of jobs in high-income countries, 40% in emerging markets, and 26% in low-income countries will be affected.

—CNBC’s Vicky McKeever and Sam Meredith contributed to this article.