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Tag: Enterprise

  • Salesforce is having its highest day since 2020 after blowout income file

    Marc Benioff, co-founder and CEO of Salesforce, speaks at an Financial Membership of Washington luncheon in Washington, DC, on Oct. 18, 2019.

    Nicholas Kamm | AFP | Getty Photographs

    Salesforce stocks surged 12% on Thursday and headed for his or her greatest single-day rally since August 2020, after the cloud device seller issued income and steering that trounced analysts’ estimates.

    The consequences display the corporate, led through co-founder Marc Benioff, is making concessions to activist buyers who’ve constructed stakes within the industry and feature raised issues in recent times in regards to the corporate’s income and source of revenue efficiency.

    After the shut of normal buying and selling on Wednesday, Salesforce reported fiscal fourth-quarter adjusted income of $1.68 according to percentage, 23% upper than the consensus amongst analysts polled through Refinitiv. Its income forecast for the 2024 fiscal yr was once 22% upper than anticipated.

    As well as, finance leader Amy Weaver informed analysts on a convention name that Salesforce sees a 27% adjusted running margin for the 2024 fiscal yr, which means the corporate is 2 years forward of time table with its profitability growth.

    Along the income file, Salesforce mentioned it is operating with Bain on a industry evaluate, and the corporate introduced the removal of the board’s committee on mergers and acquisitions. That brought about reward from outstanding activist Elliott Control, which introduced a stake within the corporate in January.

    Activists had been ramping up power on Benioff to reinforce margins as income enlargement slows and the corporate reckons with dilution from high-priced acquisitions like Tableau and Slack.

    “Those steps are in line with our suggestions, and we consider they’ll lend a hand repair worth at Salesforce,” Elliott’s Jesse Cohn and Jason Genrich mentioned in a commentary.

    Salesforce additionally beat on fourth-quarter income, reporting 14% year-over-year enlargement to $8.38 billion, topping the common analyst estimate of $7.99 billion, consistent with Refinitiv.

    “Wow, what a terrific finish of the fiscal yr,” Kash Rangan, a Goldman Sachs analyst, mentioned on Wednesday’s income name, ahead of ahead of asking his query. “Congratulations to the staff. A lot, a lot, a lot, significantly better than anticipated. Brighter days forward.”

    Rangan, who recommends purchasing the inventory, raised his 12-month worth goal for the second one time in every week after the file. Greater than two dozen different analysts higher their goals as neatly. The brand new moderate worth goal, at $213.02, is set 15% upper than the place the inventory was once buying and selling on Thursday.

    Evercore’s Kirk Materne, probably the most analysts who raised their goal, wrote “there has all the time been numerous optionality for CRM round margins, however till now, it’s been a trickle, now not a step serve as transfer.” Materne has a purchase ranking at the inventory.

    Needham analysts led through Scott Berg upgraded the stocks to a purchase from cling.

    “Six years at the sidelines is a very long time in our universe however right here we’re, upgrading CRM to Purchase as we consider its FY24 profitability steering higher aligns its value construction with its intermediate time period enlargement outlook,” they wrote.

    After plunging 48% final yr amid the tumble within the cloud device sector, Salesforce is now up 41% in 2023 and is buying and selling at its absolute best degree since August.

    WATCH: Salesforce income spotlight how expectation beats can transfer markets, says Kari Firestone

  • A South Korean telco large has its personal A.I. chatbot — and says it is a ‘tremendous app’ model of ChatGPT

    SK Telecom’s “A.” (pronounced “A dot”) synthetic intelligence chatbot has a personality that speaks to other folks. The corporate has built-in its quite a lot of provider from song streaming to e-commerce into A. and is making plans to release it totally in 2023.

    BARCELONA, Spain — SK Telecom, certainly one of South Korea’s largest carriers, is making plans to completely release its personal synthetic intelligence chatbot, however is taking a look at an excessively other product from ChatGPT, an government operating at the venture instructed CNBC.

    The corporate introduced a beta model of “A.” — pronounced “A dot” — in South Korea in Might closing yr. It’s according to generative AI, the generation in the back of OpenAI’s viral ChatGPT.

    Eric Davis, vp at SKT who’s main the paintings on A., mentioned that the corporate will release a complete model in South Korea this yr, including that this proposition may be very other from ChatGPT.

    “It is like you are speaking to a chum, the place you are fixing problems that you just come upon to your day by day lifestyles,” Davis instructed CNBC on Wednesday on the Cellular Global Congress in Barcelona, Spain.

    Davis mentioned that SKT has been operating on A. for a yr and a part. It’s is constructed in-house on the telecoms company on so-called massive language fashions — AI skilled on massive quantities of knowledge so that you could chat in herbal language. It’s the similar generation as the only in the back of ChatGPT.

    However Davis is eager to place A. as an excessively other product from ChatGPT. That is as a result of SKT additionally owns quite a lot of products and services, starting from song streaming to e-commerce and cost apps, which it’s integrating into its chatbot.

    “So, in large part, the tremendous app is the tip image there. Obtain our app, and we will do principally the entirety you wish to have us to do and extra,” Davis mentioned.

    A “tremendous app” is an idea pioneered via Chinese language generation giants, corresponding to Tencent with its WeChat messaging provider. The speculation is that an individual simplest wishes one app, and that a number of third-party products and services are obtainable by the use of that app. In China, WeChat can be utilized for the entirety from reserving vacations to bills.

    Tremendous apps are fashionable in China and in portions of Asia, however have not taken off in Europe and within the U.S.

    Davis, who in the past labored on Apple’s voice assistant Siri, mentioned that the plan is to combine “much more 0.33 get together products and services” into the A. chatbot.

    “ChatGPT is excellent. You understand, it solutions your questions, or it supplies a abstract. Nevertheless it does not do any issues we did in A., “Davis mentioned. “It does not attach you with products and services or out, it does not have any personalization, we make a aware effort to be informed about our customers.”

    A. is these days simplest to be had in Korean. Davis mentioned that SKT is within the early levels of exploring a global release for the provider.

    “We have been speaking to other folks in Europe, after all in Southeast Asia, native those that know the markets and know type of what will promote. So we have now been having talks, however once more, not anything’s truly finalized,” Davis mentioned.

    SKT has appeared to diversify past its core telecommunications trade. It plans to release a flying taxi provider in 2025, and CNBC reported this week that the corporate’s AI chip spin-off Sapeon seeks a $400 million valuation.

  • Salesforce stocks leap 13% on better-than-expected forecast

    Marc Benioff, co-founder and CEO of Salesforce, speaks on the Global Financial Discussion board in Davos, Switzerland, on Jan. 18, 2023.

    Stefan Wermuth | Bloomberg | Getty Photographs

    Salesforce stocks soared 14% in prolonged buying and selling on Wednesday after the cloud tool maker beat Wall Side road estimates on benefit and issued a better-than-expected forecast.

    This is how the corporate did:

    Profits: $1.68 according to percentage, adjusted, vs. $1.36 according to percentage as anticipated by means of analysts, consistent with Refinitiv.Income: $8.38 billion, vs. $7.99 billion as anticipated by means of analysts, consistent with Refinitiv.

    Salesforce’s earnings grew 14% 12 months over 12 months within the quarter, which ended on Jan. 31, consistent with a observation. The corporate reported a lack of $98 million, in comparison with a lack of $28 million within the year-ago quarter.

    In January Marc Benioff, Salesforce’s co-founder and CEO, mentioned the corporate would chop 10% of its body of workers, representing over 7,000 other folks, and that restructuring technique resulted in $828 million in prices all through the quarter.

    Profitability has develop into a better precedence at Salesforce, which in contemporary months has been getting harassed by means of an inflow of activist traders, together with 3rd Level, Elliott Control and Starboard Worth. The corporate introduced the addition of ValueAct Capital CEO Mason Morfit to its board. On the finish of the quarter Bret Taylor, who ran Salesforce as co-CEO along Benioff, stepped down.

    For the fiscal first quarter, the corporate referred to as for adjusted income within the vary of $1.60 to $1.61 according to percentage and earnings of $8.16 billion to $8.18 billion. Analysts surveyed by means of Refinitiv were searching for $1.32 in adjusted income according to percentage and $8.05 billion in earnings.

    Salesforce sees adjusted income according to percentage for the total 12 months of $7.12 to $7.14 and earnings of $34.5 billion to $34.7 billion. Analysts polled by means of Refinitiv had anticipated $5.84 in adjusted income according to percentage and $34.03 billion in earnings.

    The corporate mentioned it was once increasing its percentage buyback program to $20 billion after saying its first repurchasing dedication, with as much as $10 billion allotted for that goal, in August.

    Salesforce stocks have risen 26% thus far this 12 months, with the exception of Wednesday’s after-hours transfer, outperforming the S&P 500 index, which has received 3% over the similar length.

    Executives will speak about the consequences with analysts on a convention name beginning at 5 p.m. ET.

    That is breaking information. Please take a look at again for updates.

    WATCH: Proxy struggle most probably in retailer for Salesforce

  • Activist investor Elliott nominates slate of administrators to Salesforce board, assets say

    The Salesforce West place of business construction in San Francisco, California, on Wednesday, Jan. 25, 2023.

    Marlena Sloss | Bloomberg | Getty Pictures

    Activist investor Elliott Control has nominated a slate of administrators for Salesforce’s board, assets advised CNBC’s David Faber Wednesday.

    The nominating window closes March 14, and it’s unclear whether it is two or 3 nominees, Faber stated on “Squawk at the Boulevard.” The slate will most probably come with Jesse Cohn who runs the activist apply at Elliott, in step with folks acquainted with the placement, however Faber stated his place hasn’t been showed.

    Salesforce didn’t straight away reply to requests for remark.

    Activists were circling the cloud-based industry tool corporate. Elliott Control unveiled its multi-billion-dollar funding in Salesforce in January, and the corporate stated ValueAct Capital CEO Mason Morfit will sign up for its board this month. Dan Loeb’s hedge fund 3rd Level has additionally constructed a place within the corporate, CNBC showed in February.

    Salesforce, which joined the Dow Jones Commercial Reasonable in 2020, has confronted high-profile departures and slowing income enlargement of past due and handled grievance for getting firms reminiscent of Slack and Tableau at excessive multiples. In November, Salesforce gave weaker-than-expected quarterly income steering.

    On Jan. 4, Salesforce introduced plans to chop 10% of its body of workers and stated it could cut back some place of business area as a part of a restructuring plan. The corporate additionally let move of fewer than 1,000 staff in November.

    Stocks of Salesforce underperformed in 2022, declining nearly 48% whilst the S&P 500 fell 19%. The inventory is up about 24% up to now this 12 months.

    The corporate will file its fourth quarter income after marketplace shut Wednesday.

    — CNBC’s Jordan Novet contributed to this file.

  • South Korean startup rival to Nvidia seeks $400 million valuation and plans new A.I. chip

    Sapeon used to be spun off from South Korea’s SK Telecom in 2022 and is elevating out of doors funding. The corporate is having a look to tackle Nvidia within the house of manmade intelligence chips.

    SeongJoon Cho | Bloomberg | Getty Photographs

    BARCELONA, Spain — Sapeon, a South Korean synthetic intelligence chip startup headquartered in California, is elevating a investment spherical that places its valuation above $400 million, its CEO advised CNBC.

    The startup is subsidized via large South Korean companies SK Telecom, memory-chip maker SK Hynix and SK Sq., an funding corporate spun off of SK Telecom.

    Sapeon designs synthetic intelligence semiconductors for information facilities, for instance the ones run via cloud computing companies. Those AI chips are required for AI programs that require massive quantities of information processing.

    Recently, U.S. company Nvidia dominates this marketplace. However numerous established gamers akin to AMD and startups like Sapeon, want to problem Nvidia.

    “AI answers will develop so much due to the evolution of AI services and products like ChatGPT,” Soojung Ryu, CEO of Sapeon, advised CNBC in an interview on the Cellular Global Congress that aired Wednesday.

    ChatGPT is the viral chatbot advanced via OpenAI. It has brought about a stir within the tech global, with giants from Google to Chinese language company Baidu scrambling to unlock their very own competitors. Generation executives say ChatGPT has put AI programs at the map.

    Analysts at Bernstein be expecting ChatGPT to be a multi-billion buck boon for chipmakers having a look to gasoline those AI fashions.

    “We would really like construct this type of gadget (AI chips) to have a chance for the industry,” Ryu stated.

    Sapeon used to be created in 2016 within SK Telecom, certainly one of South Korea’s greatest telecommunications companies. SK Telecom then spun out the company closing 12 months and raised out of doors funding.

    Ryu stated the corporate is lately elevating cash at a valuation of $400 million.

    South Korean semiconductor companies together with Samsung and SK Hynix have generally been robust in reminiscence chips that move into units like PCs. Sapeon is amongst one of the most first companies out of South Korea to check out and crack the AI chip marketplace.

    Ryu stated that Sapeon is focused on the U.S. marketplace which might pit it towards Nvidia. When requested if Sapeon can problem Nvidia, Ryu responded “sure.”

    Recently, Sapeon has one chip available on the market referred to as the X220. It’s constructed on so-called 28-nanometer generation. The nanometer determine refers back to the measurement of each and every person transistor on a chip. The smaller the transistor, the extra of them may also be packed onto a unmarried semiconductor. Usually, a discount in nanometer measurement can yield extra robust and environment friendly chips.

    Ryu stated the corporate will release a 7-nanometer AI chip this 12 months and it’s going to be manufactured via TSMC, the sector’s greatest contract chipmaker. That will convey it nearer to the present generation available on the market.

  • EU narrows antitrust case towards Apple over regulations for tune services and products like Spotify

    The arena’s greatest iPhone manufacturing facility, situated in China and run via Foxconn, confronted disruptions in 2022. This is more likely to clear out thru to Apple’s December quarter effects. In the meantime, analysts wondered call for for the iPhone 14 from Chinese language customers.

    Nic Coury | Bloomberg | Getty Photographs

    The Eu Union on Tuesday despatched Apple an up to date checklist of objections as a part of an ongoing antitrust case over its App Retailer regulations for tune streaming suppliers like Spotify.

    The Eu Fee, the EU’s government arm, opened an antitrust investigation into Apple in 2020 after Spotify complained about Apple’s license agreements in 2019. The agreements imply that app builders must pay a 30% fee on all subscription charges that come during the App Retailer.

    On Tuesday, the fee narrowed its initial “observation of objections” towards Apple that it had issued in 2021. The observation to begin with alleged that Apple had “abused its dominant place” via enforcing its personal in-app acquire fee era on tune streaming app builders, and limited builders’ skill to tell iOS customers of alternative to be had tune subscription services and products.

    The fee dropped the primary fee on Tuesday and mentioned it’ll focal point on Apple’s anti-steering duties.

    Stocks of Spotify and Apple had been in large part unchanged Tuesday.

    “Lately, the Eu Fee despatched a transparent message that Apple’s anti-competitive conduct and unfair practices have harmed customers and deprived builders for some distance too lengthy,” Spotify’s basic recommend, Eve Konstan, mentioned in a observation. “We urge the Fee to achieve a swift resolution on this case to give protection to customers and repair truthful pageant at the iOS platform.”

    Spotify, an instantaneous competitor of Apple Track, is “via some distance” the preferred tune streaming provider within the U.S. and U.Ok., amongst different international locations, in keeping with a document via economists on the Research Workforce. IPhone customers within the U.S. spend 50% extra time on Spotify than Apple tune, and within the U.Ok., the distance is even higher, the document mentioned.

    An Apple spokesperson mentioned the corporate will proceed to advertise pageant and paintings with the Fee to reply to their issues.

    “We are happy that the Fee has narrowed its case and is not difficult Apple’s proper to gather a fee for virtual items and require the usage of the In-App Cost techniques customers accept as true with,” the spokesperson mentioned. “The App Retailer has helped Spotify transform the highest tune streaming provider throughout Europe and we are hoping the Eu Fee will finish its pursuit of a grievance that has no advantage.”

    The corporate mentioned it has all the time labored to advertise pageant, and that it’ll proceed to advertise selection for Eu customers.

  • Mexican president says Tesla will construct a brand new plant in Mexico

    Pedestrians stroll previous the Tesla Motors authentic licensed automotive broker retailer in Hong Kong.

    Sopa Pictures | Lightrocket | Getty Pictures

    Tesla will construct a brand new plant in Monterrey, Mexico, and cling to a sequence of commitments to handle water shortage, the country’s president introduced at a press convention Tuesday.

    President Andrés Manuel López Obrador, or AMLO, as he’s identified, stated Tesla agreed to make use of recycled water on the plant right through all the car production procedure, even all the way down to the automobiles’ paint. He stated the corporate will divulge extra details about the brand new plant throughout its Investor Day tournament Wednesday.

    AMLO stated he spoke to Tesla CEO Elon Musk on Friday and Monday.

    “He was once very responsive— figuring out our considerations and accepting our proposals,” AMLO stated. CNBC translated the president’s remarks from Spanish to English.

    AMLO stated the plant might be a substantial funding, and that it’s going to lead to “many, many roles.”

    Monterrey is an commercial town close to the U.S.-Mexico border, and it has lengthy been regarded as a pacesetter for funding from Tesla. The corporate recently has two different automotive crops outdoor of the U.S. positioned in China and Germany.

    “I need to thank Mr. Elon Musk, who was once very respectful and understood the significance of addressing the issue of water shortage,” AMLO stated.

    Tesla’s Investor Day might be live-streamed on Twitter and YouTube from Texas Wednesday.

  • Microsoft’s new Home windows 11 replace provides a button selling its Bing A.I. chatbot

    Microsoft CEO Satya Nadella speaks at an match at the corporate’s campus in Redmond, Washington, on Feb. 7, 2023.

    Chona Kasinger | Bloomberg | Getty Pictures

    Microsoft stated Tuesday that it is going to get started selling its new Bing chatbot, which attracts on startup OpenAI’s synthetic intelligence features, in an replace to Home windows 11.

    Bing isn’t massively common, however Home windows drives 9% of Microsoft’s income. It is the global’s main working gadget, with about 82% percentage as of 2021. The addition of a hyperlink to the refreshed Bing subsequent to the acquainted Get started button is a huge step ahead for era that is now and then confirmed to be misguided or offensive. The gesture would possibly assist Microsoft problem Google, which previous this month authorized “depended on testers” to take a look at its Bard chatbot that would rival Bing’s new skill to respond to queries with internet data.

    “It is a new day in seek,” Microsoft CEO Satya Nadella stated all the way through the development simply 3 weeks in the past at which Microsoft published the brand new Bing. “It is a new paradigm in seek. Speedy innovation goes to return.”

    After coming into a question into the quest portion of the taskbar on the backside of the display screen, a consumer will see seek effects and a brand new chat button. Clicking that button will open an Edge browser window and steered the Bing chatbot to answer the individual’s question, a Microsoft spokesperson instructed CNBC in an e-mail.

    Microsoft’s Bing chatbot in a Home windows 11 replace

    Microsoft

    The brand new Bing choice is simplest turning into a typical fixture of Home windows 11, which Microsoft launched in 2021. Give a boost to for Home windows 10 results in 2025, and many of us have now not upgraded but. In January round 69% of Home windows PCs had been nonetheless operating Home windows 10, and 18% had been on Home windows 11, in keeping with estimates from StatCounter.

    Now not everybody will be capable to see the chat button in Home windows 11 to start with. Microsoft has given over 1 million folks get entry to to the brand new Bing, a small quantity when put next with the estimated 100 million individuals who used OpenAI’s ChatGPT chatbot in January.

    In time, the taskbar exchange would possibly force upper use of the up to date Bing. Over 500 million folks use the Home windows seek field each and every month, Microsoft’s product leader, Panos Panay, wrote in a weblog submit.

    Bing has been to be had from the Home windows taskbar for years, and Microsoft generates income when advertisements seem in seek effects after folks kind in positive queries. Heavier use of the up to date Bing may deliver monetary upside. Microsoft would achieve $2 billion in more income for each and every proportion level of income it alternatives up within the search-advertising marketplace, Amy Hood, its finance leader, stated on Feb. 7.

    Jefferies surveyed 900 customers concerning the new Bing, and of the 127 who had attempted it, 86% stated they had been inspired or very inspired, however simply 17% stated they’d make Bing their new default seek engine, in keeping with a Monday be aware to shoppers.

    Other people with Home windows 11 PCs on model 22H2 can request the brand new model with the extra clever Bing and the opposite additions via opening the Home windows Replace segment of the Settings app and clicking the “Test for updates” button, Panay wrote within the weblog submit.

    WATCH: The true explanation why GOOGL is at an obstacle vs. Microsoft within the A.I. race

  • Zoom stocks leap on better-than-expected fourth-quarter effects

    Zoom CEO Eric Yuan speaks earlier than the Nasdaq opening bell rite in New York on April 18, 2019.

    Kena Betancur | Getty Photographs

    Zoom stocks climbed 8% in prolonged buying and selling on Monday after the video chat corporate reported fiscal fourth-quarter effects that exceeded analysts’ estimates and presented positive profits steerage for the yr.

    Here is how the corporate did:

    Profits: $1.22 in step with percentage, adjusted, vs. 81 cents as anticipated via analysts, in keeping with Refinitiv.Earnings: $1.12 billion, vs. $1.10 billion as anticipated via analysts, in keeping with Refinitiv.

    Zoom’s earnings greater 4% yr over yr within the quarter, which ended on Jan. 31, in keeping with a observation. That is a dramatic slowdown from the quadrupling of earnings that Zoom loved in 2020 and 2021, when shoppers and companies flocked to the video carrier all through the Covid pandemic.

    The corporate had its first web loss since 2018 within the quarter, dropping $104 million when compared with web source of revenue of about $491 million within the year-ago length. The loss stems from stock-based reimbursement prices.

    Zoom persevered to stand problems it had encountered previous within the 2023 fiscal yr all through the quarter, together with executives having a look moderately earlier than agreeing to pay the corporate for services and products, CEO Eric Yuan informed analysts on a convention name.

    Enlargement will proceed to sluggish this yr. Zoom sees between $4.435 billion to $4.455 billion in earnings, implying 1.1% expansion, whilst analysts have been anticipating gross sales of $4.6 billion. The corporate stated adjusted profits in step with percentage will likely be between $4.11 and $4.18, topping the $3.66 moderate estimate.

    For the fiscal first quarter, adjusted profits will likely be 96 cents to 98 cents in step with percentage on earnings of $1.080 billion to $1.085 billion. Analysts surveyed via Refinitiv had anticipated 84 cents in adjusted profits in step with percentage and $1.11 billion in earnings.

    With the exception of the after-hours transfer, Zoom’s inventory is up 8% for the yr, whilst the S&P 500 has received 3% over the similar length.

    All over the fiscal fourth quarter, Zoom stated it could introduce electronic mail and calendar services and products, at the side of a digital agent chatbot for dealing with customer support inquiries.

    Executives will speak about the effects with analysts on a convention name beginning at 5 p.m. ET.

    That is breaking information. Please test again for updates.

    WATCH: Cramer’s lightning spherical: Zoom Video wishes a merger

  • Palantir to chop about 2% of staff, more or less 75 jobs

    Other folks stand in entrance a banner exhibiting Palantir Applied sciences Inc. signage right through the corporate’s preliminary public providing (IPO) in entrance of the New York Inventory Alternate (NYSE) in New York, Sept. 30, 2020.

    Michael Nagle | Bloomberg | Getty Photographs

    Palantir showed on Monday that it is reducing about 2% of its group of workers as layoffs proceed to hammer the tech trade.

    “We consider our corporate is at an inflection level and to proceed to adapt, we’re making the cruel number of lowering groups in numerous spaces,” the corporate stated in an emailed commentary. “Whilst not up to 2% of our group of workers is impacted by way of those adjustments, those are extremely painful selections however the fitting ones for the corporate’s long run.”

    The layoffs will have an effect on more or less 75 other people in response to the corporate’s newest SEC file in December, which confirmed it had 3,838 staff. A spokesperson advised CNBC that the corporate plans to proceed hiring in spaces of strategic significance.

    Stocks of Palantir have been little modified on Monday and are up 27% to this point this 12 months.

    The headcount aid comes after the device corporate reported its first successful length previous this month for the fourth quarter, and CEO Alex Karp stated Palantir expects to generate a benefit for the present fiscal 12 months. Palantir, which is understood for its paintings with govt protection businesses, reported an 18% build up in fourth-quarter earnings to $509 million.

    Palantir is the newest tech corporate to announce layoffs because the trade reckons with a slowdown following over a decade of unbridled enlargement. Twilio, Dell, Zoom and eBay disclosed important cuts to their group of workers this month. In January, Google published plans to put off greater than 12,000 employees, Microsoft introduced plans to chop 10,000 staff and Salesforce stated it deliberate to reduce 7,000 jobs.

    WATCH: Palantir CEO Alex Karm discusses financial and geopolitical outlook from Davos