Trump praises US economy, calls for more foreign investment

DAVOS • After days of uncertainty over whether Mr Donald Trump would actually attend the World Economic Forum (WEF) meeting in Davos, especially considering his impeachment trial in the United States is under way, the US President landed in the Swiss Alps yesterday.

It was the second time Mr Trump has taken the stage at the WEF meeting. Two years ago, he urged companies to invest in America after passing the first tax cuts to encourage business spending. This year, he stuck to the theme.

"We are now number one in the universe, by far!" Mr Trump tweeted ahead of his arrival in Davos, just after 9.30am local time.

He also took a swipe at what he called "Fake News Media", accusing it of hating to talk about the economy and "how incredible it is".

In a wide-ranging address pitched to appeal to the Davos crowd, touting the achievements of his administration despite his unorthodox approach, Mr Trump picked up on some of the themes he voiced in 2018.

He thanked overseas companies for investing in the US and said the country was on far better economic standing than he had imagined when he took office three years ago. "The time for scepticism is over," Mr Trump said as he invited more foreign money.

"To every business looking for a place to succeed... there is no better place than the US," he added.

He also told a packed auditorium that trade deals struck this month with China and Mexico represented a model for the 21st century. He also took his biggest swipe yet at the Federal Reserve, whose policies he believes are holding back the US economy.

"The Fed raised rates too quickly and has lowered them too slowly," Mr Trump said of the Federal Reserve, taking aim at the central bank's policy decisions.

He said at a meeting with new European Commission president Ursula von der Leyen that they were discussing a trade deal. Mr Trump, accompanied by top economic advisers, including Mr Wilbur Ross and Mr Robert Lighthizer, told reporters: "We're going to talk about a good trade deal. We'll be discussing other things also."

Ms von der Leyen said she was looking forward to working with Mr Trump, saying Americans and Europeans were "good friends".

Mr Trump said he had heard that she is "a very tough negotiator".

Both sides agreed to meet "soon" in Washington to "move the common transatlantic agenda forward", the commission said.

The talks came shortly after Paris announced a truce in its tussle with Washington over plans for taxing US technology companies earning revenue in France. Mr Trump had threatened to hit back with tariffs.

Asked by reporters why he was in Davos, not back in Washington, Mr Trump said: "We're meeting with world leaders, the most important people in the world and we're bringing back tremendous business."

"The other's just a hoax," he said, referring to his impeachment trial. "It's the witch hunt that's been going on for years and frankly it's disgraceful."

REUTERS, AGENCE FRANCE-PRESSE, BLOOMBERG