Chief executives of the world’s biggest firms left Davos on January 20th after a week of jaw-jawing in highish spirits. The mood at the annual gabfest was, if not upbeat, then at least no longer sombre. Behind closed doors, CEOs conceded that, although the war in Ukraine remains a humanitarian tragedy, the risks to the world economy look for now to be contained. Central banks have got serious about inflation. If a recession in America and Europe strikes, it should be manageable. The Chinese delegation sent the clearest signal in years that China is not just reopening after its harsh “zero-covid” regime but also reintegrating with the world. Globalisation may not be in the rudest of health, but news of its demise appeared, to the snow-swept bosses, exaggerated. Back on earth, things look dicier. “Earnings season is going to be the confessional event,” says Jim Tierney of AllianceBernstein, an investment firm, referring to the month or so when most companies report their quarterly results. The profits of America’s banking giants, which kicked things off in the past week or so, had fallen by 20% year on year. Investment bankers received a particularly severe drubbing, as dealmaking collapsed amid economic […]