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Davos 2025: Dutch PM welcomes Trump's Russia threat; Jamie Dimon compares Elon Musk to Einstein

Swiss police patrol outside the Congress Center ahead of the World Economic Forum in Davos, Switzerland, on Jan. 19, 2025.
Yves Herman | Reuters

Swiss police patrol outside the Congress Center ahead of the World Economic Forum in Davos, Switzerland, on Jan. 19, 2025.

This was CNBC's live blog covering the World Economic Forum in Davos, Switzerland, in 2025.

LONDON — Catch up on Wednesday's news, views and action from day three of the World Economic Forum in Davos, Switzerland.

Top posts:

  • Jamie Dimon says he's patched up relationship with Musk view post
  • UK not part of the problem on U.S. trade, Britain's Reeve's says view post
  • Jamie Dimon says U.S. stock market 'kind of inflated' view post
  • Europe must be prepared for U.S. tariffs, ECB's Lagarde says view post
  • Swiss National Bank will use negative rates 'if necessary' view post
  • Aon CEO's 'four megatrends' to watch in 2025 view post

JPMorgan Chase CEO Jamie Dimon said he's smoothed over his previously rocky relationship with tech billionaire Elon Musk. "Elon and I hugged it out," Dimon told CNBC on the sidelines of the event. "He came to one of our conferences, [and] he and I had a nice, long chat. We settled some of our differences."

The JPMorgan chief praised Musk's various business ventures and compared him to legendary physicist Albert Einstein.

Earlier in the day, U.K. Finance Minister Rachel Reeves addressed the trade deficits that newly inaugurated U.S. President Donald Trump is hoping to bring under control.

"We are not a part of the problem here. So we, the U.K., increased trade with President Trump last time he was in office," Reeves told CNBC's Andrew Ross Sorkin on the sidelines of the conference.

European Central Bank President Christine Lagarde speaks to CNBC's Karen Tso on Jan. 22, 2025, at the World Economic Forum in Davos.
CNBC
European Central Bank President Christine Lagarde speaks to CNBC's Karen Tso on Jan. 22, 2025, at the World Economic Forum in Davos.

European Central Bank President Christine Lagarde told CNBC's Karen Tso that Europe must "be prepared" to deal with U.S. tariffs under newly inaugurated President Donald Trump.

"What we need to do here in Europe is to be prepared, and anticipate what will happen in order to respond," she said.

The ECB chief added that the fact Trump had not imposed blanket tariffs on the first day of his presidency was a "very smart approach ... because blanket tariffs are not necessarily giving you the results that you expect."

CNBC's Sophie Kiderlin contributed to this report.

Saudi Arabia's finance minister says 'a lot has been achieved' as it diversifies from oil

Mohammed Al-Jadaan, Saudi Arabia's finance minister, during a panel session at the World Economic Forum (WEF) in Davos, Switzerland, on Wednesday, Jan. 22, 2025.
Bloomberg | Bloomberg | Getty Images
Mohammed Al-Jadaan, Saudi Arabia's finance minister, during a panel session at the World Economic Forum (WEF) in Davos, Switzerland, on Wednesday, Jan. 22, 2025.

Saudi Arabia Finance Minister Mohammed Al-Jadaan said the kingdom has achieved a lot as it continues to diversify from oil.

Asked about a recent downgrade from the International Monetary Fund (IMF), which lowered its 2025 gross domestic product (GDP) growth projection for the country to 3.3%, Al Jadaan said Riyadh's "Vision 2030" was "about dealing with these kinds of issues."

"It is actually moving the economy from an oil-dependent — subject to this volatility of oil production and oil price — into a diversified economy," Al-Jadaan told CNBC's Dan Murphy on the sidelines of the event.

"And over the last eight years, a lot has been achieved," he added.

Al-Jadaan said oil revenues constitute about 52% of Saudi Arabia's gross domestic product, while non-oil revenues have quadrupled over the last 8 years.

"It provides us with this resilience in case of shocks … The [IMF] downgrade is related to the oil, but the non-oil GDP is actually robust," Al-Jadaan said.

— Sam Meredith

Dutch PM welcomes Trump's threat to impose sanctions on Russia over Ukraine war

Dutch Prime Minister Dick Schoof welcomed U.S. President Donald Trump's threat to impose sanctions and tariffs on Russia over the Ukraine war.

His comments came shortly after Trump said via social media that he would have "no other choice but to put high levels" of tariffs, taxes and sanctions on Russia "and various other participating countries" in the absence of a settlement to end the Ukraine war.

"I think that would be good pressure on Russia to act," Schoof told CNBC's Dan Murphy on the sidelines of the World Economic Forum on Wednesday.

"I mean we have a lot of sanctions from Europe against Russia, so I think that is very important — but I think it is more important that Ukraine can be involved in the peace talks from a strength position," Schoof said.

"So, I'm also hoping and expecting that ... the U.S. are still also contributing financially for the military support for Ukraine because there has to be strength for Ukraine at the front," he added.

— Sam Meredith

Forget 'drill, baby, drill' and focus on 'build, baby, build,' former U.S. climate envoy John Kerry says

John Kerry, former US special presidential envoy for climate, during a Bloomberg Television interview at the World Economic Forum (WEF) in Davos, Switzerland, on Wednesday, Jan. 22, 2025.
Bloomberg | Bloomberg | Getty Images
John Kerry, former US special presidential envoy for climate, during a Bloomberg Television interview at the World Economic Forum (WEF) in Davos, Switzerland, on Wednesday, Jan. 22, 2025.

Former U.S. Secretary of State and climate envoy John Kerry said President Donald Trump should focus on a "build, baby, build" strategy.

His comments come shortly after Trump announced a sweeping new energy agenda designed to "unleash" already booming oil and gas production. "We will drill, baby, drill," Trump said in his inaugural address.

"Rather than drill, baby, drill, it's build, baby, build," Kerry told CNBC's Tania Bryer at the World Economic Forum.

"We should be building the new energy future by building out our systems," Kerry said.

"We don't have a grid in America. We have East Coast, West Coast, Texas, a little bit of a line across the top and a massive hole in the middle of our country, where you can't deliver electrons or molecules, which are the heart of the future," he continued.

"So, we think there's a better way to approach that, and it is to be number one in class, to be the best in providing the best kinds of energy," Kerry said.

— Sam Meredith

Jamie Dimon says he’s patched up relationship with Musk, compares him to Einstein

Jamie Dimon, chief executive officer of JPMorgan Chase & Co., during the 2024 Financial Markets Quality Conference at Georgetown University in Washington, DC, US, on Tuesday, Sept. 17, 2024. 
Al Drago | Bloomberg | Getty Images
Jamie Dimon, chief executive officer of JPMorgan Chase & Co., during the 2024 Financial Markets Quality Conference at Georgetown University in Washington, DC, US, on Tuesday, Sept. 17, 2024. 

JPMorgan Chase CEO Jamie Dimon said Wednesday that he and Elon Musk have smoothed over their previously contentious relationship.

“Elon and I hugged it out,” Dimon told CNBC at the World Economic Forum’s annual event in Davos, Switzerland. “He came to one of our conferences, [and] he and I had a nice, long chat. We settled some of our differences.”

Dimon praised Musk’s various companies, including Tesla, space exploration firm SpaceX and Neuralink — a startup seeking to develop brain-computer interface systems. “The guy is our Einstein,” the JPMorgan chief said. “I’d like to be helpful to him and his companies as much as we can.”

Dimon's comments come after the U.S. banking giant last year dropped a lawsuit against Tesla seeking $162.2 million plus fees in a dispute over stock warrant transactions.

JPMorgan had previously alleged Tesla breached the terms of a contract the companies signed pertaining to re-pricing the warrants.

— Ryan Browne

Jamie Dimon says U.S. stock market ‘kind of inflated’

JPMorgan Chase CEO Jamie Dimon on Wednesday called the U.S. stock market inflated and said that he felt more cautious than others in the business world because of the risks from deficit spending, inflation and geopolitical upheaval.

"Asset prices are kind of inflated, by any measure. They are in the top 10% or 15%" of historical valuations, Dimon told CNBC's Andrew Ross Sorkin at the World Economic Forum in Davos, Switzerland.

Read the full story here.

— Hugh Son

UK's Reeves says Britain 'not part of the problem' on US trade

British Chancellor of the Exchequer Rachel Reeves listens during the 11th China-UK Economic And Financial Dialogue on January 11, 2025 in Beijing, China.
Pool | Getty Images News | Getty Images
British Chancellor of the Exchequer Rachel Reeves listens during the 11th China-UK Economic And Financial Dialogue on January 11, 2025 in Beijing, China.

The U.K. is "not part of the problem" when it comes to "persistent" trade deficits that President Donald Trump wants to tackle, the country's finance minister told CNBC Wednesday.

"I do understand that President [Donald] Trump is concerned about countries that are running large and persistent surpluses on the trade balance with the U.S. That's not the case for the U.K.," the U.K.'s Chancellor Rachel Reeves told CNBC's Andrew Ross Sorkin.

Read the full story here.

— Holly Ellyatt

Swiss central bank says it still has 'quite some flexibility' to bring inflation to target

Switzerland's central bank has said it still has "quite some flexibility" to bring inflation to its target before needing to cut interest rates below zero.

Martin Schlegel, chair of the Swiss National Bank (SNB) said the central bank would be open to negative rates "if necessary," but suggested the conditions for such a monetary policy move haven't arrived yet.

The SNB surprised markets by cutting rates by 50 basis points in December to lower its key rate to 0.5%. The central bank's decision came after the annual inflation rate in Switzerland fell to 0.6% at the end of 2024.

"I can also tell you that in Switzerland, no one likes negative interest rates. Also, the Swiss National Bank doesn't like negative interest rates," Schlegel told CNBC's Steve Sedgwick at Davos. "But you cannot exclude it. If necessary, we will do it."

The SNB has forecast inflation to stay within its target range of zero to 2% over the medium term in its December statement.

"We define price stability as an inflation from zero to 2% but temporary inflation can also be outside of the range," Schlegel said.

"We have this as a target in the medium term, inflation has to be inside this range. So we have quite some flexibility," the SNB chair added.

Goldman Sachs economists led by Sven Jari Stehn, who correctly forecast the SNB's 50 basis point rate cut in December, have previously said they expect rates to hit zero by the end of 2025.

"We continue to expect two additional 25bp cuts in [second half of 2025] to a terminal rate of 0%, as we see a potentially sizeable hit to activity in the pipeline, and further appreciation pressure on the franc from increased geopolitical uncertainty and European risk, only partly offset by today's rate cut," they said in December.

— Ganesh Rao

U.S. tariff threats 'very far' from rules-based trade environment, IMF says

The IMF's first deputy managing director Gita Gopinath branded the looming threat of U.S. tariffs as far from the "typical rules-based" trade environment, but said that it was too soon to gauge the global economic impact.

"This is very far from being in the very typical rules-based international trade environment," she said, adding that it was important to "wait and see where the dust settles" in terms of the exact number, level and reach of U.S. tariffs — as well as how other countries react.

The IMF kept its global growth forecast broadly unchanged Friday, forecasting economic expansion of 3.3% in both 2025 and 2026, below the historic average of 3.7%. It said the forecast was due to an upward revision of U.S. growth offsetting downward revisions in other major economies.

Gopinath clarified that the forecast had not taken into account President Donald Trump's recent comments on global tariffs, including fresh threats delivered Tuesday to the EU, Canada, China and Mexico.

Gopinath noted, however, that there was a lot that countries could do to counter the potential negative impact of trade levies, including "investing in domestic reforms to raise productivity" and boost domestic growth.

The UN agency's World Economic Outlook also saw global inflation falling to 4.2% in 2025 and 3.5% in 2026 — a convergence back toward target that it said would happen earlier in advanced economies than in emerging and developing ones.

— Karen Gilchrist

Saudi finance minister discusses political stability in the Middle East

'It is unfortunate' — EU climate chief on Trump's pledge to withdraw U.S. from Paris Agreement

Europe's climate chief described U.S. President Donald Trump's decision to withdraw from the landmark Paris Agreement as "unfortunate," warning that Europe has no choice but to continue trying to tackle climate change.

"It is unfortunate. Not completely unexpected but it is unfortunate," Wopke Hoekstra told CNBC's Dan Murphy at the World Economic Forum in Davos, Switzerland on Wednesday.

"Also given the pivotal role the U.S. is playing at a global stage. It is the largest economy, it is the most dominant power, it is the second-largest emitter. So, losing them in the cycles of international diplomacy as far as climate is related, is unfortunate," he added.

Asked whether Europe can carry the torch on global climate goals now that the U.S. has left the building, Hoekstra said, "Look, they will be missed, and we would have loved to keep them on board. And again, we will continue to engage with them. But the problem will not go away."

He added: "So, we don't have a choice. We don't do this out of luxury. We will have to deal with this crisis in a way that is wise, that is viable for climate itself, for our economies and for the middle classes all across the globe."

— Sam Meredith

Four ‘megatrends’ to monitor in 2025, Aon CEO says

Aon CEO Greg Case said business leaders were watching a number of sources of volatility this year.

"We call them the four megatrends," Case told CNBC's Dan Murphy at the World Economic Forum in Davos, Switzerland.

"Trade — the issues around the global supply chain — technology and generative AI and all the implications of that, weather [and] climate more than ever before, and for the first time really around workforce and talent."

— Chloe Taylor

Ceasefire with Hamas not a strategic win for Israel, official says

Speaking to CNBC's Dan Murphy on Wednesday morning, Israeli Economy Minister Nir Barkat explained his stance on his country's ceasefire deal with Hamas, which he said had been "tough to vote for."

"We need peace in the region," he said. "We must have neighbors that seek peace with us and do not want to destroy us."

The Gaza ceasefire deal, which took effect over the weekend, has led to a pause in the 15-month war between Israel and Hamas, as well as the release of three Israeli hostages.

— Chloe Taylor

'Europe must be better,' Sweden's finance minister says

Sweden's Finance Minister Elisabeth Svantesson said Europe needs to focus more on defending its own interests and positioning itself as a viable economic competitor to other global markets.

"Europe must be better," Svantesson said. "Europe is a rich continent but we are getting behind the U.S.," she said, pointing to the region's low productivity levels and stagnant growth rates.

"We can be richer but we don't focus enough on the things that can make our economy grow," she said, alluding to investment in emerging technologies and growth industries.

— Karen Gilchrist

Prosus has $20 billion in cash to invest in Europe

Prosus, one of the largest technology investors, has $20 billion in cash and is ready to invest in Europe, according to its chief executive Fabricio Bloisi.

Bloisi told CNBC's Squawk Box Europe in Davos, Switzerland, that the technology-focused fund — which has a major stake in China's Tencent — was looking for companies to invest in that would generate returns over the next 10 years.

The tech investor said Europe has repeatedly had the "wrong conversation" on AI and complained that lawmakers on the continent had moved to regulate the nascent industry even before it took off.

"The right conversation is: in three years, everything we do from broadcasting here, to running every business, is going to be highly reliant on AI," Bloisi said. "Are we going to be asking for permission to have the right technology from our partners, or are we going to lead the world?"

— Ganesh Rao

Lagarde not concerned by 'export of inflation to Europe'

The European Central Bank's Lagarde adds that she is "not overly concerned" by the impact of inflation abroad on the euro zone.

Asked about the potential effect on Europe if inflation resurges in the U.S., Lagarde says: "If there is reigniting of inflation in the United States it will be an issue for the United States for sure, that is where the first and prime consequences will be."

"We are not overly concerned by the export of inflation to Europe."

— Jenni Reid

France will have a budget approved within weeks, minister says

France will have a new budget designed to bring down its deficit in the coming weeks, a top official told CNBC in Davos on Wednesday.

The country is aiming to cut its national deficit so that it falls below 3% of GDP in compliance with EU rules, but has faced political turmoil in previous attempts to do so. Former Prime Minister Michel Barnier's bid to force through his own budget culminated in his ousting by lawmakers at the end of 2024.

Speaking to CNBC's Dan Murphy in Davos, Laurent Saint-Martin, France's minister delegate for foreign trade, said he was confident the government's new deficit-trimming plans would soon be approved in the French Parliament.

"Don't panic, there will be a budget for France, I can assure you that, and it will be in the coming weeks – maybe at the middle of February," he said. "And better than that, it will be a budget that will preserve our strengths."

"What is new is that we reduce public spending, this is what we have to do in France," he said.

— Chloe Taylor

Europe must be prepared for U.S. tariffs, ECB’s Lagarde says

European Central Bank President Christine Lagarde speaks to CNBC's Karen Tso on Jan. 22, 2025, at the World Economic Forum in Davos.
CNBC
European Central Bank President Christine Lagarde speaks to CNBC's Karen Tso on Jan. 22, 2025, at the World Economic Forum in Davos.

Europe must "be prepared" and anticipate the potential trade tariffs of newly inaugurated U.S. President Donald Trump, European Central Bank President Christine Lagarde told CNBC on Wednesday.

"What we need to do here in Europe is to be prepared, and anticipate what will happen in order to respond," she told CNBC's Karen Tso.

Read more here.

Sophie Kiderlin

Spanish prime minister says trade war a ‘zero-sum game’

The President of the Government, Pedro Sanchez, speaks during the forum 'Housing, fifth pillar of the Welfare State', organized by the Ministry of Housing and Urban Agenda, at the Railway Museum, on 13 January, 2025 in Madrid, Spain. During the event, the President of the Government made a new announcement on housing, and highlighted access to housing as a key issue within the legislature, in the midst of escalating property prices, especially in large cities.
Europa Press News | Europa Press | Getty Images
The President of the Government, Pedro Sanchez, speaks during the forum 'Housing, fifth pillar of the Welfare State', organized by the Ministry of Housing and Urban Agenda, at the Railway Museum, on 13 January, 2025 in Madrid, Spain. During the event, the President of the Government made a new announcement on housing, and highlighted access to housing as a key issue within the legislature, in the midst of escalating property prices, especially in large cities.

A trade war is not in the interest of the European Union or the U.S., Spain's prime minister told CNBC Wednesday.

"We share a strong transatlantic bond ... our economies are very interlinked and I believe a trade war is not in the interest [of either party], neither for the U.S., neither for the European Union," Pedro Sanchez told CNBC's Steve Sedgwick on the sidelines of the World Economic Forum in Davos, Switzerland.

"A trade war is a kind of a zero-sum game," he added. "We need to focus on how we strengthen our transatlantic relationship, which is now more important than ever."

Read the full story here.

—     Holly Ellyatt

EU 'ship can be turned around,' Merck says

Merck CEO Belén Garijo said she was "confident" that Europe can become more globally competitive, doubling down on the German pharmaceutical group's investment into the region, even as it pursues opportunities in the U.S. and elsewhere.

"We have heavily invested in Europe because we are confident the ship can be turned around," Garijo said, as talked has swirled around Davos of Europe's waning ability to fend off economic competition from the U.S. and China.

It comes as U.S. President Donald Trump on Tuesday reiterated plans to hit the EU and China with tariffs in the face of what he dubs are unfair trade practices.

Garijo noted that the company was preparing for such an eventuality, increasing its presence in the U.S. and pursuing local strategies in the event of such trade levies.

"We have been diversifying our supply chain to be closer to our customers and, of course, to be better positioned in case of potential trade restrictions," she said.

— Karen Gilchrist

We must ensure people do not become obsolete as AI develops: Adecco CEO

Denis Machuel, chief executive officer of Adecco Group, pictured in Dec. 2024.
Benjamin Girette | Bloomberg | Getty Images
Denis Machuel, chief executive officer of Adecco Group, pictured in Dec. 2024.

Denis Machuel, CEO of global recruitment firm Adecco, told CNBC on Wednesday morning that a new $500 billion AI initiative announced overnight by U.S. President Donald Trump was "no surprise."

"It just complements the billions of investment that are already on the way, and [the spend] is necessary to get the best out of AI," he said.

He nevertheless cautioned that increasingly powerful AI should be seen as "both an opportunity and a responsibility."

"We have to ensure that people do not become obsolete, the upskilling, the reskilling, the embarking everyone on this journey is critical," he said.

— Chloe Taylor

Europe ready to respond to any tariffs imposed by the U.S., top EU official says

Europe will respond to any tariffs imposed by U.S. President Donald Trump in a proportionate way, the European Union's commissioner for the economy told CNBC Wednesday.

"If there is a need to defend our economic interests, we will be responding in a proportionate way," Valdis Dombrovskis told CNBC Wednesday.

"We're ready to defend our values and also our interests and rights if that becomes necessary," he added, speaking to CNBC's Steve Sedgwick on the sidelines of the World Economic Forum in Davos, Switzerland.

Since his inauguration on Monday, Trump has repeated his threat to impose tariffs on EU goods entering the United States, telling reporters that the EU was "very, very bad to us. So they're going to be in for tariffs. It's the only way ... you're going to get fairness."

He also said his administration was discussing imposing an additional 10% tariff on goods imported from China, starting in February.

Dombrovskis said the U.S. and Europe were strategic allies and it was important for them to work together, both geopolitically and economically.

Read the full story here: Europe ready to respond ‘in a proportionate way’ as Trump touts tariffs, top EU official says

— Holly Ellyatt

AI the hot topic among CEOs at this year’s Davos

Artificial intelligence is the topic du jour at this year's World Economic Forum Annual Meeting — a major gathering of political and corporate leaders — in Davos, Switzerland.
Fabrice Coffrini | AFP / Getty Images
Artificial intelligence is the topic du jour at this year's World Economic Forum Annual Meeting — a major gathering of political and corporate leaders — in Davos, Switzerland.

Of all the corporate buzzwords, artificial intelligence is by far the one that's been on every major corporate leader's lips at this year's World Economic Forum gathering in Davos, Switzerland.

Numerous big-name company CEOs and investors in industries spanning financial services to marketing talked up the potential of AI technology.

For more on what CEOs — from Mistral's Arthur Mensch to Lloyds Bank's Charlie Nunn — had to say about AI, read the full story.

— Ryan Browne

WEF keynote speakers and highlights on Wednesday

UN Secretary-General Antonio Guterres arrives for a meeting with French Minister of Foreign Affairs Stephane Sejourne at UN headquarters in New York on February 23, 2024. 
Charly Triballeau | AFP | Getty Images
UN Secretary-General Antonio Guterres arrives for a meeting with French Minister of Foreign Affairs Stephane Sejourne at UN headquarters in New York on February 23, 2024. 

On Wednesday, high-profile figures giving keynote speeches at the forum include António Guterres, secretary-general of the United Nations, who's due to speak at 11:30 a.m. Davos time and Spanish Prime Minister Pedro Sanchez at 15:45 p.m. local time.

The day's panels include a look at Russia's growth outlook and "decoding" China's economy, with both events due to start at 9a.m. Davos time.

Later in the morning, experts will take a look at the start-up landscape and the trajectory for global interest rates, while the afternoon will see a range of public figures consider the rise of economic nationalism, the future of healthcare and whether Latin America's economic tide is turning.

Javad Zarif, Iran's vice-president for strategic affairs, will also be speaking in the afternoon.

— Holly Ellyatt

CNBC guest highlights for Wednesday

Mark Rutte, incoming secretary general of the North Atlantic Treaty Organization (NATO), during a transition ceremony at the NATO headquarters in Brussels, Belgium, on Tuesday, Oct. 1, 2024. Mark Rutte, the affable and meticulous former Dutch premier, has a daunting task ahead to keep the defense alliance a global force.
Bloomberg | Bloomberg | Getty Images
Mark Rutte, incoming secretary general of the North Atlantic Treaty Organization (NATO), during a transition ceremony at the NATO headquarters in Brussels, Belgium, on Tuesday, Oct. 1, 2024. Mark Rutte, the affable and meticulous former Dutch premier, has a daunting task ahead to keep the defense alliance a global force.

It's day 3 of Davos and CNBC is back with a raft of interviews with global heads of state, presidents and CEOs.

The day's top interview will be with ECB President Christine Lagarde, due to take place at 09:15 Davos time.

Spanish Prime Minister Pedro Sanchez will be interviewed by Steve Sedgwick at 8:40 a.m. local time.

Other guest highlights on Wednesday morning include Mark Rutte, the head of NATO, Polish President Andrzej Duda, and Dick Schoof, the Netherlands' prime minister, as well as Saudi Arabia's Finance Minister Mohammed Al Jadaan and Finnish President Alexander Stubb, among others.

An interview with the International Monetary Fund's First Deputy Managing Director Gita Gopinath will also be broadcast Wednesday afternoon.

We'll also be interviewing a range of CEOs including the chief executives of Aon, Philips, Merck and Infosys.

Our anchors will also be moderating panels on 'Digital Health,' with the panel including Mayo Clinic CEO Gianrico Farrugia, and the 'Changing Landscape of Food,' with guests including Stefaan Decraene, the chair of Rabobank and Nestle CEO Laurent Freixe.

— Holly Ellyatt

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