Leaders

Is globalisation retreating under populist pressure? Or are populist politics a sign of its force?

China's ambition to follow in Japan's footsteps and build a global business empire has not shown any signs of abating, with well-known Chinese billionaires leading the country's global expansionist drive. But the modern version of an (economically-driven) manifest destiny, made inevitable by China's accumulating wealth, is increasingly being met with heavy resistance from governments and grassroots advocacy groups alike.

The relative lull during the summer while British MPs kicked back in the tropics or, in Prime Minister Theresa May's case, hiked the Alps, had some of the optimists thinking all that Brexit drama had been much ado about nothing. But as of writing in early September, the sharpened pencils of a new term have hardly been blunted and yet the UK has already been served a heavy reality check.

Anheuser-Busch InBev landmark £79 billion takeover of UK rival SAB Miller could face some interesting times ahead, after the UK High Court ruled that two of the target's main shareholders had to be classed separately when voting on a scheme.

Regulatory headaches Insanity in individuals is rare, but in groups, parties, nations and epochs, it is the rule, according to Nietzsche. Individually we think we're smart: in aggregate we move with the herd. As a quote, it probably does quite well to describe our current economic and financial state of affairs too.

After months of speculation and indecision, China's State Council finally gave on July 18 its official backing for the planned revival of the debt-to-equity swap initiative which was last used in 1999. This was followed by a new document issued by the Council on August 22 urging non-financial enterprises, such as suppliers, to swap their accounts receivable for equity in their indebted clients.

When British dental company Mydentist issued its £425 million high yield bond on August 5, the UK's debt markets and its commentariat should have been celebrating. The firm had just sold the first sterling bonds since the UK voted to leave the EU on June 23, signalling that British issuers could still price a deal in an apparently apocalyptic environment.

To paraphrase that old foe of capitalism Leon Trotsky, you may not be interested in financial crises, but financial crises are certainly interested in you.

On July 21 China's army of cash-loaded corporates met with yet more resistance within the US.

Source of British pride: Bond or schemes?

Throughout the run-up to the UK's historic referendum on membership of the European Union, the Leave campaign had a few catchphrases. While 'take back control' had a special ring to it, another popular one was all about EU red tape. Personal feelings as to whether one was in or out aside, calls for a rule reassessment must have been music to many bankers' ears. Red tape has been their nemesis since long before the crisis, though the pace has certainly quickened significantly in the years since.

On Friday June 24, the morning after the British electorate voted to leave the EU, we began to call people for reaction to the news and its impact on London's banks. The contacts were of a type: highly-educated, white, metropolitan – mostly male; exactly the demographic that voted to remain in the EU the previous day.