Global Political Shifts, Chinese Tech Bonds, and Risky Investments

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The G7 summit hinted at potential global political shifts in the upcoming year, with the possibility of far-right gains in France, US elections, and the German coalition's stability questioned. Leaders from diverse political backgrounds could emerge, impacting international relationships with Ukraine, Russia, and China. Meanwhile, Chinese tech companies are resorting to convertible bonds to access US investors due to challenges in going public, exemplified by Alibaba, JD.com, and Trip.com raising $8.3 billion. On the investment front, investors are showing interest in risky assets in Frontier Markets like Pakistan, Kenya, and Egypt, known as the dash for trash.

Major defence companies are recruiting workers at the fastest rate since the end of the cold war, global leaders were able to reach a consensus on major issues during the G7 summit, and big Chinese companies are turning to the convertible bond market. Plus, investors are flocking to the local currency bonds of one-time emerging market pariahs.

Mentioned in this podcast:

Chinese companies rush to tap US convertible bond market

Frontier emerging markets lure investors back with high yields

G7 threatens China with further sanctions over Russia war support

Global defence groups hiring at fastest rate in decades amid record orders

The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help from Denise Guerra, Breen Turner, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Monica Lopez. Our intern is Prakriti Panwar. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

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