There's a weirdly upbeat mood in the city

Are we in denial?

No one seems quite certain whether these are the best of times or the worst of times for the City. Well, OK, few think these are the best of times (that accolade still belongs somewhere back in the pre-2008 boom). But while there are still major problems in the banking sector, including what to what to do on executive pay and bonuses and how to deal with the fallout from scandals such as Libor-rigging and the sale of dodgy loan insurance products to SMEs and individual, there is nevertheless an upbeat mood in the air. This is most obviously epitomised by the FTSE 100 share index, which crashed confidently through the significant 6,300 mark last month and with only a few minor blips since has continued to regain heights not previously seen since before the crash.

But there has also been a noticeable upswing in corporate finance activity, with a rash of major M&A deals either done or on the cards.

In the last week there have been announcements about the leveraged buyout of a majority stake in computer giant Dell, the acquisition of Virgin Media by Liberty Global and even rumours of a private equity backed leveraged buyout of a significant chunk of the UK’s largest mobile telecom provider EE (formerly Everything Everywhere, itself formed from a merger between Orange and T-Mobile). All these deals point to a more buoyant start to 2013.

There have been several theories hatched to explain this sudden upswing. It started with a growing belief towards the end of last year (misguided according to the more bearish commentators) that the actions of the European Central Bank (ECB) and others have done enough to make the euro crisis recede, if not go away all together.

Then the US managed to avoid dropping off the fiscal cliff (again the bears would suggest that we’re not out of the woods here either, with a no real budget agreement struck and the pain merely deferred). But all these attempts to rationalize this upswing (which has so far not been matched by any sort of similar recovery in the real economy) don’t really explain it enough. Now, there will be plenty of people keen not to ask too many questions.

So desperate have we become for good news (any good news) that it seems like heresy to even question the source of any optimism.

The rest of this article can be read here, on economia

Photograph: Getty Images

Richard Cree is the Editor of Economia.

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The politics of the kiss

From the classical period via the Kremlin to the Clintons: a brief history of political smooching.

Iowa and New Hampshire are behind us. Super Tuesday beckons. For fans of the competitive sport of baby-kissing, this is as good as it gets.

Meanwhile, closer to Britain, kissing’s in our very constitution. Jeremy Corbyn’s future, depending on his success, could involve taking a trip to the Palace to kiss hands as Prime Minister – and as a republican. Being sworn into the Privy Council in November, he even managed a peck on the royal paw, but reportedly stood fast and did not kneel.

Why is there so much snogging in politics? 

Ancient Romans and Persians established – dare we – a pecking order on meeting. This ritual would make it instantly clear if they were equals (full-on, mouthy kiss, the basium), separated by a slight gap (cheeky peck, an osculum), or vast unequals (foot-kissing accompanied by much grovelling). Even heads of state greeted people in this way.

And there was nothing more dramatic – and bizarre – than the socialist fraternal kiss. Kremlinologists would even measure its intensity, to see how close Communist leaders were. The rule was to do three alternate kisses on the cheek, aping the Ancien Régime’s Orthodox Easter greeting. When two leaders were especially chummy – like then Soviet leader Leonid Brezhnev and GDR head Erich Honecker at the 30th anniversary of the GDR in East Berlin in 1979 – the world would witness a big, sloppy lip-plant. Paris Match splashed Régis Bossu’s iconic black-and-white image of the socialist snog across a double-page spread. Le Baiser, they called it.

Nikita Khrushchev, Joseph Stalin’s successor, locked lips with USSR chairman Klim Voroshilov when returning from a US visit in 1959. In July 1937, Stalin planted a decidedly non-frigid one on Ivan Spirin, a polar explorer and state hero.

But Brezhnev was the true practitioner. The joke in Russia went that he described a Warsaw Pact comrade “as a politician, rubbish...but a good kisser!”

Aside from the steamy Kremlin, social kissing on the mouth declined with the Black Death.

The courtly handkuss (kiss on the hand) generally went the same way with the fall of the German and Russian monarchies in 1917-18, though hung on longer in Austria. 

But French president Jacques Chirac made it his trademark, playing to the gallery with French élégance. An Associated Press story from 1967 chronicles the sad plight of European diplomats who had chanced it in Washington. One congressional wife jumped back, claiming she had been bitten; another said a stone was missing from her ring. “Chivalry has its drawbacks,” the story observed.

But back to the babies. We see kissing-as-canvassing in William Hogarth’s 1755 series The Humours of an Election

And in a close-fought 1784 Westminster by-election, we read of 24 women out canvassing with kisses – including the Duchesses of Rutland, Argyll, Ancaster, and (somewhat infamously) Devonshire. 

Kissing voters’ wives – now probably frowned upon by CCHQ – was customary fare for the 18th-century candidate. It’s only in the following century that we see the desexualisation of the electioneering kiss, moving to babies as innocuous. 

In 1836, Charles Dickens has his character Pickwick go to witness a post-Reform Act by-election in Eatanswill. “He has patted the babies on the head,” says the candidate’s election agent, trembling with anxiety. Roar of applause. “He has kissed one of ‘em!” Second roar. “He's kissing ‘em all!” The crowd’s shouts are deafening. And the candidate Slumkey coasts home to Parliament.

US presidents Richard Nixon, Grover Cleveland and Benjamin Harrison forswore baby kissing, grasping for a higher-minded political plane. Bernie Sanders, too. 

But how are the rest of today's politicians doing, kiss-wise?

Barack Obama: After two terms, a kisser to be reckoned with. With adults. Apparently he doesn’t relish kissing babies, and has been called fatally ill-at-ease holding one. Full points for his lucky save with a reticent Aung San Suu Kyi in 2014, ending with a perfectly creditable side-hug and ear-kiss.

Pity Michelle, photographed rolling her eyes as Barack went in for the selfie with, say, Danish Prime Minister Helle Thorning-Schmidt in 2013. (For her part, Michelle fobbed off Silvio Berlusconi with a fully outstretched arm, taking no chances.)

David Cameron: Utterly denied by SamCam after his Tory conference speech in October 2015. Lord Grantham says in Downton he spent most of Eton avoiding the kisses of other boys; clearly, the Prime Minister didn’t get much practice while at school.

Angela Merkel: In her first meeting with Nicolas Sarkozy, out she came with a businesslike German handshake just as he ducked for the Gallic kiss. In a moment of British romantic awkwardness last May, during Cameron’s EU reform tour, we saw the Prime Minister lean in, short of closing the deal, as she pulled back and possibly searched for some new regulations to beat him away with.

Hillary Clinton: Is said to enjoy kissing babies. Is said not to enjoy kissing Bill, as in the 2008 Correspondents’ Dinner when she expertly ducked one from him.  And scored one from Obama instead. But maybe she ought to lay off the baby-kissing: a journal article in Political Psychology suggests voters are 15 per cent less likely to vote for women candidates when their adverts evoke female gender stereotypes.

Donald Trump: In August, his baby-kiss in Alabama went viral – the baby’s mother just a bit too keen, the baby’s confusion mingled with slight fear reflecting the views of many of us. “That baby is us,” wrote blogger Stassa Edwards.

It’s a long road from here to the US election in November. And Cameron can look forward to kissing up to Merkel and a hot summer of Italian, Dutch, and even French kisses too.

So this Valentine’s Day, spare a thought for the babies. And the bureaucrats.