A postcard from St John's, Newfoundland

On British politics and Deutsche Bank.

Our time with the grandchildren in Newfoundland is coming to a close. All those who have family living abroad will understand that this is not a good time, but I arrive back Monday so I am looking forward to longer communications with you next week. But this week, a few matters caught my attention.

First, the new British PM Theresa May has foreshadowed curtailing executive pay, making shareholder votes on compensation binding and introducing rules that put employees in boards. She is clearly no right winger. The independents in the Senate will pick up on any such UK actions and may use them as a lever in exchange for passing other legislation.

Secondly, in Germany Deutsche Bank hybrids have slumped and are selling at 75 cents in the euro (read more on Deutsche Bank in Callam Pickering's piece today: click here). Markets can do strange things and are often wrong, but the fears of Deutsche bad debts that are causing that fall will need to be addressed.

I will talk about super next week but it is likely that the real decisions will be made in the Senate, not the Coalition party room. 

Best wishes, 

Robert Gottliebsen 

Robert Gottliebsen is currently travelling and his regular column will return shortly.

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