The Editor’s Digest is available for free. In this weekly newsletter, Roula Khalaf, Editor of the Financial Times, shares her selected stories.
According to Sir Mark Tucker, chair of HSBC, the current form of globalisation “may have now run its course.” He noted that trade and geopolitical tensions are likely to enhance economic connections between regional groups and trade blocs. Tucker addressed these issues during the bank’s Global Investment Summit in Hong Kong, highlighting that trade tensions pose a “serious potential risk to global growth.”
Since January, US President Donald Trump has imposed tariffs on major trading partners, including China, Canada, and Mexico, with plans for additional “reciprocal tariffs” to be announced on April 2. Tucker described the current period as one of significant change in trade, economic policy, and international security arrangements, suggesting that traditional globalisation might be reaching its end.
Tucker stated that while the world might not “regress or geo-fragment and de-globalise,” there would be emerging opportunities and stronger economic ties among new “political groupings and trade blocs.” He mentioned the “Brics-plus group of countries” as an example, predicting increased trade within this group.
HSBC, a leading participant in global trade finance, has been ranked first in revenue for the past seven years. Recently, HSBC restructured its operations, separating its business geographically into two units—one focusing on Asia and the Middle East, and the other on Europe and the Americas.
Economic connectivity between Asia and the Middle East is expected to “soar” in the coming years, according to Tucker. The Brics group, initially consisting of Brazil, Russia, India, China, and South Africa, has expanded to include Iran, the United Arab Emirates, Egypt, Ethiopia, and Indonesia. Tucker observed that these economies’ increasing trade and financial linkages with the rest of the emerging world indicate potential for significant growth spillovers.
He also noted that the Brics group is developing institutions that could impact energy, trade, finance, supply chains, and technology. Tucker mentioned that, amid geopolitical tensions, more emerging markets might join Brics to strengthen ties and amplify their influence on the global stage.
