For the last two years running, bankers in London, New York and Tokyo have reaped record-breaking bonuses, sending bountiful ripples through their local economies in the form of everything from gasp-worthy bar bills to astronomical property prices. Many movers and shakers, buoyed by a record $3,300 billion worth of mergers and acquisitions activity globally in the first half of this year, were hoping that the coming bonus season would prove three’s the charm.

That was, of course, until America’s subprime mortgage crisis sent the global economy into a penny-pinching credit crunch.

What did Vladimir Putin hope to achieve as he stood side by side with Iranian president Mahmoud Ahmadinejad in Teheran yesterday?

  Photo: AFP

Certainly the visit was a boost to Ahmadinejad. Ever since Russia – believed by many in Tehran to be Iran’s only major international ally - backed a UN Security Council resolution censuring Iran and imposing mild sanctions last March, Iran has been dangerously isolated internationally. Now, it seems, the relationship is back on track – and, crucially, Iran is a degree more confident that thanks to Russia’s veto on the Security Council, there will be no further tightening of sanctions.

That diplomatic boost for Ahmadinejad sounds like a loss for Washington. Indeed, when George Bush hosted Putin at the family estate at Kennebunkport, Maine, this summer, much of the talk was on Iran and persuading Putin to continue his support for UN sanctions. At the time Putin agreed that Iran should be prevented from developing nuclear weapons. Yet yesterday Putin confirmed at a press conference in Tehran that Iran also had the right to "pursue its civilian nuclear power projects." That’s actually something not even the United States denies – but the symbolism of Putin coming to Iran’s defense was significant.