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Roula Khalaf, editor of the FT, selects her favorite stories in this weekly newsletter.
Another quarter, another blow for the London stock market market. On Thursday, Great Britain Fintech Wise stated that he changes his main list to New York to improve liquidity in his shares. On WednesdayCobalt Holdings, a Metal Investment Company, scrapped her step in London and decided to increase the financing privately instead. The city’s hope of landing Shein also seems to be on a shaky soil after the fast-fashion group stated late last month that it is moving his focus on Hong Kong. These new setbacks follow a loss of 88 companies from London Stock Exchange last year, a post-financial crisis high.
Share markets in the entire industrialized countries have problems. Sappo -ipo activity has uncertainty. The gravity of the large investor base and the deep capital markets still a force that you have to expect despite Donald Trump’s interference. For a nation that is starved as growth and investment such as Great Britain, it is essential to revive your public market. The LSE has a particularly strong decline. The main entries on the British stock exchange have dropped by over 40 percent since the global financial crisis. The constant drain is self -reinforcement: when the lists dry, liquidity and investor activity thin and further.
In recent years, the British political decision -makers have undertaken the reception efforts to contain the river. Jeremy Hunt, the former Chancellor, initiated reasonable reforms This is how you simplify the listing regime and facilitate the foreign issuers in London. His successor Rachel Reeves tries to consolidate and mobilize Great Britain’s huge and extensive pension capital in order to dramatically reverse the trend of the British pension funds in recent decades. These reforms will take time to bear fruit. If the government is serious to correct the decline of the LSE, it must have to braveAnd fast.
There are many levers that can pull it. First, it should reduce the stamp reserve tax of 0.5 percent to the purchase of shares in British companies. The tax is the liquidity and is already raised to a higher sentence than peer nations. Cutting would also send a clear signal to investors. Over time, the £ 3 billion, which it brings in every year, would probably be withdrawn by higher future income. Other targeted tax incentives could help to cover the prerequisite costs for the list and promote equity investments, while reforms could increase retail engagement to the tax-free individual savings account.
Second, the negative radio has to go across the country. Investments live in optimistic stories, as the recent bump on the Germany’s stock market shows. But Great Britain is bad on sale. The upcoming government of the government is an opportunity to describe how the national asset fund and the British commercial bank support private investments in domestic companies and underline the many comparative advantages of Britain from professional services to life sciences. The creation of growth can increase equity prices. At least as current FT analysis found that the list in the USA is not a guarantee for higher reviews.
Third, long -term political initiatives remain important. improvement Financial education Is the key – the British are good at affecting their money, but much less in the investment. Barclays Bank Estimates That 13 million adults in Great Britain £ 430 billion GBP keep in cash. Funders continue to complain about the annoying bureaucracy in Great Britain. The streamlined and digitization efforts will help.
Wise’s announcement is not one. A shrinking stock market reflects both weak growth prospects and a cause. Great Britain can and must break the loop loop.
