FT News Briefing London Stock Exchange gets the cold shoulder
Mar 3, 2023
A renewed U.S. crackdown on countries aiding Russia's sanctions evasion is on the horizon. Meanwhile, major firms like CRH are shifting their listings from London to New York, raising concerns about the UK stock market's declining appeal. Discussions also highlight how rising wages could complicate central banks' battles against inflation, with the risk of a wage-price spiral looming. The podcast dives into the implications of these financial shifts and the challenges for economic policy amidst geopolitical tensions.
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London Stock Exchange Losing Appeal
- London's Stock Exchange struggles to attract hot companies, exemplified by SoftBank's rejection and CRH's move to New York.
- This highlights challenges for the UK market in retaining and attracting major listings.
CRH's Move: A Bad Sign for London
- CRH's move to New York signals a concerning trend for the London Stock Exchange.
- The lack of a vibrant domestic investor base and global focus contribute to this issue.
Wage Growth and Inflation
- Rising wages, while seemingly positive, present a challenge to central banks' inflation fight.
- Higher wages can fuel a wage-price spiral, necessitating further interest rate hikes.