Economist Podcasts Ticker shock: London’s wheezing stockmarket
Oct 6, 2021
Josh Roberts, a finance correspondent for The Economist, explores the troubles plaguing London's stock market, identifying strict governance and a stagnation in innovative IPOs as key culprits. He discusses how these issues hinder London’s status as a global financial hub and suggests strategies for revitalization. Additionally, the podcast delves into the resurgence of military conscription worldwide, influenced by geopolitical tensions, and the rise of digital nomadism in Europe, reshaping how and where people work post-pandemic.
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London Stock Exchange Underperformance
- London's stock market, once a global leader, is now underperforming.
- It's missing out on exciting IPOs, especially in tech, compared to rivals like New York.
Corporate Governance Hurdles
- London's strict corporate governance, like restrictions on dual-class shares, discourages tech companies.
- This lack of exciting companies creates a vicious cycle of undervaluation.
Decreased Demand for UK Equities
- Individual UK investors and British pension funds are shifting away from UK equities.
- This reduced demand further weakens the London Stock Exchange.