Oman Leapfrogs London, Pension Funds and Private Assets, Executive Pay
Dec 12, 2024
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Join John Stepek, a savvy senior reporter and author of the Money Distilled newsletter, as he dives into the shifting tides of the financial landscape. They discuss how London's prominence as an IPO hub is waning, with countries like Oman emerging as new leaders. The conversation tackles why pension funds are increasingly attracted to private assets and throws in a light-hearted look at the financial perks of marriage. Plus, they highlight challenges in the UK market and the looming tax hikes that could impact many.
The UK stock market faces a significant decline in IPO activity, as many companies are choosing to list abroad for better investment conditions.
Pension funds increasingly favor private assets over public companies, highlighting the need for reforms to preserve the future of public markets.
Deep dives
Meta's Open Source AI for All
Meta has made its AI models available as open source software, allowing a diverse group of users, including small businesses, startups, and researchers, to access and utilize the technology at no cost. This initiative promotes innovation by enabling more people to create unique applications and solutions using AI, which benefits everyone by democratizing access to advanced technologies. The commitment to open source aligns with the belief that widespread availability of AI will lead to collective advancements across various sectors. By fostering an environment where anyone can build with AI, Meta aims to enhance creativity and drive progress.
Decline of London's IPO Market
The podcast highlights a significant downturn in London's IPO market, reflecting concerns that many businesses are opting for listings abroad due to a more favorable investment environment. For instance, major companies like Ashtead, which has primarily operated in the US, have decided to shift their primary listings to American markets. This trend signals a broader issue where London has fallen behind other global financial centers in attracting new listings, impacting its position as a leading financial hub. The discussion emphasizes the need for reforms to rejuvenate the UK’s equity markets to remain competitive.
The Rise of Private Companies
The shift towards private companies is intensifying, as the number of public companies decreases significantly while private firms grow. Statistics show a dramatic fall in the number of public companies in the US from about 7,000 in 2000 to roughly 4,800 in recent years, while the number of private companies has nearly doubled. This shift is largely driven by investor preferences, as many institutions are now more inclined to invest in private firms over public ones due to perceived advantages like fewer regulatory burdens and better pricing dynamics. The conversation raises alarms about losing shareholder democracy and the future of public markets, calling for actions to make public listings more attractive.
In this week's roundup, Merryn speaks with Money Distilled newsletter author John Stepek about the UK stock market's shrinking influence, why pension funds are so keen to invest in private assets, and everyone's favourite: executive pay.
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