Title: London Stock Exchange Chief Optimistic Despite Companies Moving to the US
The Chief of the London Stock Exchange, Julia Hoggett, has expressed optimism despite a growing number of companies worth billions of pounds moving their listings to the US. In a recent statement, Hoggett denied that the exchange is in crisis, stating that the UK is already “punching above its weight.”
The UK has been facing an “existential crisis” as major firms have either left, are considering a move, or have been acquired by foreign investors. However, Hoggett remains confident in the UK’s competitiveness and potential for growth.
The Treasury spokesperson also emphasized that the UK is a prime location for investment and is working on enhancing its competitiveness further. Chancellor Jeremy Hunt will be hosting a summit with finance chiefs to brainstorm ways to attract more companies to UK markets.
The departure of big companies like ARM Holdings, Paddy Power’s owner Flutter, and UK drug company Indivior has raised concerns about the future of the London Stock Exchange. However, Hoggett believes that there is a strong pipeline of companies preparing to enter the market.
While some companies have criticized the London market as “broken and closed,” Hoggett remains positive about the fundamentals in London. She highlighted the need for UK investment managers to direct more assets into UK shares to support domestic companies.
Despite the challenges, there are still success stories like tech start-up Raspberry Pi listing in London and Chinese fast fashion giant Shein considering a move to the UK. The Treasury spokesperson reiterated that the UK is committed to enhancing its capital market reforms to boost competitiveness.
In conclusion, while the London Stock Exchange may be facing challenges with companies moving to the US, Hoggett and Hunt are determined to address these issues and maintain London’s position as a leading financial hub.
