Paris Bourse overtakes LSE

[PaulMB]

According to Bloomberg, Paris has overtaken the LSE as Europe's biggest stock exchange, on the basis of the capitalisation of the companies quoted. (Thank you, Brexit.)
But does this also mean that Paris is, as a whole, now bigger than London as a "financial capital," or are there other activities, indicators and factors that should be considered?

 

[davidsrsb]

Money laundering, London still leads

 

[wacko]

Brexit is like death from a thousand cuts. The UK is already much diminished.
Still won the cricket...

 

[PaulMB]

Money laundering, London still leads

You mean "invisible exports," "money laundering" is not politically correct.

 

[TheDecameron]

Brexit is like death from a thousand cuts. The UK is already much diminished.
Still won the cricket...

The beauty is ( for Farage, the ERG et al) is that the Brexit damage is hard to isolate out in the world of Covid and Putin now but we have proxy measures such as the collapse in exports to the EU, the depressed state of the currency since it fell off a cliff in 2016 when Britain took back control.
The other omen is that ‘business leaders’, even some of whom supported Brexit are now calling for Britain to rejoin the single market and increase immigration and in doing so cut the pillars of Brexit from under the entire experiment- taking back control of our laws, money and borders.

 

[lagavullin10y]

All those Brexit festivities where people were drinking LVMH Champagne did it.

 

[TheDecameron]

I enjoyed the good old days when we had the certainty of the PM saying “Brexit means Brexit”

 

[timH]

You mean "invisible exports," "money laundering" is not politically correct.

Just looked up a table of GDP per Capita
No 4 Bermuda
No 8 Isle of Man
No 9 Cayman Islands

UK is no 31

 

[stevec67]

All together now: "Nothing to do with Brexit!"
"They need us more than we need them!"
Repeat until true.
Here at work we have had to return a consignment of dried egg to a supplier in the EU, because there was a quality problem. It's held up in Customs, the EU based supplier is pulling his hair out because in his own words "It is extremely difficult post Brexit to export animal products from the UK to the EU". Of course this is only due to the EU's actions and nothing to do with the UK failing to get this sorted out, isn't it?

 

[dadgad]

Some of my professional work is in this area, particularly this index, regarded as the most authoritative ranking of financial centres:
https://www.zyen.com/publications/public-reports/the-global-financial-centres-index-32/

Paris is newly in the top 10 financial centres, but London has been ranked 1 or 2 ever since the index started in 2007. The quick answer to the questions is that market capitalisation of the Stock Exchange is just one out of 151 factors considered. The City is involved in Investment Banking, Insurance, Asset Management, and Professional Services as well as share dealing.
That said, Brexit certainly did not help the UK's position/reputation, notably losing a lot of Euro-denominated business to Dublin, Luxembourg, and Amsterdam, as well as Paris and London.

 

[PaulMB]

Some of my professional work is in this area, particularly this index, regarded as the most authoritative ranking of financial centres:
https://www.zyen.com/publications/public-reports/the-global-financial-centres-index-32/

Paris is newly in the top 10 financial centres, but London has been ranked 1 or 2 ever since the index started in 2007. The quick answer to the questions is that market capitalisation of the Stock Exchange is just one out of 151 factors considered. The City is involved in Investment Banking, Insurance, Asset Management, and Professional Services as well as share dealing.
That said, Brexit certainly did not help the UK's position/reputation, notably losing a lot of Euro-denominated business to Dublin, Luxembourg, and Amsterdam, as well as Paris and London.

Thanks, that makes sense. I wonder if there were particular areas in which London gained, after Brexit.

 

[dadgad]

Thanks, that makes sense. I wonder if there were particular areas in which London gained, after Brexit.

Not notably if you read the index, and look at the historic data. Certain sections of the City, were glad to avoid these regulations: https://www.consilium.europa.eu/en/policies/anti-tax-avoidance-package/
but in general being seen as a tax avoidance haven tends to mark a centre down in the Global Financial Centres Index. Check out some of the more notorious places (some of the 'offshore island centres') and see that they don't get into the top 20 in the index.

 

[lawrence001]

Just looked up a table of GDP per Capita
No 4 Bermuda
No 8 Isle of Man
No 9 Cayman Islands

UK is no 31

I can see one thing in common with the other three, are you pointing out that becoming a tax haven should have a beneficial impact on GDP per capita?

 

[PaulMB]

I can see one thing in common with the other three, are you pointing out that becoming a tax haven should have a beneficial impact on GDP per capita?

In London it would, but only if you were measuring 5% of its inhabitants.

 

[timH]

I can see one thing in common with the other three, are you pointing out that becoming a tax haven should have a beneficial impact on GDP per capita?

Yes because low population high gdp because of money laundering

 

[irb]

Brexit is like death from a thousand cuts. The UK is already much diminished.
Still won the cricket...

The UK is indeed much diminished. However it ought to be noted that it was England who won the cricket, not the UK.

 

[chartz]

I can’t imagine having a billionaire as PM or President here. Unbelievable what the UK has become. Those idiots who came up with Brexit haven’t got a clue (and neither have I perhaps but I think I do) and they are leading the country - what’s left of it anyway, now that QE2 is gone.
Can’t wait for the next general election, it should be very interesting.
Anyway, the Stock Exchange is the cancer of humanity AFAIC, and Brexit is the economic mistake of the century, as we said it would be 6 years ago.