It’s a euros triumph already: the value of all the companies on the London stock market is greater than all those on the Paris exchange: $3.18tn plays $3.13tn, calculates Bloomberg. Actually, we should probably contain our excitement. First, the position is not groundbreaking: until only a few years ago, London was miles ahead as the biggest stock market in Europe. Second, the current position could reverse in an instant: it would merely take a marginal improvement in the value of fashion stocks such as LVMH, Hermès and Gucci-owning Kering that are heavyweights in Paris.
Well, I guess that's up to the people that buy frocks then. If, that is, they buy enough of them...
Relative size versus Paris is a diverting yardstick, but success for London should really be measured in terms of quality of new listings, capital raised, the ease of doing business and so forth. The fascination with pure size quickly leads to the current silly idea that it would somehow be a “boost” for London if Shein, the Chinese-founded, but Singapore-based, fast-fashion retailer could be persuaded to list here, carrying a supposed £52bn valuation.
Why is that a silly idea?
What would count as success? Well, here’s a small example from another weekend story: the founders of Melrose Industries, the deal-making company that bought the aerospace and automotive group GKN for £8bn in a hostile takeover in 2018, will return to action with a London-listed investment vehicle. Rosebank Industries – a sort of Melrose 2.0 – will raise £40m-plus via an offering on Aim, London’s junior market, Sky News reported, before hunting for deals of up to $3bn and then moving up to the main market.
This is why I never dabble in finance. I cannot fathom from this article why one is desirable and the other isn't.
