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.
Third, the UK’s renewed leadership is only slightly a result of strength in the FTSE All-Share index. It is mostly a case of investors having a wobble over French assets, especially the banks, after Emmanuel Macron’s decision to call snap legislative elections . The related fall in the euro against sterling plays to the same theme.
Fourth, who cares anyway? 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. Come on – the only reason Shein would choose London is because its application to join th.
