Make London liquid again

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Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

Another quarter, another blow to the faltering stock market in London. On Thursday, the United Kingdom of Fintech Wise said it plans to switch its basic list to New York to improve liquidity in its shares. WednesdayCobalt Holdings, a metal investment company, canceled its transfer to the list in London, and decided to collect funding in particular instead. It seems that the city’s hopes for Shin’s landing on a shaky land after the fast fashion group indicated late last month He was changing his focus towards Hong Kong. These new setbacks follow the loss of 88 companies from the London Stock Exchange last year, which is a high post -financial crisis.

Stock markets around the developed world are struggling. The uncertainty has started everywhere. The attractive clouds of the vast investor base in America and the deep capital markets remain a force that must be calculated, despite Donald Trump’s intervention. But for a nation that has been in a manner that is invoking and investing, such as Britain, reviving its public market is essential. LSE has seen a particularly flagrant decrease. Initial lists in the UK stock on the stock exchange have decreased more than 40 percent since the global financial crisis. Constant exchange is self -reinforcement: with dry menus, liquidity and investor activity, and go.

In recent years, UK policymakers have made efforts to stop the flow. Jeremy Hunt, the former advisor, started Reasonable reforms To simplify the lists system and make it easy for foreign exporters to include in London. His successor, Rachel Reeves, is trying to unite and mobilize the vast and extreme British pension capital in an attempt to reflect the direction of pension funds in the UK, which greatly get rid of local stock property over the past few decades. These repairs will take time to fruit. However, if the government is serious about correcting the decline of LSE, you will need this BoldAnd soon.

There are many cranes that you can withdraw. First, you should reduce the Duty Duty 0.5 per cent to purchase shares in UK companies. SAPS tax liquidity is already imposed at a higher rate than peer countries. Its cutting will also send a clear signal to investors. Over time, the cabinet is likely to be recovered 3 billion pounds every year with higher future revenues. Other targeted tax incentives can help tolerate pre -costs to include and encourage stock investments, while tax -exempt individual savings repairs may enhance retail sharing.

Second, the negative fans around the country needs to go. Investment flourishes on optimistic narratives, as the recent bump appears in the stock market in Germany. But Britain is bad in selling itself. The upcoming industrial strategy of the government is an opportunity to determine how the National Resources Fund and the British Business Bank support private investment in local companies, and to emphasize many comparative advantages in the United Kingdom, from professional services to life sciences. Creating a noise about growth can enhance stock prices. After all, as talk Foot analysis It was found, the list in the United States is not a supreme assessment.

Third, long -term policy initiatives remain important. to improve Financial education It is the key – the British are good in breaking their money, but less skilled in its investment. Barclays Bank Estimates Adult 13 million in the United Kingdom maintain 430 billion pounds of “potential investments” in cash deposits. The financiers also continue to complain about the exhausting red tape in the UK. Simplification and digitization efforts will help.

Wise advertisement Not for one time. The shrinking stock market is a reflection of the low growth prospects, and the reason for this. Britain can and must be broken.