French political turmoil a boost for London as government in Paris teeters on brink
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London should take advantage of the political turmoil in France to boost the stock market, a leading City figure has said. Companies and investors could shy away from Paris as the French government teeters on the brink of collapse, according to Mark Austin, a partner at law firm Latham & Watkins.
And tensions between China and the US are making listings in Asia seem more unappealing, he added. Austin, who is one of the experts behind recent City reforms, said crises abroad have inspired ‘a lot of enquiries’ about moving capital to London instead as it is now the ‘adult in the corner of the room’.
His remarks came as City watchdog the Financial Conduct Authority (FCA) appeared to pave the way for Chinese fast fashion retailer Shein’s controversial £50billion listing. Investment company Pershing Square Holdings, meanwhile, ditched its Amsterdam listing yesterday.
Turmoil: Companies and investors could shy away from Paris as the French government teeters on the brink of collapse, according to Mark Austin, a partner at law firm Latham & Watkins. That means it shares will solely trade in London where it is a member of the FTSE 100. Pershing cited improved liquidity in London as one of the reasons.
But Nikolay Storonsky, boss of online bank Revolut, said it was ‘just not rational’ to opt for London over a US listing. There are hopes the tide is turning after the City has lost high-profile firms to overseas rivals in recent years. Austin, a member of the Capital Markets Industry Taskforce, a group of City figures led by London Stock Exchange chief Julia Hoggett, said he has seen interest in investment being moved out of Europe and towards the UK.
