Paris or London? Financial markets rematch – Finance
Is the Paris Stock Exchange poised to supplant the London Stock Exchange? Although the gap narrowed thanks to the performance of the luxury sector in France, the City remains Europe’s main financial center overall despite Brexit.
Paris in front of London The old dream of French finance It happened: according to the Bloomberg financial agency, on November 13, the value of the shares of companies listed on the French capital market surpassed the British capital for the first time.
AFP Jean-Charles Simon, chief representative of the Paris Europlace organization responsible for promoting the Paris market, said the announcement was a “beautiful symbol” of a “real positive dynamic”.
Since September, the fall of the pound, the difficulties of companies listed in London and the form of the French champions, especially luxury stocks, helped to reverse this trend: in 2016, the same Bloomberg indicator gave a very clear lead to the British square. . But the valuations of Kering, Hermès, L’Oréal and LVMH, Europe’s biggest capitalization, have exploded thanks to the post-Covid recovery.
outside The challenges of the British economy, especially after Brexitadds an “alternative financial constitution” in continental Europe, defends with AFP Stéphane Boujnah, CEO of Pan-European operator Euronext, which runs the Paris Stock Exchange in particular.
“London is no longer a natural listing location for companies growing in Europe,” he said, facing an integrated market represented by seven Euronext venues including Milan, Amsterdam and Dublin.
When asked by AFP, the London operator LSE did not want to comment on the information.
The dominance of the French location did not last: London regained its number one position, even if the two values were held in a handkerchief: on November 22, the combined market capitalization of companies in Paris was 2,822 billion dollars. Against $2.855 billion on the other side of the Channel, according to the Bloomberg index.
Measure attractiveness
“You can’t overstate the number” and its scope, notes Eric Dor, director of economic research at the IESEG business school. In many financial products, such as the foreign exchange market, precious metals or derivatives, London maintains its global aura.
He notes that even in stocks only, the “as-depository depositary” picture, which allows a foreign company to be listed in another financial center, is quite different from the Bloomberg index.
Total market capitalization of the British market was $6.2 trillion in mid-November, compared with $3.7 trillion on the Paris Stock Exchange, according to figures from LSE-owned financial data specialist Refinitiv. “What has always made London stand out is that it is a global financial center that attracts foreign stock listings,” says Mr Dorr.
Among the Paris market’s assets is “leadership in green finance”, a very dynamic financial sector “with bodies, fuel reflecting recurring events”, notes Catherine Karyotis, professor of finance at Neoma Business School.
London was the world’s second largest financial center in September 2022, according to the latest ranking of the Global Financial Centers Index, a trading room benchmark based on both investor questionnaires and economic data from major global institutions. the world is third, well behind New York but well behind Hong Kong.
Paris, second in Europe, is only in tenth place.
However, there has been a “gradual loss” of market share in London at many points, Mr Dore notes. In the same ranking in September 2016, two months after the Brexit vote, London narrowly overtook New York, while Paris was only 29th, behind the Cayman Islands.
Paris before London, the old dream of French finance came true: according to the Bloomberg financial agency, the value of shares of companies listed on the market of the French capital surpassed the British capital for the first time on November 13. The announcement is “a wonderful symbol of a truly positive dynamic,” hailed AFP Jean-Charles Simon, chief representative of Paris Europlace, the organization responsible for promoting the Paris market. Since September, the fall of the pound, the difficulties of companies listed in London and the form of the French champions, especially luxury stocks, helped to reverse this trend: in 2016, the same Bloomberg indicator gave a very clear lead to the British square. . But the valuations of Kering, Hermès, L’Oréal and LVMH, Europe’s biggest capitalization, have exploded thanks to the post-Covid recovery. Stefan Boujnah, the CEO of Euronext, the pan-European operator that runs the Paris Stock Exchange in particular, advocates the addition of a “financial alternative constitution” in continental Europe due to the difficulties of the British economy, especially after Brexit. . Faced with an integrated market represented by seven Euronext venues including Milan, Amsterdam and Dublin, “London is no longer the natural listing location for companies growing in Europe,” he said. AFP, London operator LSE, declined to comment information. The dominance of the French location did not last: London regained its number one position, even if the two values were held in a handkerchief: on November 22, the combined market capitalization of companies in Paris was 2,822 billion dollars. Against $2.855 billion on the other side of the Channel according to the Bloomberg index.”The number should not be exaggerated” and its scope, nuance Eric Dor, Director of Economic Research at the IESEG business school. In many financial products, such as the foreign exchange market, precious metals or derivatives, London maintains its global aura. He notes that even in stocks only, the “as-depository depositary” picture, which allows a foreign company to be listed in another financial center, is quite different from the Bloomberg index. Total market capitalization of the British market was $6.2 trillion in mid-November, compared with $3.7 trillion on the Paris Stock Exchange, according to figures from LSE-owned financial data specialist Refinitiv. “What has always made London stand out is that it is a global financial center that attracts foreign stock listings,” says Mr Dorr. Among the Paris market’s assets is “leadership in green finance”, a very dynamic financial sector “with bodies, fuel reflecting recurring events”, notes Catherine Karyotis, professor of finance at Neoma Business School. London was the world’s second largest financial center in September 2022, according to the latest ranking of the Global Financial Centers Index, a trading room benchmark based on both investor questionnaires and economic data from major global institutions. the world is third, well behind New York but well behind Hong Kong. Paris, second in Europe, is only in tenth place. However, there has been a “gradual loss” of market share in London at many points, Mr Dore notes. In the same ranking in September 2016, two months after the Brexit vote, London narrowly overtook New York, while Paris was only 29th, behind the Cayman Islands.
