Every large city develops a reputation for particular services and for a while they are a hub for that service, but it is never guaranteed. The clearest example is London, England before Brexit, London was the center for the financial industry, but the voters of England voted, and then alternatives seemed better.

In an article by Eshe Nelson and Michael J De La Merced of the New York Times News Service, London used to be recognized as the center of the finance world, but things have changed. By many measures, London is still a crucial financial hub, where prices are fixed every day for precious metals, trillions of dollars of foreign currency are traded and global insurance contracts are written. But, the global competition among cities such as New York, Hong Kong, Dubai, and Singapore is intense.

Amsterdam overtook London as Europe’s largest share-trading center according to Cboe Capital Markets.

In 2023, in New York 16 companies went public down 84% from 2022, in comparison to London 10 companies went public down 88%. In New York companies that went public raised $9.5 billion while those that went public in London raised $442.7 million according to London Stock Exchange Group data.

In New York, the magnificent 7 have led the markets, the mag 7 are tech companies. In London, the vast majority of companies are banking, mining and oil and gas with few tech companies. The British government has introduced reforms to make it easier for tech companies to list.

One tech company that is looking to go public in London is Shein, an online retail giant founded in China. It was going to go to New York, but geopolitical actions between the US and China made Shein look for alternatives such as London.

Linking to dividend paying stocks, companies are forever looking for the best place to list their shares to take advantage when stock prices go up and it makes sense to issue new shares. Just like every other industry, the companies which own the stock market have to adjust to the changing economic landscape of companies. All companies need access to capital to grow and all industries have companies known by their reputations. Are the companies that you own, reputation continue to be valid?

There are more questions than answers, till the next time – to raising questions.