What are the wonderful reasons for the London Stock Exchange?

In 2016, Intercontinental Exchange, the New York Stock Exchange, announced that it is applying for a acquisition of the London Stock Exchange Group, but soon withdrew a few months after studying the project and attributing its decision to the reaction of the London Stock Exchange. About a decade before, an offer of “Nasdac” refused to run the group that was considered London as the natural center of the global equity movement. As it became clear later, the US stock exchanges did not have to take over the London Stock Exchange to win its market, but it was rather enough to be patient. The US markets have begun to attract something slowly, the most prominent London induction, as it is clear from the wise decision, a leader in the financial technology sector, a while ago the most important inclusion transferred to New York. The value of “Wise” is estimated at about $ 15 billion and has joined a growing list of businesses left by London. In December, ‘Ashtead Group’, a specialist in construction equipment, announced a similar step to join large companies such as ‘CRH’, ‘Ferguson Enterprises’ and ‘Flter Entertainment’. Also read: The drought of the proposals pushes the European stock exchanges to compete for the most important descriptions, a displacement to America, the London Stock Exchange is completely done. As the former banker at “Goldman Sachs”, David Shuimer, took over his leadership, the stock exchange reformed his identity to become a specialist in data and analyzes, after obtaining Refinitiv in 2019. By 2024, the listing and action operations are only less than 3% of the group’s turnover, while data and analyzes are existing indicators and risk evaluation services. The irony was that the London Stock Exchange group traded less than its US counterpart in the field of information services. As revenue from the US market rose to 38% compared to only 12% in 2016, and half of its shareholders in Americans turned, the stock exchange appears to be a perfect candidate for insertion in Wall Street, if the London Stock Exchange was not specific. The motives of this displacement are multiple and increased. For some businesses, the decision is to improve its strategic presence in the world’s largest economy. Ashtid achieves 92% of its revenue in North America, while the US market is an important plan, note that there are about 4,000 possible banks as customers for its payment platform. Other companies may be attracted to the highest judgments provided by Wall Street, in a clear coup against the reality of 2006, when the London Stock Exchange promoted itself as the ‘lowest capital cost’ in its attempt to prevent the Nasdac offering. British shares are currently distributing at levels of about 42% of their US counterparts in terms of profit expectations, or about 25% after calculating sectoral differences, according to the data of “Goldman Sachs”. Liquidity also emerges as a decisive factor, as “wise” explicitly showed “the ease of access to the deepest and most liquid money markets in the world” as one of the main reasons behind his decision. Also read: Report: “Sharobruck Group” plans to place its shares on the London Stock Exchange during 2025 technology companies, the largest of those who were “wise”, prepared his plans before the draft law of “one beautiful and large bill”, supported by Donald Trump in Congress. But Article 899 of the project confirmed the correctness of the administration’s decision, and it could even accelerate the rate of displacement from London. This article provides for the imposition of reciprocal tax on foreign enterprises in which non -Americans have the largest share, which is an incentive for companies to increase their shareholders’ base in the United States, facilitating the listing in Wall Street. Although the application of this tax depends on the position of foreign governments, it is added to the list of factors that can drive companies to reconsider the location of their shares. Although the ‘wise’ shareholder base is mainly based on Americans, businesses such as ‘Pearson’ and ‘Experian’ are still below the 50% of the US property, and they are largely exposed to the US market, which is likely to monitor the ‘wise’ movement carefully. This displacement appears in the clearest picture in the British technological sector, as the absence of large inductions has led to a vicious cycle that feeds itself. When “Google” acquired the leading company “Deep Mind” in 2014, or when “poor Holdings” specialized in the design of discs to “Soft Bank” in 2016, it was not just individual offers, but rather he shook the whole system. The UK has shown that it has the ability to produce innovative technical enterprises, but it stumbles in the effort to predict, partly because of the lack of local investors in the technical sector, as well as the lack of similar businesses. If London was a truly prosperous market, today would be among the five largest companies listed in terms of the market value, and whoever knows what the value of ‘deep spirit’ would have reached if it remained independently, then it was sold before any revenue was achieved, but the financial data for 2023 would show an income of 1.5 billion pounds (about two billion). Challenges that impede the path of treatment are the absence of large induction in the technological sector that reflects a deeper crisis in the local investment system. Although recent data on the flow of funds reveals the return of European investors to local stock markets, UK institutions remain significantly absent. Even when the UK pension funds are part of their stock assets, the vast majority are on the way, as the specific contribution funds invest about 70% of their money in international equities, compared to only 6% in UK shares. It is true that foreign investors are attracted to the market due to the evaluation gap, but this opportunistic purchase does not compensate for the structural weakness in local demand. Also read: 3 promising Arab markets that exceed the London Stock Exchange in the size of the initial proposals. Policymakers have discussed several ways to turn the equation. The Conservative Government has proposed the establishment of an investment fund for individuals focusing on the UK market, but the current government of the Labor Party has not adopted it. Proposals were also offered to increase the investment rate of pension funds in the local market. However, these initiatives clash with an important obstacle, as the number of attractive opportunities in the UK stock market can make these reforms a late step that is difficult to change the road. As for the London Stock Exchange Group, it faces the same US temptation that has resulted in “showing” its inclusion, but changing the title of insert is not the same as you are the title.