America's dominance of stock markets is an emergency for Europe

Copyright © HT Digital Streams Limit all rights reserved. Lynn Martin, president of the NYSE Group Inc., Left, and Jim Peck, chairman and CEO of Niq Global Intelligence Plc, Center, on the NYSE floor during the company’s New York scholarship on July 23, 2025. (Photo: Bloomberg) Summary Some of Europe’s most striking companies move to the US. Last year, the London Stock Exchange renovated the welcoming of new businesses in its ranks and added confetti cannons, smooth videos and film music. It was mostly used for opportunities such as the introduction of products and commemorations. So far this year, according to Dealogic in the UK, six companies have become public, raising $ 208 million, the lowest level in three decades of data. Despite the increasing stock markets, it is not much better in the English channel. The initial public offers in the continental Europe almost halved in value compared to last year. Fundraising in the US, meanwhile, jumped 38% to around $ 40 billion, while IPOs more than doubled in Hong Kong after a fallow cloth. Technical stars like the Swedish “Buy Now, Pay Later” business Klarna and the British Chip Designer Poor are listing local markets in New York. And heavyweights of stock markets disappear, either by US businesses or their list of the country, where business is growing faster. Examples include Wise, the British payment business, and the sports paying company Flutter Entertainment. “For the Europeans responsible for the future, this is a significant wake -up call,” said Euronext CEO Stéphane Boujnah, who owns seven stock exchanges in the region. Europe does not want to “just be an area between America and Asia,” he added. Amsterdam and London were a pioneer in the creation of public stock trading centuries ago, raising money for shipping to Asia, Africa and the Caribbean that forged Europe’s colonial empire. Now the stock markets of Europe have a crisis of inactivity. Not only is the listing of volumes of Moribund – radiations are also shrinking. The number of lists in London has dropped a global shift to larger private ownership of businesses, with fifth place in five years, to around 1,600. London’s total market value amounts to approximately $ 5 billion, while Nvidia alone is worth $ 4.4 trillion. The exodus seems likely. Next year, Wise and Machinery specialist Ashtead plan to move their main lists to the US from the LSE, which is part of the broader London Stock Exchange Group. Speculation has involved that Astrazeneca – the largest company in FTSE 100 – can do the same. In a recent New York interview, CEO Pascal Soriot refused to comment on whether he was considering moving the listing. “We are very committed to the UK,” he said. ‘But the reality is that the investments are moving to the US over time. “The wealth creation will happen to Texas teachers and public sector employees in California, not with European pensioners,” says Stephan Leithner, CEO of Deutsche Börse, operator of the Frankfurt Stock Exchange. Politicians fear that the continent’s inability to finance and keep exciting businesses hedges US domination over financial markets and reduces the strategic autonomy of Europe. President Trump’s “America First” attitude contributed the feeling of urgency. Lack of investment makes European businesses harm and starts long before they are revealed. Startups struggle to access venture capital financing, and many leave for Silicon Valley or New York. Those who live in Europe often receive investment from US firms, which then want them to be revealed in the US or to go there. Some companies that make the jump have become more American over time simply because their US businesses have grown so fast. New lists are in the doldrums, as other corners of European finance, such as the debt markets, shine. Transatlantic transactions-one reason for Europe’s shrinking stock market-is generating major pay days for selling shareholders and advisers, as US acquisters are looking for bargains. Europe’s problem is not a shortage of money, but an underdeveloped and risky system to invest it. Households of the European Union save more than Americans, but their wealth has grown by a third since 2009, according to an article of 2024 by former Italian Prime Minister Mario Draghi over Europe’s lack of competitiveness. The Europeans own $ 12 billion of their savings, or about 70%, in bank accounts that typically have low returns, according to the European Commission. Unlike in the US, which has grown widespread equity ownership through 401 (K) s, they often rely on state pensions paid out by the government budgets during retirement. Private pension systems on places such as the United Kingdom, the Netherlands and Denmark-call mostly in Supersafe assets, including government bonds, or US focused global equity funds. Promises for defense spending and outdated populations hamper the government’s budgets. Channeling more savings in high yield investments will relieve the pressure. Managers complain that clumsy domestic investment results in lower share scents. French oil producer Totalenergically, its British rival Shell and mining company Glencore have raised the possibility over the past few years to move their lists, referring to valuation games with US peers, although no one made the leap. S&P 500 Ingredients have a forward price/earnings ratio of 22, compared to 13 for the FTSE 100 and 15 for Germany’s DAX. Some Europeans argue that the premium on US stocks is illusions, and notes that groups such as plumbing-on-the-business Ferguson Enterprises have not closed the discounts of US opponents after moving their primary lists to New York. Only three of the 20 British companies that have chosen for a debut in New York over the past decade have increased the market value, while half have delisted, according to the LSE. Higher payment for US drivers is another draw. Flutter CEO Peter Jackson, who owns the betting platform Fanduel, almost tripled his remuneration after the gambling company moved its head shares to New York last year. European leaders have tried to reverse the tide, but with little to show so far. The UK has moved to deregulate, among other things by overseeing restrictions on shares elected by technical founders. The government is starting a ‘concierge service’ to court enterprises and supports an advertising campaign to encourage more retail investment. Julia Hoggett, CEO of the London Stock Exchange, spoke at a recent investment conference in London, and the participants called on the participants to be more confident. “If we keep talking ourselves … then we shouldn’t be surprised at the consequences,” Hoggett said. The EU, meanwhile, has revived the careful job of knitting its 27 members’ capital markets. The project is already a decade and more than 55 regulatory proposals old. Leithner of Deutsche Börse was part of a working group that ended in a list of technical problems, such as tackling differences in national bankruptcy approaches. “We need to make the leap of talking technical aspects to fundamental change,” says Leithner. “If that doesn’t happen, it will be a great shame. It would almost be a crime on the younger generation. ” Write to Chelsey Dulaney at [email protected] and Joe Wallace at [email protected] Catch all the business news, Market News, Newsletters and Latest News Updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #US Stock Markets Read Next Story