Futuríveis
segunda-feira, abril 30, 2007
Power shifts as capital continues on its global march
But the long-run trend looks unstoppable. One big reason is the continuing march of privatisation. The more enterprises are sold off in Russia, China and India, the more liquid capital is drawn to those countries and the more local expertise is created in managing it.
One powerful illustration of this is the share that the developed economies hold in the world’s stock of quoted equity. Thirty years ago, the big five markets – the US, Japan, the UK, Germany and France – between them accounted for 90 per cent of the world by value. The figure is now 64 per cent and falling steeply.
One way of slowing this trend, of course, is for the older markets to shore up their credentials – that is, to ensure that a London or New York listing is a desirable badge of quality. This lies at the heart of the squabbles between the London and New York stock exchanges and gives extra edge to the debate over whether London has become too permissive in its listing requirements.
But in general, for London to imagine it has inherited New York’s former power is an illusion. That power is being distributed around the world. London’s best hope is to hang on to its share.
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