How to reboot Britain's capital markets | FT Film
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- Опубліковано 17 чер 2024
- A declining stock market and restrictive pension system rules have made the UK a less attractive place for new businesses to find the funding they need. The FT looks at what is being done to improve the City's competitiveness as an international capital market
#uk #ukeconomy #cityoflondon #capitalmarkets #stockmarket #business
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Market crash fatigue is affecting many people who are tired of hearing bad news. I want to diversify my $250K portfolio.
I completely agree. It's not just about the dividends, Diversifying a portfolio can be a smart move and improve risk management, i always advise one gets a professional to help you out.
The issue is most people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt, no offense. In general, Financial Consultants are ideal reps for investing jobs, and at firsthand encounter, since Jan.2020, amidst covid outbreak, my portfolio has yielded massively in ROI, summing up to 7-figures as of today.
I've been getting suggestions to use a market expert too, but where and how to find one has been challenging, Can i reach out to the one you use?
Sure, the popular *Jennifer Leigh Hickman* is the licensed advisor I use. Just research the name. You’d find necessary details on the web to set up an appointment..
Thank you for the lead. I searched her site up and filled the form. I hope she gets back to me soon.
I make over six figures. With my life style I can’t live in a poor area anymore. This guy want someone making over $3 million to downsize is lifestyle. Like we going to live for ever.
I squirelled away cash for a rainy day, but with inflation pouring down, it feels more like a leaky bucket. Saving for retirement seems impossible if my money keeps losing value faster than I can earn it.
Financial literacy is so important. We should have it as a mandatory course in school. Luckily we have all these incredible content creators on UA-cam teaching what we missed in school.
That makes sense. Unlike us, you seem to have the market figured out. Who’s your fiduciary?
Dustin Dwain King is my asset manager. Just research his name to find the details and set up an appointment...
Financial consultants can help by recommending investments that outpace inflation, such as real estate or certain stocks. A client of mine followed this strategy and saw their savings grow by 15% in just two years, effectively countering inflation.
The fact that even the British funds stay a pole away from UK equities says a lot. In that case why would a retail investor even think about sinking their money on LSE, when instead one has open access to the American markets that obviously produce more value?
A lot of companies on the LSE are also owned by multinationals, hedge funds etc. The UK is a zombie country with barely any capacity of its own for economic growth. Capacity for growth outside of financial services has been gutted over the past 40 years.
Planning law blocks development @@mitsterful
British funds buy what their clients want
@@jimbojimbo6873which is the USA baby , let’s gooo!!
The UK stock market reflects the UK, a dead empire, not globally relevant in anything that had growth that investors are looking for. The UK capital markets are as dynamic as the average British person.
If I were given a check for £1000 I’d take a punt on US equities
Edit: British; just a spelling error
*cheque
I did
"check" - American detected
So the "Britain's capital markets" is all about pension funds?
Not even thinking about attracting moneys around the world?
Seems hopeless to me.
How could anyone have confidence in the Uk with 4 PMs in 6 years.
Because PMs have far less affect on markets than the likes of inflation and interest rates, which are driven by the US FED, which affects the whole World. The fact that people don't understand just how influential and important the US FED's decisions are is a highlighted failure of the education system in the UK. A 1 hour read on Central Banking, or hell even a search on UA-cam, would gain you a far better understanding of WHY we have inflation, WHY we have high interest rates, WHY our economy suffers as a result,. WHY the LSE is down. But instead it's "Nah Brexit innit fam" and you "ain't got no time to read blud" while you wander off watching TikTok crap for an hour instead.
@@Dynasty1818 Liz Truss crashed the currency in an afternoon, and when was brexit mentioned? Even then brexit certainly added to making things more uncertain for investors
Australia went through a period of similar turbulence
You just have to find reason it's just a phase you went through
@@R4Y7it was blip in the market and that corrected pretty quickly
Crazy that you mentioned it. The government in the UK is volatile. There were only 4 US presidents in the past 24 years.
It annoys the hell out of me when Jeremy hunt says he'd like to see a British Alphabet or Microsoft. I mean, we had one, it's called ARM, and it was sold off to Japan's SoftBank in 2016.
Brexit contributed to that happening. As the pound fell SoftBank saw oppunity with faviourable exchange rate
@@jamesholt4449 Brexit contributed to a lot of crap that's happened.
100% it was our jewel.
Also DeepMind which is part of google since 2014.
Not really. It was a joint venture among 3 companies: one was British and the other two were American. The Americans provided the capital and the machinery needed, and the British provided manpower.
The biggest problem with the UK is we need more businesses. Why should I set up my business in the UK when I will have to pay 25% corp tax, ridiculously high dividend/capital gains/income tax and I will have to work my way around the highly inefficient and highly regulated market. Compare this to somewhere like Singapore, the UK is failing. As a start up owner, there is ZERO incentive to stay in the UK.
I spent 12 years in Singapore. It's a great place to cash out, raise younger kids and place an Asia HQ for a mature business.
However, it's not great for early tech startups. In comparison to London, Shanghai or California its small, expensive and - because of its scale - has a tiny pool of locally based technical talent.
Highly regulated market? Highly depends on the industry but its one of the easiest places in the world to start a business.
The WEFs Great Reset openly advocates for the destruction of small businesses and a more centrally managed economy where everything is doled out to the plebs. It’s basically communism in a new dress
You're right. Add to that EXTREME rent prices and you're running a huge overhead in the hopes it turns a profit ASAP, and as we know that can take YEARS. You also have the second highest amount of millionaires leaving IN THE WORLD.
Try to be a PAYE employee then to see if its better.
In a world organized in blocs you need leverage. The UK on its own has no leverage. The narrative of the last century where the UK benefitted from its tax havens and tax rules but still being part of a bloc, no longer applies. Blocs will not use London anymore. They do not want to keep their financial affairs outside their own borders. Whoever thinks that the attractiveness of the City outside the EU is the same as before inside the EU, does not understand the new world. And yes Brexit is an important reason the UK is losing despite the unicorns Hunt is trying to sell here.
Accreting into bigger blocs is merely one of many deliberate steps towards one world government, one digital currency, total surveillance and the end of democracy as we know it. We’ll just be worker drones doing the bidding of our neofeudal overlords in exchange for a tiny apartment in a 15 minute compound with 3 squares of bugs a day if we’re lucky.
Singapore manages ok
@@mogznwaz Their exchange has barely grown
@@mogznwaz singapore is a massive hub for sea trade, and is uniquely positioned to benefit from those markets and interests. the uk isn't a massive hub for anything except awful political theories, and the only interests it WAS uniquely placed to benefit from evaporated when the financial market became divorced from european internal capital and bilateral investments.
The problem isn't unique to the UK.
In fact, I note the irony where the narrator talks about the LSE losing CRH and PaddyPower to the US when both are Irish companies that the Irish Stock Exchange lost to London.
Almost every problem isn't unique to the UK. The public are just too uninformed and annoyed to blame anything other than themselves and the Tories. Do the Tories need to go? 1000% agreed, can't stand them. But if anyone believes ANY government will fix the issues we face, you shouldn't be voting.
The LSE is supposed to be a global financial powerhouse. Quite patently, it isn't, and that's a problem for a country that markets itself as a global leader and left a huge market because it thought it could do better outside of it due to apparently being a global financial powerhouse.
@paraponon
The British economy hasn't been globally significant since WW2. So the LSE (and the city as a whole) could only ever retain their global significance by being international. And so as finance has gotten more international, it initially worked to their favour as they become a hub for European finance. But now the internationalisation of finance is working against it because now all of the money is flowing to the states.
@@thetroyzernatorLondon has always been an important financial centre - we INVENTED modern finance and capitalism ffs. There is history and tradition in finance in Britain that cannot be replicated elsewhere- never underestimate the British.
I know because I WORKED for a subsidiary of CRH.
Cancel Brexit to start with.
Stock market capitalization dropped from 4.3T in 2007 to 3.5T in 2020. At some point, Paris stock market overtook LSE as the biggest in Europe which is unthinkable.
What is truly unthinkable is how NYSE tripled, during the same time frame mostly driven by tech.
UK has truly fascinating universities and lots of talented young people but for whatever reason they choose to just be servant of a private wealth.
Yup, stupid politics contributed to the decline
Living of rents is very comfortable. London has always been for sale since Thatcher. It apparently moved to the knowledge economy... Education, consultancy, banking finance and real estate.
I overheard some top elite discussing the rentier capitalism model in 2007. It has become reality
Uhh I'd argue the latest surge in the S&P 500 in the US causing such a boom is due to Nvidia and AI. They have a monopoly on AI chipsets and they've ramped up in value and basically propped up the S&P: "34.5% of the S&P 500's market cap gains so far this year can be attributed to Nvidia alone, according to Apollo Global Management chief economist Torsten Sløk. Shares have soared 166% in the year to date and are up more than 200% from this time a year ago". That's INSANE and hardly and makes the US market hardly a great comparison.
Common denominator in that time is having the corruptervatives serving themselves at the expense of every single person in the UK
It was not mentioned at all while the whole video is about "how to become the next Silicon Valley". What a joke this is.
Talking about taking on more risk is fine when it's not your money to lose.
Wasn’t there a U.K. cloud company based in Manchester that would have competed with Amazon cloud services but the government chose to use Amazon services and the Manchester company ended up going under.
UK Fast?
The only company that could compete with AWS is either AWS, Microsoft Azure and maybe Google cloud. No other company comes close
Air-Stip One 😂
@@B1_66ER Shhhhh. We don't ever utter that name, not after what went on there. I was gutted not to get the job back in 2015, but now I feel relieved
The more I see of England, they're the best people at self sabotage in the west.
Financial literacy absolutely needs to be taught in schools in the UK as an essential part of the curriculum . And I don't mean public schools either.
Most of the UK Citizens are really bad at doing maths. First teach mathematics and its basics, before moving on to financial literacy concepts.
I agree with what you are proposing.
then we'd wake up and realise these same ppl are stealing from us. they don't want that
I’d teach the politicians first…
@@badthat12 oh they know. they just scamming us. that's what we don't know. public still thinks politicians are here to help us. they aren't. they are there to steal from us without us realising. and the rich employ select the one that can fool us the best.
I live in the UK and recently inherited some money. A broker came to talk to me and it was obvious that the UK stock market isn't worth investing in so I put my money to work internationally.
The Internet has made this easy and efficient whilst keeping me tax compliant.
The next government has their work cut out if they want to change this
Agree. Consumers can download an app, fill out some forms and invest with zero fees in large US tech stocks.
@@ThumosUK I do this with 212, looked at all the UK stocks and UK tracked ETF's and they were dire in comparison to US markets. I'd love to invest in the UK, but I want my money to actually work for me.
@@billB101 I do the same with 212 myself. Why invest in Tesco when you can invest in Nvidia.
Exactly.
Agreed, I can do so much global market research with just my phone in my hand and a couple of apps.
Brexit was the reboot, and now the system hang.
Failed to POST and now the country is just sat listening to it beeping error codes.
"computer says NO"
What makes Silicon Valley work is that development is allowed within California and the USA. We cannot build or develop land in the UK anymore sadly.
California has access to the USA… the UK has access to nothing not even the EU anymore.
A data centre in the midlands was shelved this week to preserve the "local atmosphere" and a 700 million pound film studio development near the greenbelt was cancelled last month by NIMBY's to protect the "view" 😂. Only in the UK....
I think the other thing that often times gets undersold is that the American government invested literally hundred of billions in Silicon Valley. There doesn’t seem to be any appetite in Britain for that kind of investment.
@@mharley3791 Britain does not have that kind of money
"I think we should get over executive pay being high" no, I don't think I will, FT
Yeah, I do not know what they were getting at here
@@c.2518 Low executive pay = good executives leave for other countries like the US so we are stuck with shitty managers who produce low productivity.
This is the issue with you UK people, would rather have everyone poor than some mega rich and others richer.
It's not hard to understand. Economics is not a zero sum game.
@@martindawson2138 I live in the states. Also, no, America is fucked in that part. Wages are low and regular workers can hardly exist..... Also, you cant compare the UK to the US... Without London the UK has the GDP of Mississippi
We need to start talking-up British manufacturing and the leaders of such companies.The class structure makes it difficult with barrow-boy to public school educated labeling along with political alignments the general public only gets a raw deal. It's easy to see why the US leads the way, reinforced images are stamped on their money. As for Robert Maxwell known less fondly as the bouncing Czech.
So the government blames the pension funds while asking them to invest in bonds (basically the government debt). In the meanwhile most of the people see housing in the UK as an investment (while housing value only goes up because of the scarcity). Perhaps the government could reduce their debt, relax pension funds rules and support the creation of more houses.
How can you have a consumerist economy when the average person does not have enough money to consume? They can just about afford the very basics.
unaffordable housing doesn't help, all money drained on mortgage payments/ high prices are bad for economy
One word: debt
Debt and also the rich people get richer. I hear the luxury industries are booming..
@@quackcementall that money wrapped up in an unproductive asset like property is killing the economy
@@erertertert44 may as well be Gold
@@mitsterfulyep. we are a giant loan shark banking economy. and the most profitable thing for loan sharks banks is poor people. why the government constantly makes us poorer and poorer to feed us to the banks.
15:25 If you take US as an example or "proper" risk taking by pension funds, then it would seem this risk taking yields much worse - US pension performance is a lot worse then UK is.
Most Americans do not have pensions though. Think about America is that it has a pretty diverse set of capital ranging from international capital, 401(k)’s, IRA etc. I think this was saying that the Uk mostly just has pensions
I don't think it gives you the full picture I think the UK has higher yields because of the nature of bonds and government securities in the UK: inflation indexed. The past 3 years have pulled the UK average up, not because the market is doing better, quite the opposit actually.
00:02 Rebooting UK's capital markets vital for economic revitalization
02:23 Efforts are underway to improve London's capital markets despite recent subdued performance.
04:45 High executive pay justified by performance
07:13 UK capital markets facing potential challenges in raising and retaining domestic funding for startups
09:27 Efforts to reboot Britain's capital markets for UK startups and companies
11:48 Increasing investment in UK equity markets and the role of pension funds
14:05 UK pension funds lack risk-taking, affecting long-term returns.
16:19 UK's underinvestment in its own capital markets
18:28 Consolidate UK pension funds for better returns
20:22 British culture around money makes investing difficult
Crafted by Merlin AI.
Consider US or India, retail investors are pumping a lot money in the stocks. The same goes for Pension funds and Insurance funds. Its probably the type of Economy, UK is now, which is not into high risk investments! Ultimately, investors around the globe look for higher returns!
if i was give a £1000 cheq it would go straight to equity market, albeit American equity market
This is a bit of a long comment but there’s some nuance which I think is important. Our (London) stock market is what is widely perceived to be a dinosaur equity market that’s overly reliant on old economy sectors such as oil and banks which leads to my next point.
On lack of exciting companies listing - we're risk-averse as a country, and the doesn't bode well for startups specialising in things like AI (the new hot topic) and quantum computing, whose large capital expenditures require years of patience. A key accelerant in the move of some listings to the US is a lack of liquidity in the UK, understandably so, if UK plc's can fetch higher valuations and a larger investor base whilst US listing rules aren’t extremely tight, why wouldn't they move? An example of this was Arm Holdings choosing Nasdaq over the LSE in 2023, this isn’t to say that breaking into the US will be easy, even though Arm have been successful in doing so.
I remember reading a report on Bloomberg talking about how the UK tech struggle to keep up with Bay Area/Silicon Valley tech in terms of funding. Funding for startups (companies valued at no more than $15m - 91% funded, $4.1bn for UK vs $4.5bn), but the moment UK companies reach scaleup status (valuations of $15m-100m), we raise $7.1bn vs $13.9bn for Bay Area which is 51%, and it gets even harder when tech companies in the UK reach breakout status (>$100m valuation) as we raise $7.8bn vs $35.2bn in the Bay Area which is 22% of funds raised in comparison to SV.
Also, in the early 2000s, the UK government introduced new rules forcing retirement fund managers to be more open about their investments and about how they planned to meet future pension obligations. One result was a shift out of riskier equities - the pension industry’s preferred investment until that point - and into safer government bonds. The trend was reinforced over the following decade as millions of workers holding so-called defined-benefit pension plans retired. Pension managers doubled down on government debt at the expense of shares so they could better match their long-term liabilities to those retirees. What’s more, what little equity allocation the funds retained was put increasingly into stocks in other markets as they tried to diversify their holdings. UK pension funds held 1.6% of UK-listed stocks in 2022, down from about 32% in 1992, according to data from the Office for National Statistics.
Edit: thanks to depressed valuations, London’s allure as a center for IPO activity has been diluted by a glut of alternative funding from private equity. That’s been compounded by some woeful stock performances in the wake of high-profile listings, including Deliveroo Plc, Dr Martens Plc and Ithaca Energy Plc. Meanwhile, headlines around companies leaving London for other exchanges have hurt the City’s image as a place to do IPOs. I've heard Shein want to IPO in London for around $64bn, but imo I don't think it'll revive London's capital markets the way people think it would, the company has controversial ethical + sustainability practices, as well as possible IP theft and moreover, they chose London as they couldn't file for an IPO because of hurdles to the listing in the US which is tied to the earlier point about their shady practices. We're basically 2nd choice if firms applications for US based IPO's (NYSE or Nasdaq) get rejected.
Excellent comment - very informative
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Can I also do it??? My life is facing lots of challenges lately
Start early with diversified investments in stocks, bonds, and real estate. Maximize contributions to tax-advantaged accounts like 401(k)s and IRAs. Regularly review and adjust your strategy to ensure security....
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian C Nelson.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
Brian demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
I think there is a broader issue here, that centres around the overall sentiment of the UK's future. Productivity is low, we have a younger generations bowing out and going NEET, social instability, political instability as demonstrated by Brexit, etc. We have no clear direction on what we are trying to do. The major VCs in EU, for example, don't pay much attention to the UK.
And if the governments force Pensions to invest in UK in order to prop up the markets, this could risk loading the average person with lower returning assets than if they invested globally.
It's the same in Europe, I think its a europe/old world problem. Look at France, Italy, Spain even Germany.
It’s not about pension funds buying bonds by people not taking risks and starting new businesses
I wish people would stop spewing their uninformed, wrong beliefs as if they were facts, when in reality it's usually just cynical whining.
It really doesn't matter to anyone except the exchanges which exchange people list their companies on. These days, everything is online and international and the Nasdaq is no less British than the London Stock Exchange is.
British people can buy companies listed on the Nasdaq just like Americans can buy companies listed on the London Stock Exchange. And the only thing stopping companies from listing on the Ethereum network is out-of-date regulations.
If the London Stock Exchange wants more companies to list with them and more people to invest in their companies, they need to be the ones to take action.
Issue with digital tech firms is that they aren’t accountable at all… the data they have is never audited or checked to actually align with reality…
So Brexit was absolutely moronic -- a thing that nobody could have told by simple inspection beforehand, of course...
England decides to ignore the world and some of the world decides to ignore wikkle England. Wot a surprise!
Would’ve loved to have seen a contrasting opinion. Why should we trust the UK market? Where have they improved the quality of life of the public for one to trust them, especially with our pensions? These answers are being asked about the AI companies in the US, where there is an increasingly pessimistic attitude towards them.
Pessimistic attitude? Not really. We are looking for some accountability, but I wouldn't call the attitude pessimistic. It is actually quite the opposite. Americans are generally more willing to take risks compared to Brits. Americans are eager to invest in start-ups fully aware that these are risky bets but the payoff can be huge.
@@elifuentes7070 Perhaps the upper class of American society is more willing, but trends have shown a lack of risk taking towards the market within the middle class. That American mindset to look towards risk is no longer what it was.
@@Jorge-lh6px What trends are you talking about? American stock markets are at all-time highs all the time. We are so optimistic our economy just keeps on growing the Fed is having a hard time bringing down inflation. We keep changing jobs because better opportunities just keep showing. Despite the high levels or illegal immigration, jobless rates are at historic lows.
@@elifuentes7070 How does that translate to what I am saying? Recent surveys have show record lows of middle class investment in the equity market. It only points towards a growing disparity in our country.
@@Jorge-lh6px Really? Statistics show that the percentage of poor Americans is at record lows. A large part of equity markets is held by DB pension funds and DC retirement such as IRAs and 401(k)s. Are those account holders not middle class? You quote "surveys" but do not really bother to say what those surveys are. The video itself said, a lot of Americans punted to the stock markets.
I find it hilarious that England though London would continue to have such prestige and power after brexit ... London had leftover clout from the British empire, and then gave money a reason to leave .... Hahahaha
ARM & Imagination Technologies were on FTSE. Then you lot sold them away on the Brexit discount
The CITY is just in a slow death; this is particulary true since BREXIT!! The UK is now just another medium country; NOT THE CENTRE OF AN EMPIRE, and no longer a point of entry to the European Union. Consequently, it has to depend solely on its own falling economy. Things ARE NOT LOOKING GOOD!!
It is said that Amsterdam is going where London wants to be. Leaving the EU has undoubtedly hurt the city. Negative perception even if unwarranted, leads to negative physical action. And that's exactly what has happened.
It's telling that UK pensions funds invest less in UK equities points to a systemic problem and a divergent view on value. Forcing greater risk taking and domestic bias undermines the fiduciary duties to maximise returns that pensioners could draw down at a time where risky investment destinations and money-burning tech startups are floundering. The UK should improve productivity, given the loss of EU manpower resources to mitigate this given Brexit
10:00 - "I've love to see a British Alphabet" ...WE HAD ONE! IT WAS DEEPMIND AND GOOGLE LITERALLY BOUGHT IT!!!
That museum...
Excellent story. Don’t be led along by the USA 401k plan . It’s not at every company and not everyone is participating in it. A lot of plans have poor options and high costs so employers aren’t willing to indulge in it. I was lucky because we had an excellent plan along with company provided stock incentives.
Leprechauns and Unicorns - The absolute state of Britain .
I do think there needs to be a change in culture. I’m someone who is interested and likes investing, but when I try to talk to people about it they either have no interest or think it’s gambling. Whereas, when I lived in the US there was more understanding of financial markets and more interest in investing. This is why our growth has been terrible because people don’t have the same risk appetite compared to US investors.
The answer to the problem should perhaps be found in whether you have a successful social model, such as Switzerland, for example. In addition, the answer must be found in the incentives offered by society.
Thanks for continuing updates I'd rather trade the stock market as it's more profitable. I make an average of $42,500 per week even though I barely trade myself.
How
..? Am a newbie in crypto investment, please can you guide me through on how you made profit?
Thanks to Mrs Maria Davis.
She's a licensed broker here in the states
Oh, the scam 😂
@@BeckerGodfrey Get away from Crypto for starters. It's glorified gambling with no inherent value
Political instability also plays a big part. Labour and capital are linked. If you want to attract capital you have to allow the movement of labour. Unfortunately british politics is marred by anti migration debate. This is taking us back to 'old England' rather than 'great Britain'
Excellent piece - more like this please
How to ‘save the City’ is a misnomer, because the City does not need saving at large. Its capital markets do. That said, the City goes far, far beyond public equities - something alluded to at the very start by pointing out that global equity listings have dropped sharply. There are better ways to raise capital in today’s economy, and the City is very much at their forefront. The Americans, for their part, clearly own the capital markets game. Props.
Data visualization is top notch!!! 👏👏
New digital tech firms consolidate into giant monopolies that destroy other sectors that charge users more for a similar product/ service.
I love how they managed to tell a complete story within the first 30 seconds by using 6 disconnected statements by different people! Great storytelling skills indeed!! 0:03
Brexit is a major issue that would help the stock market
It is quite entertaining to see the Tories suddenly having all of these apparent epiphanies.
The hardest part for a tech startup is at the bootstrap stage. The uk government does provide some intellectual support but unfortunately not much financial support. Innovation funding is too less and therefore the grants are impossible to access.
0:14 Foreign investors can invest into companies on the London Stock Exchange aswell, just like British investors can invest in companies listed on the Nasdaq.
The problem is why would they invest in the LSE when they can get a greater return from NYSE or NASDAQ
If you are in the UK remember you can transfer pensions to other providers. Rather than stay with an actively managed fund, you can put it all on a global all cap tracker with less fees. Liz truss stint in government didn’t hit my pension because I had no bonds!
which global all cap tracker? which provider?
i wonder what the GDP numbers are without London
TLDR: We want to raid UK pension funds to artificially boost the FTSE for fat cats 😂 Desperate....
Believe it or not increasing funding builds companies.
@@ninjaflamemonkeynot when those companies are parasitic loan shark banking businesses
I thought Britian was more than just London, but I guess I was wrong!!!
Belong startup sounds like a horrible idea. Let’s just give everyone leverage and hope it works out!
Remove stamp duty on shares!
Very good video, congratulations.
Anyone who keeps their pension/life savings in the old fiat system is not going to be happy.
For dividend investors LSE is great. If you're buying decent, profitable companies at a good price in relation to earnings, and that company pays generous dividends, it doesn't really matter too much if there is some turbulence in the market. The dividends you are getting back still beat any returns you will get on your bonds. This is why I don't understand the UK pension funds' risk aversion in the case of buying bonds, when the equity investments they do make are reliant on growth of US businesses that don't pay dividends and are more exposed to investor sentiment.
This is deeply depressing. Something akin to the dividends paid from our water companies? When that money should be reinvested?
You've just said the quiet part out loud. You're not supposed to do that.
@mitsterful well yes, reinvesting for growth can be more profitable. And the water companies is a great example of this, where there are huge savings and efficiencies to be made by reinvestment. I guess LSE investors are too shaken to rely on growth alone 🤷♂️
That's exactly the difference between the US and the UK, the UK only cares about a short-term profit of high dividend yield rather than reinvesting the money into the business.
@@Dionn91 It is a bit of a sweeping statement. In UK there are some very old companies that are happy to grow organically and return profits to investors. This is a pretty safe model and generates higher returns than gilts. Reinvestment can be used to shore up the business, which is great, but can sometimes be used irresponsibly leading to unsustainable growth and higher risk. It very much depends on the business.
What is London today? A stock market linked to Scotland, Wales and England.
It is incredible to watch the denial of the broken system that has been death for over 200 years. Success cannot be created by royal decrees and flawed policies from the house of lords. Unfortunately there is no fix for the City unless there is a shakeup to the British bureaucratic model America and Silicon Valley are completely the opposite to the UK model. The only value added there was on the English model was the British Common Law but the attacks to the democracy and scandals within the monarchy have completely eroded the illusion of impartial courts.
It's none of Hunts (or Reeves) business where pension funds invest ,their reposnsibility is to their members not the government. What counts for pension funds is an adequate return at the lowest possible risk. It's not their job to take risk and it's no different anywhere else in the world - except perhaps the US and canada where there have been some high profile Pension Fund failures due to over risking the portfolios.
The UK pension risk policy is a perfect example of government intervention hindering the development of free market economy.
We already have a British tech giant, it’s called ARM and it’s listed in the US
and that says it all really
And is owned by Softbank 😂
ARM was founded by the Apple together with ARM and VLSI. Apple had to sell its shares to save itself. These 3 companies all owned 1/3 of the company. Apple invested the money and moved its engineers there. ARM and VLSI were nearly bankrupt. They moved all their engineers there. Problems started when Apple needed to get money to stay alive.
@@ecognitio9605 And the UK government should have blocked the sale.
It is horrible for shareholders to see their invested company to overpay directors. It just drains resources out of investments and dividends.
The UK needs adopt a more competitive stock market and pension scheme. They should give every citizen an ISA-like account where they are given money into safe UK funds and a fraction of it into riskier UK funds. Then they need to allow people to take advantage of the tax benefits of that.
Over a lifetime people can retire comfortably and have their money based in the UK which is the lifeline of the economy. Instead of paying pension providers stupid fees they make it low like 0.20% and the government be the pension provider.
Paddy power & CRH leaving the UK to go to a US market, 2 Irish companies going to the US
It genuinely surprises me that the UK has not yet come up with superfluous synonyms for DB and DC plans.
Excellent!
Jeremy Hunt is the only politician I've seen whose body language corresponds exactly with that of psychopathy. That ridiculous way of talking where he simulates an elation-generating interaction, I believe that's referred to as 'the romancer'.
The UK could start another Vanguard, but that’s not going to happen - because executives and major investors wouldn’t be able to feed like pigs at the shareholders’ trough.
Pixels pixels .....pixels cannot put food on ur table...fake world
8:53 just % leveraged needs state view
Just recently conservatives put restrictions on visas that foreign students get, so they wouldn't be able to bring their family members which would potentially make them more likely to stay in the country. How tories think they will be able to retain talents if they keep making them to flee back to their home countries after they finish studies? First Brexit cutting off it's biggest reliable trading partner, now immigration restrictions - UK politicians just keep shooting their foot over and over, making UK more isolated with it's ageing population economy has no future - those really are things in a first place that need to be addressed and sorted. Millionaires are fleeing UK with numbers doubling what it was just a year ago! The decline of UK economy is inevitable if politicians will keep on playing the game to retain their seats in the Parliament and not making long term solid plans to grow high value industries, attracting talents and retaining them and making deals with reliable trading partners.
I'm pretty sure that you need to list it when your video is an advert
because otherwise, this is just delusional.
You don't fix a sector by throwing around buzzwords.
20:07 spot on
We need more technology based economy not just banks/oil . That means building stuff> planning reform > energy abundance > targeted R&D investment
dual list nvda, amazon and meta. maybe we can get the ftse churning for the sake of the British pensioner.
The problem is not pensions directly, it's that the UK market isn't an attractive investment. If we can grow and make people want to invest in the UK then pensions would naturally follow suit and invest more in the UK too. Need to focus on the economy, not the pensions.
Allow businesses to grow without being stifled at every turn.
We couldn't even have a dog walking field on our own derelict land because of planning laws.
The revenue it would have generated would have been beneficial to the economy through jobs and taxes.
Instead the land sits there generating nothing.
They have their work cut out for them. UK markets have been deserted over the last decade. FTSE100 and FTSE250 have returned a meager 13-17% over the past 10 years compared to 260% for the S&P 500, a near 500% for Nasdaq, a 140% rise in Japan’s Nikkei and even a 62% jump in the euro zone benchmark. UK is a severe laggard. UK equities in the average balance fund has almost halved since 2009 to just 27% while U.S. equity holdings more than trebled to 39%. The UK is a mere 4% weighting in the MSCI World index. These stark results are terrible and alarming and drastic changes all around are needed to reverse these terrible trends of UK decline. What amazing is all this decline happened under a supposed pro growth, business friendly Conservative government over the last 14 years. I hope the next government brings in the changes and policy needed to reverse this very fast!
15:45 "lost their equity and risk taking culture". did pension funds ever had a equity and risk taking culture to begin with? and should they? aren't bonds instruments way more appropriate for retirees to expect there will be money there at all waiting for them? how will these funds compete with other more in the know hedge funds. normal people will be exit liq as soon as this cycle ends, once again.
You should label this as a campaign video.
Out of curiosity, what will an average Brit do with a stimulus check if they got one?
Rainy days are fairly frequent here... I'd probably pocket it in preparation for the next one. I'm not a gambler.
Why would you risk your hard earned money in the uk after the 2008 recession?.
The whole of Europe was hit by the crisis. The European banks were worse than the British ones. It was all part of a wider trend of deregulating the banks and allowing them to leverage themselves to ridiculous levels and invest in dodgy American mortgage bonds
Why on earth using paddypower as an example i mean
Because UK business has moved away from manufacturing and towards services. Outside of financial services and some tech companies, the UK economy relies on pointless retail, coffee shops and of course, betting..
£1,000 in the post in the UK they would all be at the local pub
There's even a UK Vanguard Fund that excludes the UK-FTSE Developed World ex-U.K. Equity Index Fund (VDWXEIA). 😅
Isn’t the reason for that is so that you can invest in the world while also controlling what percentage you want to invest in the UK? I always assumed that would be most commonly disproportionately in the UK so you have a home bias? E.g world ex-uk 40%, uk 60%? Maybe most are using it the other way around nowadays.
@@basoon yes that’s the primary reason why It’s been created. In the US there are funds as well that excludes the US.
However, UK funds that excludes the UK would likely be an addition to the worsening situation discussed in the video.
As a former part time trader in Brazil and having traded on the LSE I can confirm that the brokers in the UK suck. Their platforms, execution time, customer service, fees are rubbish. They basically force you to trade US stocks using american brokers. Even comparing to a development country like Brazil which has a much more developed stock market particularly for small investors like me...
how do you invest in brasil as a small investor? I've been trying. but as you said, stuck with using British brokers who use American banks who refuse access to brics exchanges.
which i suspect is deliberate
@@zenastronomy I am Brazilian and traded whilst still being a tax resident. Since I'm now a UK resident I no longer trade there. However I do know that Brazilian brokers only accept high net worth foreigners provided they indicate a legal representative in that country. The reason for that - to summarise - is excessive bureaucracy and the local brokers being heavily accountable for any wrongdoing such as money laundering from the client.
What I can suggest is to trade Brazilian shares via ADR or OTC shares in the US. You can have access to around 50+ Brazilian stocks. I do even have access to many of them via my share dealing ISA. The downside is you can't trade derivatives nor fixed-income.
@@zenastronomy not sure why but my previous reply to you got deleted... So I'll give you a shorter answer:
I'm no longer a tax resident in Brazil so not trading on Bovespa anymore. The only way I think you can do is to trade ADRs and OTC shares via US exchanges and you likely can do that with your current broker. There are at least 50 Brazilian shares you can trade like that.
@@AShiga any companies you invested in, you can recommend i do research on?
@@zenastronomy Having traded Brazilian stocks for 13 years in the past (2006-2019), I wouldn't recommend investing in that market for the long term. If you are a daytrader, there's always good money to be made as that market is so volatile... It is also too sensitive to government changes and regulations change far too frequently. Terrible for businnesses. The one investment I think there's always money to be made is in government bonds. Alternatively I think there's so much more potential in Argentinian stocks right now than in Brazil.
Maybe the Americans knew that the helicopter money during Corona would hit them in the neck as a bummer in the form of inflation and the only place you are fairly protected against inflation is in the stock market.
Is that Nils Frahm in the background?
Well guess what? I put all my pension fund into Overseas Equity non UK and the returns were stellar!!
The only problem is: 67 million of consumers are not enough for economic growth
The British stock market is on the cusp of changes whether it would be in the gradual decline as it shrinks now or it can embrace a new era of a more prosperous economy. Every investor now piles into New York stock market which has helped it surpass the London stock market. This is congruous with the stagnation of the British economy and believe it or not, things are going to deteriorate under the crappy governance of the Tories.