A Sovereign Martini to End the Week
To mark King Charles III’s Coronation tomorrow, Buckingham Palace released three official recipes for people to serve at parties. They include Strawberry and Ginger Trifle, Coronation Aubergine, and Coronation Roast Rack of Lamb with Asian-style Marinade. If that sounds a bit much, the Palace also shared their recipe for Coronation Quiche, which is causing quite a stir due to the current egg shortage across England. While Britain prepares to make history this weekend, and cooks everywhere decide what to eat and drink, the London vs. New York capital market debate continues.
This week, UK's financial regulator put forward plans to simplify listing regulations with the aim of making its equity markets more attractive for companies seeking to go public. Many have criticized the Financial Conduct Authority (FCA) for creating an overly complicated and costly ecosystem. The reforms could simplify eligibility and reduce the regulatory burden, while providing wider choice for investors. Under discussion is a risk-based disclosure system, which critics say would place the responsibility of due diligence on investors lowering safeguards. The suggested changes come on the heels of the departure of several prominent companies, notably Arm and CRH, who have opted to list elsewhere. Since 2008 listings in the UK have dropped some 40%, according to the UK Listing Review.
A company’s decision on where to list is driven by numerous factors. However, it doesn’t have to be an “either or debate” given the US and London Stock markets are not mutually exclusive. Today, foreign issuers can readily access the markets in the US for a reasonable fee, and by raising their visibility here, leverage the abundant sources of liquidity for which the US markets are renowned.
Regardless of which side of the pond you find yourself on, competition for mindshare and market share today is all about strategy. Focus on these five elements:
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Notes:
King Charles's favorite drink reportedly is a martini. To celebrate the Coronation, the luxury British hotel The Dorchester will be serving the "Sovereign Martini" – made of Wessex gin, Royal Garden mead, dry vermouth, lavender bitter and orange scent.
Watching King Charles III's Coronation in the US, in Canada and the UK.
For anti-royals, check out tips in this anti-coronation guide.
