London’s calling: A haven for stability amid flux in capital movements
Lewis Burnett, Head of Corporate Broking at Deutsche Numis, considers the findings from our latest survey of FTSE leaders, ‘Raised in London 2025’, which unearths renewed confidence in London as an investment hub, though Europe’s financial centres are gaining ground as issuers consider dual listings.
In a volatile geopolitical period where investors are reallocating assets across different global hubs, there is a rejuvenated confidence among FTSE leaders in London’s appeal as an investment destination. This is one of the key findings from our annual Raised in London report, which looks at the views of 150 directors and board members of FTSE-listed companies.
Almost every respondent (99%) agreed that the UK is an attractive market for launching an IPO or raising capital, up from 87% in 2024, while 93% actually expected the number of UK IPOs to increase, compared with 81% of respondents last year.
Raised in London also provides context on London’s competitive position relative to other European investment hubs. Emphatically, London remains the largest exchange within Europe, raising more equity capital than the next three European exchanges combined (Paris, Frankfurt and Milan) in 2024. It is also the fifth largest in the world in terms of total capital raisings, with £8.7bn raised during the first half of 2025.1
As the Financial Times has reported2, overseas inflows into UK equities recently hit their highest level in three years. This chimes with our survey finding that 78% of respondents saw more international investors on their registers in the past 12 months.
Source: LSE FY 2024 (LSEG, 31 December 2024)
“We are seeing an evolving landscape in which Europe’s competitiveness and capacity to attract global capital is intensifying, just as the UK’s capital markets are undergoing a renewed sense of optimism.” Lewis Burnett, Head of Corporate Broking, Deutsche Numis
At the same time, however, valuation gaps are affecting UK-listed firms, with 47% of respondents telling us that UK-listed issuers are undervalued by 15-20% compared with global markets.
Another sobering factor is that a high proportion (83%) of FTSE leaders said they had considered moving their listing to a foreign market or seeking a dual listing. Further, almost two-thirds (63%) had faced pressure from external stakeholders to do so.
Europe coming to the fore
Against this backdrop, Europe’s major venues are gaining ground, with macro trends and nationwide programmes fuelling their momentum. Contrary to the ‘European exodus’ narrative, European firms that transferred listings to the US over the past decade actually represent just 2% of the total listed companies in Europe and 4% of their combined value.3
The growing appeal of European venues over the US was in evidence in our survey. Among those considering a dual listing or moving their listing altogether, 68% said their favoured option would be Amsterdam. This was followed by New York (46%), with Frankfurt (42%) close behind.
After a 20-year period in which European equities have underperformed those in the US, Europe could be at an inflection point. The past year has seen a significant movement by investors to reallocate their assets towards Europe – a trend partly being driven by concerns surrounding high US valuations, market concentration, and doubts about continued US economic exceptionalism.
This trend is not being driven solely by US concerns. Opportunities are opening up in Europe via fiscal expansion programmes, which will unlock financial support for infrastructure, renewable energy and defence.4 Europe’s structural energy transition is carving open long-duration investments. European equities could be evolving from diversification tools to strategic allocations.
Harnessing UK optimism amid European appeal
We are seeing an evolving landscape in which Europe’s competitiveness and capacity to attract global capital is intensifying, just as the UK’s capital markets are undergoing a renewed sense of optimism. After exceptionally high outflows from the London Stock Exchange during 2024, this renewed confidence will need to be harnessed and championed as much as London’s underlying strengths – which remain unmatched in Europe. London’s long-established reputation for governance, stability and robust regulation, as well as its deep ecosystem of global connections, have served it well in a tumultuous period.
At this key inflection point, we need to coalesce around a coherent, consistent narrative for the UK capital markets, one that celebrates entrepreneurialism and accentuates the role the City plays in the wider economy – with tangible examples of how it powers many arteries of growth.
There is much to draw encouragement from, but at a time where capital may increasingly be pivoted from the US into Europe, we need to ensure we act now to secure London retains and strengthens its leading position as a global financial centre into the future.
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Lewis Burnett, Head of Corporate Broking at Deutsche Numis, considers the findings from our latest survey of FTSE leaders, ‘Raised in London 2025’, which unearths renewed confidence in London as an investment hub, though Europe’s financial centres are gaining ground as issuers consider dual listings.
Almost every respondent (99%) agreed that the UK is an attractive market for launching an IPO or raising capital, up from 87% in 2024, while 93% actually expected the number of UK IPOs to increase, compared with 81% of respondents last year.
Raised in London also provides context on London’s competitive position relative to other European investment hubs. Emphatically, London remains the largest exchange within Europe, raising more equity capital than the next three European exchanges combined (Paris, Frankfurt and Milan) in 2024. It is also the fifth largest in the world in terms of total capital raisings, with £8.7bn raised during the first half of 2025.1
As the Financial Times has reported2, overseas inflows into UK equities recently hit their highest level in three years. This chimes with our survey finding that 78% of respondents saw more international investors on their registers in the past 12 months.
Source: LSE FY 2024 (LSEG, 31 December 2024)
At the same time, however, valuation gaps are affecting UK-listed firms, with 47% of respondents telling us that UK-listed issuers are undervalued by 15-20% compared with global markets.
Another sobering factor is that a high proportion (83%) of FTSE leaders said they had considered moving their listing to a foreign market or seeking a dual listing. Further, almost two-thirds (63%) had faced pressure from external stakeholders to do so.
Europe coming to the fore
Against this backdrop, Europe’s major venues are gaining ground, with macro trends and nationwide programmes fuelling their momentum. Contrary to the ‘European exodus’ narrative, European firms that transferred listings to the US over the past decade actually represent just 2% of the total listed companies in Europe and 4% of their combined value.3
The growing appeal of European venues over the US was in evidence in our survey. Among those considering a dual listing or moving their listing altogether, 68% said their favoured option would be Amsterdam. This was followed by New York (46%), with Frankfurt (42%) close behind.
After a 20-year period in which European equities have underperformed those in the US, Europe could be at an inflection point. The past year has seen a significant movement by investors to reallocate their assets towards Europe – a trend partly being driven by concerns surrounding high US valuations, market concentration, and doubts about continued US economic exceptionalism.
This trend is not being driven solely by US concerns. Opportunities are opening up in Europe via fiscal expansion programmes, which will unlock financial support for infrastructure, renewable energy and defence.4 Europe’s structural energy transition is carving open long-duration investments. European equities could be evolving from diversification tools to strategic allocations.
Harnessing UK optimism amid European appeal
We are seeing an evolving landscape in which Europe’s competitiveness and capacity to attract global capital is intensifying, just as the UK’s capital markets are undergoing a renewed sense of optimism. After exceptionally high outflows from the London Stock Exchange during 2024, this renewed confidence will need to be harnessed and championed as much as London’s underlying strengths – which remain unmatched in Europe. London’s long-established reputation for governance, stability and robust regulation, as well as its deep ecosystem of global connections, have served it well in a tumultuous period.
At this key inflection point, we need to coalesce around a coherent, consistent narrative for the UK capital markets, one that celebrates entrepreneurialism and accentuates the role the City plays in the wider economy – with tangible examples of how it powers many arteries of growth.
There is much to draw encouragement from, but at a time where capital may increasingly be pivoted from the US into Europe, we need to ensure we act now to secure London retains and strengthens its leading position as a global financial centre into the future.
1 London Markets Update – 5th Edition 2025 | Issuer Services (LSEG, 25 June 2025)
2 What will it take to make British investors buy British stocks? (Financial Times, 21 June 2025)
3 A reality check on international listings (New Financial, HSBC, April 2025)
4 Asset Management Mid-Year Outlook 2025 (EPFR-Goldman Sachs, June 2025)