New analysis shows that Paris has overtaken London to become Europe’s biggest stock market. As per a Bloomberg report amid recession jitters in Britain, the French market has gained a marginal edge on the London stock market.
Five years back when Britain voted to leave the European Union its stocks were worth $1.5 trillion more than France’s now it is a little behind. Paris now has a combined value of $2.823 trillion while the UK market is worth $2.821 trillion altogether.
Watch | London loses EU’s stock market crown to Paris
Plummeting pound, Brexit and France’s high-end shares have also contributed to the change.
Speaking to Bloomberg, Michal Saunders, a policymaker at the Bank of England said that Brexit has “permanently damaged’ the UK economy by reducing the country’s potential output, which has led to a plunge in investments to businesses.
The major victims of this economic downturn have been small ad consumer-focused firms, who have also taken the hit from the energy crisis, inflation and market volatility.
Dropping 13 per cent in value against the US Dollar, Pound this year has taken a major hammering. In comparison, Euro has only seen a 9.2 per cent fall.
In September, as per Reuters, consumer price inflation in Britain saw a 40- year high of 10.1 per cent, this figure is only expected to rise as last month also saw regulated energy prices jump in spite of the subsidies.
As per an AFP report in spite of the ongoing recession and the cost-of-living crisis, Britain will hike taxes and slash public spending in its government budget which will be unveiled on Thursday (November 17). This is meant to signal “a return to austerity”.
(With inputs from agencies)
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