RBC WM's Frédérique Carrier on UK Stock Listings

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00:00Let me ask you also about the UK. We've got an important Labour Party conference today,

00:03speech going to be delivered by the UK Prime Minister. What appetite do you think the investment

00:09community has right now to pile in to UK equities? The valuation play is there.

00:15The valuation play is there.

00:15But not necessarily the growth.

00:18That's fair. The valuation play has been there for quite some time. It has to be said.

00:24But perhaps for investors who want in particular high dividend yield stocks, it is it is rich

00:32hunting ground. But overall, the economic prospects of the UK are somewhat limited and

00:39challenged. I thought it was quite interesting this week that AstraZeneca decided to do its

00:43listing on the New York Stock Exchange as opposed to London. What does that tell you about companies

00:48perception of liquidity and appetites in the UK right now? I think companies are concerned about

00:53the discount that their stock has if they are listed here in the UK. Perhaps CEOs are also

00:59concerned about remuneration, which is less here than than over there. So this is something which

01:04has been impacting. AstraZeneca is the latest company to voice this concern. But there's been others in

01:11the past. And that's one of the reasons why we are a bit more cautious about the UK. Really, some of the

01:17fundamentals are lacking there. Do you think the IPO dynamic is integral to attracting more investors

01:24into the broader markets? We think it helps. Definitely. Yeah, it does help when it comes to

01:28European equities. You said he still said you said that you're still into the fiscal story. And yet that

01:35was a theme, I would say, a couple of months ago. Why do you think it still has legs for European

01:40economy? Well, the Ministry of Finance in Germany has explained how it was going to disperse the money.

01:48And we know that it's going to be front loaded. We know it's coming very soon. And we know that it's

01:53going to go to areas which are going to benefit from economic growth with a high multiplier effect,

02:01such as, for instance, 22 billion in the real system. And that should improve efficiencies,

02:05should improve the ease of doing business in Germany. And so that will have a positive impact

02:11on the German economy, but also broader in a broader sense on the European economy.