BNP Paribas, one of France’s largest banks, is advising its customers to withdraw their funds from the eurozone and invest in the UK. The bank argues that the British economy is performing better than expected, while the Euro remains at risk of collapse. According to top analysts at BNP Paribas, the UK offers a more promising investment opportunity due to factors such as a “cheap pound.” This shift in preference towards the UK is a positive development for the London stock market, which has seen a decline in investors in recent years.
Markets in France and Germany will probably soar. At least supply-side economics can do that much. In other words the rich either way, the demand side or supply side, make money. Of course, the markets will soar. No need to leave France. Seems like a hit job on the tax structure in France.
You know let’s not as the ultrarich pay taxes. Let’s blame the poor for why the country is not growing much in real terms and debts are mounting up.
In the back of my mind, the real driver behind BREXIT was the UK banks wanted to get rid of (“burdensome, intrusive, profit-hurting”) EU regulation, but thinking they would still have unfettered access to EU markets. So the racist narratives were ginned up to cover the real agenda.
So will financial assets in the UK outperform, by virtue of being rid of EU regulation? Would any outperformance, over the short term, be more a result of shady dealings that the EU regs had prevented the UK banks indulging in?
Heavy investment in nuclear energy makes France a likely winner in the energy game (assuming they can catch up on maintenance issues). But political change seems more ominous.