Home News Can European Major Averages Compete with the Best in the World?

Can European Major Averages Compete with the Best in the World?

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Deutsche Boerse

Are European Capital Markets at Risk of US Control?

There are growing fears across Europe that financial markets may soon come under American control if the merger between Deutsche Boerse and the London Stock Exchange (LSE) does not go through. The agreement between both markets is valued at £21 billion, and if it fails there are bidders across the Atlantic waiting to snap up the deal. For his part, the CEO of Deutsche Boerse is deeply concerned that Europe will be teetering if the UK and Germany fail to reach consensus.

The planned merger between Deutsche Boerse and the LSE is big news in an increasingly divided Europe. With the upcoming June 23 referendum in the UK, concerns about a possible Brexit remain in the wings. The possible merger, which is in its infancy stages was announced on Wednesday, 16 March. If it comes to pass, it will be a breakthrough for European unity. However not everybody is happy that the London group failed to look further afield for a deal and settled on a £21 billion merger with Germany.

 

Where Will the New Group Be Located?Deutsche Boerse

The concerns about the deal are rooted in the fact that it is a zero-premium merger, and many feel that it would have been better had an auction taken place. Meanwhile, the CEO of the London bourse, Xavier Rolet, will stand down after 7 years of tenure if the German/UK group will be based in the United Kingdom. However, there is plenty of internal disagreement about who should lead the merger, especially in the UK where some folks feel that the tit-for-tat agreements being made are childish and do not really place the best person in contention to lead the merger between the London Stock Exchange and the Deutsche Boerse.

Meanwhile, the UK has enough drama going on right now, with the recent departure of Iain Duncan Smith after a furious war of words with George Osborne over budget cuts of £4 billion for low income earners. Added to that is the rapidly approaching June 23 referendum where Britain will be voting on whether to remain part of the European Union or not. It seems rather odd that Britain would be partnering with Germany for its capital markets, but stranger things have happened.

 
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William R. Feins , freelance journalist from London, UK; he received his B.A. degree in Economics and his Masters in Sociology. William has always been interested in the mechanics of business and the inspiration of original thinkers, and firmly believes that the former can’t succeed without the latter. In his spare time, he enjoys the ridiculous spectacle of watching table tennis on a big screen (preferably at a pub) and reading weighty tomes about World War II.

34 COMMENTS

  1. With even more inclination of UK to be seperated from European Union is going to create many problems. Personally I hope that their differences are resolved and UK remains in EU and the stock markets of UK and Germany unite smoothly.

     
  2. With even more inclination of UK to be separated from European Union is
    going to create many problems. Personally I hope that their differences
    are resolved and UK remains in EU and the stock markets of UK and
    Germany unite smoothly.

     
  3. I believe that Europe in my opinion, needs a stimulus package. I think that would stir up the economies in Europe and decrease chances of U.S. investors waiting to snatch equities in Europe.

     
  4. I don’t think Europe can compete with the likes of China. They simply have too much manufacturing power and a much bigger work force.

     
  5. I think Europe need more work and determination and more importantly be united to compete with the US. I think Europe are going through tough days since some countries wants to be out so they need to sort their problems really quickly.

     
  6. This article highlights a very important point as I also believe the EU will not be able to compete with Asian markets such as China and South Korea without teaming up with the US.

     
  7. Europe undoubtedly will work this out as it always has. The combined resources of Europe are sufficient to get this job done!

     
  8. Personally I think as long as the UK and all the countries that are in Europe stay in the EU then everything is fine. But if a country like the UK leaves the EU then I see some problems.

     
  9. This is certainly an eye opener. The US can definitely have an impact on European economic growth of this article is any indication.

     
  10. The combined resources of Europe are sufficient to get this job done.They simply have too much manufacturing power and a much bigger work force.investors waiting to snatch equities in Europe….

     
  11. Great article! Very informative! I learned a lot from reading this that I did not know. I will definitely share this information with my friends and family

     
  12. I hope the merge will be pushed through for the benefit of the people and the countries concerned. This is a good article. Well explained. And yes they can compete with the best in the world (anybody can do it even).

     
  13. because of the way the economy is in europe, i do not think they have a chance to compete with the rest of the world. However, if they get help from the United states there might be a possibility, but by themselves, they are already in trouble with their job market.

     
  14. The Capital Markets Union is set to become a reality by 2019. What will that mean for Europe? Who will benefit and how will it affect the role of banks? Discussing these questions and more at the third Deutsche Bank “momentum” event in Berlin were: Lord Jonathan Hill, EU Commisioner for Financial Stability, Financial Services and Capital Markets Union; Steffen Kampeter, Parliamentary State Secretary at the German Federal Ministry of Finance; Anton Börner, President of the Federation of German Wholesale and Foreign Trade Association and Paul Achleitner, Chairman of the Deutsche Bank Supervisory Board.

     
  15. You never know what could be happening behind the scenes to push these types of things forward, or stall them! This is a very informative article. To me it sounds like maybe this deal is being rushed…?

     
  16. I think the UK will be far better off leaving the EU as it was sold as a trade only deal – not a rule by iron fist deal. That said, this article helped me understand much better the European competition with the world.
    Europeans have invented over 92% of the world’s inventions – at all points in time. I have worked for a Chinese company who was outsourcing EVERYTHING to Europeans and Americans because they may can copy and repeat rote style, they are not creative at all. The leaders know this and although China is flush with cash, they are flush with poverty and high levels of peasant types.
    If Europe wasn’t flooded with third world criminals and refugees they would already be living on another planet. The technology is this good, but because they are extremely altruistic (Indigenous Euro people worldwide, no matter their physical location) – they devote more of their own time to helping others and trying to lift others up who can’t and wont be helped, instead of advancing their own positive circumstances and their innate creativity which is second to none.

     
  17. Lots of things to do. I agree, I think Europe has some work to do. With even more inclination of UK to be separated from European Union is going to create many problems. Personally I hope that their differences are resolved and UK remains in EU and the stock markets of UK and Germany unite smoothly.

     
  18. The article was very informative and appericable.The article well said about european competitions with world wide.The article bring me a new information about EU.Congats to the author of the article.

     
  19. The Europeans need to get together and talk about what they need to do. They don’t need any more drama going around. I think we need Europeans because of their talent. They need to get into an agreement about who should lead the merger. The article had a lot of good information in it. I hope the Europeans find the answers.

     
  20. this is an amazing post that gives the many more information. i have learned a lot so thank you for this…

     
  21. It may look like Europe is having hard time overcome the situation but it will work out eventually. They have enough resources to make their move and compete with other.

     

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