WEBVTT - Paris Is Eating London's Lunch 0:00:00.600 --> 0:00:03.200 It's hard and Singapore it's like twenty eight degrees. And 0:00:03.240 --> 0:00:05.320 I could not be more happy to be here at 0:00:05.320 --> 0:00:08.959 the Bloomberg New Economy Forum, except so you're the organizer 0:00:09.039 --> 0:00:12.880 of the New Economy farm. Oh la la. But they're 0:00:12.920 --> 0:00:16.160 doing Paris on the podcast without me, Cat, So I 0:00:17.160 --> 0:00:20.720 am so happy to be here. But Paris without me, Cat, 0:00:21.560 --> 0:00:25.480 Let's Paris without You're going to be like Dave Merritt 0:00:25.760 --> 0:00:34.360 domes up. I'm so sorry, Francying, but it is true. 0:00:34.800 --> 0:00:39.640 We are focusing this week without you on Paris, the 0:00:39.680 --> 0:00:43.360 city of Lights and now home to Europe's biggest stock market. 0:00:43.440 --> 0:00:46.559 That's according to Bloomberg data, which now shows that it 0:00:46.680 --> 0:00:50.199 is outgrown London and is now holding the crown of 0:00:50.280 --> 0:00:54.560 the biggest European stock exchange. And we're going to dive 0:00:54.600 --> 0:00:57.480 into that with Bloomberg experts both on this side and 0:00:57.640 --> 0:01:00.840 that side of the channel, and asking the question, is 0:01:00.840 --> 0:01:03.720 this just another sign of Britain's shrinking place in the 0:01:03.760 --> 0:01:07.960 world in the wake of Brexit. In fact, on Bloomberg Television, 0:01:08.000 --> 0:01:11.000 former banking and policymaker Michael Saunders didn't hold back when 0:01:11.000 --> 0:01:14.800 assessing the impact of Britain's exit from the EU, the 0:01:14.920 --> 0:01:19.200 UK economy. There's a whole that's been permanently damaged by Brexit. 0:01:19.600 --> 0:01:24.640 This reduced the economy's potential output, significantly, eroded business investment. 0:01:25.240 --> 0:01:27.080 I would look, if we hadn't had breaks it, we 0:01:27.120 --> 0:01:29.880 probably wouldn't be talking about some austerity budget this week. 0:01:30.360 --> 0:01:33.720 The need for tax rises spending cuts wouldn't be there 0:01:34.040 --> 0:01:36.880 if breaks it hadn't reduced the economy's potential output so much. 0:01:39.680 --> 0:01:42.760 I'm David Merritt and this is in the City Bloomberg's podcast, 0:01:42.800 --> 0:01:45.160 connecting me to the stories and the voices at the 0:01:45.200 --> 0:01:47.840 heart of the City of London, and this week we 0:01:47.880 --> 0:01:52.440 are going to focus on one of London's most illustrious 0:01:52.480 --> 0:01:56.120 and long term rivals, Paris, the City of Light, and 0:01:56.200 --> 0:01:59.320 it's taking this opportunity to shine and we're going to 0:01:59.400 --> 0:02:01.400 hit the metaphoric rad I wanted to take the Eurostar, 0:02:01.480 --> 0:02:02.920 but I think the most official way to do this 0:02:03.360 --> 0:02:06.000 is down the line by speaking to some key Bloombo 0:02:06.120 --> 0:02:09.400 voices in our beautiful Paris bureau in the heart of 0:02:09.440 --> 0:02:12.720 the city on the roof screeb. But first, the author 0:02:12.919 --> 0:02:17.200 of this week's Bombshells story on London losing its crown. 0:02:17.240 --> 0:02:19.800 We have Joe Eastern from our Equitives team right here 0:02:19.840 --> 0:02:22.480 in the London studio. Joe, thank you so much for 0:02:22.560 --> 0:02:24.680 joining us on in the city. I really just wanted 0:02:24.720 --> 0:02:27.400 to dive into this amazing story that you were first 0:02:27.480 --> 0:02:30.960 with this week. It's called quite a stir been picked 0:02:31.000 --> 0:02:32.720 up all over the place. The headline is that London 0:02:32.720 --> 0:02:35.160 has lost its crown of the biggest European stock market 0:02:35.680 --> 0:02:37.720 to Paris. I know you've been tracking this data for 0:02:37.800 --> 0:02:41.120 some time. Can you explain what's been happening in recent weeks? 0:02:41.120 --> 0:02:44.320 So so we're tracking this data for several months really 0:02:44.360 --> 0:02:47.600 because we noticed that the market caps were finally getting close. 0:02:48.040 --> 0:02:50.360 The data goes back to round two thousand and three, 0:02:50.440 --> 0:02:52.320 so we know that it's it's been a big gap 0:02:52.360 --> 0:02:55.080 for a couple of decades. At one point it was 0:02:55.240 --> 0:02:58.560 around at one point five trillion dollar gap and now 0:02:58.600 --> 0:03:01.000 it has turned negative and that's that's amazing number, just 0:03:01.040 --> 0:03:02.519 to put that into context. So one and a half 0:03:02.600 --> 0:03:06.360 trillion dollars the London market was worth more than Paris 0:03:06.400 --> 0:03:09.320 back in twenties six, so before the Brexit vote, and 0:03:09.360 --> 0:03:13.480 now they're both around the two point eight trillion marks. 0:03:13.480 --> 0:03:17.600 So there's been this enormous convergence and now those lines 0:03:17.600 --> 0:03:21.240 of crossed. What has driven that mainly we had an 0:03:21.320 --> 0:03:24.120 underformance in UK domestic stock So these are companies that 0:03:24.160 --> 0:03:27.400 are heavily exposed to the UK economy. So it's not 0:03:27.400 --> 0:03:30.440 really the foots one hundred that's done reasonably well, and 0:03:31.440 --> 0:03:34.880 it's really global companies. It's the mining firms and the 0:03:34.920 --> 0:03:37.840 you know, the energy companies that have got a global footprint. Yeah, exactly, 0:03:37.880 --> 0:03:41.000 so around their sales come from outside of the UK. 0:03:41.120 --> 0:03:43.200 So dollar strength is seen as very good to the 0:03:43.360 --> 0:03:46.000 indexes out formed, but the foot see two fifty of 0:03:46.120 --> 0:03:51.120 midcaps has plunged. Companies that exposed to the UK domestic 0:03:51.440 --> 0:03:53.720 economy have lost around half their value, a lot of them, 0:03:53.800 --> 0:03:57.600 so big retailers, Marks and Spencers, home builders are down 0:03:57.600 --> 0:04:00.240 fifty for the year because of the worries about the 0:04:00.280 --> 0:04:03.480 economy and that's been one of the drivers for this change. 0:04:03.520 --> 0:04:06.080 So that is a pretty bleak story then, isn't it. 0:04:06.120 --> 0:04:08.080 I mean will say, if you split apart the London 0:04:08.120 --> 0:04:11.640 Stock Exchange, the companies that are really just looking at 0:04:11.640 --> 0:04:14.280 Britain or most of their profits from Britain, they've had 0:04:14.280 --> 0:04:17.800 a terrible year and that has dragged down the overall 0:04:17.920 --> 0:04:22.080 value of the London market. It's just smaller than France exactly. 0:04:22.120 --> 0:04:27.200 It's been virtually all domestic stocks related. Obviously. I think 0:04:27.240 --> 0:04:30.800 the main thing among economists is about how the UK 0:04:31.120 --> 0:04:34.680 consumer will be hit harder by inflation than other countries, 0:04:34.760 --> 0:04:37.320 mainly because of the way energy bills are priced and 0:04:37.360 --> 0:04:39.520 the way mortgage rates are priced as well in terms 0:04:39.520 --> 0:04:42.960 of flexible mortgage rates, and so the UK domestic economy 0:04:43.000 --> 0:04:46.320 is expected to contract more than other nations and that 0:04:46.440 --> 0:04:49.080 is reflected in the domestic stock market. Can I ask 0:04:49.120 --> 0:04:51.360 about the currency effect? Obviously, you know we all saw 0:04:51.400 --> 0:04:56.919 the huge plunge in the pound after the trust quoteng budget. 0:04:57.000 --> 0:04:59.760 We've seen a bit of a rally in sterling since then, 0:05:00.440 --> 0:05:04.080 um and a feeling that you know, the worst might 0:05:04.120 --> 0:05:06.560 be over. Perhaps the currency we've been talking perhaps about 0:05:06.640 --> 0:05:09.120 parity between the dollar and the power that seems to 0:05:09.120 --> 0:05:11.360 have retreated a little bit. But how much of this 0:05:12.480 --> 0:05:14.800 reverse sort of fortunes to London Paris is due to 0:05:14.920 --> 0:05:18.440 weakness installing? A large amount of it is because we 0:05:18.520 --> 0:05:21.640 are talking about dollar values. The euro is down around 0:05:21.640 --> 0:05:24.039 eleven for the year. The pound I think was down 0:05:24.040 --> 0:05:26.320 around about fifteen cent last time I checked, So there 0:05:26.400 --> 0:05:30.919 is definitely a currency impact. And really the Bank of England, 0:05:30.960 --> 0:05:34.400 although they have become relatively more hawkish than the last 0:05:34.839 --> 0:05:36.880 well you know, probably a couple of months ago, they 0:05:36.920 --> 0:05:40.160 turned more hawkish and they were definitely more you know, 0:05:40.320 --> 0:05:43.640 to use a market to more dubbish than other central banks, 0:05:43.640 --> 0:05:45.880 and that led to an underformance of the UK currency 0:05:45.880 --> 0:05:48.640 and that's reflected in this data. And then obviously that 0:05:48.720 --> 0:05:54.480 feeds through to UK companies that buy products input costs 0:05:54.560 --> 0:05:58.719 in pounds there there they're hurt when the when the 0:05:58.720 --> 0:06:02.400 currency goes down. But obviously on Thursday, where many listeners 0:06:02.400 --> 0:06:04.680 will be tuning in, we're going to have the big 0:06:04.720 --> 0:06:09.320 autumn statement, the next kind of fiscal plans from Chancellor 0:06:09.400 --> 0:06:11.800 Jeremy Hunt. We know broadly what he's going to do 0:06:11.920 --> 0:06:13.880 right now. He's going to have to cut public spending, 0:06:14.040 --> 0:06:17.800 he's going to raise taxes um So in that context, 0:06:17.839 --> 0:06:20.880 the next year looks even bleaker, doesn't it for the 0:06:20.960 --> 0:06:22.640 UK economy In there for all these companies that you're 0:06:22.680 --> 0:06:25.400 talking about, you know, the retailers, the home builders, there's 0:06:25.440 --> 0:06:27.000 no light at the end of the tunnel. It's there 0:06:27.040 --> 0:06:30.760 for these stocks I don't think there is like at 0:06:30.800 --> 0:06:32.560 the end of the tunnel for these companies. Yeah, I 0:06:32.600 --> 0:06:37.360 think that probably what will happen is that inflation sort 0:06:37.360 --> 0:06:40.440 of tops out, maybe towards the middle of next year, 0:06:41.200 --> 0:06:44.040 and then interest rate expectations will probably be already coming 0:06:44.080 --> 0:06:46.800 down by then, and then you see a repricing of 0:06:47.160 --> 0:06:50.080 certain assets, and I think that could benefit the UK consumer. 0:06:50.279 --> 0:06:52.640 But I mean, in terms of what Hunt can do, 0:06:52.720 --> 0:06:56.080 I think his hands are pretty much tied. So obviously 0:06:56.120 --> 0:06:58.159 a lot of pick up here in London on this story, 0:06:58.279 --> 0:07:00.800 but in France as well, what I mean, how much 0:07:01.160 --> 0:07:03.799 how much interest in this story is there in Paris? 0:07:03.800 --> 0:07:07.800 Are they crowing about this victory over longly? Yes? So 0:07:07.920 --> 0:07:10.240 kind of Yeah. I mean I had a few reporters 0:07:10.280 --> 0:07:14.640 from different French agencies contact me actually and yeah, trying 0:07:14.680 --> 0:07:17.640 to clarify some of the facts that they could then 0:07:17.760 --> 0:07:20.240 report the story themselves. So that was great to see 0:07:20.280 --> 0:07:22.280 them picking it up. They were a lot happier than 0:07:22.360 --> 0:07:24.840 the British, and I have to say so I had 0:07:24.880 --> 0:07:29.520 a few um fund managers didn't weren't so keen on 0:07:29.520 --> 0:07:32.920 the story. But you know, it is based on data obviously, 0:07:32.920 --> 0:07:36.840 so it is factually undernoidable data. You know, there are 0:07:36.880 --> 0:07:40.680 caveats to in terms of how a lot more money 0:07:40.680 --> 0:07:45.000 actually changes hands on the UK stock market even today. 0:07:45.040 --> 0:07:48.080 So the value traded per day on the London market 0:07:48.120 --> 0:07:51.760 is bigger than Paris still, but the value of companies 0:07:51.880 --> 0:07:56.240 listed um in those exchanges is now bigger in Paris 0:07:56.320 --> 0:07:58.320 for the first time. So have you been going on 0:07:58.360 --> 0:08:03.080 French TV to explain this or French is not as 0:08:03.120 --> 0:08:06.480 good as my Spanish? Yeah? Maybe a few words back 0:08:06.520 --> 0:08:11.760 from GCSE say days I can use so any optimism 0:08:12.080 --> 0:08:14.400 for for for this reversing any time soon. I mean, 0:08:14.440 --> 0:08:17.400 the big batdrop here isn't it is? It's the B word, 0:08:17.520 --> 0:08:22.720 it's Brexit. Longer term? Can this be reversed without a 0:08:22.720 --> 0:08:27.360 fundamental shift in relationship between Britain and the opinionion? I 0:08:27.400 --> 0:08:32.320 think that not as we stand. I think that maybe 0:08:32.400 --> 0:08:37.200 some of those barriers between the UK and Europe naturally 0:08:37.240 --> 0:08:39.760 break down over the years and then we you know, 0:08:39.800 --> 0:08:42.720 we moved towards a sort of you know, brexit um 0:08:43.120 --> 0:08:45.600 only in name situation. But you know that's probably a 0:08:45.600 --> 0:08:50.000 bit beyond my my scope. But I do think that, 0:08:50.280 --> 0:08:52.719 you know, there are positive drivers in the UK, the 0:08:52.920 --> 0:08:57.040 UK business does generally do well. Financial services are still strong. 0:08:57.120 --> 0:09:00.520 London is still a strong global financial center. But then 0:09:00.640 --> 0:09:03.880 you know, being a UK stocks reporter probably do have 0:09:03.920 --> 0:09:06.400 a small bit of bias, but I think there are 0:09:06.480 --> 0:09:09.920 there are reasons to be cheerful in London still, Jay, 0:09:09.960 --> 0:09:20.080 thank you so much. Clearly gives the very strong indications 0:09:20.160 --> 0:09:23.720 about the job achieved over the last five years in 0:09:23.760 --> 0:09:26.760 the attractiveness of a place like Paris and France of all, 0:09:27.320 --> 0:09:30.240 as well as clear consequences of the Brexit. As you 0:09:30.280 --> 0:09:35.360 mentioned it, the weaker the weaker pounds has been playing 0:09:35.400 --> 0:09:40.559 his role, but you have also recognized that key strategy 0:09:40.679 --> 0:09:46.680 choice of international group favoring being public outside of UK 0:09:47.160 --> 0:09:51.600 as playing a role. That was Pascal Cany, president of 0:09:51.679 --> 0:09:55.679 Business France, the government agency charged with promoting France to 0:09:55.920 --> 0:09:58.440 foreign investors. He was joining us on Bloomberg Radio this 0:09:58.480 --> 0:10:02.280 week to talk about the very story, and just like 0:10:02.320 --> 0:10:05.600 Michael Saunders, he says Brexit is a big reason for 0:10:05.600 --> 0:10:08.439 the shift out of London, but he's also saying it's 0:10:08.440 --> 0:10:13.960 a strategic choice made by businesses beyond just Brexit. Now, 0:10:14.040 --> 0:10:17.360 as promised for more on what is driving those strategic choices. 0:10:17.800 --> 0:10:20.000 I thought the best person to speak to would be 0:10:20.440 --> 0:10:24.280 Albertina Tolsolei. She's a Bloomberg proporster in Paris. She's covered 0:10:24.320 --> 0:10:26.960 French companies and markets for ten years, so I thought 0:10:26.960 --> 0:10:36.719 i'd give her a call. Hello, Hello, Burge, I can 0:10:36.760 --> 0:10:42.080 hear you loud and clear. How are you, Albertina? Oh? Good? Yeah, 0:10:42.120 --> 0:10:44.560 I mean how things in Paris and everything is busy 0:10:44.679 --> 0:10:47.040 and fine and well from looks of it, things are 0:10:47.040 --> 0:10:49.600 going well for Paris. Well, that's my point, not just 0:10:49.679 --> 0:10:51.840 going well in Paris, right, things are going gang busses 0:10:51.840 --> 0:10:53.800 in Paris. Isn't that What's what's what it looks like 0:10:53.840 --> 0:10:57.040 from over here? I think that, Yeah, I think it's 0:10:57.120 --> 0:10:59.920 what it looks like from over there. I wouldn't you know. 0:11:00.400 --> 0:11:03.280 I think that things are going well. I think that 0:11:03.440 --> 0:11:06.480 compared to the UK, things are going great. Yeah, I 0:11:06.480 --> 0:11:08.800 mean I'm not I'm not saying it's a you sound 0:11:08.840 --> 0:11:13.160 like a bit of relish in your voice. There sadness. 0:11:13.240 --> 0:11:15.280 I think you know it's Europe is weaker when the 0:11:15.360 --> 0:11:19.040 UK doesn't do well. And I'm not French. A lot 0:11:19.080 --> 0:11:22.600 of my French husband's relishing the moment. All right, Okay, 0:11:22.600 --> 0:11:26.360 there we go. That's the difference, not me, but you 0:11:26.400 --> 0:11:29.160 know this story this week that Joe Eastern, right, it's 0:11:29.160 --> 0:11:30.920 caused a bit of a splash here and he's he 0:11:31.000 --> 0:11:33.480 says that French media have been on his case to 0:11:33.520 --> 0:11:35.000 talk about as well. You know, and you've seen the 0:11:35.000 --> 0:11:38.440 headline right, London has lost its crown, the biggest European 0:11:38.440 --> 0:11:41.400 stock pocket to Paris. I know you have French stocks 0:11:41.400 --> 0:11:44.480 for years. Were you surprised by this? Not really, I 0:11:44.480 --> 0:11:47.560 would say, um, it's it's been a long time in 0:11:47.600 --> 0:11:52.520 the making. You know, it's not only the problems that 0:11:52.760 --> 0:11:55.520 the UK faced us with Brexit. Part of it is 0:11:55.559 --> 0:11:58.480 that I think that there's a second dimension here. I 0:11:58.559 --> 0:12:01.360 covered very closely French in actions a few months back, 0:12:01.520 --> 0:12:05.760 and I have to say that the you know, UM voting, 0:12:06.559 --> 0:12:10.439 the staying in office, the second you know, um five 0:12:10.520 --> 0:12:14.920 years another five years of president Emmanuel Macon also has 0:12:15.000 --> 0:12:18.240 helped give confidence as opposed to the chaos that we've 0:12:18.280 --> 0:12:24.880 seen here multiple administrations exactly. So there's a certain form 0:12:25.000 --> 0:12:28.120 of stability. And don't forget that mccon is a former 0:12:28.160 --> 0:12:32.720 investment banker. Investors like him. He's trying to you know, 0:12:32.880 --> 0:12:36.160 open up France, um, to make it a safer place 0:12:36.200 --> 0:12:39.040 to invest. It was not a safe place for investments 0:12:39.080 --> 0:12:41.880 because of the you know, the high taxes, even the 0:12:41.920 --> 0:12:45.520 taxes on your salaries. There are still taxes, but he's 0:12:45.559 --> 0:12:48.960 really trying to tackle all of those issues, not to 0:12:49.000 --> 0:12:53.480 mention structural reforms that could still come. So UM, it's 0:12:53.520 --> 0:12:57.160 not only the UK that has been doing worse. I 0:12:57.200 --> 0:13:00.079 think that, you know, if we had seen Marine le 0:13:00.160 --> 0:13:04.559 Pen succeed in her presidency attempt to take the presidency, 0:13:05.080 --> 0:13:07.839 possibly the picture would have been a bit different. But yes, 0:13:08.120 --> 0:13:11.880 a lot of optimism in France today, in particular UM 0:13:12.080 --> 0:13:16.720 from outside UM investors and looking looking to France. I 0:13:16.760 --> 0:13:19.040 just want to talk a little bit, obviously about some 0:13:19.080 --> 0:13:20.760 more of the reasons why the French market is doing 0:13:20.760 --> 0:13:23.760 me abrun again. You've covered this market in debt and 0:13:23.800 --> 0:13:27.360 the companies. It seems like it's again. The good news 0:13:27.800 --> 0:13:29.720 side of this story is that some of these French 0:13:29.720 --> 0:13:31.760 companies are doing creditally well. I'm not thinking about the 0:13:31.840 --> 0:13:33.640 high end luxury brands for instance. Can you talk a 0:13:33.640 --> 0:13:36.400 little bit about some of those success stories. You know, 0:13:36.440 --> 0:13:40.480 the CACA index is the benchmark index in France, and 0:13:40.760 --> 0:13:44.120 the powerhouses today are not the same powerhouses that we 0:13:44.200 --> 0:13:47.559 had ten years ago or even five years ago. Lvmash, 0:13:47.679 --> 0:13:52.680 the owner of VT, is the you know, one of 0:13:52.679 --> 0:13:56.720 the biggest Europe's biggest companies by market value. If Mess 0:13:56.760 --> 0:14:00.800 has become a powerhouse as well. Um Care Ring lost 0:14:00.840 --> 0:14:04.880 a bit, but it's still high up there. Loreal, the 0:14:04.880 --> 0:14:09.560 maker of beauty products, is high up there. These companies 0:14:09.640 --> 0:14:12.760 keep on doing well. So it's absolutely fascinating to see 0:14:12.760 --> 0:14:16.840 how you know, inflation is hitting everyone. Those rich people 0:14:16.920 --> 0:14:20.360 who buy her mess bag, uh, you know, her miss 0:14:20.360 --> 0:14:23.600 bag broken back and cost more than ten thousand euros. 0:14:23.720 --> 0:14:28.320 Those people aren't that dented in their purchasing power. And 0:14:28.360 --> 0:14:32.440 there's another element. Obviously, it's China. We all know that China. 0:14:32.600 --> 0:14:36.480 You know that the persistent no zero covid umh policy 0:14:36.920 --> 0:14:40.720 has hurt many businesses and with factories also closed. But 0:14:41.160 --> 0:14:44.840 you know, these companies have developed very powerful e commerce 0:14:44.880 --> 0:14:48.880 societies are selling still today even in China. And obviously 0:14:48.920 --> 0:14:51.400 the minute that China comes back, it will mean a 0:14:51.400 --> 0:14:54.400 lot of designer clothes, a lot of handbags, a lot 0:14:54.440 --> 0:14:57.520 of jewelry. Let's not forget the jewelry. For Rishmont, the 0:14:57.520 --> 0:15:00.840 owner of Cartier not French, but in you know, these 0:15:00.840 --> 0:15:04.760 are even even Richmill has some French brands. I mean, yes, 0:15:05.080 --> 0:15:07.600 LVMH particularly as you mentioned there, it's now worth about 0:15:07.600 --> 0:15:10.800 three hundred and sixty or so billion dollars. It's your's 0:15:10.840 --> 0:15:14.480 biggest company by market value, right, yeah, and and only 0:15:14.520 --> 0:15:17.520 down a little bit this year in the context of 0:15:18.440 --> 0:15:20.520 huge economic headwinds. You would have thought in the past 0:15:20.600 --> 0:15:23.680 luxury goods makers would have been really hammered in this environment, right, 0:15:23.680 --> 0:15:26.320 But as you say, it's like the new global elite 0:15:26.320 --> 0:15:28.320 and not being touched by this slowdown, and in fact, 0:15:28.520 --> 0:15:30.320 it sounds like there's just more growth to come for 0:15:30.360 --> 0:15:34.119 these companies. Yes, they were hammered a bit in particular 0:15:34.360 --> 0:15:36.480 mess at the start of the year, but not so 0:15:36.600 --> 0:15:39.680 much for their sales, which really didn't change much. And 0:15:39.760 --> 0:15:42.840 the outlook remains great. But because of the higher interest rates, 0:15:42.880 --> 0:15:45.920 and obviously you know, higher interest rates tend to hurt 0:15:46.640 --> 0:15:49.120 in terms of investments, both the tech companies and the 0:15:49.200 --> 0:15:52.760 luxury companies. But as you've seen, the tech companies are 0:15:52.800 --> 0:15:56.040 having a rough patch, even the big American companies and 0:15:56.040 --> 0:15:59.400 and not luxuries. So parents is really sitting on in 0:15:59.440 --> 0:16:01.920 the sweet spot here, isn't it, you know? So as 0:16:02.000 --> 0:16:05.360 the home of luxury brands and these huge companies. It's 0:16:05.400 --> 0:16:07.520 managing to to sort of ride the wave on this. 0:16:07.640 --> 0:16:09.760 What does this mean for the city. I think this 0:16:09.920 --> 0:16:13.320 is just the start because when Brexit happened, you know, 0:16:13.360 --> 0:16:16.560 when the impact of Brexit started being felt and it 0:16:16.640 --> 0:16:20.640 actually came alive. You know, Um, we were in the 0:16:20.680 --> 0:16:23.040 middle of a pandemic, so a lot of those job 0:16:23.120 --> 0:16:27.040 moves didn't immediately happen just because it was the middle 0:16:27.040 --> 0:16:29.200 of a pandemic, so there was a lot of work 0:16:29.240 --> 0:16:32.400 from home. But the change in the past, I would 0:16:32.400 --> 0:16:34.600 say ever since September, you know, we we are seeing 0:16:34.600 --> 0:16:38.480 a massive return return to work and people have actually 0:16:38.520 --> 0:16:41.440 started moving. Even City Group I think announced that it's 0:16:41.480 --> 0:16:44.720 opening uh you know, new jobs in Paris, new offices, 0:16:44.760 --> 0:16:47.480 so a lot of office space that it's being taken up. 0:16:47.520 --> 0:16:51.880 Of course, this also means um support for real estate, 0:16:52.200 --> 0:16:56.480 quest for school places in international schools. Uh it again, 0:16:56.560 --> 0:17:01.280 it spells very good news for for you know, restaurants 0:17:01.440 --> 0:17:04.879 or for luxury again hotels. I mean Paris is really 0:17:04.920 --> 0:17:08.840 back and and definitely you know this can be felt. 0:17:09.040 --> 0:17:11.040 So is it hard to get a table at a restaurant? 0:17:11.240 --> 0:17:13.680 Is very hard? It's getting harder and harder to get 0:17:13.720 --> 0:17:16.840 tables at a restaurant. And this is very strange because 0:17:16.880 --> 0:17:18.719 you know, there are there are a lot of worries 0:17:18.760 --> 0:17:22.280 for the higher inflation, but for example, restaurants haven't been 0:17:22.320 --> 0:17:25.760 impacted at all. But once again, um, I think that 0:17:25.800 --> 0:17:27.880 this is just the start of a movement. You say, 0:17:27.920 --> 0:17:31.040 you know many jobs trickled from London to Paris. I'm 0:17:31.080 --> 0:17:35.880 not sure that a lot of people just moved out 0:17:36.200 --> 0:17:39.600 of of of London. But all those new hires, all 0:17:39.640 --> 0:17:43.399 the news, new new places you want to fill in jobs, 0:17:43.560 --> 0:17:46.159 all the new jobs are coming, you know, to to 0:17:47.040 --> 0:17:50.639 continental Europe, and Paris is really a winner. Again, not 0:17:50.800 --> 0:17:53.480 everything is perfect, but I think that there's a lot 0:17:53.560 --> 0:17:58.520 of positiveness. Um that maybe right now people outside of 0:17:58.560 --> 0:18:02.280 France see more and the French themselves actually as usual, 0:18:02.359 --> 0:18:04.639 but that is pretty normal. I think. I think that 0:18:04.800 --> 0:18:07.159 you know, we're gonna be we're gonna be tracking this theme. 0:18:07.359 --> 0:18:08.760 Our's in a very closely and I think for the 0:18:08.800 --> 0:18:10.639 next installment, I think we're going to have to come 0:18:10.680 --> 0:18:12.679 on location. So if you can secure one of those 0:18:12.720 --> 0:18:14.960 restaurant bookings, we're going to do some on the ground reporting. 0:18:17.680 --> 0:18:20.479 Albertina Torso from Paris. Thank you so much for joining us, 0:18:25.000 --> 0:18:27.199 Thanks for listening to this week's in the City. We 0:18:27.240 --> 0:18:29.840 will be back next week, but in the meantime, if 0:18:29.880 --> 0:18:31.679 you like our show, please head on over to Apple 0:18:31.720 --> 0:18:34.639 Podcasts or wherever you listen to podcasts and rate, review 0:18:35.160 --> 0:18:39.159 and subscribe. This episode was hosted by me David Merritt, 0:18:39.200 --> 0:18:41.880 and it was produced by Summer Sadi, Editing and sound 0:18:41.920 --> 0:18:44.959 design by Blake Maple's. And don't forget to check out 0:18:45.000 --> 0:18:48.520 bloomberg dot com slash uk Wealth for more insights on 0:18:48.520 --> 0:18:51.400 how to manage your money on news site has launched 0:18:51.520 --> 0:18:51.960 this week.