The recent news that the total value of the UK stockmarket had fallen $250bn behind that of France came as a shock. The UK now comprises just 3.8% of the MSCI All Countries World index, a share likely to fall as more firms emigrate or are taken over. BHP Billiton and CRH have gone already; Unilever and Shell were bullied by investors into staying, but could change their minds, and others are under pressure to follow.
Simon French of Panmure Gordon calculates that even after adjusting for the lower-quality composition of the UK market (itself a telling characteristic), UK stocks trade on an 18% discount to comparators overseas. Bidders are thus queuing up to snap up bargains.
Commentators assume that this is a recent phenomenon, readily reversible with help
