The City of London has suffered yet another humiliation as Anthropic, the high-flying artificial intelligence company, has opted for a US listing on the New York Stock Exchange. This decision, confirmed by sources close to the matter, represents a significant loss for the UK’s ambition to become a global tech hub. The company, valued at over $30bn, has chosen Wall Street over London, citing deeper capital pools, more favourable regulatory conditions and a higher concentration of tech-savvy investors.
For the UK, this is a stark reminder of the ongoing erosion of its capital markets. The government’s attempts to reform listing rules have failed to stem the tide. The gilt-edged promise of a ‘Brexit dividend’ for the City looks increasingly hollow as yield premiums widen and investor confidence wanes.
Anthropic’s move underscores a systemic issue: London is no longer the automatic destination of choice for high-growth companies. Market volatility and fiscal instability have taken their toll. The bottom line is that capital flows to where it is treated best, and right now, that is the United States.
The Treasury’s response has been predictably hollow, with a spokesperson reiterating the ‘strength of the UK’s ecosystem’ while ignoring the ugly truth that another unicorn has slipped through the net. This is not just a symbolic loss. It will weigh on sterling sentiment and further stoke inflation expectations as the government scrambles for alternative growth drivers.
Investors should brace for a weaker pound and a steeper yield curve in the coming months.
