If there is one thing that speaks volumes about the state of the market, it’s stockbroker consolidation. London has seen a rising number of broker unions over the past year as weakening demand for the services they provide (such as IPOs and fundraisings) puts profits under pressure. Three months ago, Deutsche Bank took over Numis. FinnCap and Cenkos Securities joined forces last March. The latest merger, between Panmure Gordon and Liberum, arrives in the midst of a rocky start to the year for the market, which is being hit by troubling inflation figures – consumer price index (CPI) inflation for the year to December is at a higher than expected 4 per cent – and concern over earnings misses.
Fundamentally, though, London’s problem is a lack of capital and a dearth of buyers. Remedies and proposals to aid a revival are being worked on, but there is one more thing that can be added to the list: an individual savings…
