London Stock Exchange to lose hundreds of companies by 2028, warns City broker

Thanks for joining me. A large part of the London Stock Exchange is on track to disappear within the next few years unless investing in UK companies is made more attractive, City analysts have warned.

Peel Hunt warned that the “relentless” pace of companies leaving the stock market would mean the FTSE Smallcap Index would disappear by 2028.

5 things to start your day 

1) Taxpayers to foot Shell’s bill for dismantling toxic North Sea oil rigs | Estimates show the cost of removing waste from platforms could be north of £400m

2) Used EV prices tumble amid flood of cheap Chinese rivals | Average cost of 20 most popular second-hand electric vehicles falls 12pc in first quarter

3) Waitrose cuts prices for second time in two months as it fights M&S for shoppers | Supermarket slashes prices after its middle class rival posts improving sales

4) Forbes’ rich list gains $2 trillion as Taylor Swift and Sam Altman become billionaires | The planet’s wealthiest people are now worth a collective $14.2 trillion (£11.3bn)

5) Matthew Lynn: Britain is squandering its last remaining competitive advantage | French levels of labour protection herald the death of Thatcher’s labour market miracle

What happened overnight 

Asian shares mostly declined after Wall Street sank, hitting the brakes on what has been a strong rally.

Japan’s benchmark Nikkei 225 slid 0.8pc to 39,511.88. Sydney’s S&P/ASX 200 slipped 1.3pc to 7,788.20. 

South Korea’s Kospi dropped 1.3pc to 2,716.65. Hong Kong’s Hang Seng lost 0.6pc to 16,832.52, while the Shanghai Composite fell 0.3pc to 3,066.66.

Analysts said worries were growing that what rattled Wall Street might spread to Asia, despite recent relatively positive economic signs from China.

 Stephen Innes, managing partner at SPI Asset Management said: “Investors are grappling with the possibility that this turbulence could mark the beginning of a more significant correction in the markets.”

China has an ambitious target of around 5pc economic growth this year, seeking to put behind recent troubles in the property sector and the lingering effects of the disruptions that came from the pandemic.

On Wall Street on Tuesday, the S&P 500 fell 0.7pc to 5,205.81, for its worst day in four weeks. The Dow Jones Industrial Average lost 1pc, to 39,170.24, while the Nasdaq Composite fell 1pc, to 16,240.45.

Meanwhile, the yield on benchmark 10-year US Treasury bonds rose to 4.35pc from 4.33pc late on Monday.