Parlez-Vous Investment?

Paris is in the limelight. France front-loaded the much-anticipated Summer Olympics with a surprise Parliamentary election. The results unearthed political polarisation in the country and created volatility when stability and security, most importantly, are required.

Exclusive data compiled by ING Media shows that political conversations have outweighed those about the Olympics by four-fold. Digital mentions about the political fallout of France’s snap election have accumulated 12.2 million mentions so far this year. The Olympic games, only 3.5 million, or approximately 5% of all Paris-related mentions to date in 2024.

The Olympic Games, and the fanfare that has preceded it, means the French capital has enjoyed a period of exposure only brought by such seismic events. Paris’ rise in stature has been bookmarked by other events, some out of its control. Paris, like Madrid, has manoeuvred to de throne London as the economic powerhouse of Europe. Brexit certainly knocked the UK, and only 12 months ago commentators were writing of the wealth in financial services that Paris had achieved at London’s expense, luring the big banks away from the square mile.

This lurch towards Paris is clear in ING’s latest cities research, which measures the volume and make-up of online digital conversations. This year we measured which cities lead inward investment mentions. Paris accounts for 18.7% of all of those mentions across our 60 cities, leading London in second place at 16%.

Our research also shows that for the first time, Paris leapfrogged London to become Europe’s Most Talked About City. Analysis reveals that culture and events are behind this seismic increase in the level of attention focused on Paris. Significant events such as Men’s Fashion Week in January, Paris Fashion Week in September, and The Rugby World Cup in October buoyed the city’s digital content in 2023. The power of culture is clear.

Paris has had a good twelve months, no doubt, the metrics prove it. But is there a niggling sense of De ja vu? Perhaps.

Much of the City of London, is relieved, and hopes, that recent years of political instability is now over: the market chaos that followed Liz Truss’s unfunded mini-Budget and the costly impediments imposed by Brexit had an effect on investor confidence.

London overtook Paris last year as Europe's top region for new foreign direct investment. Accountancy firm EY said regional figures from its annual FDI survey showed London attracted 359 projects, up 20% from 2022 and its highest annual total since 2019, led by technology and financial services.

Markets have reacted positively to the Labour Party’s seismic majority in the UK’s recent general election. Sir Keir Starmer et al spent months in the run-up to the election convincing businesses and investors that they are a credible source of fiscal stability.

So, Parlez-vous investment? If stability and security are the language of capital, then look no further than London. If Starmer and Reeves execute their ambition for growth with aplomb, future prospects, for the City and the whole economy, can serve to propel London back ahead of its Parisian competition.