Can the UK regain capital markets momentum?

For several years, questions have been asked about London's competitiveness as a global financial centre. Headlines have focused on a shortage of IPOs, companies moving listings overseas and growing competition from other financial hubs. Yet Deutsche Bank's 2026 Raised in London report suggests sentiment may be shifting.

In a recent episode of This is Deutsche Bank, host Victoria Garrod speaks with James Taylor, Head of UK Investment Banking, and Sanjay Raja, Chief UK Economist, about the outlook for UK capital markets, investor sentiment and what needs to happen for optimism to turn into action.

The discussion is based on Deutsche Bank's fourth annual Raised in London survey, which gathered the views of 150 senior leaders at UK-listed companies.

Why are investors taking another look at the UK?

One reason is diversification. After years in which global capital tended to favour the United States, investors are increasingly looking to diversify and reassess opportunities elsewhere.

At the same time, the UK continues to offer several long-standing advantages, including deep capital markets, strong institutions, world-class universities and an ability to attract global talent.

Do economic fundamentals support the optimism?

While the UK economy has faced significant challenges in recent years, including inflation, higher interest rates, geopolitical uncertainty and energy price shocks, Raja argues that the economy has proved more resilient than many expected.

Importantly, respondents to the Raised in London survey are not only optimistic about where the economy is now. Ninety percent say they are more confident about UK growth prospects than they were two years ago.

What still needs to happen?

Despite growing confidence, the podcast highlights several challenges that remain.

Respondents point to issues such as valuations, liquidity, governance requirements and the need to attract more domestic investment into UK companies. While London's outlook has improved, guests agree that confidence alone is not enough.

The next step is translating positive sentiment into tangible outcomes: more companies investing, more firms raising capital, deeper capital markets and stronger long-term productivity growth.

What role can London play in a changing investment landscape?

The discussion concludes that London's strengths remain significant. Its international reach, expertise, regulatory framework and access to global capital continue to make it one of the world's leading financial centres.

The challenge now is to build on recent momentum, maintain reform efforts and ensure companies can access the capital they need to grow and scale in the UK.

Listen to the full episode to hear why business leaders are increasingly optimistic about London's future, what is driving renewed interest in UK assets and whether the UK's capital markets are entering a new chapter.