Hearts & Minds: Will sideswipe at New York revive listless London’s fortunes?

Journalists love a good scrap. They like nothing more than reporting a rivalry between two sides, stoking up the tension. That’s why weigh-ins at boxing matches provide such fare. Promoters know this, so they love to ramp up the theatrics. It is why as well hostile takeovers were so compelling back when there were hostile takeovers.

So, the decision by the LSE to take its rivalry with New York up a level will be greeted as manna from heaven by the media. The LSE has issued a discussion document, Mythbusting — UK vs US detailing the downside of listing in the US and comparing the performance of companies that float in New York or choose to move there. It’s entirely natural for London to fight to prevent businesses from going somewhere else. But hopefully they are under no illusion that the move comes with risk.

London vs New York is a recurring theme, beloved of editors on either side of the Atlantic. It’s a hardy perennial, comparing the two world cities’ attractions, restaurants and entertainment. In business, this means assessing their relative strengths and weaknesses in accessibility and depth of capital funding, professional services, legal and regulatory requirements and cost. The fact they are closely matched, ahead in some areas, behind in others, only adds to the appeal.

Comms-wise, New York is likely to hit back. But even if it doesn’t officially, the press will create a response, taking it upon themselves to devise their own head-to-head, analysing like-for-like. London must be ready for that. The more subjective the claim, the more likely it is to be rebutted. If, as some of them are, they are open to interpretation that space will be filled – London can be certain of that. London will react, New York will counter again and, on the combat, goes.

Nothing is more frustrating than watching a competitor take market share, especially as you see it, because a false narrative has developed, possibly encouraged by them. You must defend and the best form of defence is attack. Two sayings need to be taken on board: people in glasshouses should not throw stones; and be careful what you wish for. They must be addressed; you must be satisfied of having nothing to fear.

The alternative is to do nothing, to play to your own strengths and let your results do the talking. LSE has chosen the former. Battle is well and truly joined.

Chris Blackhurst is one of the UK’s foremost business journalists. He was previously Editor of The Independent and City Editor of the Evening Standard.