Economics/Class Relations

London Stock Market: The Singularity Arrives

Microsoft’s stake in the LSE just might be the biggest news of the year

I have long wondered why the tech giants don’t just swallow global finance whole. They have, after all, unrivalled skills at harvesting, assessing and understanding information and most of the infrastructures which finance uses are probably generations behind what the tech giants use.

Maybe that changed yesterday, with the news that Microsoft has bought a 4% stake in the London Stock Exchange Group for £1.5bn. Now, this might be just the LSE bringing in the partner it needs to bring Refinitiv up to speed, after the LSE bought the would-be Bloomberg-killer for $27bn last year. Certainly that’s what LSE ceo David Schwimmer is saying, and the deal comes with a 10yr contract to move the LSE to Microsoft’s Azure cloud technology.

Decorative

But if you listen to what Microsoft ceo Satya Nadella is saying, the ambition seems much greater than that: ‘Advances in the cloud and AI will fundamentally transform how financial institutions research, interact and transact across asset classes, and adapt to changing market conditions.’

Microsoft CEO Satya Nadella

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