London reigns over its European rivals
LoNDoN remains the only major financial centre in Europe more than three years after the Brexit vote, according to an influential global ranking.
the capital held on to second place in a list of the world’s highest-rated financial hubs by commercial thinktank Z/Yen Group, behind New York but ahead of Hong Kong and Singapore.
And despite suggestions it could imminently be overtaken by continental rivals, London remained the only European city in the top ten.
the closest rival was Zurich, in 14th place, followed by Frankfurt in 15th. And paris, which has also been touted by French president Emmanuel Macron as a serious contender, was left languishing in 17th place.
the latest boost to London comes days after the capital was also revealed to have strengthened its grip on foreign currency and derivatives trading, shrugging off fears that this would be hit by Brexit.
Miles Celic, chief executive of lobby group the City UK, said: ‘this sends a strong, positive message about London and the UK’s competitive advantage as a hub for financial and related professional services. It underlines our industries’ position as a worldclass British success story.’
Celic said the latest ranking, however, should also be a ‘striking warning signal’ for European capitals because of the growing dominance of Asian and North American finance hubs. New York extended its lead over London to 17 points, while Hong Kong is just two points behind the City.
the report warned that London’s second place was ‘at risk’ amid strong performances from rivals, with paris in particular moving up the rankings.
Celic urged the EU to maintain easy trading between London and the rest of the bloc after Brexit, with the City set to face curbs on certain activities.
‘With European economies facing significant economic headwinds, it is vital that policy-makers keep a sharp weather eye on wider European competitiveness, and seek to maintain open and unfettered access to global capital markets through Europe’s primary international financial centre in the UK,’ he added.
London’s top ranking among finance hubs is a blow to critics who claimed it was facing a dramatic downfall just a few years ago. During the referendum campaign, analysts claimed as many as 200,000 jobs could disappear if Britain voted to leave the bloc, prompting accusations their warnings were part of the infamous ‘project Fear’. And since the vote to leave, politicians on the Continent have repeatedly bragged that their cities are set to eclipse London as financial centres.
the reality has been far more muted, however, with the predicted mass exodus failing to materialise. Instead, experts at the City of London Corporation have predicted only 5,000 jobs – or fewer than one in 200 – are at risk.
Just 1,000 financial services jobs have left the City and moved to rival European hubs so far, a study by EY revealed last night.