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LONDON IS NO LONGER THE WORLD CAPITAL OF FINANCE!

May 31, 2019

WallStreetDope.Com | 5/31/2019

The British capital has lost its number one seat to New York. As a result of the chaos around Brexit.

New York is now the financial center of the world. That’s what a research firm Duff & Phelps, quoted by CNBC, says . This annual survey brings together 180 leaders from the world of finance (asset management, private equity, hedge funds, brokerage banks) residing in the United Kingdom, the United States, Hong Kong, Luxembourg or Singapore. While the uncertainty surrounding the UK’s exit from the European Union continues to worry investors, 52% of respondents now refer to New York as the world’s largest financial center against 36% for London. A situation that was reversed compared to 2018 when New York had won 42% of the vote and London 53%.

Looking for a new European financial center

London’s attractiveness in the long term is also worrying. Only 21% of respondents believe that London will still be one of the world’s major centers of finance for the next five years while 44% of participants say that New York will be the world business center for the next five years. A surprise, as Hong Kong was tipped to become a leader in the sector. But only 4% of participants felt that the Asian Hub was an attractive global financial center in 2019. However, 12% of respondents expect Hong Kong to become the world’s largest financial center in 5 years, an increasing figure since it was a year ago, it was only 3%.

⋙ See also: Brexit: the UK loses big by breaking ferry contracts

According to the Duff & Phelps study, other cities postulate as the financial capital of the future: Shanghai (9%), Frankfurt (4%) and Luxembourg (3%). The firm believes that “in the future, the globalization of financial influence is beginning to be felt” and believes that these results “collectively provide further evidence of the combined effects of globalization and Brexit, while the sector is seeking a new European financial center “.

Echos recall that the study is in line with the Z / Yen index, which lists 100 global financial centers based on criteria such as infrastructure and access to qualified personnel. According to this index, in 2018, New York was already ahead of London and Hong Kong. On the Paris side, the French capital is not mentioned by the Duff & Phelps study, but the Z / Yen index had estimated that it had won a place in the ranking of the world’s major financial markets in 2018. Paris was thus passed from the 24th to the 23rd place.

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