New York replaces London as financial capital of the world
Tuesday 18 March 2014
New York has over taken London as the world’s leading financial centre as the City’s reputation has been hurt by banking and market scandals, uncertainty over EU membership and the referendum on Scottish independence.
The influential Global Financial Centres Index, published every six months, said although New York’s lead over London is very small, it is the first time since the index was published in 2007 that the Big Apple has come ahead of the City.
Worse, the UK’s second financial centre – Edinburgh – has seen an alarming drop in its ranking from No 15 in 2007, just behind Boston, to No 64 in 2014, just behind Mauritius. The report said Edinburgh had failed to keep pace with the rapid rise of financial centres in the Middle East and Asia.
“For London this loss may be significant,” said Michael Mainelli, the executive chairman of Z/Yen Group, which compiles the index.
“London needs a strong reputation as a place all can come to freely to raise capital at a low cost. Critically, London needs a reputation that everyone who comes will be treated fairly and can compete fairly.
“Without the large domestic economies behind New York and Hong Kong, London needs to act more like a Singaporean city state with a global economy, or have the backing of a European Union ‘domestic’ economy.”
The report pointed not only to uncertainty over EU membership and Scottish independence, but to “regulatory creep” and “conservatism”. It said the City had also been affected by scandals such as payment protection insurance and interest-rate swaps mis-selling and the “London Whale” rogue trader who cost JP Morgan $6bn.
Other reputational problems cited include perceived “insider” markets in Libor and foreign exchange, uncertainty over taxation, and the UK perceived reluctance to welcome foreign workers.
“Despite some regulatory restructuring, which only appears to have delayed reform, London appears ill-served in domestic regulation,” the study said.
Hong Kong, Singapore, Zurich and Tokyo ranked as the next most important financial centres.
- 1 Malaysian cyclist could face disciplinary action after 'Save Gaza' gloves protest
- 2 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 3 Fifty Shades of Grey trailer provokes moral outrage from US parenting groups
- 4 McDonald’s removes chicken nuggets from the menu in Hong Kong amid major food scare
- 5 Students offered grants if they tweet pro-Israeli propaganda
Israel-Gaza conflict: Israeli targeting policy under scrutiny after shellfire hits a mother and child, a school full of refugees and a doctor’s home
MH17 crash: Investigators discover more human remains and 'huge section of plane'
Students offered grants if they tweet pro-Israeli propaganda
McDonald’s removes chicken nuggets from the menu in Hong Kong amid major food scare
Satellite full of sexually experimental geckos adrift in space, Russia loses control of mission
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
John Barrowman praised for Commonwealth Games opening ceremony gay kiss
iJobs Money & Business
£600 - £650 per day: Orgtel: Conduct Risk Liaison Manager - Banking - London -...
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
£280 - £300 per day + competitive: Orgtel: Test Analyst, Edinburgh, Credit Ris...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...