London has lost its status as the world’s top financial centre, according to rankings showing gains for post-Brexit rivals.
The latest Z/Yen Global Financial Centres Index showed New York overtaking the UK’s capital for the first time since 2015.
The City think tank, which compiles its lists using data from international bodies such as the World Bank and responses to a survey, said there was evidence London had been knocked, but only slightly, by uncertainty over Brexit.
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Rivals within the EU for financial services business currently in the UK were among the cities making the greatest strides, the report said, though Asian centres stood out.
“Zurich, Frankfurt, Amsterdam, Vienna, and Milan moved up the rankings significantly.
4:21 “These centres may be the main beneficiaries of the uncertainty caused by Brexit.
“Surprisingly, despite some evident success in attracting new business, Dublin, Munich, Hamburg, Copenhagen, and Stockholm fell in the rankings, reflecting respondents’ views of their future prospects,” the study added.
New York topped the rankings despite seeing its overall score dip, alongside that of London.
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The City has been a key battleground in the Brexit debate, with warnings of an exodus of work and jobs to other EU capitals yet to be realised.
The findings were seized upon as evidence the sector needs a Brexit deal to be agreed ahead of the March deadline.
Mikes Celic, chief executive of industry group TheCityUK, said: “In a competitive world we cannot afford complacency.
“London and New York have long vied for the top spot of this index and the uncertainty around the future shape of Brexit is likely to be factor in their latest switch in positions.
“Most notable in this latest version of the GFCI is the continuing steady rise of the Asian centres.
“Hong Kong is now just three points behind London for the first time. Singapore, Shanghai and Tokyo are close behind.
“Given the fall in a number of North American centres as well, it is Asia, not Europe, where the challenge to London and the UK will come from in the years ahead.”
:: The top ten financial centres as measured in the 24th edition of the GFCI (position from last report in March).
:: New York (2)
:: London (1)
:: Hong Kong (3)
:: Singapore (4)
:: Shanghai (6)
:: Tokyo (5)
:: Sydney (9)
:: Beijing (11)
:: Zurich (16)
:: Frankfurt (20)
From – SkyNews
