London and NYC trade places as world financial centre

dennis1 · #1 Posted **Nov 28, 2014, 3:40 AM**

This time it's NYC
http://www.telegraph.co.uk/finance/1...e-centres.html
London is losing even more ground to New York in the battle between the world's two leading financial centres, with the UK capital garnering even fewer votes in an influential survey than in 2013 and its transatlantic rival pulling ahead.

Of the nearly 300 financial services professionals commissioned by Kinetic Partners, a global professional services firm, 59pc said New York was the world's number one financial centre and 38pc said it was London.

The UK capital's share of the vote has fallen away dramatically in the past two years. In 2012, 65pc of those surveyed said that London was the world's leading financial centre; last year, it was 44pc. Respondents appear to expect this slide to continue, with only 28pc of those working in the financial services industry saying they believe that London will be considered the world's pre–eminent global financial centre in five years' time.

Allison Gill, director of the regulatory compliance team at Kinetic Partners in New York, said: "The debate over the relevance and benefit of the seemingly neverending barrage of regulation will continue, but the fact remains that the industry has largely adapted and the global community still has confidence in the importance of New York."

Julian Korek, chief executive of Kinetic, said: "This shift from just two years ago is a testament to the resilience of the New York market."

MolsonExport · #2 Posted **Nov 28, 2014, 1:35 PM**

Here we go again. I am making popcorn, getting my beer...

kool maudit · #3 Posted **Nov 28, 2014, 1:47 PM**

this will zig and zag with the relative fortunes of the united states/usd and the eurozone/eur.

chris08876 · #4 Posted **Nov 28, 2014, 2:13 PM**

This thread will lead to nothing productive but city vs city. But... on a side note, have to represent my favorite city. Yay for NYC!

Edit: I was reading some of the comments below the article in the telegraph, and omg, they are vicious. One comment claims that London is losing ground to NYC because its becoming more muslim? Talk about bigots...

fleonzo · #5 Posted **Nov 28, 2014, 6:07 PM**

These two places always go back and forth so it really doesn't make a difference! I saw the video and it was interesting to see that they mentioned Shanghai as replacing Hong Kong in 2019 in the Far East! With another crash surely to happen by then ('19) who really knows!

10023 · #6 Posted **Nov 29, 2014, 11:29 AM**

Quote:

Originally Posted by kool maudit

this will zig and zag with the relative fortunes of the united states/usd and the eurozone/eur.

London's fortunes as a financial center have very little to do with the fortunes of the Eurozone and Euro.

kool maudit · #7 Posted **Nov 29, 2014, 2:31 PM**

that surprises me. i was under the impression that a lot of eurozone investment was handled through london.

samne · #8 Posted **Nov 29, 2014, 3:22 PM**

Doesn't surprise me. The NYSE and NYC in general has been on fire since the Great Recession...

Also seems like a dire outlook the Eurozone cant seem to easily shake.

chris08876 · #9 Posted **Nov 29, 2014, 4:56 PM**

What do you guys think about the possibility of the UK leaving the EU?

10023 · #10 Posted **Nov 29, 2014, 5:24 PM**

Quote:

Originally Posted by kool maudit

that surprises me. i was under the impression that a lot of eurozone investment was handled through london.

It is. Also Frankfurt and Paris. But an overwhelming majority of investment in the Mideast, Africa, South Asia, etc is as well. Ironically London has been helped by the Eurozone's troubles, because Europe's best and brightest are coming to work in London. And Hollande has made such a mess of France (no highly paid person wants to be domiciled in France if they can avoid it) that finance jobs are being moved from Paris to London at a rapid pace.

Quote:

Originally Posted by chris08876

What do you guys think about the possibility of the UK leaving the EU?

It probably won't happen now after the Scottish referendum failed (had it succeeded, England & Wales would almost certainly have left the EU).

mousquet · #11 Posted **Nov 29, 2014, 7:18 PM**

Quote:

Originally Posted by 10023

And Hollande has made such a mess of France (no highly paid person wants to be domiciled in France if they can avoid it) that finance jobs are being moved from Paris to London at a rapid pace.

Mwaha! It's true that many biggest incomes from France left the country - and London may not even be the favorite destination as many of us love Switzerland and Belgium - but most over here don't even mind. I like that attitude, it's like some self-confidence. "Boh, just let them go", right? It's like France would have an unlimited resource of vicious bright brains. It's nasty over here!

You know?

10023 · #12 Posted **Nov 29, 2014, 7:25 PM**

I like the facetiousness. I won't go into details, but I have a friend at one of the large French banks who says they are moving people from Paris to London weekly. Hollande is an idiot.

10023 · #13 Posted **Nov 29, 2014, 7:27 PM**

Quote:

Originally Posted by fleonzo

These two places always go back and forth so it really doesn't make a difference! I saw the video and it was interesting to see that they mentioned Shanghai as replacing Hong Kong in 2019 in the Far East! With another crash surely to happen by then ('19) who really knows!

Shanghai is growing but still focused on the domestic market in China. It will not replace Hong Kong as the center of international finance in Asia for some time, and certainly not within the next 5 years. The legal environment in the PRC isn't up to Western standards, for starters.

Crawford · #14 Posted **Nov 29, 2014, 7:58 PM**

I think the survey's garbage, because they think Shanghai will be the global financial center in three years, when it isn't even the financial center of China (HK is totally dominant, and anything lost by HK will go to Singapore), but what high margin business does London dominate that would make it a contender for #1 right now? I can't think of any.

London dominates FX, which is very low margin stuff, and they would get "credit" for double trading because of the pound (because global transactions happen in dollars or euros, not pounds, so London will always have double FX as US or EU).

But what else? I mean, anyone want to look at PE? Hedge funds? M&A? I don't think so.

chris08876 · #15 Posted **Nov 29, 2014, 8:20 PM**

With China, the shift of power is not really centered in one particular place but distributed amongst its mega cities per say. Beijing area is a big manufacturing powerzone. Shenzhen is rising as a financial capital and competing with Shanghai when it comes to the financial sector. So really, Guangdong, Shandong, and the rising Henan region will all play a big role when it comes to the power distribution in China.

But of course theres always places such as Singapore which will compete with these Chinese regions. A rising India as well. Its a very competitive economic sphere whereas in the West, in tends to be concentrated in a few select cities.

dc_denizen · #16 Posted **Nov 29, 2014, 8:37 PM**

London's fortunes seem very tied to Russian and Arab money, and generally the capital coming from developing world elites...London seems to be the asset manager of choice for these folks.

10023 · #17 Posted **Nov 29, 2014, 8:44 PM**

Russian and Arab money are more of a factor for central London real estate than City finance.