Business

New York extends its lead over London in the index of top financial centers

FILE PHOTO: Raindrops hang from a Wall Street sign in front of the New York Stock Exchange in New York
FILE PHOTO: Raindrops hang from a Wall Street sign in front of the New York Stock Exchange in Manhattan in New York City, New York, U.S. October 26, 2020. REUTERS/Mike Segar

March 24, 2022

By Huw Jones

LONDON (Reuters) – New York has extended its lead among the world’s top financial centers, with second-place London losing ground to increasingly competitive rivals in the United States and Asia, the Global Financial Centers Index (GFCI) showed on Thursday.

The index by think tank Z/Yen Group in cooperation with the China Development Institute showed that the US financial capital ranks first with 759 points, down 3 points from six months ago.

The rankings are based on surveys and 150 factors with quantitative measures from the World Bank, the Economist Intelligence Unit, the OECD and the United Nations.

London stayed in second place despite dropping 14 points to 726 points. A similar drop next time would put it behind Hong Kong, Shanghai and Los Angeles and on par with Singapore based on their current performances (see table).

London is now the only European center in the top 10 after Shenzhen overtook Paris in 10th place.

GFCI said Russia’s invasion of Ukraine would affect future rankings for Moscow and St. Petersburg, which are likely to fall after coming in at 50th and 110th, respectively.

Graphic: GFCI index for March 2022:

London’s ranking has been closely watched since the UK left the European Union, which largely sealed off the UK financial sector from the EU.

In the index of fintech ratings by GFCI, a sector the UK prioritizes to keep London attractive, New York and Shanghai retained first and second places, while Beijing and San Francisco overtook London to take third and fourth places.

Brexit prompted banks to call on the UK to boost the capital’s competitiveness, with listing rules already being eased.

The UK Treasury plans to give regulators a formal mandate to be competitive, although ensuring bank safety, consumer protection and orderly markets would remain their top priority.

“A primary objective of promoting competitiveness is a really bad idea,” Bank of England Deputy Governor Sam Woods said this week.

(Reporting by Huw Jones; Editing by Mark Potter)

https://www.oann.com/new-york-widens-lead-over-london-in-top-finance-centres-index/?utm_source=rss&utm_medium=rss&utm_campaign=new-york-widens-lead-over-london-in-top-finance-centres-index New York extends its lead over London in the index of top financial centers

DUSTIN JONES

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