However, the City’s survey may not be enough to completely alleviate the post-Brexit angst in the money sector.
LONDON (Reuters) – London remains the world’s most sensible monetary centre as New York moves into second place, after being tied with the British capital last year, a survey by the City of London Corporation showed on Wednesday.
Bottlenecks in business activity caused by Brexit, which has largely isolated the city from the European Union, and the COVID-19 pandemic have been overcome, while effective regulation, immigration policies, and the return of staff to the workplace have been improved. boost London’s business ecosystem, according to the survey.
“While London has seen a decline in capital markets activity and asset management, it has ranked first in sustainable finance as well as capacity and skills,” the City of London said in a statement.
“New York leads the way in overall monetary generation and activity, but its score has plummeted this year as the Covid-era bull market ground to a halt due to peak inflation and sharp interest rate hikes. “
Other surveys such as Z/Yen put New York well ahead of London, competing with Singapore and Hong Kong for second place.
The City’s survey, however, may not be enough to fully ease post-Brexit angst in the financial sector as UK-based companies like chip designer ARM choose to list in New York rather than London.
U. S. stock markets have also hit record highs over the past week as investors bet on a U. S. interest rate cut later this year as the economy outperforms its major foreign peers, Britain.
Britain has implemented a series of currency reforms to make boards in London more attractive and direct pension liquidity to developing corporations to increase market liquidity.
The City of London said the reforms helped it take the top spot in its survey, with an overall competitiveness score of 59, up from 60 last year due to declining budgeted assets under control and a drop in overseas listings.
New York fell 3 numbers to 57.
City of London policy chief Chris Hayward said further reforms were needed as Britain’s banks face a much higher tax rate than their U.S. rivals.
Singapore came in third again, dropping three points to 48, with Frankfurt fourth at 44 points, and Paris fifth with 40.
The survey focuses on 101 signals in five key areas of competitiveness. (Reporting via Huw Jones; editing by Jonathan Oatis)
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