Right to Respond

In October, Frances blogged about the latest Global Financial Centres Index from Z-yen placing London in the indexes number one position, and New York closely behind. Its conclusions were that “there remains no significant difference between London and New York…these centres work together for mutual benefit”. The big question remains as to whether regulation will drive the banking sector from London and threaten its world financial ranking, and if so what will the impact be on property markets?

In the New Year my fellow blogger, Bill Page, will be publishing a piece on exactly this and it may well be that both the global regulatory situation plus localised factors such as the bank levy will worsen its competitive position in terms of attracting the financial institutions.

My view is that whilst regulatory intervention will impact, there are other reasons why both London and New York snatch the 1st and 2nd positions in their mutually beneficial marriage. As work styles change and the next generation of workers come through, a generation to whom community is even more important: the ability to access and be part of a network, the culture, and the financial and business market place will be even more paramount than today. Businesses operate where they can get the right skills and I see that being London over the coming years. I also think that the lessons learnt off the back of previous global regulation in terms of “upsetting” markets will be closely considered before any action is taken. To that end I believe London will enjoy its mutual relationship with New York for some years to come.

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