A new survey has found that London remains the world’s top financial centre, despite concerns and the uncertainty surrounding Brexit.
The Z/Yen global financial centres index (GFCI), which ranked a total of 92 financial centres, gave London the top ranking. In contrast, New York lost 24 points due to the uncertainty of Trump’s views on free trade.
Since becoming President, Trump has pulled out of a planned trans-Pacific trade agreement and is planning an increasingly isolationist economic policy.
Meanwhile, London remains the world’s most attractive financial centre.
“Interestingly, despite the ongoing Brexit negotiations, London only fell two points, the smallest decline in the top 10,” said the report.
However TheCityUK has warned against complacency following the report.
“Absent this, many firms have already started to activate their contingency plans and others will undoubtedly follow suit if these aren’t confirmed as soon as possible – and by the end of this year at the very latest,” said Chief Executive, Miles Celic.
Frankfurt and Dublin, who are both battling for businesses that will leave London following Brexit, both rose in this year’s survey.
Dublin moved up three places to 30, whilst Frankfurt rose to 12 places from 23 last year.
Morgan Stanley (NYSE:MS) has announced plans to relocate 200 staff to Frankfurt, whilst JP Morgan Chase (OTCMKTS:JFTTL) has purchased a new office in Dublin that can accommodate up to 1,000 staff.
Sir Howard Davies, chairman of Royal Bank of Scotland, told Bloomberg that contingency plans were needed on the basis of a hard Brexit.
“The clock is ticking, and in the City people are making contingency plans, and at the moment they can only make them on the basis of a hard Brexit… so the longer it goes, the more likelihood it is those ‘hard Brexit’ plans will be implemented,” he said.
Davies added that the government is to start “warming up” people to the reality of a large exit bill given to the UK from the EU.