New York beats London as the world's financial center, finds study while Brexit is blamed for & # 39; casting a shadow of uncertainty about the UK & # 39;
- Duff & Phelps, the New York-based consulting firm, conducted an annual survey
- Senior finance professionals in the United States and the United Kingdom were surveyed
- A majority – 52 percent – said that New York is the world's financial center
- Only 36 percent found London the center of global finance
- Results were influenced by the political crisis surrounding Brexit, study says
New York has overtaken London as the capital of global finance, according to an investment research firm.
Duff & Phelps, the New York-based consulting firm specializing in asset management, has issued a report stating that financial institutions now view the Big Apple as the center of global activity.
The company's report says that senior professionals in financial institutions blame Brexit for the uncertainty surrounding the UK and its economy.
In a survey conducted by Duff & Phelps, a majority of financial professionals – 52 percent – thought that New York was the world's financial center.
That is an increase of 10 percent compared to the 2018 survey.
The most recent survey found that only 36 percent thought London was the & # 39; most important global financial center & # 39; was 17 percent less than in 2018.
A recent survey found that a majority of professionals in the financial sector views New York as the global hub of activities. The Statue of Liberty can be seen next to the Empire State Building on this Saturday photo
When asked which city they thought would be the most important nerve center of global funding within five years, 44 percent of respondents said New York, while 21 percent said London.
Only 12 percent although Hong Kong would overtake both cities.
Last year, only 3 percent thought Hong Kong would be number 1.
& # 39; In our survey, these professionals confirmed that organizations are forced to spend more and more on compliance obligations and to navigate in a regulatory environment complicated by a web of geopolitical uncertainties, including trading tensions and Brexit & # 39 ;, says Duff & Phelps.
More than 60% of the responses came from Great Britain and the United States, and the rest mainly from Hong Kong, Ireland, Singapore and Luxembourg.
& # 39; Last year, the Brexit cast a shadow of uncertainty about the UK economy; it has now escalated into a complete crisis, & said Duff & Phelps.
The British crisis was exacerbated by the resignation of Theresa May.
The European Union said on Tuesday that it will not renegotiate the Brexit deal that May agreed, when concerns grew that a May successor could cause a confrontation with the bloc.
The Brexit is up and running after May has announced plans to resign, leading to a leadership competition in the ruling conservative party that could bring a new prime minister to power who wants a much more decisive break with the EU.
Financial professionals say that Brexit has cast a cloud of uncertainty about the UK economy. British Prime Minister Theresa May can be seen in Brussels above for a European Union summit on Tuesday
One of the candidates, Foreign Minister Jeremy Hunt, said it & # 39; political suicide & # 39; would be to pursue a no-deal Brexit, a reprimand for precursor Boris Johnson who said last week that Britain should leave with or without a deal by the end of October.
Hunt, who voted to remain in the EU referendum in 2016, but now accepts the Brexit, said he would try to conclude a new agreement that would take Britain out of the EU customs union, while & # 39; legitimate concerns & # 39; around the Irish border.
However, the EU said there should not be renegotiation.
& # 39; I will have a brief meeting with Theresa May, but I was crystal clear: there will not be renegotiation & # 39 ;, said Commission President Jean-Claude Juncker before a meeting of EU leaders in Brussels.
Irish Prime Minister Leo Varadkar said he believed that the risk that Britain would fall out of the bloc would grow without a divorce agreement.
& # 39; Well, I think there is a growing risk of a & # 39; no deal & # 39 ;. There is a possibility that the new British prime minister is trying to reject the withdrawal agreement, & he told reporters.
Every May's successor will have to accept that the Brexit divorce agreement it has agreed will not be ratified by the current UK parliament, so they will have to find a solution to the Irish border issue that upset many legislators.
Many supporters of the Brexit are resisting its deal because of a & # 39; backstop & # 39; requiring Britain to adopt certain EU rules indefinitely, unless a future arrangement is found to keep the land border between Northern Ireland and Ireland open.
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