In spite of increased competition from other European cities, London will continue to be the financial capital of Europe and remain among the major financial players in the world, according Sir Paul Newall, former Lord Mayor of London.
He said several European cities are trying to upgrade their markets and financial facilities, but London still has everything going for it that will keep it at the top of the financial world.Speaking during the University of Utah's David Eccles School of Business business at breakfast series in Little America Thursday, Newall said several surveys taken in the European financial community indicate that London still is the financial capital of Europe.
He said many European banks are beefing up their operations in London, often at the expense of the operations in their own country. The Swiss, Dutch and German banks are using London as an entrance to Europe.
One of the reasons that London is considered the financial center of Europe is the city has been a major trading and financial center for hundreds of years. That tradition has created an international confidence, "especially when the financial center is clustered in the historic heart of London."
Located in a square mile in London, the financial district is similar to Wall Street in the United States. Located in London's financial district are Europe's largest stock market. The district is the center for international banking, has the only multi-currency center, handles a good portion of the international equity trading and has a large insurance presence.
He said other important financial activities in London are ship-brokering and commodity trading. It is also the center for corporate law, management consulting and auditing, financial media, public relations and investor relations and international property management.
Newall said statistics released in October showed the average daily global turnover in foreign exchange activity was $1.23 trillion, and 30 percent of the activity was handled in London.