U.K.’s exit from the EU has resulted in New York replacing London as the financial axis of the world amidst all the improbabilities surrounding it, as noted in a new survey by financial professionals.
A consultancy based in US namely Duff and Phelps conducted research and expert analysts surveyed several financial service professionals from around 15 countries all over the world between the timeline of March-Aril 2019. According to their recently published Global Regulatory Outlook 2019, about 52% of the professionals chose New York, while only 36% voted for London; in comparison to last year’s polls in which London was leading with 53% and New York was trailing with 42%.
The long-term prospects of UK don’t sound promising as only 21% of the professionals surveyed think that London has a chance of taking back the paramount position in five years from now while 44% believe that New York would remain unsurpassed.
Hong Kong is estimated to rise in prominence as a financial hub and Shanghai is predicted to be the globe’s financial centre by 9% respondents. Albeit 4% voted Asian hub as the core of world finance, 12% expect it will take over the top position within a decade.
Other cities that are anticipated to become global financial capitals are Dublin and Frankfurt by 4% of the professionals while 3% have named Luxemburg as the successor.
Albeit these individual responses don’t equal to concrete statistics, but the effects of globalization and Brexit are ostensibly due to it. The financial industry is searching for other financial capital in the EU. According to other researches earlier this year by management consultancy EU, one-third of the companies intend to reposition a few or the entirety of their operations out of London and British financial services industry has transferred about One Trillion Dollar possessions to other EU nations due to Brexit.