Brexit is hindering London’s efforts to compete with New York as the world’s top financial center.
The U.K. capital is viewed as the world’s leading hub by 31% of financiers, down from 34% last year, according to a survey of 250 financial services executives by advisory firm Duff & Phelps. Some 60% of senior decision-makers view New York as the top financial center, up from 56%.
About 51% said Brexit weakens London’s position as a financial center, including 55% of respondents from the U.K. Only 12% said leaving the European Union made it stronger.
So far this year, the financial district was overtaken by Amsterdam as Europe’s top place to buy and sell stock, traders have shifted interest-rate swaps out of London and the relocation of bankers into the bloc continues.
Despite these challenges, London remains a powerhouse. The city ranked comfortably ahead of Hong Kong and Singapore, which were cited as the top hub by just 2.2% of those surveyed. And it may have little to fear from its EU rivals: the number citing Paris or Frankfurt as the world’s top financial center was negligible, according to Duff & Phelps.
—With assistance from Zoe Schneeweiss.
This article was provided by Bloomberg News.