The Global Financial Centers Index or GFCI has placed London at the top of the world's best financial center rankings. The British capital metropolis surprisingly extended its lead over the United States city of New York even as financial furrows are crinkling at the thought of the United Kingdom exiting the European Union. A few UK politicians evidently opposed to the exit has warned that London will lose its preeminence as the financial center. Few signs, however, are happening that will prove this hypothesis. With London at peak position, the city is followed by New York, Hong Kong (China), and Singapore.
GFCI and rankings
The GFCI ranks a total of 92 financial centers. A number of factors such as high-quality employee presence and infrastructure are included in the calculations. The American metropolis of New York was solidly 24 points behind London. This gap is the highest since the survey began in 2007. Experts agree that the New York fell due to investors expressing anxiety over the American trade. The American metropolis dropped 24 points from 2016, the steepest fall among top ranked cities. Many have attributed the cause of London to come out on top due to the increasing number of companies planning to hedge bets.
Recent months have seen a number of British banks announcing that they will establish new EU subsidiaries post-Brexit. The majority of British banks have announced of establishing units in Dublin, Ireland and Frankfurt, Germany. The two cities have improved in recent times. Frankfurt jumped up from 23 to 11 in global rankings in 2016. Dublin has moved three places from 33 to 30.
Trump goes negative
President Donald Trump, after he ascended the US Presidency in January, has yanked the United States out of the thought out Trans-Pacific Agreement. The 45th President of the United States has steadfastly followed an isolationist economic policy.
The CityUK, the most influential lobby group in Britain, has cautioned the UK companies against any kind of complacency. It has asked the Conservative UK Government to clarify its approach when it came to the transitional arrangements of exiting the European Union. The UK is scheduled to formally leave the EU financial bloc around April 2019. Miles Celic, the CEO of The CityUK, reminded that many British companies are beginning to activate their own contingency plans. It is clear that other companies will emulate this approach if found to be feasible. Such actions, he believes, will be kick-started from the end of 2017 itself.