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You are still wrong. Foreign exchange is the lifeblood of global finance.
Apparently you have trouble understanding what the word global means. Domestic activity does not count in terms of global financial center [facepalm icon].
Besides the global re-insurance and foreign exchange markets, which dwarf equity markets, also measured by cross-border commercial real estate investment, in 2013 Asian investors alone, for example, number one right now globally in terms of generating new surpluses, invested some $7Bn in London compared to only around $2Bn in New York, followed by Sydney and San Francisco. In 2012, they invested some $4Bn in London commercial real estate, compared to around $1Bn in New York.
So on many measures of global finance, including geography and time zone, London is the center of global finance.
London is the global "go to" point for the overflow of financial power among financial companies and investors throughout the globe, including and especially New York, according to many measures, including the global re-insurance market, global foreign exchange, commercial real estate investment in one city financed by investors from throughout the globe, and even the setting of interest rates on all kinds of loan contracts, even for municipalities in the US and simple commercial mortgages in, say, guess where, New York. They set their benchmark interest rates in the London market every month.
So we are talking about last year, the previous year, this month, and next month, not 60 years ago or 160 years ago.
I am from New York, I have worked in finance all my life, including both London and New York, and London is the center of global finance, to a large extent on the fumes of New York, and even though nowadays I do most of my investment almost exclusively in the US, as well as people whom I know, we still make reference to London, in one way or another, in our investments every month, even everyday.
It's not a question of nationalistic pride, it's a question of the number of global financial contacts on a daily basis.
London is the financial capital of the world, New York lost its place during the 2008 financial crisis.
The leading cities are these:
Global: LONDON
Europe: LONDON
Continental Europe: PARIS
Asia: HONG KONG
America: NEW YORK
Anglo-America: NEW YORK
Latin-America: SAO PAULO
South America: SAO PAULO
Spanish-America: MEXICO CITY
Caribbean: SANTO DOMINGO
Central America: GUATEMALA CITY
Africa: JOHANNESBURG
Now this "title" seems to fluctuate from time to time between these two cities and i think london had it for the last couple of years during the weakend US economy but i think it's back in New York at the moment.
However i'd argue New York residing in the richest country in the world who's finances and economy have ramifications globally, should generally have the upper hand and distinction in that regards. What is your view?
London and New York are the financial capitols of the world and the only alpha++ cities in the world.
London and New York have a big lead but other cities like Hong Kong and Singapore are closing the gap and rising up the tables fast.
Places like Frankfurt, paris, Chicago are way down the order now and have very little chance to catch up, although I think Chicago could potentially go back up the rankings when Americas shake oil and gas revolution makes it the biggest oil producer and exporter in the world, Chicago is perfect for that money
I'm a born and bred American and as much as I'd like to say New York is the financial capital of the world, being in the financial services industry, I can confidently say that London rules this title.
Between the insurance sector, ForEx, and other financial matters (not just commercial/investment banking), London will remain on top for quite sometime, if not forever.
Some updated rankings for 2015. (IFCDI have yet to release a 2015 edition, but I suspect it will be unchanged as far as the two cities here are concerned, which New York in a narrow lead).
I've never really given much weight to the GFCI given that their criteria are a bit suspect, but it's interesting to note the trends. Hong Kong, Singapore and Tokyo are unchanged in 3rd, 4th and 5th. Seoul overtakes Zurich for 6th place, and Toronto is up 3 places.
All the US centers in the previous top 10 (NYC, Chicago, Boston, San Francisco) have declined relative to the rest of the world. It's also good to see Seoul in the ascendant. One of the old Asian Tiger economies with a competent, dedicated workforce
Global Financial Centres Index, Z/Yen 2015
1. London ▴1
2. New York City ▾1
3. Hong Kong -
4. Singapore -
5. Tokyo -
6. Seoul ▴1
7. Zurich ▾1
8. Toronto ▴3
9. San Francisco ▾2
10. Washington, D.C. ▴2
Chances are London will soon lose its #1 status and drop significantly in ranking on this list when HSBC (one of the world's largest financial intuitions) finally decides to move its headquarters out of London and most likely to Hong Kong within the next few years, which seems to be a likely possibility. When that happens more financial institutions will probably follow the exit door out of London.
Even as of recently HSBC has decided to shift billions of dollars of its derivative trade business to Hong Kong as a pivot towards Asia with a rising China. With the threat of of a Brexit from the UK politicians and possibly leaving the EU and being on its own it wouldn't make sense for London to continue being the "global financial center of the world". I see other cities in the EU (i.e. Berlin, Brussels, etc.) rising over London in the future. The Asian pacific cities are definitely on the rise though, no question.
Also, I wouldn't count out San Francisco, Chicago and Boston just yet. Those cities are very much in transition at the moment (especially San Fran Tech center and Chicago bonds business), but in no way out. It is nice to also Toronto and D.C. move up in ranks though. It makes sense.
Stumbled upon recently. Two New Yorkers discussing (or rather tiptoeing around the issue of) London's rising global city status.
I thought it was pretty funny, in an unintentional way.
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