New York replaces London as top global financial center and Brexit’s to blame: survey

London is no longer the world’s top financial center and Brexit is to blame, according to a survey, which shows New York City taking the crown.

The Global Financial Centers Index, produced by the China Development Institute and London-based think tank Z/Yen Partners, is published biannually and was created in 2005.

New York overtook the U.K. capital by just two points, and both cities saw their overall scores fall. Still, the result is notable, as the financial community had been worrying and disagreeing about how London’s standing as a financial services powerhouse would be affected by the U.K.’s exit from the European Union, which is due to become final in March 2019.

Brexit has led to struggles in Prime Minister Theresa May’s cabinet, which saw numerous resignations over the summer. Expectation for a smooth transition have been on the rise. Earlier this week, the EU’s chief Brexit negotiator, Michel Barnier, said a deal between London and Brussels could be agreed within six to eight weeks.

Still, participants in the online survey complained that Brexit was creating uncertainty for businesses as well as their employees, pointing to Frankfurt as one of the main beneficiaries of new business in the post-Brexit world.

Indeed, the report showed that in Western Europe, “Zurich, Frankfurt, Amsterdam, Vienna and Milan moved up in the rankings significantly. These centers may be the main beneficiaries of the uncertainty caused by Brexit.” That said, Dublin, Munich, Hamburg, Copenhagen and Stockholm fell in the rankings, so the Brexit boost didn’t hold true for all European cities.

The report, however, pointed out that New York had previously overtaken London in the rankings on three different occasions and held that London could overtake New York again in due time as the two cities quarrel about the lead spot.

In third place after New York and London was Hong Kong, followed by Singapore and Shanghai, with the latter kicking Tokyo out of the top five and into sixth place.

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