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London is Still Considered World’s Top Financial Center

A recent report says London is still considered a major world financial center. Some politicians and economists are concerned that Britain's leaving the European Union will affect the city's financial importance.
London is Still Considered World’s Top Financial Center
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A newly released study finds that London is still considered the most attractive financial center in the world.

London was followed by New York City. The study showed that the British capital extended its lead over New York compared to past years.

Some politicians and economists have suggested that London would lose its top rating because of Britain’s planned withdrawal from the European Union. But the study shows there are few signs of that happening -- at least not yet.

The Z/Yen Global Financial Centers Index rates 92 financial centers on things such as public services and the availability of experienced and well-educated workers.

New York, in second place, finished 24 points behind London. That is the largest difference between the two cities since the study was first published in 2007. Hong Kong finished in third place, and Singapore finished fourth.

New York’s overall rating fell 24 points from its rating the year before. That is the biggest fall among top cities. Study organizers say the large drop probably resulted from “fears over U.S. trade.”

Since becoming U.S. president in January, Donald Trump has removed the United States from the Trans-Pacific Partnership (TPP) trade deal. Critics have described his economic policy as isolationist.

TheCityUK is the most powerful group working in support of Britain’s financial industry. The group says its members are saying that they do not know enough about what will happen when the country leaves the EU.

Miles Celic leads TheCityUK. He says because it is not clear what will happen then, “many firms have already started to activate their contingency plans and others will undoubtedly follow suit if these aren’t confirmed as soon as possible."

The survey was completed in June. Since then, talks between Britain and the European Commission about Britain’s planned withdrawal from the EU have become increasingly unpleasant.

And in the past two months, most major U.S., British and Japanese banks have said they will open offices in Frankfurt, Germany or Dublin, Ireland. A year ago, Frankfurt finished in 23rd place in the study. This year it rose to 11th. Dublin was 33rd last year. This year it moved up to 30th place.

The Reuters news agency reported this story from London and Frankfurt. Christopher Jones-Cruise adapted the report for Learning English. George Grow was the editor.

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Words in This Story

attractive – adj. having a feature or quality that people like

index – n. a number that indicates changes in the level of something (such as a stock market) when it rises or falls

isolationism – n. the belief that a country should not be involved with other countries; a policy of not making agreements or working with other countries

firm – n. a business organization

contingency plan – n. a plan that can be followed if an original plan is not possible for some reason

follow suit – expression. to do the same thing that someone else has just done