The British property developer, Stuart Lipton, believes that the British capital will still remain the master of international financial universe, irrespective of the Brexit deal. In an interview with an international agency on October 15, the 76-year-old property developer said that London is extraordinarily resilient. The concerns regarding the 2016 referendum that London would lose its 'financial throne' after its divorce from the 28-nation bloc, so far have been proven wrong. The British capital is still the world's banker, and bigger in some measures. London is currently the largest net exporter of financial services in the world.
The reason Lipton is sure about the secure future of London's finances is that he believes what the investors have there is 'unique'. In June alone, London has been successful in attracting more foreign commercial real estate investment than any other city. The British capital has overtaken New York as the destination for fintech investment along with increasing its dominance in the world's $6.6 trillion daily foreign exchange market. Moreover, after the vote of the UK to leave the EU came into place, Britain has surpassed the United States to become the largest centre for trading interest rate swaps. Former President of France, Francois Holland had earlier warned that Brexit would end London's dominance in clearing euro-dominated derivatives.
It still reportedly remains a riddle how London has managed to expand its influence as an international finance centre amidst the three years of Brexit crisis. The city has also ensured that the United Kingdom would keep one its last big chips at the centre of world politics just as its exit from the EU. Moreover, Brexit also means that other EU companies will have to come to London to raise finance outside the bloc. In addendum to that, nearly ten senior industry officials told an international agency that irrespective of being ignored by the British government during the Brexit talks, the financial services in London have grown since 2016 because there is no real competitor in its time zone.
(With agency inputs)