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Johannesburg - Despite the impact of the financial crisis, London will remain the global centre of financial services - and should emerge stronger than ever.
This is the view of Michael Power, a strategist at Investec, who told Fin24.com: "Far from seeing its position impaired, London is using the current crisis to reinforce its primary position in world finance."
The financial crisis left the city reeling. Bailouts for banks, job cuts in the financial services sector and more recently the announcement of onerous tax penalties on high-income earners has prompted predictions that London would fail to recover from the crisis.
The fate of the UK market is interlinked with the local market, which is dominated by dual-listed companies like Old Mutual, Investec, BHP Billiton, Anglo American, SABMiller, Dimension Data and Liberty International. Many of their share prices are "made" in the UK market, where institutional investors are the biggest traders in these companies.
Despite its challenges, Power believes London will remain the major player in global financial markets - particularly thanks to its easy accessibility.
The 40% decline in the pound against the euro has also done wonders for the city's competitiveness.
Second-rate competitors
Some of its competitors are facing headwinds.
Swiss markets have been hurt by problems at UBS and the end of banking secrecy, after Swiss authorities capitulated to US tax authorities' demands.
The property crash in Dubai has eroded its competitiveness, while the Hong Kong market has been downgraded after Chinese authorities signalled they wanted Shanghai to be their financial capital.
Power predicts New York will feel the impact of onerous legislation in the wake of problems in the US credit and financial markets.
He said: "The UK by, contrast, is run by a lame-duck Labour administration unable to do much and facing a landslide Tory victory against them next May. The Tories are very unlikely to introduce heavy-handed financial reform legislation in their term."
Power does not believe South Africans companies will necessarily be better served with a dual listing in the US or Asia.
"I see no serious reason whatsoever why companies would move to New York or elsewhere - save for the really imaginative to Shanghai - in the current climate. London may look bad to a South African, but it is weathering the storm far better than its contenders."
- Fin24.com