Will London financial markets lose market share in the future?
Stephen Green, chairman of HSBC, believes that the City of London financial markets are set to lose significant market share to the likes of Hong Kong, Singapore and Shanghai but not just because of controversial tax levies placed upon the City. He believes that while London is still a prominent financial market, due to strengths such as the language and the time zone, new up-and-coming markets will impact upon London's share in the future.
However, there are other prominent faces in the City who believe that the UK government is effectively undermining the City of London and making a potential problem very much worse. Historically the financial markets have tended to centre on the likes of the US, the Far East and London but with communication systems very different today it is now possible to trade around the world from your office or your bedroom!
Whether the introduction of the 50% banking bonus tax could be the "tipping event" which will see the star of London begin to dim remains to be seen but one thing is for sure, the UK government is not exactly helping the situation with its constant barrage of criticism and action aimed at the financial markets.
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