The city of London holds a very significant market share in the traded financial services
London, a global city in the world-class league, faces various opportunities and of course, met with multiple challenges that are common in almost all cities across the globe. In essence, efforts and strategies have been adopted to maintain the status of London globally. Its Central Business district, Canary Wharf is the headquarters and the home to business and capitals, the core activities, for example, the world-renowned leisure and retail functions. London’s business district employs more than one million people from all corners of the world and a home for more than 300, 00 residents. The city is a celebrated centre for museums, theatres, cinemas and other cultures. Besides the city has distinct economic geography comprising of different quarters and concentrations such as the legal firms, financial districts, higher education institutions, creative and retail industries. The paper will assess the efforts to maintain the global city status of London.
The city of London holds a very significant market share
in the traded financial services
internationally being a home for the London insurance market and the International bond market. For the last decade, London has strengthened the commercial centres, thereby maximizing their share, improving and developing the hedge fund market. The city also holds legal, consultancy and accounting firms alongside its financial sector with distinct concentration in the West End and around the City of London. The business and financial services of London account for close to 780, 000 employment opportunities and jobs where half of the posts are based within the London Central Business District.
The retail sector of West End is everywhere around the United Kingdom, therefore, making London a major attraction site to the shoppers from not only from the UK but also across the world. Also, the range of museums, galleries and theatres which are worldly known are the key elements of the tourist capital offer which significantly generates income from the exports. The agglomeration of the specialization such as knowledge and skills, markets and inputs in the central areas of London encourages innovation and growth. In a real sense, the competitive advantage especially for the business centres located with the CBD. The “cross-pollination” of thoughts and ideas that occurs between the interrelated business operations and activities in London enhances further strengthening and diversification of its economic base. The diversification has been demonstrated especially in London’s rapid growth of the creative sectors and financial product developments, for example, the derivates.
The agglomeration, innovation and competition process has somewhat led to ‘type’ activities, especially in central London leading to a geographic change of London’s CBD overtime. The Canary Wharf City of London has changed although there are other changes in Camden,riverside Southwark and Paddington.The areas have now changed to the status of CBD due to the nature af activities and infrastructural improvements. Also, continued economic development in London and opening up of the markets internationally with opportunities and globalization has led to led to the development of other countries, for example, in China and India. It means that there a need for the leadership and the governance London to address the Chinese weakness such as financial systems that would suggest various opportunities for the economic consultants and the law firms to offer various advice on the financial architecture and regulatory reforms. Investment needs in India offer opportunities to the financial sectors in London. London reputation and position offers it with advantages and opportunities such as those of finance and law, making it a world-class performing business and, financial and cooperate services.
Economic Geography
The economy of the CBD
is different from the other cities of London due to prominence and the nature of the business activities in the area. The London’s central area covers an approximate area of 8 square meters from the Kensington city to Aldgate.In the city, it is easy to identify the concentration of districts activities for example investment banks, central governments departments and offices museums and the headquarter embassies of lawyers. The business and the financial internationally are predominantly in the Canary Wharf and the city of London with city type activities concentration the office activities proportion in especially in Camden and Westminister. At the same time, the property and real estate services and operations are centred on Marylebone and Mayfair. Matching the demand and supply for investment s across the globe and offering the contractual funds for the assessment of the appropriate venture riskiness have been the main objectivities and functions of the city of London. The business activities correlation in London tends to be the most synonymous with economic and financial services in the centre of the city and more recently in the Canary Wharf. Additionally, the financial employments and jobs spread out to other areas beyond the London city to Shoreditch and Hoxton.
London is somewhat unique due to its linkages to the business and financial cities
compared to the UK although it tends to compete for financial resources and services with the city of UK. Additionally while some of the cities such as Manchester and Leeds tends to have some of the most significant business and financial services London sectors of finance are oriented towards the retail trade and not the wholesale trade. The central business district of London encounters TheUnited Kingdom’s overwhelming export share while the business activities look to Tokyo, Parish and NewYork and other alternative UK locations. The city of London holds an paramount market share especially in trading and financial services becoming the home of the bond Market across the globe. For the last one decade London has increased its foreign exchange and bank lending turnover taking the advantage of the expanding
hedge find accounts and activities. According to the comparison of the financial centers with that of London The city financial status are far much ahead. In addition,London has captured the largest market share improving the hedge fund sector although Newyork city have been the biggest industry in hedge fund management.
Insurance
The insurance industry of the United kingdom is one of the largest across the world after that of Japan and the United States. The city accounts for
not less than 15% of the overall expeorys in all the financial departments and services.The market of London according to the statistics tends to be one of the oldest financial market across the world. It is somewhat different from the other insurance sectors in the United Kingdom since it offers a high risk business marketplace such as aviation and shipping that is not usullay available in the local markets. The city of London employs more than 40,000 people in the London market whwre another 10000 are in connected to other business activities in the other parts of the country accounting for more than 20 percent of the total number of people employed in the insurance industry in the united Kingdom.
The Londonn market shares around 30 percent of the of its industrial insurance making the city one of the worlds leading reinsurance and traded insurance internationally.According to the 2005 london market gross premiums it was estimated that more than $28billion more was realizaed in the Londons market that was nearly double that of 1999 level.The headquarters and the offices of insurance and reinsurance companies iare located in London.The city’s close contacts of brokers, buyers and underwriters and the support services facilitates its regular trust and contacts. The fact is significant especially for the insurance indudtry since the risks are complex making the information sharing between the actors more efficient.The market of the London city clearly demonstrates proximity benefits and working city whose services are more efficient and paramount especially in insurance and reinsurance.
World service center
Auditing and assurance activities, tax insolvency and corporate finance assurance and audit firms are all significance in the city of London. However, the wealth management and other significance activities are highly demanded in the city of London and have received a global scale. The accounting firms in London works closely with the multinational corporations, legal firms, banks and the software suppliers.Most of thse business organisatios are clusterd in the West End city since its close to the high valued and corporate clients within an easy reach of institutions of finance in the London city.The Westminister and the city of London employes more than 29000 employees for the last two years , making around 14 percent of the total employement in the Unitetd Kingdom.Therfore, the managennt of the united kingdom, and particularly in London should
expand the global market in the provision of accounting services increasing the net exports. It should improve the acquisions, consultamanmcy and mergers which inturn demands other legal services.Since London is acapable and is offering some of these services, it has been the determiner of the United Kingdom’s exoansion especially in accountancy.
Legal Services
London is well known for its leadership in the provision of legal services especially in the international services leading to rapid growth across the globe. The london’s legal laws are typically clustered between West End and London close to
the justices and court centers whwre the international law firms focuses on supplying various services to the London financial institutions. For the last five years, there has been an influx of the lwa firm s in the United States taking advantage f new European markets and the growth of cross -border mergers.The best lwa firms
are located in the city of London generating a huge amount of revenue in the Unite Kingdom and the London estates. The corporate firms in the city forms a paramount pinternational law business proportion in the acquisitions, exchange listing securitization, private partnmership, banking and corporate restructuring. Some of the legal firms are located close to the financial departments and institutions since they may require leag services structuring M&A deals, and banking transactions. Since some of thse services are generally expensive , the leadership of the London city has located
numerous clients to enhance reduced cost of the legal services. By doing so, the financial instutions will benefit since they will be able to source specialized and cost effective services.
Consultancy
The consultancy management is one of the rapid and expanding business service that relate and is similar to the accountancy since it encompasses various ranges of business activities. Consultyancy involves information technology, and outsourcing, accounting for more than the thgree quarter of london’s income feeaccording to the 2019 statistics. Since the core business organization provides assistance to other firms, the consulktance managers prefers the central business district of London for them to maintain regular contacts with the business clients promtinmg a business raaltionships. In the city the departments and business consultancies employs more than 28,000 workers that are predominantly clustered in the City Fridge and West end ,Canary Wharf and Square mile. Significantly, the CBD functions for example banking , exchanges and insurance feeds numerous business organizations improving the economy of London.
Retail in Central London
The covent Garden and West End are the two centers of retail trade in the united lkingdoms interms of turnover and the floorspace. Thse two ceneters attracts numerous number of visitors from all over the world. The reputation of the centers is built on the quality of goods, departmental stores and shops. According to the statiscics , approximately 40, 000 people works in the reatail centers where another approximate of the same population tends to deal with the restaurant and establishment of licences. The two centers hosts not ;ess tha 6 million retail square fet compared to the floorspace.The city contributes a total of 6 billion dollars in the comaprisob of goods.The central London retail is somewhat unique both interms of size and also its international standing whwere almost one quaeter of the shoppers comes from overseas.The fact contributes to Londons and united Kingdom total income. Typically, the spending of the vistors tens to be higher in the united states compared to Europe but some of other markets are significant to the retailers in the West end city. The city plays a significant role, in that
it acts as the bridgehead for the retailers internationally. Furthermore, the locations of these two cities conbine shopping and leisure activities and facilities that are not available in other shoping centers in London. However, the white city and Stratford , one of the closesest cities to the Cbd have lend to increased competition.THrefore London should respond to the fact by buiding and addressing the unique features and the issues that tends to negatively affect the experience of shopping fpr example congestion, and public space to effectively maintain the good reputation of the London city and its global economy.
Leisure and Tourism
The concentration of tourists and visitors in London attracted by the enentrtainments, shoping, restaurants and bars have led to numerous visitors especially in the CBD. The tourists from overseas and other parts of the united kingdom, the residents of London have generataed substantial finances, employment an d wealth especially in the central London.ccording to the economic statistics and estimates the tourist support more than 50,000 employments and jobs particularly in the Westminster city and 13,000 jobs further in the London city, where the visitors in the market are the key determinants of the market. According to the LDA’s, the tourism model dissagregating official tourism statistics of the London city shows that the Westminster is the key recipient of tourism spending and visits in the city.The estimates also shows that the city have been benefiting from the from tourism spending which most of the income comes from the overseas visitors.
However, the city of London has less tourist attractionalthough it’s the world commercial center amaking it an attractive business center for the visitors where they enjoy shoping , restaurants and bars. Also, other visitors attractions such as entertainments, venues and museum mostly ifluences heritage and history. In short, there has been increased trend in the number of tourist and visitors in the United Kingdom and specifically London. The central interaction and tourism in London is significant in creating employment and generating wealth. To maintain the tourist feature a , employment and wealth, the have been increased emerging markets to enhance attraction of tourist from every corner of the world helping London to continually succeed rapidly in the global changing markets.
Conclusion.
The presence of business and finance services in Lodon city encompasses leisure, culture retail and the government.The Londons central busoness district is one part that contributes to wealth and financial resources in the economy of London. The city comprises of not less than 2 million people working in the city while others resides outside the boundaries of the CBD. The progressive globalization and the opening up of various markets in the city of London have increased opportunities for its business people especially in finance supply and sale of most important and professional services such as banking. Besides, the dynamic nature of London and particularly in the CBD has led to increased employment concentration leading to virtuous innovation and cycle of growth. The London’s financial innovation has also assisted its growth, tourism and leisure.