St. Paul's Cathedral in London's prestigious east side, there is a place called "one square mile" (square mile) of. Here clouds buildings, narrow streets, high-rise, although not as dense as Manhattan, but steady, heavy architectural style and interior luxury, atmospheric decor but worse. Gathered here are hundreds of banks and other financial institutions, is seen as a replica of Wall Street in London. This is the City.
Not far from the City to the east, is called Canary Wharf (canary wharf) place. Where small size, but stands a few blocks dozens storey tower. As can be seen from the roof of hsbc, barclays, citibank, etc. billboards, here is also a place to get together financial institutions, it is also known as the City. And "one square mile" The difference is that here the buildings were built nearly 20 years, the plan update, more modern design. So some people here called "New City", and "one square mile" over there "Old City" echoes.
In the eyes of the world, London is one of the most fun and modern history of the legendary cities in the world. She not only for its Feng Yun culture, beautiful natural and cultural landscape attracts tourists and researchers from around the world to study, but its strong financial foundation and convenient transportation, communications and superior financial and economic policies to attract the world's major financial institutions in this gathering. However, these financial institutions and the United Kingdom's historic banks, stock exchanges together political survival on a piece of land at the north shore of the Thames area of only 2.6 square kilometers, and this piece of land is the famous "City of London", because financial institutions intensive , also known as "the City."
London and London City
Usually, we mentioned London, often referred to as "Greater London." Greater London by the 32-county, the City of London is also one of the county, and is one of the oldest, is the development of London in the City of London and Westminster City based on the build up. Although the Greater London unified administrative bodies - the Greater London Authority, for each county, including the City of London, including both binding, but the City of London has its own _set_ of municipal, police and court agencies. When major celebrations, the Queen of England will have to wait for the Lord Mayor of London edged "sword of the people," dedicated to her in the future, to the city.
The originator of the City of London began in AD 43, the middle experienced many vicissitudes, especially the plague in 1665 and 1666 fires brought her devastating disaster. However, the City of London soon after the fire, while the development of recovery grow up. Prior to the Industrial Revolution, London has grown into the world's premier financial center, the City of London is the hard core of the center, most of the financial institutions are concentrated here. However, as the British post-war recession itself, and because the City of London bankers too egotistical, too lazy to change their traditional practices have become accustomed to, plus the rise of other financial centers, resulting in the City of London's position in the international arena continue to fall. However, the broad-based international banking business in the city of London, and the experience accumulated during the operation in the long-term credit and expertise combine to make her 60 years later, resumed its leading position as a financial center.
Gold cast of "heart"
City of London is the world's most intensive areas of financial institutions, there is the world's largest foreign exchange market and the international insurance market, the oldest stock exchange, the gold market, and, where the European currency and commodity markets in the international share pivotal position.
In London, the center of the city, there is a window of no fortress like eight buildings, which is known as the "King of the bank," the British central bank - the Bank of England, in its more than 100 around the periphery of the national banks and more than 520 foreign banks.
And the Bank of England's modern architectural building adjacent vertical matchbox shape is the London Stock Exchange. London Stock Exchange today more than 200 years of history, can be regarded as the originator of the world's securities transactions. Now its stock trading volume in New York and Tokyo after ranking third in the world.
Commodity trading industry in London is an ancient city of the industry, we are already familiar with the kind of commodity trading during open outcry lively scenes from literature and screen. However, after June 1988, this practice no longer exists, has been replaced by electronic screens offer. Makeover London Commodity Exchange was renamed after the London Futures and Options Exchange, the business is more prosperous, the volume and more big.
London gold market is the Western world's most important gold market, its gold trading volume has reached 80% of the world's total gold trading, trading volume and its market price has a great impact on the trading activity of other gold market is a reflection of the gold market price barometer, the City of London is generally considered the gold bullion quality control umpire.
City of London Lloyd (lioyd's) is an international insurance market, the insurance industry was the world's most abundant funds, the highest premium income of the insurance monopoly. However, due to increased competition in the insurance market, Lloyd has accounted for only 1% of the entire insurance market share. However, it still has about 25 percent of the world's marine insurance, but it is also the world's leading reinsurance center, so the City of London insurance market is still the number one seeded international insurance industry.
However, despite the current types of the City of London financial market is still quite powerful, but she has been unable to recover the glory of the Empire era. Its status in the world financial community has been successively over New York and Tokyo, and became the third pole of the world's financial. In Europe it is the first financial center, but with the advance of the European integration process, the implementation of the entire European monetary integration, the EC has chosen location might Frankfurt European banks, if that is the case, the City of London The position will be a greater threat, the gold cast the "heart" will cast a shadow.
Mixed London City
The City of London has been very brilliant, but now they are still shining bright light, which is the UK's economy has made tremendous contributions. 80 era, it makes an annual net income tax benefit UK £ 2 billion or more, even in the recession of the early 1990s, when the unemployment rate remains high, the City of London has created jobs for many people. In 1995, the City of London in the financial industry, commerce has 700,000 personnel, more than the total population of Frankfurt. But the merits and demerits of the City of London is the British long-debated issue.
Some people think that only the City of London never consider their own development and profits, while the development of the entire country's economic and industrial development, but indifference. After the First World War, as the City of London will put too much effort to invest overseas, thus making the development of British industry are not urgently needed a lot of money, so, not only in the United States and Germany, steel and other traditional industries over the UK , but also in high-tech fields ahead of the United Kingdom. In 1925, Prime Minister Winston Churchill in order to maintain the status and pound City of London on the importance of maintaining international finance, has taken stringent budgets and tight monetary policy, the purpose of the temporary result of his reach, but the British industry has to pay a huge price. That is, after a brief period of post-war high, domestic demand continued to decline, several major industries: shipbuilding, textiles, iron and steel and coal are severely contracted. However, even so, still could not run block pound fate. After World War II, the Bretton Woods system established. After this, the City of London bankers to maintain sterling against the U.S. dollar, has repeatedly undermined the interests of the industry: the overvalued exchange rate makes the UK's industrial competitiveness in the international community that the export decline hit.
During Margaret Thatcher came to power, the contradictions between this industry and the financial tensions again. When a large amount of foreign investment pouring into the UK and get high profits, capital city of London has flowed abroad. So some people say that the Conservatives once again at the expense of the national economy at the expense of helping the city's international friends in London. Even the City of London to create a lot of employment opportunities have also been criticized. People think the City of London will attract a lot of talent to the city's various financial institutions, so that industrial talent appears to be lacking.
To balance these contradictions, the British government has taken a series of measures, such as the City of London to reduce foreign investment, the implementation of policies such as higher taxes on higher incomes, these policies limit the freedom of the City of London's wheels turning, but it is a last resort.
Why foremost
October 27 this year, is an ordinary Friday. But one day old and new City bankers, however, it has a special significance. Because 20 years ago, on October 27, under the Thatcher government intervention, the City implemented the "Big Bang": deregulation, the introduction of competition, the city had a very closed to the global financial markets. Reform led to some complacency British annexation of financial institutions foreign rivals, which sparked controversy.
But today, 20 years later, no one raised the year before the reform of the slightest doubt. The reason is simple: today's financial city has become one of the world's most competitive financial center. Statistics show that in the major financial operations in London accounted for 20% of global cross-border lending, 40% of non-UK stock trading, 32% of foreign exchange transactions, 43 percent of OTC derivatives, as well as the secondary market 70 percent of international bond trading. In addition to hedge fund as_set_s, London on almost all indicators are better than the United States, Germany, France, Japan and other countries in the financial center.
Faced with such a "good situation", a week, a number of UK financial heavyweights have written to commemorate the 20th anniversary of the "Big Bang." Jazz was 1976 ~ 1988, the President of the London Stock Exchange either Nicolas Gudi Sen in the "Financial Times" published an article that proves reform the City of London, the competition is to promote the prosperity of the last word. It is because of get rid of the barriers to competition, London was attracting a large number of highly competitive world of talent and capital. In addition, due to the growth of the wealth of a country depends on its international competitiveness, thus preventing foreign acquisitions of domestic enterprises is unhelpful.
Let us look at what London in the end to get rid of barriers to competition. Before the reform, the City implemented a fixed commission basis, regardless of size of the trade, brokers and middlemen and ultimately revenue; secondly, the City staff to the British-based, well-dressed, conservative style was ridiculed as "classic club" ; addition, the City is open late every day, but it has a long lunch break, the afternoon and early closing, attracted a lot of dissatisfaction with various financial institutions; Finally, some financial institutions are too many restrictions and regulations, and to foreign institutions to enter UK market _set_ a high threshold.
"Big Bang" has changed all that. "Restrictive trade practice law" to cancel a number of restrictions on the operations of financial institutions, and foreign financial institutions liberalized markets; abolished fixed commission system, making the strength of the institution (then mainly U.S. financial institutions) can a lot of business together, get economies of scale, thereby reducing costs. With the implementation of reforms, a large influx of foreign financial professionals in London, not only to bring fresh blood to the City, the City lazy to change the style, but also to the whole of London had an impact of multiculturalism.
Sir Gudi Sen's summary was endorsed by the British "Economist" magazine. In an editorial in the journal, said the experience "Big Bang" is: to protect an industry, we can not protect this country one of the best companies in the industry.
No room for complacency
However, the British financial sector has not been carried away by the achievements, still careful analysis of the potential opponents and threats facing the City. Sir Gudi Sen pointed out that several major financial centers worldwide competition will become more intense, although London location and linguistic advantage, but these alone are not enough, other financial centers may be trying to emulate and surpass London.
From 1983 to 1989 worked in the then British Chancellor of the Exchequer Nigel Lawson also wrote that, although compared with 20 years ago, the city has been greatly regulated financial relaxed, but in some areas, over-regulation remains. For example, he said, the tax burden is too heavy in London, the tax system is too complicated, is not conducive to attracting more foreign financial institutions to finance the city _set_tled. This point, the City has been endorsed incumbent Mayor Brewer.
However, the 20-year anniversary of the successful reforms, warning sound but that is only a minority, the majority of people in the industry today on the status of the global financial community in London is still quite satisfactory. Jazz has been fully involved in the design of the reform program 20 years ago, David Walker hit a metaphor quite representative of the London financial community consensus. He said that the London Development to now, has become a "knot", and to untie a knot is quite difficult. |
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