Established financial centres 'under threat from emerging economies'

The balance of power among the world’s economic centres is shifting, a new report has shown.

According to the Eversheds study, confidence levels among those working in London are currently lower than in Shanghai, the UAE, Mumbai and New York,

In a survey conducted by the legal firm, 87 per cent of business leaders said that established financial centres are facing new challenges from eastern economies as a result of the economic crisis and Alan Jenkins, chairman of Eversheds, observed that ’individual economies are reacting to and recovering from the financial storm at varying rates’.

’The level of confidence in the east, particularly in Mumbai, is in stark contrast to the traditional economic powerhouses of New York and London,’ he stated.

Despite this, optimism among business figures in the English capital has been growing, with 53 per cent saying they are more confident now than they were at the start of the year.

Last month, Andrew Bailey of the Bank of England said that the UK’s financial infrastructure needs to be toughened up, calling for changes to the regulation, structure and resolution of the current system. ADNFCR-2318-ID-19519300-ADNFCR