If one looks, Germany as a state began in 1870. If you ask how many types of government has France had since 1789, chaos, two empires, a restored monarchy, and five republics. The City of London funded the medieval kings wars against France. Henry VII’s ill gained treasure financed the rise of the Hapsburg dynasty. The wealth of industrial Britain financed the resistance to Napoleon by the occupied or threatened nations. The UK lost a lot of its investments in WW1 and we paid back Canada and the USA the final war loans within the last ten years! We pay our debts and it is an advert for stability.
@@Hallzilla it’s the same reason we can afford the furlough scheme. Imagine telling an American we gave our citizens 80% of their salary up to £2500 per month, for consecutive months to sit at home.
Stability is the key, no extreme swings in politics, long established history, tradition, trust, safety, it all adds up to a safe heaven for people and their wealth
In 2022, the UK with a population of 68m has the worlds 5th largest economy, (not 7th), behind only America, China, Japan and Germany. London with a population of 9m has the worlds 5th largest city economy, behind only Tokyo, New York, Los Angeles and Seoul. London is the leading global centre for trading money, many times more than New York through the FOREX system. More dollars are traded in London than NY. More Euros are traded in London daily, than the rest of the EU combined. London is also the world's leading insurance market. These details may help explain why London and NY are the only 2 cities to receive the highest ranked A++ rating by the Globalisation and world Cities Research Network. This measures a cities importance globally based on various criteria, including, finance centres, influence in international political affairs,, wealth, mass transit network, aviation hub, health service , culture, major media hub, stability, science and more.
Something not mentioned in the video is trade: thanks to both the empire and pre-imperial adventures, together with the aforementioned stability, London is the global centre for shipping and trade finance. To this day, most international trade is done under the jurisdiction of English and Welsh law. This has an outsized effect on where those companies move their money through. It's easier and less risky to settle accounts in the UK, especially any accounts relating to shipping. This means it's also easier and less risky to finance your supply chain through the UK too. This is the reason the Hong Kong and Shanghai Banking Corporation (HSBC) was founded in London in the 19th century: facilitating the financing of shipping and manufacturing in China for companies operating from London.
You’re mistaken. The City of London is a giant washing machine for international criminals. And You describe ‘trade’ but not wealth creation. All we do now is extract wealth.
The time zone helps a lot, London operates in between most other markets through Greenwich Mean Time. The City of London was operating back in the days of William the Conqueror, in fact he gave them special treatment in exchange for certain concessions. The City has its own laws, police force and it own Lord Mayor. The Mayor and his 12 Aldermen who run the City have special status in the running of the City. The Queen attends by invitation only. If you check out DC in the US you will find that it is independent of the US that is why it’s senator isn’t allowed to vote on government matters. There is reportedly a three city empire if you check it out on RUclips.
I think the video is outdated because the guy mentioned the UK has the 7th largest economy by GDP when currently it actually has the 5th largest economy by GDP in the world.
@@michael_177 Please remember that billions of pounds of London's wealth goes north of the border to Scotland which pays for Unemployment Welfare benefits, Free University Education, Free bus travel for that lot up there, free water bills, free prescription drugs for everyone in Scotland plus a lot more, Scotland could never survive on its own as Scotland is one of the poorest countries in the world and an independent Scotland would be the poorest Country in Europe, If Scotland was taken out of the equation then just think what a stinking rich Country England would be but let's keep our Union of the United Kingdom United as One big happy family.
@@infidelcastro5129 Well the Jocks keep going on about Scottish independence, that lot up there voted No in 2014, they said, once in a generation plus Scotland can never have another independence referendum without England's permission as England gives the orders and Scotland must comply or else, there will be severe consequences if the Jocks hold a Scottish independence Referendum without England's permission, Scotland is too poor to survive on its own and the good people of England doesn't need a failed state on its border, Scotland must Learn one thing, England calls the Shots, not a bunch of See You Jimmy's, Scottish independence - Don't make me Laugh 🇬🇧🇬🇧🇬🇧
Because London had coffee shops in the late 1600's where business was done and different ones did different business, like Mr Lloyd's coffee house was frequented by men who invested in ships, cargoes and voyages and developed insurance for these against potential losses for a premium. So Britain had organized markets at scale before anyone else.
Another factor is that International time is based on Greenwich (GMT)Meantime in London. This helps when communicating with companies 24 hours a day I am told.
As was stated in the video, and by yourself, the UK has a long history of stability. And has benefitted from the separation from events in mainland Europe, both physical and metaphorical. Countries that on paper are similar to Britain such as France and Germany have a longer history of war engulfing their homeland and revolutions which have caused political and economic instability several times over the centuries. The UK has not always been a paradise but it has reliably been stable and constant in its history.Banks and other financial institutions value stability above all else. As for Switzerland, it has also been stable and prosperous for the majority of its history. It has not been separated from mainland Europe like the UK, but it has politically been shielded due to its long-standing neutrality. However Switzerland has not benefited from a global empire and has to an extent been limited in its connections over the history. however its stability and neutrality has afforded it a financial infrastructure which allows it to punch well above its humble weight.
@PrestonSartorius We have a centre-right government. It's far from a "semi-Trump" government (what ever the heck that is?) and was in power long before Trump ever came to the fore of the American political scene.
If you look at any UK city/town a huge portion of them are poor quality housing estates. UK never invested in it's people only it's rich. Today there are more scumbags per population than anywhere else in the world. Dangerous estates everywhere. Germany/Netherlands/Denmark/Norway/Austria etc are all great places to live regardless of social standing/income but UK is awful!
Prison is profit. Keep the status quo of poor quality housing estates and it's not completely off the scale to imagine a significant proportion of inmates will come from these backgrounds. These estates are cash cows for those profiting from keeping prisons full. Perhaps.
The UK averaging is a bit how I see my own country, Belgium. Being a country that sits so centrally we can never be "bad" or "the best" economically. Harbors and transport means we'll always be relevant. So we'll never be bad economically. But at the same time whoever is doing worse around us will impact us. Don't think that's a bad place to be. In terms of what stuff people have in Europe we only really lag behind Switzerland, not including micronations.
Why can't Paris, Berlin, etc... Because: 1. Their empires were never as large as ours with as much influence as ours. 2. English became the no.1 global language because of the above. Business requires a common denominator - and that denominator is language. 3. The British Common Law system is regarded globally as the most trusted legal system - especially for the formation of CONTRACTS. 4. The UK has never once (look it up) defaulted on a loan or a debt. Trustworthiness is essential. Financial trustworthiness is the only trustworthiness that really matters. 6. Our financial regulators are a lot more nimble and able to react a lot more quickly, than say, one that has to be beholden to the opinions and politics of 27 other countries. 5. We've had a LOT of practice and a looooong time to get really good at it.
There are a few reasons why London is the financial hub it is as opposed to other European cities. Firstly, it began in the 1980s when the British Government chose to move the economy away from traditional manufacturing. They offered big financial institutions things like tax breaks, lower regulation levels etc to move to London. Second, there was an area of land near the existing financial centre which for various reasons was ripe for redevelopment into the new office buildings they would need and ideally situated to upgrade or create the necessary transport links (again, they threw in a few nice little financial sweeteners to make it even more attractive). Third. As the old European Economic Community began to morph into the EU, it made sense to have a financial centre that was separate from but close enough to the major political and administrative regions of the new European system and London fit the bill being geographically well placed and already having strong ties with the rest of the world in place. Things just developed from there. That's a bit of a simplification and not the full story but it's basically the foundation of London's growth into the international financial hub it is today.
A point also is that the UK have always been fair, or tried to be fair, and not to knock say America, even the UK have the thought that the American always seem to want to have more than their fair share.
Britain was last invaded in 1066. France, Germany, Netherlands, Belgium etc have all been invaded in the last 100 years, and they are more likely to be invaded again.
The reason for London being the centre is the history. The Brits started saving money first and practically founded modern economics. They did it first so the security there is undeniably the strongest. Paris and Berlin merely adopted British economics. Adding your own flair is usually a huge gamble and indicates a potential lack of security from the old default system. The safest bet is to place the majority in Britain and gamble for gains everywhere else.
@@lordomacron3719 Please remember that billions of pounds of London's wealth goes north of the border to Scotland which pays for Unemployment Welfare benefits, Free University Education, Free bus travel for that lot up there, free water bills, free prescription drugs for everyone in Scotland plus a lot more, Scotland could never survive on its own as Scotland is one of the poorest countries in the world and an independent Scotland would be the poorest Country in Europe, If Scotland was taken out of the equation then just think what a stinking rich Country England would be but let's keep our Union of the United Kingdom United as One big happy family.
Britain's post Brexit trade deals have broken Empire day records in yearly monetary terms. Joining CANZUK & Japan opening sea routes for British exports without EU constraints is seeing a 6% export growth. The London stock exchange has also benefitted from growth and certain EU trading restrictions being lifted saw Britain receive some of the biggest oversea's investment in new manufacturing companies starting up than we have in nearly15 yrs. Britain's post covid pandemic recovery is 7% above the EU average. Next time we complain about Boris having a party we should look at the bigger picture & what is right for your family & not your emotions.
We should join the CPTPP this year too. We will always trade with Europe but that organisation opens the door for world trade. The slight drop in European trade could be massively exceeded by the gains abroad.
@@jago5373 Really 😆😅🤣😂!!!! You should wipe those salty Remoaner tears 😭out your eyes and go look for yourself. Unlike you, I do not need others to tell me what to do. But I suspect people like you will never learn to appreciate living on the best Island on this world.
It's about insurance. London is home to the world's largest insurance underwriting market and all the other things (like, for example, stability for home offices) flows from that. A lot of people think the UK's Euro clearing market stemmed from the fact the UK was in the EU, and whilst that's maybe 10% true it doesn't explain why it's not in Frankfurt, Amsterdam or Paris - clearing is a risky game, and being colocated near insurance underwriters and the cash that sloshes around with that is a big deal for clearing, which is why Frankfurt et al can't pick it up because they don't have the cash on hand for the opposite side of those trades. Also RR primary business is about an inch away from being nuclear reactors for power generation, not jet engines - when they go into it they'll go in hard and it'll be glorious.
To add to the point about London and financial services - it was/is the centre for insurance based originally on global maritime insurance conducted through Lloyds of London. Fits nicely with our geographical location and time zone in the GMT, ideal midpoint for global trading. Our economy is also heavily reliant on logistics and transport, communications, tourism, construction and the creative industries (e.g. music, entertainment and fashion) make a large contribution. Wholesale and retail, and professional services are also major contributors and represent the shift in the UK economy from manufacturing to services in the past 50+ years.
Uk is not the 7th largest economy by GDP, it's the 5th largest. Nominal GDP Rankings by Country United States (GDP: 20.49 trillion) China (GDP: 13.4 trillion) Japan: (GDP: 4.97 trillion) Germany: (GDP: 4.00 trillion) United Kingdom: (GDP: 2.83 trillion) France: (GDP: 2.78 trillion) India: (GDP: 2.72 trillion) Italy: (GDP: 2.07 trillion)
Man we were set to be the second largest EU economy. The hub for international business to set up shop in Europe. And then people voted for Brexit based off of a bus.
I guess just speaking the English language helps as well, I think that when flying the whole world speaks English when navigating to land and fly so could you imagine the chaos if planes coming in only spoke there language, so guess that’s why London is a important banking hub…
I think the reason why Britain and not Zurich, Berlin etc is because the British system is more widespread thanks to the Empire, which also accounts for the English language being the default.
'Rolls Royce is primary known for their cars......". Rolls Royce Aero engines have nothing to do with Rolls Royce cars. The company went into liquidation in the 1970's and was separated. Indeed even when the video talks about high end cars Rolls Royce Motors and Bentley are owned by German car manufacturers. Range Rover and Jaguar are owned by the Indian company Tata.
You're not dumb & you didn't miss it. This does actually come up from time to time, it was an especially thorny issue with regards to Brexit because both Paris & Frankfurt were angling to steal business from The City of London in a massive way. So the question is why did they fail? Worldwide adoption of the English language is a part of it, English being the world's lingua franca is a massive, almost unfair, advantage to us. We've got legions of native English speakers to draw upon in a way Paris & Frankfurt never will & if you're dealing in mega money between institutions that kind of matters. Paris has a VERY aggressive tax regime, so that's mostly why they keep losing out. As for Frankfurt...it's a number of things, the language issue again but also it's where the ECB is located, European politics & intrigue gets tied up in decisions there in a way it just doesn't in London. London is also very good at what it does, like ridiculously good. As an Englishman living outside of London I wish that some of the money left The City but I can't fault institutions for going with the tried & tested. I think being on the periphery of the continent helps as well, there's a quote attributed to Churchill that goes something like "We are for Europe but not of Europe" he didn't actually say it but it rings VERY true to me, we've always been standoffish with affairs on the continent, very keen to stay at arms length from the European dramas & schemes (it's why we were such a bad fit as EU members IMO) but it also helps here because it means we're very steady, very stable & won't easily be drawn into the latest French psychodrama or have to deal with the economic collapse of one of the Euro countries (I think it's a case of when not if) TL:DR Steady & stable, tried & true, English language, periphery of the continent & in a round about way we're one pole of the economic world
all the places u labeled are relativly new or used to be much smaller france grew over time fell apart then rebuilt itself france is prone to goverments falling its a unstable society historicaly germany only came about with the fall of the holy roman empire in the nipoleanic wars italy didnt even exist till after nipoleonic wars switzalend didnt exist before 1848 its newerr than america the scandanavian countries they used to be warmongers till they were split into smaller countries their history is vickings their economy came from raiding rusia originated as tribute states to the golden horde a reminent of the mongolian empire and eventurly united in the 1500s but anything rusia had would of been destroyed by comunism in the revelution united kingdom through england is the oldest surviving europian superpower ontop of that as some comments mentioned the empire itself helped britain for a few centuries controled trade under pax britanica pax being latern for a age of peace, britain policed the sea to facilitate trade and controled trade in its massive empire which standadised trade hell we created a standardised method of time zones to facilitate trade
To your question why London, I think there are lots of factors, stability as he said is a big one, most rival cities have been subject to revolution, wars border changes. Then there is the culture of respect for property, and law, and that is law based on presidence. That industrial revolution and the Empire meant that wealth was generated in the country as the financial sector was developed. As for why it still is London, well once its there, why invent a replacement when the institutions and expertise is there. It was said after Brexit the EU would take away its business, it hasn't happened, even in trading in the Euro, London leads. That said one can get carried away, for all that it took up most of the video, the financial sector (including all the bog standard insurance an domestic backing) only makes up 8.5% of the economy.
London has a professional mystique firmly based on historical stability and financial integrity. The same cannot be said for any country in Europe or for the EU as a whole.
You just have to look at how many continental countries have been subject to revolutions, occupation, wars, revised constitutions and republics, independence movements etc etc. The UK has not been subject to any of these for arguably 400 years. The biggest constitutional event has been Brexit yet even with that the government, rule of law, economics, constitution etc etc have remained stable and unchanged. This alone will make London far more attractive to any investor than the instability of the continent. You only have to look at Europe today - Russia invading Ukraine and threatening other Eastern European territories (including NATO and EU members), mass refugee movements into Central Europe. The UK, even with its occasional internal squabbles, is simply the most stable and established developed economy in the world, and if you want to make and retain wealth, nothing is more attractive than that.
@@waynetowers5046 Please remember that billions of pounds of London's wealth goes north of the border to Scotland which pays for Unemployment Welfare benefits, Free University Education, Free bus travel for that lot up there, free water bills, free prescription drugs for everyone in Scotland plus a lot more, Scotland could never survive on its own as Scotland is one of the poorest countries in the world and an independent Scotland would be the poorest Country in Europe, If Scotland was taken out of the equation then just think what a stinking rich Country England would be but let's keep our Union of the United Kingdom United as One big happy family.
The big problem right now, is the foreign money that is invested can't easily be traced (due to deregulation) and a lot of that money is Russian and Chinese. It might be legitimate on a first look, but there is no legal way to track back to where it originally came from, because he current government has failed to introduced a promised law that would require greater disclosure.
The Rolls Royce that builds cars is owned by BMW an entirely different company to Rolls Royce PLC that produces jet engines and nuclear reactors for British Aerospace subs.
@@2opler exactly , still have great engineers and creativity in the UK, just not that brilliant on ripping people off in business , we are more interested in ideas, inventions, than making loads of money 🤷🤦🤣🤣
@@2opler ...yep, we spend way too long crossing the "t's" and dotting the "i's", to the point everyone else has moved on whilst fixing issues as they go , then rewarding longevity of service for promotions and promoting people to their level of incompetence!! 🤷🤦🤦🤷
McJibbin, London has all these things partially because it has never had a revolution in the way that Paris, New York or Moscow have. When you have such continuity you acquire more business and institutions. You talk of Swiss banking again the Swiss have not had a politcal revolution. The knights templar needed a place in Europe to establish their finance headquarters and Switzerland became it. The knights templar were hugely secretive when it came to their financial and business dealings and similarly the Swiss banking systems have the same reputation. They invented credit, investments and pension plans. The flags of Switzerland, some of Austria and Denmark are all white crosses on a red background very similar to the flag of Knights Hospitaller, sibling organisation and succesor to the Knights Templar after their supression by the Vatican and the French King.
According to Google (so it must be right) less than 10% of UK GDP comes from financial services. So, whilst significant, the vid gave a rather lopsided, London centric view of the UK economy. Some years ago Top Gear did a programme (Best of British as I recall) that bookcased a lot of the other stuff. Worth checking out if you can sidestep copyright issues.
The city in London is not technically part of the uk it’s technically a protectorate I saw a video of these economics guys from London talking about apparently this is what that guy was talking about when he said it was complicated about the city of London it basically acts as a leftover from the empire like Bermuda or a tax haven island but in the centre of the uk the have different tax regulations for big banks that’s how they have the loophole to avoid the high tax in London. It’s interesting tbf and as a Brit didn’t even know this until recently.
I didn't go to London but as Chinese to me I think this great city in the world I've ever seem before I will love to visit one day ❤️ and eating Chinese food in London bridge 🌉 😊 sitting the big Eyes watching the whole London 😍 maybe after the pandemic end 😘😘😘
If you look at any UK city/town a huge portion of them are poor quality housing estates. UK never invested in it's people only it's rich. Today there are more scumbags per population than anywhere else in the world. Dangerous estates everywhere. Germany/Netherlands/Denmark/Norway/Austria etc are all great places to live regardless of social standing/income but UK is awful!
An answer to your question. 1) Age of the banking organisations. 2) All of the overseas tax havens, which are of course, dependencies. 3) Family offices - trading with large overseas English speaking economic giants. 4) And very attractive tax incentives for investors in the UK economic centres.
Could Britains success be due to the old adage 'if it ain't broke, don't fix it!'....making change for changes sake often bites, making change for progress usually pays dividends.
If you look at any UK city/town a huge portion of them are poor quality housing estates. UK never invested in it's people only it's rich. Today there are more scumbags per population than anywhere else in the world. Dangerous estates everywhere. Germany/Netherlands/Denmark/Norway/Austria etc are all great places to live regardless of social standing/income but UK is awful!
This was a good video. It has my official "Perry Thinks It's Good" stamp of approval. Always good to see a balanced and unbiased look at our capital city and it's very interesting and sometimes mysterious finances.
How about reacting to the fact that California often claims to have a bigger economy than the UK yet how often have we heard it is on the verge of bankruptcy and one of it's most important cities can't even afford to build a football stadium!
The reason why reason why rich people prefer to park their money in a London is because prestige associated with London. London is is an Alpha++ city in comparison to Paris, Zurich, Berlin, Munich, Rome, Vienna, Prague and Madrid. In addition, everyone speaks English in the UK and is a major tourist destination. Oxford, Dover, Canterbury, Cornwall, Windsor, York, Edinburgh, Isle of Skye are all major tourist cities outside London. So many tourist things to do and so much things to spend your money on. Also the UK in general is very safe, in comparison in the United States where people get shot left, right and centre. Lastly, it’s equal opportunities in the UK, regardless of your race.
The EU has been trying to take the financial crown off London since it started and particularly since Brexit , the trouble it can't sure it has and will t continue to take some but the fact it's physically separate form Europe and separate from the Euro is why it's used.. Just many EU banks have set up offices in London since Brexit as UK banks setting up in EU, and the it also interesting that the USA has taken more of EU financial money that the EU countries themselves .
2 reasons for why London out competes the other european capitals: the city of London has existed longer than London and they have always had mandated stability for businesses (think bridges in the past and banking now). That combo is fairly unique.
His remarks about Rolls Royce cars and jet engines are slightly misleading. Rolls Royce Motors (car makers) split from Rolls Royce PLC (jet engines) in 1973. They're totally separate. Rolls Royce Motors is actually owned by BMW.
Paris, Berlin question. They’re more regulated socialist economies. The UK like the USA have more free trade laws. Also, London historically was and still is the global exchange for Gold, silver and other major commodities like coffee, tea, crude oil, metal, shipping, renewables etc. Also a major global centre for shipping and government insurance thru Lloyds A lot of this harks back to the British colonial days.
Langauge is a big part of why those countries aren’t the biggest in banking. Also Swiss are more of a custodian banker not a trading banking nation. The Rothschild family aren’t the only family in the UK and they are split between Paris and London.
Hello, this will answer your questions regarding "why London has such a strong banking sector, compared to other European cities". You'll really enjoy this.
London has been a trading hub for more than 1000 years. But thanks to us being total legends and creating an empire whilst it was still cool. Well yeah that meant money has been held or passed through the city consistently and its simply a place people now trust
If you're interested, there's a documentary here on RUclips called 'The Spider's Web: Britain's Second Empire'. Goes right in to detail about this stuff.
I think the video glorified the UK economy a bit, although I'm surprised they missed out ARM - essentially the chip in every mainstream smartphone (or computer with Apple M1) is licensed from ARM in Cambridge...if only we had the ability to manufacture these chips.
He did touch in the Highend manufacturing. We brits don’t really do mass production any more but you want some high end product where labour cost is not the highest percentage of manufacturing cost that we do very well. The UK as a whole has had a hard time transitioning from being the low cost workshop of the world to being the high tech workshop of the world. And it not lauded to the ppl that we lead the world still in many areas. They think back to old days of empire and think it will come back.
Historically many of those cities you mentioned were or could be invaded. The last time Britain was successfully invaded was in 1066. I'ts about as safe as human beings allow safe to be and that is what the old money cherishes more than any other. Coming in as close second is favourable tax expectations. Not saying it's just or right but for the rich it is very, very, safe.
At 10.21 the white chalk cliffs is Beachy head in Eastbourne. Such a beautiful place and it has featured in many films over the years but it also has a darker side to it, it is the most notorious suicide spot in the country and in the top 3 in the world.. At its highest point of 531feet it is a sheer drop to the rocks below.
It also helps that nobody has successfully invaded GB since 1066 Sure the vikings took over a small chunk for some time after that but when you compare to Paris that was last successfully invaded less than 80 years ago it makes a difference
@@pedanticradiator1491 I know you Know, was just being pedantic :0, i sometimes misread and reply to quick, sorry to any radiators or any type of convex heaters i may have offended.
Why does London have all these financial services, and other capital cities in Europe do not? It is a result of history Connor: London has been a major financial world centre since the very early 1700's and we have immense experience in handling big money. We have a stable political background, and a strong respect for corporate law.
I think we are better at making people money ,been doing it long enough.And why does everything smack of jealousy from larger countries,especially France and Russia.Being bigger doesn't necessarily mean smarter .I love it when are wee island gets up people's noses.GSTQ 🇬🇧
I work in finance in London, Canary Wharf, which is the ‘second’ financial district in London behind The City of London (🥱boo, I know!). But I’m from Oxfordshire and I plan on heading home soon enough.
Always London am from Sunderland north east England beautiful place not a concrete jungle like London . And we talked to people unlike miserable London which is no longer English
And this is why I say everyone hates the English including most of the English. I am from Birmingham. I am not fond of London but I realise it’s place in the UK as our Middleman with the rest of the world. But hey what is English anyway? As some from Sunderland surely you are aware of the varied history of the Island of Great Britain? You must be considering how much non-native people invaded over the centuries. Or maybe that is inconvenient for you idea of Englishness?
@@Floody77 I assume myself by thinking William the Bastard really did not want to be known as that so took a crack at the English throne to get a new moniker. ;)
To answer your question on why London, it's a throw back to their colonial history. There's an excellent documentary on RUclips on how the money men in the City of London (financial district) propelled London to a financial global city that competes with NY
Also we have the prime Median in Greenwich which goes back to shipping an empire and sets standards of time for the whole World. So if you are a trader in London you can reach out to more time zones throughout your day ... this can not be done in Sweden. Brexit will be a problem though
I'm not 100% sure, but I believe the stock market was devised in a London coffee shop, making it the first to exchange stocks and shares, perhaps that's a good reason for London to be the financial centre of the world.
I dont think (not to say they dont have them but is far less of them than there once was) the Rothchilds have much (if any) business function in the UK anymore like they used to. Rather all stems from the person who started it allof their wealth was Meir Rothchild who got a job dealing with the wealthy elite money in German during the 1800s, the thing about those times Christians were forbidden/was illegal for anyone of that faith to make money from that work. Eventually Rothchild made a fortune from that and kept it within the family. Not to say they dont run some pretty powerful financial institutions still, as they do factually do that but they're of far less power than they used to have as its split between the descendants of Meir Rothchild now.
The UK was the last great super power (USA is the current 1) they owned the world reserve currency, they had a massive empire, most of the world speaks English, they had the best universities, the industrial revolution and and exploited the riches of Asia East with the east India trading company and Hong Kong.
Switzerland does have many similarities to us as a country. They have a proud history of banking and owe that to its history of being a relatively safe haven where there's little chance of massive shocks. Indeed, we are currently in the process of building greater ties with Bern due to them also having a falling out with the EU. However, Britain still maintains a slight edge on the world stage due to our former empire. Having once managed an enormous slice of the world economy, that translates to a far stronger position internationally
If one looks, Germany as a state began in 1870. If you ask how many types of government has France had since 1789, chaos, two empires, a restored monarchy, and five republics. The City of London funded the medieval kings wars against France. Henry VII’s ill gained treasure financed the rise of the Hapsburg dynasty. The wealth of industrial Britain financed the resistance to Napoleon by the occupied or threatened nations. The UK lost a lot of its investments in WW1 and we paid back Canada and the USA the final war loans within the last ten years! We pay our debts and it is an advert for stability.
and we just payed our debt to iran...eventually. or is it a ransom? not really sure lol
We also paid off slave owners which was only paid off in 2015. So we would have paid taxes for slaves being free before we was even thought of
@@Hallzilla it’s the same reason we can afford the furlough scheme. Imagine telling an American we gave our citizens 80% of their salary up to £2500 per month, for consecutive months to sit at home.
Stability is the key, no extreme swings in politics, long established history, tradition, trust, safety, it all adds up to a safe heaven for people and their wealth
THIS.
Must be why 22% of the population lives in poverty.
⬆️
switzerland is more like a money warehouse, the equivalent of a storage unit, whereas the uk is for business and profits like a mall.
In 2022, the UK with a population of 68m has the worlds 5th largest economy, (not 7th), behind only America, China, Japan and Germany. London with a population of 9m has the worlds 5th largest city economy, behind only Tokyo, New York, Los Angeles and Seoul.
London is the leading global centre for trading money, many times more than New York through the FOREX system. More dollars are traded in London than NY. More Euros are traded in London daily, than the rest of the EU combined. London is also the world's leading insurance market.
These details may help explain why London and NY are the only 2 cities to receive the highest ranked A++ rating by the Globalisation and world Cities Research Network. This measures a cities importance globally based on various criteria, including, finance centres, influence in international political affairs,, wealth, mass transit network, aviation hub, health service , culture, major media hub, stability, science and more.
UK population in excess of 75million due to illegals who are living off grid.
Something not mentioned in the video is trade: thanks to both the empire and pre-imperial adventures, together with the aforementioned stability, London is the global centre for shipping and trade finance. To this day, most international trade is done under the jurisdiction of English and Welsh law. This has an outsized effect on where those companies move their money through. It's easier and less risky to settle accounts in the UK, especially any accounts relating to shipping. This means it's also easier and less risky to finance your supply chain through the UK too. This is the reason the Hong Kong and Shanghai Banking Corporation (HSBC) was founded in London in the 19th century: facilitating the financing of shipping and manufacturing in China for companies operating from London.
You’re mistaken. The City of London is a giant washing machine for international criminals. And You describe ‘trade’ but not wealth creation. All we do now is extract wealth.
This and the metals exchange and pretty much all worldwide insurance is underwritten at Lloyds
HSBC will be China clay soon
Thought it was Hong Kong Singapore, Singapore used to be British
@@Anglo_Browza close but no, Hong Kong and Shanghai, HK was British under lease which ended in 1999 iirc
The time zone helps a lot, London operates in between most other markets through Greenwich Mean Time. The City of London was operating back in the days of William the Conqueror, in fact he gave them special treatment in exchange for certain concessions. The City has its own laws, police force and it own Lord Mayor. The Mayor and his 12 Aldermen who run the City have special status in the running of the City. The Queen attends by invitation only. If you check out DC in the US you will find that it is independent of the US that is why it’s senator isn’t allowed to vote on government matters. There is reportedly a three city empire if you check it out on RUclips.
I think the video is outdated because the guy mentioned the UK has the 7th largest economy by GDP when currently it actually has the 5th largest economy by GDP in the world.
Love to know where we are now after spending all this money on covid!!
Just because we're an island, we're still part of Europe. Just an island in Europe. Maybe not the union anymore, but still
Well youre not in the common market anymore so... Geographically yes, economically you are as close to Europe as America when it comes to legislation.
@@RACwarFootage the latter part of your comment doesn't make much sense.
@@michael_177 Please remember that billions of pounds of London's wealth goes north of the border to Scotland which pays for Unemployment Welfare benefits, Free University Education, Free bus travel for that lot up there, free water bills, free prescription drugs for everyone in Scotland plus a lot more, Scotland could never survive on its own as Scotland is one of the poorest countries in the world and an independent Scotland would be the poorest Country in Europe, If Scotland was taken out of the equation then just think what a stinking rich Country England would be but let's keep our Union of the United Kingdom United as One big happy family.
@@johndunnburgess6403 You don’t like the Scots, do you… 😂
Or are you hostile to everyone who might “get your stuff”? 😝
@@infidelcastro5129 Well the Jocks keep going on about Scottish independence, that lot up there voted No in 2014, they said, once in a generation plus Scotland can never have another independence referendum without England's permission as England gives the orders and Scotland must comply or else, there will be severe consequences if the Jocks hold a Scottish independence Referendum without England's permission, Scotland is too poor to survive on its own and the good people of England doesn't need a failed state on its border, Scotland must Learn one thing, England calls the Shots, not a bunch of See You Jimmy's, Scottish independence - Don't make me Laugh 🇬🇧🇬🇧🇬🇧
Because London had coffee shops in the late 1600's where business was done and different ones did different business, like Mr Lloyd's coffee house was frequented by men who invested in ships, cargoes and voyages and developed insurance for these against potential losses for a premium.
So Britain had organized markets at scale before anyone else.
Another factor is that International time is based on Greenwich (GMT)Meantime in London. This helps when communicating with companies 24 hours a day I am told.
So...average, boring, middle of the road has it's advantages = stability, I'll take that.
Also London (the city of) has been a trading centre for 2000 yrs
As was stated in the video, and by yourself, the UK has a long history of stability. And has benefitted from the separation from events in mainland Europe, both physical and metaphorical. Countries that on paper are similar to Britain such as France and Germany have a longer history of war engulfing their homeland and revolutions which have caused political and economic instability several times over the centuries.
The UK has not always been a paradise but it has reliably been stable and constant in its history.Banks and other financial institutions value stability above all else.
As for Switzerland, it has also been stable and prosperous for the majority of its history. It has not been separated from mainland Europe like the UK, but it has politically been shielded due to its long-standing neutrality. However Switzerland has not benefited from a global empire and has to an extent been limited in its connections over the history. however its stability and neutrality has afforded it a financial infrastructure which allows it to punch well above its humble weight.
@PrestonSartorius no not really.
@PrestonSartorius We have a centre-right government. It's far from a "semi-Trump" government (what ever the heck that is?) and was in power long before Trump ever came to the fore of the American political scene.
In the new York stock exchange there's a lot of speculating and high risk, high reward mentality instead of steady but sure mentality of London
Connor, the Europeans don't have this because they didn't have the British Empire.
If you look at any UK city/town a huge portion of them are poor quality housing estates. UK never invested in it's people only it's rich. Today there are more scumbags per population than anywhere else in the world. Dangerous estates everywhere. Germany/Netherlands/Denmark/Norway/Austria etc are all great places to live regardless of social standing/income but UK is awful!
Prison is profit. Keep the status quo of poor quality housing estates and it's not completely off the scale to imagine a significant proportion of inmates will come from these backgrounds. These estates are cash cows for those profiting from keeping prisons full. Perhaps.
@@colors6692 you have no idea about the ghettos in Germany , Sweden or the Netherlands. “More scumbags per population “ what does that even mean ?
The UK averaging is a bit how I see my own country, Belgium.
Being a country that sits so centrally we can never be "bad" or "the best" economically.
Harbors and transport means we'll always be relevant. So we'll never be bad economically.
But at the same time whoever is doing worse around us will impact us.
Don't think that's a bad place to be. In terms of what stuff people have in Europe we only really lag behind Switzerland, not including micronations.
What "stuff" do you not have?
You do make great chocolate, that's all that matters. 🤣
And moules et frites (albeit with the English invention of mayonnaise)!
Why can't Paris, Berlin, etc...
Because:
1. Their empires were never as large as ours with as much influence as ours.
2. English became the no.1 global language because of the above. Business requires a common denominator - and that denominator is language.
3. The British Common Law system is regarded globally as the most trusted legal system - especially for the formation of CONTRACTS.
4. The UK has never once (look it up) defaulted on a loan or a debt. Trustworthiness is essential. Financial trustworthiness is the only trustworthiness that really matters.
6. Our financial regulators are a lot more nimble and able to react a lot more quickly, than say, one that has to be beholden to the opinions and politics of 27 other countries.
5. We've had a LOT of practice and a looooong time to get really good at it.
There are a few reasons why London is the financial hub it is as opposed to other European cities. Firstly, it began in the 1980s when the British Government chose to move the economy away from traditional manufacturing. They offered big financial institutions things like tax breaks, lower regulation levels etc to move to London. Second, there was an area of land near the existing financial centre which for various reasons was ripe for redevelopment into the new office buildings they would need and ideally situated to upgrade or create the necessary transport links (again, they threw in a few nice little financial sweeteners to make it even more attractive). Third. As the old European Economic Community began to morph into the EU, it made sense to have a financial centre that was separate from but close enough to the major political and administrative regions of the new European system and London fit the bill being geographically well placed and already having strong ties with the rest of the world in place. Things just developed from there. That's a bit of a simplification and not the full story but it's basically the foundation of London's growth into the international financial hub it is today.
Yep "financialized"
A point also is that the UK have always been fair, or tried to be fair, and not to knock say America, even the UK have the thought that the American always seem to want to have more than their fair share.
Britain was last invaded in 1066. France, Germany, Netherlands, Belgium etc have all been invaded in the last 100 years, and they are more likely to be invaded again.
The reason for London being the centre is the history. The Brits started saving money first and practically founded modern economics. They did it first so the security there is undeniably the strongest. Paris and Berlin merely adopted British economics. Adding your own flair is usually a huge gamble and indicates a potential lack of security from the old default system. The safest bet is to place the majority in Britain and gamble for gains everywhere else.
The Dutch founded economics! Educate yourself. It's free in the EU....sorry🤦🏿♀️😂
Nah the Dutch started it the English just took the idea and ran with.
@@lordomacron3719 Please remember that billions of pounds of London's wealth goes north of the border to Scotland which pays for Unemployment Welfare benefits, Free University Education, Free bus travel for that lot up there, free water bills, free prescription drugs for everyone in Scotland plus a lot more, Scotland could never survive on its own as Scotland is one of the poorest countries in the world and an independent Scotland would be the poorest Country in Europe, If Scotland was taken out of the equation then just think what a stinking rich Country England would be but let's keep our Union of the United Kingdom United as One big happy family.
Britain's post Brexit trade deals have broken Empire day records in yearly monetary terms. Joining CANZUK & Japan opening sea routes for British exports without EU constraints is seeing a 6% export growth. The London stock exchange has also benefitted from growth and certain EU trading restrictions being lifted saw Britain receive some of the biggest oversea's investment in new manufacturing companies starting up than we have in nearly15 yrs. Britain's post covid pandemic recovery is 7% above the EU average. Next time we complain about Boris having a party we should look at the bigger picture & what is right for your family & not your emotions.
We should join the CPTPP this year too. We will always trade with Europe but that organisation opens the door for world trade. The slight drop in European trade could be massively exceeded by the gains abroad.
Nearly everything you said is wrong. You should re-educate yourself you have been listening to the wrong people.
@@jago5373 Really 😆😅🤣😂!!!! You should wipe those salty Remoaner tears 😭out your eyes and go look for yourself. Unlike you, I do not need others to tell me what to do. But I suspect people like you will never learn to appreciate living on the best Island on this world.
It's about insurance. London is home to the world's largest insurance underwriting market and all the other things (like, for example, stability for home offices) flows from that. A lot of people think the UK's Euro clearing market stemmed from the fact the UK was in the EU, and whilst that's maybe 10% true it doesn't explain why it's not in Frankfurt, Amsterdam or Paris - clearing is a risky game, and being colocated near insurance underwriters and the cash that sloshes around with that is a big deal for clearing, which is why Frankfurt et al can't pick it up because they don't have the cash on hand for the opposite side of those trades. Also RR primary business is about an inch away from being nuclear reactors for power generation, not jet engines - when they go into it they'll go in hard and it'll be glorious.
To add to the point about London and financial services - it was/is the centre for insurance based originally on global maritime insurance conducted through Lloyds of London. Fits nicely with our geographical location and time zone in the GMT, ideal midpoint for global trading.
Our economy is also heavily reliant on logistics and transport, communications, tourism, construction and the creative industries (e.g. music, entertainment and fashion) make a large contribution. Wholesale and retail, and professional services are also major contributors and represent the shift in the UK economy from manufacturing to services in the past 50+ years.
55% of the world's inventions have come from the uk
Don't be silly.
@@peterdoyle1591 if you know how to use the internet look it up...by the way the internet is a UK invention as well...enjoy
@@Jaime7000 Don't be silly. Taking full credit for everything is a well-known British trait.
@@peterdoyle1591 not everything just 55%
@@Jaime7000 Keep dreaming m8. The Brits are finished anyway without Russian money. lol
Uk is not the 7th largest economy by GDP, it's the 5th largest.
Nominal GDP Rankings by Country
United States (GDP: 20.49 trillion)
China (GDP: 13.4 trillion)
Japan: (GDP: 4.97 trillion)
Germany: (GDP: 4.00 trillion)
United Kingdom: (GDP: 2.83 trillion)
France: (GDP: 2.78 trillion)
India: (GDP: 2.72 trillion)
Italy: (GDP: 2.07 trillion)
Man we were set to be the second largest EU economy. The hub for international business to set up shop in Europe. And then people voted for Brexit based off of a bus.
Always love your reactions at "the colonies" lol.
The UK is actually the 5th biggest economy in the world
I guess just speaking the English language helps as well, I think that when flying the whole world speaks English when navigating to land and fly so could you imagine the chaos if planes coming in only spoke there language, so guess that’s why London is a important banking hub…
I think the reason why Britain and not Zurich, Berlin etc is because the British system is more widespread thanks to the Empire, which also accounts for the English language being the default.
'Rolls Royce is primary known for their cars......". Rolls Royce Aero engines have nothing to do with Rolls Royce cars. The company went into liquidation in the 1970's and was separated. Indeed even when the video talks about high end cars Rolls Royce Motors and Bentley are owned by German car manufacturers. Range Rover and Jaguar are owned by the Indian company Tata.
You're not dumb & you didn't miss it. This does actually come up from time to time, it was an especially thorny issue with regards to Brexit because both Paris & Frankfurt were angling to steal business from The City of London in a massive way. So the question is why did they fail? Worldwide adoption of the English language is a part of it, English being the world's lingua franca is a massive, almost unfair, advantage to us. We've got legions of native English speakers to draw upon in a way Paris & Frankfurt never will & if you're dealing in mega money between institutions that kind of matters. Paris has a VERY aggressive tax regime, so that's mostly why they keep losing out. As for Frankfurt...it's a number of things, the language issue again but also it's where the ECB is located, European politics & intrigue gets tied up in decisions there in a way it just doesn't in London. London is also very good at what it does, like ridiculously good. As an Englishman living outside of London I wish that some of the money left The City but I can't fault institutions for going with the tried & tested. I think being on the periphery of the continent helps as well, there's a quote attributed to Churchill that goes something like "We are for Europe but not of Europe" he didn't actually say it but it rings VERY true to me, we've always been standoffish with affairs on the continent, very keen to stay at arms length from the European dramas & schemes (it's why we were such a bad fit as EU members IMO) but it also helps here because it means we're very steady, very stable & won't easily be drawn into the latest French psychodrama or have to deal with the economic collapse of one of the Euro countries (I think it's a case of when not if)
TL:DR Steady & stable, tried & true, English language, periphery of the continent & in a round about way we're one pole of the economic world
all the places u labeled are relativly new or used to be much smaller
france grew over time fell apart then rebuilt itself france is prone to goverments falling its a unstable society historicaly
germany only came about with the fall of the holy roman empire in the nipoleanic wars
italy didnt even exist till after nipoleonic wars
switzalend didnt exist before 1848 its newerr than america
the scandanavian countries they used to be warmongers till they were split into smaller countries their history is vickings their economy came from raiding
rusia originated as tribute states to the golden horde a reminent of the mongolian empire and eventurly united in the 1500s but anything rusia had would of been destroyed by comunism in the revelution
united kingdom through england is the oldest surviving europian superpower
ontop of that as some comments mentioned the empire itself helped
britain for a few centuries controled trade under pax britanica pax being latern for a age of peace, britain policed the sea to facilitate trade and controled trade in its massive empire which standadised trade hell we created a standardised method of time zones to facilitate trade
To your question why London, I think there are lots of factors, stability as he said is a big one, most rival cities have been subject to revolution, wars border changes. Then there is the culture of respect for property, and law, and that is law based on presidence. That industrial revolution and the Empire meant that wealth was generated in the country as the financial sector was developed. As for why it still is London, well once its there, why invent a replacement when the institutions and expertise is there. It was said after Brexit the EU would take away its business, it hasn't happened, even in trading in the Euro, London leads.
That said one can get carried away, for all that it took up most of the video, the financial sector (including all the bog standard insurance an domestic backing) only makes up 8.5% of the economy.
London has a professional mystique firmly based on historical stability and financial integrity. The same cannot be said for any country in Europe or for the EU as a whole.
You just have to look at how many continental countries have been subject to revolutions, occupation, wars, revised constitutions and republics, independence movements etc etc. The UK has not been subject to any of these for arguably 400 years. The biggest constitutional event has been Brexit yet even with that the government, rule of law, economics, constitution etc etc have remained stable and unchanged. This alone will make London far more attractive to any investor than the instability of the continent. You only have to look at Europe today - Russia invading Ukraine and threatening other Eastern European territories (including NATO and EU members), mass refugee movements into Central Europe. The UK, even with its occasional internal squabbles, is simply the most stable and established developed economy in the world, and if you want to make and retain wealth, nothing is more attractive than that.
Stop this anti EU, bwexit gibberish, please.
The truth is simply fact and bourn out by the evidence. Whether you like it or not, the facts speak for themselves...
The UK... always part of Europe but always seperated from it.
One does not need to be a member of a politico-economic organisation in order to have a place on a continent.
@ger du wow you seem angry
@ger du How totalitarian.
@@waynetowers5046 Please remember that billions of pounds of London's wealth goes north of the border to Scotland which pays for Unemployment Welfare benefits, Free University Education, Free bus travel for that lot up there, free water bills, free prescription drugs for everyone in Scotland plus a lot more, Scotland could never survive on its own as Scotland is one of the poorest countries in the world and an independent Scotland would be the poorest Country in Europe, If Scotland was taken out of the equation then just think what a stinking rich Country England would be but let's keep our Union of the United Kingdom United as One big happy family.
The big problem right now, is the foreign money that is invested can't easily be traced (due to deregulation) and a lot of that money is Russian and Chinese. It might be legitimate on a first look, but there is no legal way to track back to where it originally came from, because he current government has failed to introduced a promised law that would require greater disclosure.
The Rolls Royce that builds cars is owned by BMW an entirely different company to Rolls Royce PLC that produces jet engines and nuclear reactors for British Aerospace subs.
Yes but they are built still in the UK , just bought out by BMW
@@glastonbury4304 And Bentley are owned by Volkswagen, but also still built in the UK
@@2opler exactly , still have great engineers and creativity in the UK, just not that brilliant on ripping people off in business , we are more interested in ideas, inventions, than making loads of money 🤷🤦🤣🤣
@@glastonbury4304 Unfortunately what we have in the UK , is shit management.
@@2opler ...yep, we spend way too long crossing the "t's" and dotting the "i's", to the point everyone else has moved on whilst fixing issues as they go , then rewarding longevity of service for promotions and promoting people to their level of incompetence!! 🤷🤦🤦🤷
McJibbin, London has all these things partially because it has never had a revolution in the way that Paris, New York or Moscow have. When you have such continuity you acquire more business and institutions. You talk of Swiss banking again the Swiss have not had a politcal revolution. The knights templar needed a place in Europe to establish their finance headquarters and Switzerland became it. The knights templar were hugely secretive when it came to their financial and business dealings and similarly the Swiss banking systems have the same reputation. They invented credit, investments and pension plans. The flags of Switzerland, some of Austria and Denmark are all white crosses on a red background very similar to the flag of Knights Hospitaller, sibling organisation and succesor to the Knights Templar after their supression by the Vatican and the French King.
According to Google (so it must be right) less than 10% of UK GDP comes from financial services. So, whilst significant, the vid gave a rather lopsided, London centric view of the UK economy. Some years ago Top Gear did a programme (Best of British as I recall) that bookcased a lot of the other stuff. Worth checking out if you can sidestep copyright issues.
I do believe it's vice versa
Probably true, but the amount of global trade transactions thru London has GDP benefits that aren’t measurable from the immediate source.
The city in London is not technically part of the uk it’s technically a protectorate I saw a video of these economics guys from London talking about apparently this is what that guy was talking about when he said it was complicated about the city of London it basically acts as a leftover from the empire like Bermuda or a tax haven island but in the centre of the uk the have different tax regulations for big banks that’s how they have the loophole to avoid the high tax in London. It’s interesting tbf and as a Brit didn’t even know this until recently.
I didn't go to London but as Chinese to me I think this great city in the world I've ever seem before I will love to visit one day ❤️ and eating Chinese food in London bridge 🌉 😊 sitting the big Eyes watching the whole London 😍 maybe after the pandemic end 😘😘😘
If you look at any UK city/town a huge portion of them are poor quality housing estates. UK never invested in it's people only it's rich. Today there are more scumbags per population than anywhere else in the world. Dangerous estates everywhere. Germany/Netherlands/Denmark/Norway/Austria etc are all great places to live regardless of social standing/income but UK is awful!
An answer to your question.
1) Age of the banking organisations.
2) All of the overseas tax havens, which are of course, dependencies.
3) Family offices - trading with large overseas English speaking economic giants.
4) And very attractive tax incentives for investors in the UK economic centres.
The Industrial Revolution start in Great Britain, it actually started at Crompford Mills, Derbyshire
Paris and Berlin, remember WW2? This is why they dont have the long standing stability of London.
As a British Newspaper once wrote "Fog in channel, Europe cut off".
No. That never happened. It was a joke.
Could Britains success be due to the old adage 'if it ain't broke, don't fix it!'....making change for changes sake often bites, making change for progress usually pays dividends.
If you look at any UK city/town a huge portion of them are poor quality housing estates. UK never invested in it's people only it's rich. Today there are more scumbags per population than anywhere else in the world. Dangerous estates everywhere. Germany/Netherlands/Denmark/Norway/Austria etc are all great places to live regardless of social standing/income but UK is awful!
This was a good video. It has my official "Perry Thinks It's Good" stamp of approval. Always good to see a balanced and unbiased look at our capital city and it's very interesting and sometimes mysterious finances.
It's because when the "City of London" was established. The surrounding Cafe's & Coffee shops had Pulse tone dial up Wifi for trading on. 😎😎
Yes, the UK was the birthplace of the Industrial revolution, 1832.
Foreign exchange volumes in London are typically over $2 trillion PER DAY.
How about reacting to the fact that California often claims to have a bigger economy than the UK yet how often have we heard it is on the verge of bankruptcy and one of it's most important cities can't even afford to build a football stadium!
Agree! really good video! and pausing has never bothered me! I like it when you ask questions!
The reason why reason why rich people prefer to park their money in a London is because prestige associated with London. London is is an Alpha++ city in comparison to Paris, Zurich, Berlin, Munich, Rome, Vienna, Prague and Madrid. In addition, everyone speaks English in the UK and is a major tourist destination. Oxford, Dover, Canterbury, Cornwall, Windsor, York, Edinburgh, Isle of Skye are all major tourist cities outside London. So many tourist things to do and so much things to spend your money on. Also the UK in general is very safe, in comparison in the United States where people get shot left, right and centre. Lastly, it’s equal opportunities in the UK, regardless of your race.
The EU has been trying to take the financial crown off London since it started and particularly since Brexit , the trouble it can't sure it has and will t continue to take some but the fact it's physically separate form Europe and separate from the Euro is why it's used.. Just many EU banks have set up offices in London since Brexit as UK banks setting up in EU, and the it also interesting that the USA has taken more of EU financial money that the EU countries themselves .
The stability is down to our historic ability to spread our risk around the world as well as not being invaded for over 1000 years.
Not because it’s the default system. It’s because dirty money can be cleaned in huge amounts in London
Rolls Royce cars & Rolls Royce jet engines are totally different companies - start out the same, but not for a long time.
Yes they have been seperate since the 1970s, the car company was split a few years ago between BMW and Volkswagen
What channel was this from please?
Trade started off with boats up and down the river.
2 reasons for why London out competes the other european capitals: the city of London has existed longer than London and they have always had mandated stability for businesses (think bridges in the past and banking now). That combo is fairly unique.
His remarks about Rolls Royce cars and jet engines are slightly misleading. Rolls Royce Motors (car makers) split from Rolls Royce PLC (jet engines) in 1973. They're totally separate. Rolls Royce Motors is actually owned by BMW.
Paris, Berlin question. They’re more regulated socialist economies. The UK like the USA have more free trade laws. Also, London historically was and still is the global exchange for Gold, silver and other major commodities like coffee, tea, crude oil, metal, shipping, renewables etc. Also a major global centre for shipping and government insurance thru Lloyds A lot of this harks back to the British colonial days.
Simple, you set up and invest your company in the UK, you pay little tax but your 1000s of UK based employees make up for that in the end
Langauge is a big part of why those countries aren’t the biggest in banking. Also Swiss are more of a custodian banker not a trading banking nation. The Rothschild family aren’t the only family in the UK and they are split between Paris and London.
Hello, this will answer your questions regarding "why London has such a strong banking sector, compared to other European cities". You'll really enjoy this.
ruclips.net/video/np_ylvc8Zj8/видео.html
It was because of the British Empire and the importance of Britain around the world. The European banks pale into comparison to London.
London has been a trading hub for more than 1000 years. But thanks to us being total legends and creating an empire whilst it was still cool. Well yeah that meant money has been held or passed through the city consistently and its simply a place people now trust
I think the key advantage here, and you ask the question why not Paris, Switzerland etc, is the English language. 👍
If you're interested, there's a documentary here on RUclips called 'The Spider's Web: Britain's Second Empire'. Goes right in to detail about this stuff.
I learned a lot from this and from the informed comments !
More yes minister please
I think the video glorified the UK economy a bit, although I'm surprised they missed out ARM - essentially the chip in every mainstream smartphone (or computer with Apple M1) is licensed from ARM in Cambridge...if only we had the ability to manufacture these chips.
He did touch in the Highend manufacturing. We brits don’t really do mass production any more but you want some high end product where labour cost is not the highest percentage of manufacturing cost that we do very well.
The UK as a whole has had a hard time transitioning from being the low cost workshop of the world to being the high tech workshop of the world. And it not lauded to the ppl that we lead the world still in many areas. They think back to old days of empire and think it will come back.
Historically many of those cities you mentioned were or could be invaded. The last time Britain was successfully invaded was in 1066. I'ts about as safe as human beings allow safe to be and that is what the old money cherishes more than any other. Coming in as close second is favourable tax expectations. Not saying it's just or right but for the rich it is very, very, safe.
Paris and Berlin have significant histories of instability… some quite recent.
At 10.21 the white chalk cliffs is Beachy head in Eastbourne. Such a beautiful place and it has featured in many films over the years but it also has a darker side to it, it is the most notorious suicide spot in the country and in the top 3 in the world.. At its highest point of 531feet it is a sheer drop to the rocks below.
It also helps that nobody has successfully invaded GB since 1066
Sure the vikings took over a small chunk for some time after that but when you compare to Paris that was last successfully invaded less than 80 years ago it makes a difference
Well all of the wasn't invaded in 1066 was it.
Sorry to say but yes the US is a colony of the UK.
The viking invasions were before 1066 in fact the Norman conquest could be said to be the last of them
@@pedanticradiator1491 Normans were essential viking, Nor men men from the North
@@asl7235 I know
@@pedanticradiator1491 I know you Know, was just being pedantic :0, i sometimes misread and reply to quick, sorry to any radiators or any type of convex heaters i may have offended.
Our United Kingdom doesn't check people past credit and thier previous conviction therefore any criminal or war lord even can set up a fund unhinded
Why does London have all these financial services, and other capital cities in Europe do not? It is a result of history Connor: London has been a major financial world centre since the very early 1700's and we have immense experience in handling big money. We have a stable political background, and a strong respect for corporate law.
I think we are better at making people money ,been doing it long enough.And why does everything smack of jealousy from larger countries,especially France and Russia.Being bigger doesn't necessarily mean smarter .I love it when are wee island gets up people's noses.GSTQ 🇬🇧
I work in finance in London, Canary Wharf, which is the ‘second’ financial district in London behind The City of London (🥱boo, I know!). But I’m from Oxfordshire and I plan on heading home soon enough.
I love london Uk, to me london is the best city in the world.
Always London am from Sunderland north east England beautiful place not a concrete jungle like London . And we talked to people unlike miserable London which is no longer English
most non-londoners feel this way too.
And this is why I say everyone hates the English including most of the English.
I am from Birmingham. I am not fond of London but I realise it’s place in the UK as our Middleman with the rest of the world.
But hey what is English anyway? As some from Sunderland surely you are aware of the varied history of the Island of Great Britain? You must be considering how much non-native people invaded over the centuries.
Or maybe that is inconvenient for you idea of Englishness?
The EE video on Ireland is pretty good too. I recomend it.
The short answer to why not parts or Berlin....britain is just so much better at it than anyone else in Europe
This is why Londonigrad became the playground of oligarch.
Yes they trust us to do business stability is the key
The rothchilds I believe are originally German the name Rotesschild translates as red shield and they are originally from frankfurt
So is the English Queen they changed their name from Hanover to Windsor upon taking the English throne.
@Lord Omacron they're name was originally saxe-coburg-gotha and changed the name to Windsor in 1917 to make it less German obviously 👍🏼
@@Floody77 but still most of Europes royals were related in one way or another after centuries of political marriages.
@Lord Omacron very true if you can easily go back to victoria but really as far back as 1066 with William the conqueror
@@Floody77 I assume myself by thinking William the Bastard really did not want to be known as that so took a crack at the English throne to get a new moniker. ;)
Check out the video the corporation of London...and Britain's second empire will explain all of this 👍🏼
the colonies???!!?? so funny your reaction
To answer your question on why London, it's a throw back to their colonial history. There's an excellent documentary on RUclips on how the money men in the City of London (financial district) propelled London to a financial global city that competes with NY
Good reaction. Appreciate you honesty. We finally paid our debt to Iran recently. released 2 hostages. Should have happed 5 years ago.
Also we have the prime Median in Greenwich which goes back to shipping an empire and sets standards of time for the whole World. So if you are a trader in London you can reach out to more time zones throughout your day ... this can not be done in Sweden. Brexit will be a problem though
If you want to learn more about British British tax havens react to
‘Britain’s second empire’ (ruclips.net/video/-zT9pa5AOuE/видео.html)
I'm not 100% sure, but I believe the stock market was devised in a London coffee shop, making it the first to exchange stocks and shares, perhaps that's a good reason for London to be the financial centre of the world.
I dont think (not to say they dont have them but is far less of them than there once was) the Rothchilds have much (if any) business function in the UK anymore like they used to. Rather all stems from the person who started it allof their wealth was Meir Rothchild who got a job dealing with the wealthy elite money in German during the 1800s, the thing about those times Christians were forbidden/was illegal for anyone of that faith to make money from that work. Eventually Rothchild made a fortune from that and kept it within the family.
Not to say they dont run some pretty powerful financial institutions still, as they do factually do that but they're of far less power than they used to have as its split between the descendants of Meir Rothchild now.
The UK was the last great super power (USA is the current 1) they owned the world reserve currency, they had a massive empire, most of the world speaks English, they had the best universities, the industrial revolution and and exploited the riches of Asia East with the east India trading company and Hong Kong.
Yup! The Industrial Revolution was birthed right here in MANCHESTER!!!!!! 🇬🇧🇬🇧
Switzerland does have many similarities to us as a country. They have a proud history of banking and owe that to its history of being a relatively safe haven where there's little chance of massive shocks. Indeed, we are currently in the process of building greater ties with Bern due to them also having a falling out with the EU. However, Britain still maintains a slight edge on the world stage due to our former empire. Having once managed an enormous slice of the world economy, that translates to a far stronger position internationally
The swiss can’t be like the uk. Uk is an island so open to the world switzerland not