London gains over New York and Frankfurt

London apparently is the fastest growing financial center in the world today. Its raining jobs over there.

The increase in jobs - which has been accompanied by the return of big bonuses in the Square Mile -also reflects the fact that London has been gaining market share from other financial centres, including New York and Frankfurt.

Gordon Brown acknowledged the City'’s success in his budget speech. A Treasury report, Financial services in London: Global opportunities and challenges, said London, supported by regional financial centres, was "“succeeding in meeting the challenges of globalisation"”.

"“No other financial centre can match the scope of Britain'’s financial markets,"” it said, "and the government is committed to supporting and promoting these strengths around the world."” Gerard Lyons, head of research at Standard Chartered, welcomed Brown'’s acknowledgement of the City'’s success. "It is good that, at last, he is recognising it," he said.

According to the Treasury document, London is the location for 70% of the global secondary bond market, over 40% of the derivatives market, more than 30% of foreign-exchange business, over 40% of cross- border equities trading, and 20% of cross-border bank lending.

Two weeks ago The Sunday Times quoted James Cayne, chairman of Bear Stearns, the investment bank, saying London had "a shot"” at overtaking New York as the worldÂ’s financial centre.