From the Wall Street Journal: “Outside the Bank of England, a makeshift memorial recently appeared: a lamppost decorated with flowers and a sign: ‘In Loving Memory of the Boom Economy.’ The financial crisis is hitting many drivers of London’s growth as a global financial capital in recent years. London’s economy appears to be changing in fundamental ways, and, with it, the psyche of the City. … Some of the bankers, lawyers and other professionals who made London the preferred port of call for the rest of the world’s money are moving to places such as Dubai and Shanghai. Residential property prices have fallen 12.1% this year through late September, according to British real-estate company Savills PLC. About 19% of houses sold this year in central London for between £2 million and £4 million ($3.4 million and $6.9 million) were purchased by people born outside the U.K., down from 32% in 2007, estimates Savills’ director of residential research, Lucian Cook.”
I wrote in the latest Observer print edition about the improbable end of the New York-London race to be the world’s financial capital.