Z/Yen Group 5-7 St Helen’s Place London EC3A 6AU United Kingdom tel: +44 (20) © Z/Yen Group 2009 CFIR Conference 19 March 2009 Copenhagen’s Position: Global Financial Centres Index 5 Professor Michael Mainelli Image Goes Here!

© Z/Yen Group 2009 Global Financial Centres Index GFCI Background Headlines Copenhagen The Current Crisis Conclusions Z/Yen City of London’s leading commercial think-tank Key role in financial markets: banking, trading, broking, insurance clients global investment banking operations benchmarks Numerous successful initiatives including: Taskforce 2000 Farsight Award London Accord Global Intellectual Property Index

© Z/Yen Group 2009 What We Already Know Key areas of competitiveness: People Business Environment Market Access Infrastructure General Competitiveness

© Z/Yen Group 2009 Why Study Financial Centres? Financial centres add value by directing investment toward innovation and growth Vibrant, competitive financial centres give cities economic advantages in information, knowledge and access to capital Being part of the global financial network ensures that cities gain from global trade and growth Policy creates successful financial centres

© Z/Yen Group 2009 The GFCI Process 26,629 assessments from 1,455 respondents 57 Instrumental Factors

© Z/Yen Group 2009 Sample Instrumental Factors People: Executive MBA Global Rankings, Financial Times European Human Capital Index, Lisbon Council Human Development Index, UNDP Quality of Living Survey, Mercer HR Happiness Scores, NationMaster Business Environment: Administrative and Economic Regulation, OECD Index of Economic Freedom, Heritage Foundation Total Tax Receipts (As a Percentage of GDP), OECD Ease of Doing Business Index, World Bank Opacity Index, Kurtzman Group Corruption Perceptions Index, Transparency International Market Access: Capital Access Index, Milken Institute Securitisation Levels, IFSL Global Banking Service Centres, GaWC The International Finance Index, D Wojcik, Oxford University Infrastructure: Office Space Across The World, Cushman & Wakefield, Healey & Baker Competitive Alternatives Survey, KPMG Global Office Occupancy Costs, DTZ Offices With Air Conditioning, Gardiner & Theobald European Cities Monitor, Cushman & Wakefield, Healey & Baker General Competitiveness: City Brands Index, Anholt Global Competitiveness Index, World Economic Forum Economic Freedom of the World Index, Fraser Institute

© Z/Yen Group 2009 Top Ten GFCI Cities London1 (1) 781 (791) Remains 1 st - 13 points ahead of New York but concerns over regulation and taxation New York2 (2) 768 (774) Top quartile in over 80% of its instrumental factors Singapore3 (3) 687 (701) Retains 3 rd place over Hong Kong Hong Kong4 (4) 684 (700) Remains a very strong Asian and International centre Zurich5 (5) 659 (676) Strong niche centre, private banking & asset management. Geneva6 (6) 638 (645) Third financial centre in continental Europe Chicago7 (8) 638 (641) Slipped only 3 points whilst others dropped more Frankfurt8 (9) 633 (636) Moved up to 8 th – financial system in Germany is more stable than in London and New York Boston9 (11) 618 (625) Back into the top 10 – strong increase in financial centre assessments Dublin10 (13) 618 (622) Into the top 10 despite concerns over the Irish economy

© Z/Yen Group 2009 Headline Findings Two global financial centres – London and New York – mutually supportive, and competitive A city has to be good in all areas to be a global centre – London and New York are 1 st and 2 nd in all five areas of competitiveness – the ‘Anna Karenina’ principle High degree of uncertainty but a ‘Flight to Safety’ Regulation now seen as more important than People Factors Respondent: “If you are in global financial services you need to be in London and you need to be in New York – you’re not a global player if you’re not in these two centres”.

© Z/Yen Group 2009 Northern Europe Index

© Z/Yen Group 2009 Copenhagen – Assessments by Location

© Z/Yen Group 2009 Copenhagen’s Industry Sector Performance

© Z/Yen Group 2009 Copenhagen – Key Strengths World Competitiveness Scoreboard Global Competitiveness Index Business Environment Index of Economic Freedom Economic Freedom of the World Ease of doing Business Index Corruption Perception Index Quality of Living

© Z/Yen Group 2009 Sensitivity And Variance Unpredictable Stable

© Z/Yen Group 2009 Instrumental Factor Performance Top 27 Factors: Copenhagen v Amsterdam – higher in 21 and lower in 5 Copenhagen v Stockholm - higher in 16 and lower in 6 (equal in three) Copenhagen v Helsinki - higher in 19 and lower in 6 Copenhagen v Oslo - higher in 20 factors and lower in 3 Copenhagen v Hamburg - higher in 20 factors and lower in 2

© Z/Yen Group 2009 Instrumental Factor Performance Clearly more competitive than Helsinki, Oslo and Hamburg Significant advantages over Amsterdam and Stockholm BUT Lower in GFCI – another factor helping Amsterdam and Stockholm which is less powerful in Copenhagen?

© Z/Yen Group 2009 Reputation Reputational Advantage - higher average assessment than the GFCI rating Perceptions about a centre (a measure of reputation) are higher than the quantitative measures alone Out of 62 centres in GFCI 5 – Copenhagen is 61 st in reputational advantage Respondent: “I am slightly surprised that Copenhagen is not higher up the GFCI rankings – it’s a great place to do business and I’d rate it higher than Amsterdam”.

© Z/Yen Group 2009 Information Technology GFCI measures financial centres is interested in Finance and IT E-readiness Score (EIU) - reliable index of ICT development, Denmark performs very strongly in this measure The financial services industry has an increasing reliance on ICT. The strong standing of Denmark in this area indicates that there could be a strong potential for Copenhagen to increase its standing in financial services

© Z/Yen Group 2009 Interesting Trends (IT) The Cloud Lowering low latency De-MIP-ifying IT

© Z/Yen Group 2009 Credit Crunch Effects? [Source:

© Z/Yen Group 2009 GFCI 6 – September 2009 Participate yourself - More factors More centres More detailed industry sector analysis

© Z/Yen Group 2009 Thank You! Probably the Best Financial Centre in the World...