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|London the New Silicon Valley
- City will be epicentre of European IT, saysGoldman Sachs
LONDON is on course to become the Silicon Valley of Europe, according to top investment bank Goldman Sachs.
"From a financial market perspective, London will be the epicentre of a European 'Silicon Valley'," said Paul Harvey, co-head of Goldman's technology division. "Europe didn't overspend on technology like the US did, so it is well placed to recover."
The news that one of the world's most influenetial houses is clearly backing London over rival European financial centres like Frankfurt will be welcome news for the City, which is keen to keep London on top.
Although investment in the tech sector has suffered in recent times, Sachs believe that in the long-run IT will help power London's financial markets onwards, by providing "business for the derivatives division because of the current volatility of the sector, and for the asset management division because of the new wealth it generates," Harvey said.