Sunday 2 August 2015 11:16 pm

Research reveals London’s lead as Europe’s top financial centre

London was top of the pile of Europe’s biggest financial centres during the first three months of the year, with new research shedding light on the City’s contribution to the UK economy.The London Stock Exchange accounted for 28 per cent of total funds raised in Europe during the three months to March, according to research published today by TheCityUK.European merger and acquisition activity totalled $185bn (£118bn) in the first three months of the year. It was dominated by London, with the UK accounting for 41 per cent of total deal values. Europe accounts for a quarter of global merger and acquisition values.Including both acquisitions and disposals by UK companies abroad and foreign companies in the UK, 70 deals worth £16.7bn were completed in the first three months of 2015.The City is also a major attraction for foreign investors. Foreign direct investment (FDI) represented 14.2 per cent of total UK investment.The UK is a key destination for financial services FDI in particular. Since 2010, the sector has consistently accounted for around 25-50 per cent of total FDI, TheCityUK said.