Last week I had the pleasure of speaking to the London members of the TEAM network, regarding our viewpoint on what we are seeing in the London economy. Following up from the annual summit we organized the week before, this was a chance for TEAM members unable to attend, to get a briefing on what to expect this coming year. On that basis, our insights were as follows:

• Geopolitical risks are rising and the western alliance is fragmenting. The USA aligning with Russia at the UN is unprecedented – meanwhile there is a very real risk of a trade war between the EU and USA.
• Underlying uncertainty, also due to the changes in employment law, means that whilst companies are hiring, interim roles remain a popular mechanism for companies to bridge their immediate needs.
• Nationally London is outperforming the rest of the country. London centric sectors seem most resilient against the impact of the budget.
• However AI & Technology is starting to revolutionise white collar jobs in a way never seen before. The insurance industry saw record profits last year, yet posted fewer jobs. For example, claims now can be powered through AI engines which produce higher quality outcomes, faster.
• Fintech overall remains the darling of the London economy, and is continuing to grow and scale, in part as domestic champions start to expand internationally. Businesses such as Wise, Revolut and others are now competing globally and winning.
• In contrast Banking remains flat and the LSE is under pressure. Could PISCES reverse the tide?
• Real Estate & Construction is also set to do well as Government policy starts to manifest, especially in the Greater London area, as NIMBYs get marginalized.
• The Legal industry is also performing well, and specific teams in demand cover tax, employment and real estate, a reflection of the new government’s policies.
• Media is pivoting as martek advances. Meanwhile traditional publishers are all being forced to accept the new business model, the Guardian now is the latest to push everything behind a paywall.

Looking ahead, the UK’s position as a bridge between the USA and EU is becoming ever more pertinent, as the tensions rise between the two economic superpowers. Starmer has the potential to negotiate free trade deals with both, which could end up being hugely beneficial for the UK, equally how hard will it be to walk this line?

If you would like to have a private briefing on what is happening in your market, do get in touch, we can organize a workshop for you and analyse which are the areas to watch out for, what are the threats to watch, and where the opportunities may be.