London's status as powerhouse strong

LONDON (Reuters) - The position as a leading global city and finance hub is London's to lose despite private equity business increasingly moving to Asia from Europe, speakers said at the Reuters Hedge Funds and Private Equity Summit in London.

They added, however, that politicians should refrain from tinkering with London's regulatory and fiscal regime.

As the credit crunch takes its toll on the financial sector -- London's biggest generator of wealth -- and the government imposes new taxes, some say London risks losing its status as a leading world-class city and a magnet for foreign investment.

But speakers at the Summit said that London's position is almost assured as a magnet for foreign investment and as an operating base for companies.

To its advantage, it is situated between the US and Asia and benefits from a "light touch" style of regulation that investors are comfortable with.

"It's London's to lose, it really is," said John Studzinski, senior managing director at US buyout giant Blackstone, who has been at least part-based in London for more than 25 years although he was raised in the United States.

"It's a city with cross-cultural influences, where people can get staff -- and they can deal with Asia in the morning and New York in the afternoon."

The UK, through its history, also has a cultural understanding of both Asia and North America that puts it in an advantageous position for business in both those regions, said Studzinski.

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