carried out in london and elsewhere in the uk are in future carried out elsewhere in europe. but as i have discussed earlier this evening, the re - emergence of london as the world ’ s leading financial centre over the past 50 years, despite the decline in importance of the uk in the world economy, is the product of many factors. it may in part be due to london ’ s role as europe ’ s financial centre. but the scale and scope of broader international activity here suggests that clustering effects such as labour market externalities, specialised inputs and knowledge transfer have become even more powerful in a world of financial globalisation. it is conceivable that given time these effects and the benefits they bring in terms of more efficient allocation of capital and risk could be replicated elsewhere in europe. it is in my view more likely that if they are lost in london they would be lost to europe – for the foreseeable future at the least. fragmentation of wholesale financial markets activity in europe, to the extent it occurs, is likely to have a general cost to european economies, including the uk. and to the extent that the transition to whatever new arrangements will apply is not orderly and smooth, the costs and risks will be greater. this is of course a technocrat ’ s view and these issues, rightly, will not be settled by technocrats. the impact of brexit on european financial markets is only a part of a much broader set of considerations. as an ex eu negotiator, i have some inkling of how many other factors can come into play. whatever the outcome, and the twists and turns on the way, the bank will continue to focus on its role in protecting financial stability. financial markets have come a long way since cunliffe bros became a founding member of the accepting houses committee at the end of the first wave of financial globalisation. after a long hiatus, the second wave has led to an even greater development of large, interconnected and complex financial centres. but the markets here and the ecosystem that supports them, the challenges they face and the risks they pose, remain as central to the bank ’ s objectives and responsibilities as they have ever done. all speeches are available online at www. bankofengland. co. uk / publications / pages / speeches / default. aspx chart 1 uk current account ( % of gdp ) source : bank of england. all speeches are available online at www. bankofengland. co

is fiscal space to pursue infrastructure investments geared towards increasing the productive capacity of the economy. and the new administration has promised to ramp up infrastructure spending. on the part of the bsp, we will continue to be steadfast in delivering on our mandates of maintaining price and financial stability in the economy, thereby serving as the wind at the back of our stakeholders, including investors like you. based on the unctad ’ s export similarity index. bis central bankers ’ speeches the philippines presents excellent relative value ladies and gentlemen, the philippines means business. while the challenges to the investment environment appear formidable, our collective vigilance and prudence will help us achieve our objectives of sustainable growth, as well as stability. i trust that the bsp can further engage you in pursuing the economic agenda of the philippines. at the top of my remarks, i said investing is all about relative values. i hope that in the time that had been given to me, i have been able to show you that the philippines presents excellent relative value, an investment choice that will allow you to achieve your target risk / return and more. thank you very much and i wish everyone a productive forum. bis central bankers ’ speeches