Europe not only leads the US in most areas of financial activity, but is also closing the gap where it is behind, according to the lobby group International Financial Services London. Duncan McKenzie, director of economics at IFSL, said: "In virtually all markets where Europe is smaller, it's catching up."

He was speaking after IFSL published a report showing that Europe outstripped the US in most financial sectors last year and, in most cases, activity in Europe grew faster.