London is top city for investment, KPMG report says

Canary Wharf Crossrail station
Image caption London attracts investment in property and infrastructure projects, such as Crossrail

London remains the top city in the world for foreign investment, according to a report that reflects the rise of emerging economies.

The next two cities are Shanghai and Hong Kong, China's financial capitals, consulting firm KPMG and Greater Paris Investment Agency said.

Brazil's Sao Paulo had the biggest leap, to fourth, increasing investment by 160% over the past two years.

Other cities in the Bric group of nations also rose strongly.

Brazil, Russia, India and China are all growing at a blistering pace, while Europe has been in a slump and Europe hard-hit by a sovereign debt crisis.

It comes as Brazil recently became the sixth-biggest economy in the world, overtaking the UK. Its total output is worth $2.5tn (£1.6tn) and its financial capital is Sao Paulo.

This is often seen as part of a symbolic transition of power from industrialised countries to emerging economies.

In 2011, China officially overtook Japan as the world's second-biggest economy.

China and India together now constitute 25% of investments, KMPG said.

And Moscow has received a 60% jump in investment in the past two years, landing itself in eight place.

The five cities at the top - including New York - took 50% of the the total investment to the biggest 22 cities, KPMG said in its latest Global Cities Investment Monitor.

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