UK: LONDON: CITY GEARS UP FOR SINGLE EUROPEAN CURRENCY (2)

Spanish/Eng/Nat Workers in the city of London, Europe's largest financial centre, are gearing up for the launch of the new single European currency. Bank workers arriving for work on Thursday were having to prepare for the currency's launch despite the fact that the U-K will not be joining the euro in the immediate future. With only one day to go preparations are well under way for the launch of the Euro. And the first thing that the consumers will see of it are these Euro travellers cheques that are being printed in order to be ready for sale. At the Merrill Lynch investment bank, the preparations are in their final stages - and the staff is hoping it will pay off. SOUNDBITE: (English) "The market will be a much larger market there will be an increased liquidity into the European market, we believe that investors will invest in this market now and it will probably challenge the dollar in terms of major investment centres in the world" SUPER CAPTION: John McGowan, Managing Director of operation and technology Despite the U-K holding back from joining the new European single currency, its financial heart has to be ready to deal in euros. The preparation has taken a long time and much effort has been put in to make sure the introduction of the euro will be smooth But the main issue for traders in the City of London is the situation of the UK currency, the pound sterling SOUNDBITE: (Spanish) "In reality we have been looking at the euro on the screens along with the Deutchmark in these past months. I am not expecting any special effect to result from the introduction of the euro on the dollar and the yen in the next few weeks although there could be some effect of the pound sterling because many investors have been covering their position in bonds denominated in ecus against pound sterling. This is going to unravel in the next few weeks. And this could provoke high volatility in the pound. But I don't think it will majorly effect the dollar and the yen." SUPER CAPTION: Cesar Molinas, Economist Despite possible problems, optimism is high in Britain about the possibilities the euro could offer. SOUNDBITE: (English) "I think the long term future for the City of London is very good, it is the largest F-X centre, foreign exchange centre, in the world and I think it has a lot of potential. Q: And the euro does not threaten that position? A: The euro does not threaten that - it is another opportunity and the City has embraced that issue. SUPER CAPTION: Margaret Soden, H-S-B-C Senior Manager EMU (European Monetary Union) planning And the bankers hope their months of preparation for the euro will pay off. SOUNDBITE: (English) "It's been a lot of work for me for the last 18 months and hopefully it won't be too much over the next few days because it'll all go smoothly." (Q)"Do you think Britain has made the right decision to stay out for now?" "From a financial point of view no, on the economic side. Politically yes." SUPER CAPTION: Vox pop Many British people think their country will eventually end up using euros instead of pounds sterling. SOUNDBITE: (English) "I think they're saying about two year's time we'll be ready." (Q) "Do you think that's the right thing to do?" "I think so, yes, probably." SUPER CAPTION: Vox pop Despite the U-K's absence from the first wave of euro members, the City's banking on getting it right to prevent it from losing business to other European financial centres. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/0a3ec9a935a6427f8b541d65082a3514 Find out more about AP Archive: http://www.aparchive.com/HowWeWork

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