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Standing as the highest-ranking European city , London was also highlighted as the second-best smart city in the world by the IESE . The city is the capital and most populous city in the United Kingdom and is a nerve centre in areas such as the arts , commerce , education , entertainment , fashion , finance , media , research , tourism , and transportation . The report underlined London as the city best placed when it comes to human capital , and it was also recognised for its mobility and transportation , international outreach , economy , governance , technology and urban planning . JUNE 2019