Posts Tagged ‘globalization’
Bloomberg View’s Mark Gilbert writes about the advantages, and disadvantages, of London’s different Eurozone competitors for its financial industry. Paris seems to come out broadly in the lead.
Have you heard? The platforms of London’s St. Pancras train station and the departure lounges of its airports are packed with anxious investment bankers, ordered by their employers to relocate following Brexit.
Of course, that isn’t happening at all; the U.K. decision to leave the European Union hasn’t prompted an overnight exodus. But the banks that warned they’d consider moving thousands of staff out of a non-EU Britain are surely assessing “the next two weeks, two months and two years,” as consultancy firm KPMG put it when appointing one of its senior partners to be head of its new Brexit division. “The French government, the German government, a number of governments, are making, if I may call it this way, a case for people to move to their jurisdiction,” UBS Chief Executive Officer Andrea Orcel said on Tuesday. So which competing financial center looks most attractive?
On cost-cutting grounds alone, there are a number of options. London regularly vies with Hong Kong as the most expensive world city for renting office space. It ranks second according to figures compiled by real-estate firm CBRE for the first quarter of this year, with Paris 14th, Dublin at 30th and Frankfurt down at 47th. For a bank seeking a cheap European office, Frankfurt and Luxembourg look the best bets:
For a human resources department seeking the best overall environment for its employees, Frankfurt also looks attractive. In its annual scorecard of cities based on overall quality of life, including considerations such as political stability, economic backdrop, personal freedom and school systems, the consulting firm Mercer ranks the German financial capital as the seventh best place to live. Its 2016 ranking of 230 cities puts Luxembourg 19th and Dublin 33rd[.]
Bankers ordered to relocate can anticipate lower housing costs wherever they end up. For city-center apartments, London is the second most expensive city in Europe after Monaco, with Paris third at almost half the cost, and Luxembourg 10th. Frankfurt and Dublin, though, are even cheaper[.]
The Inter Press Service’s Aruna Dutt looks at urban agriculture in the world, starting from New York City.
Habitat III, the UN’s conference on cities this coming October will explore urban agriculture as a solution to food security, but here in New York City, it has shown potential for much more.
Record-high levels of inequality are being felt most prominently in the world’s cities. Even In New York City, the heart of the developed world, many urban communities have food security issues.
Since the year 2000, New York City food costs have increased by 59 percent, while the average income of working adults has only increased by 17 percent.
Forty two percent of households in the city lack the income needed to cover necessities like food, shelter, clothing, transportation, and healthcare but still earn too much to qualify for government assistance.
Last year, OneNYC was introduced, a plan specifically aligned with the United Nation’s Sustainable Development Goals, aiming to lift 800,000 people out of poverty in a decade.
What do you think will come of the Brexit referendum? Will the United Kingdom survive Scotland? Will the European Union survive Brexit? What of the great glittering edifice of globalization generally–will it make it?
The Wall Street Journal‘s Simon Clark and Anuj Gangahar report on the potential for catastrophe in the post-Brexit London financial industry.
London risks losing thousands of finance jobs to other European cities following the U.K.’s historic vote to leave the European Union.
Keeping those jobs here depends on the U.K.’s ability to strike a political deal that allows it—now as an outsider—to access the trading bloc’s single market, according to a senior official at the City of London Corp.
The City of London Corp. has governed the square mile around the Bank of England and St. Paul’s Cathedral for centuries. Its leaders campaigned to remain in the EU in the run-up to Thursday’s referendum. Their stance was backed by many executives at the big global banks and other financial companies. Together they wanted to retain access to the EU’s single market of more than 500 million citizens.
Hundreds of thousands of people work in the City of London district, and thousands more work in finance jobs elsewhere in the U.K. capital.
“The City will remain a major international financial center whatever, but clearly the nature and its size will depend on what we can negotiate,” Mark Boleat, the City of London’s policy chairman, said in an interview on Friday morning after the result of the referendum became clear. “There was never going to be a mass exit of banks in terms of numbers. The question for us is whether they are here with 15,000 staff or 5,000.”