Question by cheukpan@ymail.com: New York and Shanghai?
The two planet-class international monetary cities.
Please examine two cities in diverse aspects.
Ideal answer:
Answer by Kelly>Alpha
Wall Street’s preeminent investment bank disclosed that, for the initial time in its 138-year history, its international revenue had matched that in the U.S. “The trends in practically all of our firms are to be increasing more quickly outside the United States than inside,” David Viniar, the firm’s CFO, told a group of analysts. “So 50 % was truly a matter of time. It was going to happen, and it has occurred now.”
In New York, there had been other issues to fret about than the transformation of what was when a tiny Wall Street firm into a worldwide investment bank. It was an additional story in Washington, D.C., where monetary leaders from Warren Buffett to John Thain, chief executive of the New York Stock Exchange and a former president of Goldman, had gathered that morning to debate whether Wall Street was losing its grip.
They had been invited by Hank Paulson, Treasury secretary (and a former chairman of Goldman), after months of agonizing by Washington politicians and New York financiers about the city’s location in the globe. Right after a century of dominating global finance, New York is facing a rivalry 3,500 miles to the east. When Viniar talks about development outside the U.S., what he means above all is the City of London.
Goldman had only 50 employees in London a quarter of a century ago but now has six,500 there, and the quantity keeps increasing. Final week, it announced that it was moving John Waldron, one particular of its most talented young bankers, to London to work on a flood of private-equity takeovers in Europe. In February, it said that Edward Forst, its worldwide chief administrative officer, will now be primarily based in London.
This reflects the flow of organization. Last year, there was a drought of initial public offerings by international businesses on the NYSE. In the nineties, a listing in New York became a badge of honor for European and Asian organizations. (European businesses such as Daimler-Benz would go by way of a painful struggle to comply with U.S. normally accepted accounting principles to ring the opening bell above the NYSE floor.)
But firms have found other locations to go for capital. Only 1 of the 24 greatest international IPOs in 2005 was in New York. The Industrial and Industrial Bank of China’s $ 21.9 billion IPO—the world’s biggest ever—took location in Hong Kong and Shanghai, and London gained IPOs from Russia and East European countries. The FTSE 100 index of the U.K.’s most useful companies now consists of Kazakhmys, a Kazakhstan copper-mining group.
Just as worrying, London is quickly emerging as a center of financial innovation. London-based hedge funds are snapping up house in Mayfair, and London has also outgrown New York to become the world’s center of more than-the-counter derivatives. It is even displaying signs of catching up with the U.S. in bond trading and securitization. While New York remains the monetary center to beat, London has momentum.
Not every person believes that this matters. London may be expanding faster, but Wall Street is nevertheless growing: The economic-services sector added 7,800 jobs in New York in the first eight months of 2006. Wall Street bonuses reached a record of $ 23.9 billion last year, with Lloyd Blankfein (Goldman’s chairman) alone taking residence $ 53.four million. “Look out of the window,” the chairman of one particular investment bank says dismissively. “There is money everywhere.”
But politicians from Michael Bloomberg to Chuck Schumer are concerned about London’s resurgence. Dan Doctoroff, New York City’s deputy mayor for economic improvement, watched London swoop past his city and Paris, the preferred, to obtain the 2012 Summer season Olympics. “It is effortless to say New York is performing effectively now, but history is littered with companies, cities, and individuals who took their good results for granted,” he says….Something to chew on…thank you
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