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New York overtakes London as top financial center; Brexit blamed

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New York has overtaken London as the world’s most attractive financial center, a survey said on Wednesday, as Britain’s decision to leave the European Union prompts banks to shift jobs out of the city to preserve access to Europe’s single market.

Brexit poses the biggest challenge to the City of London’s finance industry since the 2007-2009 financial crisis, since it might mean banks and insurers lose access to the EU, the world’s biggest trading bloc.

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New York took first place, followed by London, Hong Kong and Singapore in the Z/Yen global financial centers index, which ranks 100 financial centers on factors such as infrastructure and access to quality staff.

London’s ranking fell by eight points from six months ago, the biggest decline among the top contenders. The survey’s authors said the drop reflected the uncertainty around Brexit.

“We are getting closer and closer to exit day and we still don’t know whether London will be able to trade with all the other European financial centers,” Mark Yeandle, the co-creator of the index, told Reuters.

“The fear of losing business to other centers is driving the slight decline and people are concerned about London’s competitiveness.”

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Since Britain voted more than two years ago to leave the EU, some of the world’s most powerful finance companies in London have begun moving staff to the EU to preserve the existing cross-border flow of trading after 2019.

Around 5,000 roles are expected to be shifted or created in the EU from London by March next year, the date of Britain’s EU exit, a study by Reuters published in March found.

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The head of the City of London financial district predicted in July that 3,500 to 12,000 financial jobs would go because of Brexit.

The past year has seen a pick-up in the number of banks saying they plan to set up new EU subsidiaries after Brexit. Most major U.S., British and Japanese banks said they would build up operations in Frankfurt, Paris or Dublin.

Other European centers moved in the global rankings. Zurich rose to ninth place from 16th place six months ago. Frankfurt rose to 10th from 20th place and Amsterdam climbed to 35th place from 50th place.

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“London and New York have long vied for the top spot of this index and the uncertainty around the future shape of Brexit is likely to be factor in their latest switch in positions,” said Miles Celic, chief executive of the lobbying group TheCityUK. “In a competitive world we cannot afford complacency.”

Reporting By Andrew MacAskill; editing by Guy Faulconbridge, Larry King

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Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. Unlike other news sites, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from corporate overlords, we fight to ensure no one is forgotten.

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Missouri official choose Dr. Seuss’ ‘Oh the Places You’ll Go’ for swearing-in ceremony instead of ‘The Bible’

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A Missouri county official is being both celebrated and attacked after a decision to forgo The Bible for her swearing-in ceremony and opted for a copy of Oh, The Places You'll Go by Dr. Seuss.

The Friendly Atheist at Patheos captured the story, posting a photo of St. Louis City Councilmember Kelli Dunaway's children holding a copy of the book while she took her oath of office.

This was the scene last week at the STLCO government center. Democrats took back control of the council and @DunawayKelli was sworn in on a copy of “Oh the Places you’ll go” with her children❤️ so proud to be part of #TeamKelli pic.twitter.com/iJ1dxfZ1Zg

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In a permission tweet, President Donald Trump announced that his presidency is the only thing keeping the New York Times in business. Yet, somehow, they're also attacking him and lying about him.

"The New York Times will be out of business soon after I leave office, hopefully in 6 years. They have Zero credibility and are losing a fortune, even now, especially after their massive unfunded liability. I'm fairly certain they'll endorse me just to keep it all going!" he tweeted.

https://twitter.com/realDonaldTrump/status/1163238629730373632

Since taking office, subscriptions for The Times have increased dramatically. According to an August report, The Times boasted a 4.7 million increase in subscribers for the second quarter. Their revenue growth was 5.2 percent. It certainly is a modest increase, but it's also an increase in an era when newspapers are struggling to survive.

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