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The Empire State is losing its grip as the nation’s financial services capital.

New York’s financial services industry – a great contributor to the state’s gross domestic product – has been imperiled by the plummeting population of high-income residents, who are fleeing amid towering taxes and rising housing costs, according to a sobering new study.

“As other states attract talent and investment in the sector, there is no guarantee of future success,” said the report from the Business Council of New York State.

“Addressing the states tax burden, business climate, and cost of living can help to ensure New Yorks position as a national and global leader for finance.”

Over the last three years, the top four states landing new high-paid financial services and insurance jobs over the last three years were Texas, Florida, North Carolina and Georgia, the analysis conducted by the Business Council found.

New York ranked 36th in terms of percentage growth — at a rate of a puny two-tenths of 1%.

“North Carolina and Florida have rapidly added jobs in the finance and insurance sector while New Yorks employment has remained below national growth trends,” the report said. 

Each finance sector employee generates nearly an additional three jobs in other sectors — so any loss of employment ripples through the entire economy, the study noted.

“This report should serve as a call to action for leaders across New York to forcefully address the competitiveness issues that threaten one of its most valuable and critical economic forces, the finance industry,” the study said.

The average compensation package in New York’s financial services industry is a nation-high $309,000 per year — $275,800 in salary plus $34,000 in other benefits.

The figures showed continuing trends of population decline in New York – with a 2.7% decrease from 2019 to 2022 — marking the worst loss among the 50 states during the COVID-19 pandemic.

Most of the population loss was in New York City and its suburbs, home of most of the state’s wealthiest residents.

A review of net migration of residents showed that the largest flight of gross income was from Manhattan at nearly $11 billion.

“The data confirms the flight of the wealthiest from the New York City area,” the business group’s review found.

In 2021 alone, the Empire State saw a net decline of $9.8 billion in income that migrated to Florida, according to the report.

It’s not a coincidence, the study said, noting that the Tax Foundation think tank rates New York as having the highest combined state and local tax rate on residents, and the Sunshine State the lowest.

“This single competitive factor [taxes] is likely playing an influential role in the migration of high-net-worth individuals as they have the most to gain by leaving a high-income tax state for a low, or zero, income tax state,” the study said.

It also pointed out that New York is also one of a small collection of states that levies a tax on estates, derisively referred to as the “death tax.”

“High-wealth individuals are likely factoring this tax into their location decisions,” the report said.

“Forceful action is necessary,” the analysis concludes. “The state will need to address the tax burden, business climate, and cost of living issues that hurt the states competitiveness.

“If the state does not address these issues, it risks losing its dominance in the finance and insurance industry, and ultimately, jeopardizes the health and prosperity of New Yorks economy.”

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World

Nicusor Dan beats hard-right favourite George Simion in surprise win in Romanian election

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Nicusor Dan beats hard-right favourite George Simion in surprise win in Romanian election

Pro-Western candidate Nicusor Dan has unexpectedly beaten hard-right populist George Simion in the Romanian presidential election.

Mr Simion, 38, and his rival – a centrist who’s mayor of Bucharest – faced off in the second round of the contest.

According to the official tally, Mr Dan was leading by nearly nine percentage points with more than 98% of the votes counted.

A view of electoral posters featuring presidential candidates Nicusor Dan and George Simion. Pic: Reuters
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Pic: Reuters

Nicusor Dan and his supporters celebrated the exit polls. Pic: Reuters
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Mr Dan and his supporters celebrated the exit polls. Pic: Reuters

After exit polls suggested he wasn’t going to win, Trump-supporting Mr Simion rejected the result and said estimates put him 400,000 votes ahead.

Speaking after voting ended, Mr Simion said his election was “clear” as he posted on Facebook: “I won!!! I am the new President of Romania and I am giving back the power to the Romanians!”

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George Simion on Trump, the EU – and his message to UK

Romania’s last election was annulled after its highest court ruled the leading candidate, nationalist Calin Georgescu, should be disqualified due to claims of electoral interference by Russia.

The result is surprising because in the first round, 38-year-old Mr Simion, founder of the right-wing Alliance for the Unity of Romanians (AUR), took 40.96% of the vote – almost 20 points ahead.

George Simion rejected the polls but official counting saw him slip behind. Pic: Reuters
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George Simion rejected the polls but official counting saw him slip behind. Pic: Reuters

Supporters of Mr Dan celebrated on the streets of the capital Bucharest. Pic: AP
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Supporters of Mr Dan celebrated on the streets of the capital Bucharest. Pic: AP

An opinion poll on Friday had it much closer, but still suggested the two men were virtually tied.

Mr Dan, a 55-year-old mathematician, is running as an independent and has pledged to clamp down on corruption.

He is also staunchly pro-EU and NATO, and has said Romania’s support for Ukraine is vital for its own security.

When voting closed at 9pm local time, 11.6 million people – about 64% of eligible voters – had cast ballots. About 1.64 million Romanians living abroad also took part.

About 11.6 million people - 64% of eligible voters - cast ballots. Pic: AP
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About 11.6 million people – 64% of eligible voters – cast ballots. Pic: AP

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The election is being closely watched across Europe amid a rise of support for President Donald Trump.

After polls closed, Mr Dan said “elections are not about politicians” but about communities and that in the latest vote “a community of Romanians has won, a community that wants a profound change in Romania”.

“When Romania goes through difficult times, let us remember the strength of this Romanian society,” he said.

“There is also a community that lost today’s elections. A community that is rightly outraged by the way politics has been conducted in Romania up to now.”

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UK

Teen arrested after Kayden Moy dies following ‘disturbance’ at beach in Ayrshire

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Teen arrested after Kayden Moy dies following 'disturbance' at beach in Ayrshire

A teenager has been arrested after a 16-year-old boy died following reports of a “disturbance” at a beach in Ayrshire.

Kayden Moy was found seriously injured by officers at Irvine Beach at around 6.45pm on Saturday.

The teenager, from East Kilbride, South Lanarkshire, was taken to hospital but died in the early hours.

Police Scotland said on Sunday evening that a 17-year-old boy had been arrested and enquires were continuing.

Officers believe the incident may have been filmed and have urged witnesses and anyone with information to come forward.

Kayden Moy. Pic: Facebook
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Kayden. Pic: Facebook

Pic: iStock
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The incident happened at Irvine Beach in Ayrshire, Scotland. File pic: iStock

Detective Chief Inspector Campbell Jackson said: “An extensive investigation is under way to establish the full circumstances surrounding this death.

“Our officers are supporting the boy’s family at this very difficult and heartbreaking time.

“From our investigation so far, we know there were a number of people on the beach around the time of the disturbance.

“We believe several of them were filming at the time and may have footage of what happened.

“I would urge people to review the footage they have and contact police if they think the footage captured could be of significance to our investigation.”

This can be submitted anonymously, the force said.

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Superintendent Jim McMillan added: “We understand this death will be of great concern for the local community, but please be assured that we are doing everything we can to identify those involved.

“There will be additional patrols in the area as we carry out our enquiries and anyone with any concerns can approach these officers.”

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UK

Post-Brexit EU reset negotiations ‘going to the wire’, says minister

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Post-Brexit EU reset negotiations 'going to the wire', says minister

Negotiations to reset the UK’s post-Brexit relationship with the EU are going “to the wire”, a Cabinet Office minister has said.

“There is no final deal as yet. We are in the very final hours,” the UK’s lead negotiator Nick Thomas-Symonds told Sky’s Sunday Morning with Trevor Phillips.

On the possibility of a youth mobility scheme with the EU, he insisted “nothing is agreed until everything is”.

“We would be open to a smart, controlled youth mobility scheme,” he said. “But I should set out, we will not return to freedom of movement.”

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The government is set to host EU leaders in London on Monday.

Put to the minister that the government could not guarantee there will be a deal by tomorrow afternoon, Mr Thomas-Symonds said: “Nobody can guarantee anything when you have two parties in a negotiation.”

But the minister said he remained “confident” a deal could be reached “that makes our borders more secure, is good for jobs and growth, and brings people’s household bills down”.

“That is what is in our national interest and that’s what we will continue to do over these final hours,” he said.

“We have certainly been taking what I have called a ruthlessly pragmatic approach.”

On agricultural products, food and drink, Mr Thomas-Symonds said supermarkets were crying out for a deal because the status quo “isn’t working”, with “lorries stuck for 16 hours and food rotting” and producers and farmers unable to export goods because of the amount of “red tape”.

Asked how much people could expect to save on shopping as a result of the deal the government was hoping to negotiate, the minister was unable to give a figure.

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On the issue of fishing, asked if a deal would mean allowing French boats into British waters, the minister said the Brexit deal which reduced EU fishing in UK waters by a quarter over five years comes to an end next year.

He said the objectives now included “an overall deal in the interest of our fishers, easier access to markets to sell our fish and looking after our oceans”.

Turning to borders, the minister was asked if people would be able to move through queues at airports faster.

Again, he could not give a definitive answer, but said it was “certainly something we have been pushing with the EU… we want British people who are going on holiday to be able to go and enjoy their holiday, and not be stuck in queues”.

PM opens door to EU youth mobility scheme

A deal granting the UK access to a major EU defence fund could be on the table, according to reports – and Prime Minister Sir Keir Starmer has appeared to signal a youth mobility deal could be possible, telling The Times that while freedom of movement is a “red line”, youth mobility does not come under this.

The European Commission has proposed opening negotiations with the UK on an agreement to facilitate youth mobility between the EU and the UK. The scheme would allow both UK and EU citizens aged between 18 and 30 years old to stay for up to four years in a country of their choosing.

Earlier this month, Home Secretary Yvette Cooper told Phillips a youth mobility scheme was not the approach the government wanted to take to bring net migration down.

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Lack of UK training ‘big driver of net migration’

When this was put to him, Mr Thomas-Symonds insisted any deal on a youth mobility scheme with Europe will have to be “smart” and “controlled” and will be “consistent” with the government’s immigration policy.

Asked what the government had got in return for a youth mobility scheme – now there had been a change in approach – the minister said: “It is about an overall balanced package that works for Britain. The government is 100% behind the objective of getting net migration down.”

Phillips said more than a million young people came to the country between 2004 and 2015. “If there isn’t a cap – that’s what we are talking about,” he said.

The minister insisted such a scheme would be “controlled” – but refused to say whether there would be a cap.

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‘It’s going to be a bad deal’

Shadow cabinet office minister Alex Burghart told Phillips an uncapped youth mobility scheme with the EU would lead to “much higher immigration”, adding: “It sounds very much as though it’s going to be a bad deal.”

Asked if the Conservatives would scrap any EU deal, he said: “It depends what the deal is, Trevor. And we still, even at this late stage, we don’t know.

“The government can’t tell us whether everyone will be able to come. They can’t tell us how old the young person is. They can’t tell us what benefits they would get.

“So I think when people hear about a youth mobility scheme, they think about an 18-year-old coming over working at a bar. But actually we may well be looking at a scheme which allows 30-year-olds to come over and have access to the NHS on day one, to claim benefits on day one, to bring their extended families.”

He added: “So there are obviously very considerable disadvantages to the UK if this deal is done in the wrong way.”

Jose Manuel Barroso, former EU Commission president, told Phillips it “makes sense” for a stronger relationship to exist between the European Union and the UK, adding: “We are stronger together.”

He said he understood fishing and youth mobility are the key sticking points for a UK-EU deal.

“Frankly, what is at stake… is much more important than those specific issues,” he said.

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