Billionaire Elon Musk says Twitter the social media company he is in the midst of rebranding as “X” will keep its headquarters in San Francisco despite the “doom loop” the city is facing as big-name businesses head for the exits.
Musk, who led a group of investors in acquiring Twitter that took the company private in a $44 billion deal last year, tweeted Saturday that the companys headquarters will remain in San Francisco despite receiving offers aimed at enticing the company to relocate.
“Many have offered rich incentives for X (fka Twitter) to move its HQ out of San Francisco. Moreover, the city is in a doom spiral with one company after another left or leaving. Therefore, they expect X will move too. We will not,” Musk explained.
“You only know who your real friends are when the chips are down. San Francisco, beautiful San Francisco, though others forsake you, we will always be your friend,” Musks tweet concluded.
San Franciscos economy has suffered from an exodus of businesses and residents in the last few years, creating a “doom loop” in which a local government enters a downward fiscal spiral as its tax base declines.
An urban doom loop involves a decline in workers present in offices in city centers, which results in businesses shrinking their office footprint and rental overhead.
The decline in demand causes real estate prices to fall, which in turn reduces property tax revenue while other sources of tax revenue, like sales tax, also take a hit due to the reduced traffic in downtown areas.
As the overall tax base declines, it becomes harder for city governments to fund public services like law enforcement as theyre forced to make trade-offs that include things like budget cuts or tax hikes to stabilize their finances both of which can drive more businesses and residents to depart if those policies have a negative effect on the economic climate or overall quality of life.
The growing popularity of remote work has accelerated that trend, decreasing the number of workers heading to the office on a daily basis as it becomes easier than ever for workers to live in suburban and rural areas without commuting.
The tech-heavy economy of San Francisco and criticisms of the city governments record on public safety issues have made it a case study in the dynamics that drive urban doom loops.
According to data from the Census Bureau, the population of San Francisco County declined by 7.5% from April 1, 2020, to July 1, 2022.
Commercial real estate firm CBRE released data in early July that showed that San Francisco had an overall office vacancy rate of 31.6% in the second quarter of 2023.
The CBRE report noted that in the last quarter “negative net absorption accelerated due to slow leasing activity, combined with a high volume of lease expirations and several new sublease listings.
This resulted in 1.83 million sq. ft. of occupancy loss, which increased the market-wide vacancy rate from 29.4% to 31.6%.”
Although Twitter isnt relocating its headquarters, the company has sought to shrink its office footprint in San Francisco and faced a lawsuit from its landlord earlier this year over unpaid rent although the social media company has faced similar suits at offices in Denver, Oakland and London since Musk acquired Twitter and began a broad cost-cutting push to stabilize its finances.
Amid Twitters rebrand to X, city officials filed a complaint and opened an investigation into whether the company had the proper permits to install an illuminated “X” atop its downtown headquarters.
Police had stopped the installation last week but later said there was a “misunderstanding” and that the incident was not a police matter.
City officials say a permit is required to change letters or signs on buildings or to erect a new sign on top of a building.
Hungarian authorities have banned the Irish rap group Kneecap from entering the country, accusing them of engaging in “antisemitic hate speech” and “supporting terrorism”.
Kneecap were set to perform at the Sziget Festival, taking place from 6 to 11 August in Budapest.
The Belfast-based band, which often shares pro-Palestinian messages during its shows, has attracted controversy in recent months after accusing the Israeli government of committing “genocide” in Gaza.
Hungarian government spokesman Zoltan Kovacs said on Thursday that the band’s members “repeatedly engage in antisemitic hate speech supporting terrorism and terrorist groups”.
“Hungary has zero tolerance for antisemitism in any form,” Kovacs said on X, adding that the band’s planned performance “posed a national security threat,” and the band has therefore been formally banned from entering Hungary for three years.
“If they enter, expulsion will follow under international norms,” Kovacs added.
Image: Kneecap performing during the Glastonbury Festival in June. Pic: Reuters
Responding to the spokesman’s comments, Kneecap said “there is no legal basis” for Hungary’s decision and that “no member of Kneecap has ever been convicted of any crime in any country”.
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“It is clear that this is a political distraction and a further attempt to silence those who call out genocide against the Palestinian people,” the band said in a statement on X.
During Kneecap’s gig at Britain’s Glastonbury Festival in June, frontman Liam Óg Ó hAnnaidh, performing under the stage name Mo Chara, accused Israel of war crimes in Gaza.
Ahead of the gig, Prime Minister Keir Starmer said he doesn’t think Kneecap’s planned performance was “appropriate”.
Image: Moglai Bap and Mo Chara of Kneecap perform at Glastonbury. Pic: Reuters
Following Kneecap’s performance at Glastonbury, a criminal investigation was launched into comments made on stage by the trio. However, police ultimately decided not to pursue further action, citing “insufficient evidence to provide a realistic prospect of conviction for any offence”.
Kneecap called the investigation “political policing intimidation”.
Mo Chara has been formally charged with a terrorism offence after allegedly displaying a flag in support of the militant group Hezbollah during a gig in November. He denies the offence.
Hezbollah is designated as a terrorist organisation by the UK and the US.
The head of the UK’s biggest mortgage lender has said he expects two more interest rate cuts this year, making borrowing cheaper.
Chief executive of Lloyds Banking Group Charlie Nunn told Sky News he expected the Bank of England to make the cuts two more times before 2026, likely bringing the base interest rate to 3.75%.
Two cuts are currently anticipated by investors, the first of which is due to be a 0.25 percentage point reduction next month.
The banking group owns Halifax and Bank of Scotland, making it the biggest provider of mortgages.
Mr Nunn also forecast house price growth of between 2 and 3%.
“We helped 34,000 first-time buyers in the first half [of the year] alone, 64,000 last year. And of course, it was driven by the stamp duty changes in Q1 [the first three months of the year]. So Q2 [the second three months] was a bit slower, but we continue to see real strength in customers wanting to buy homes and take mortgages. So we think that will continue,” he said.
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9:17
Expect two more rate cuts this year, says Lloyds boss
It comes as the bank reported higher profits than City of London analysts had expected.
Half-yearly profit at the lender reached £3.5bn as people borrowed and deposited more.
The bank has benefited from high interest rates, set at 4.25% by the Bank of England to control inflation, which have made borrowing more expensive for households and businesses.
Over the last six months, the difference between what Lloyds earns on loans and what it pays out rose.
Mr Nunn told Sky News the profits were due to increased market share in mortgages and small business lending, as well as productivity improvements.
Despite this, Mr Nunn warned the chancellor against raising taxes on financial services, saying it was one of the highest taxed in the world.
In Nasser Hospital in southern Gaza, they have virtually nothing left to eat.
Warning: This article contains images that some readers may find distressing.
Huda has lost half her body weight since March, when Israel shut the crossings into Gaza, and imposed a blockade.
The 12-year-old girl knows she doesn’t look well.
“Before, I used to look like this,” Huda says, pointing to a picture on her tablet.
“The war changed me. Malnutrition has turned my hair yellow because I lack protein. You see here, this is how I was before the war.”
Her mother says her needs are simple: fresh fruit and vegetables, fish, maybe a little meat – but she won’t find it here.
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Huda can only wish for a brighter future now.
“Can you help me travel abroad for treatment? I want to be like you. I’m a child. I want to play and be like you,” she says.
Image: Huda wishes for a brighter future
Amir’s story
Three-year-old Amir was sitting in a tent together with his mother, father and his grandparents when it was hit by projectiles.
Medical staff carried out surgery on his intestines and were able to stop the bleeding – but they can’t feed him properly.
Instead, he’s given dextrose, a mixture of sugar and water which has no nutritional value.
Image: Amir’s mother and siblings were killed in an attack that also left his father ‘in a terrible state’
Image: Medical staff performed surgery on three-year-old Amir – but can’t feed him properly
Amir’s mother and his siblings were all killed in the attack and his father is no longer able to speak.
“His father is in a terrible state and won’t accept the reality. What did these children do? Tell me, what was their crime?” Amir’s aunt says.
The desperate scenes of hungry children in Gaza have not been caused by scarcity.
There’s plenty of food waiting at the crossings or held in warehouses within the territory. Israel claims the United Nations is failing to distribute it.
Image: Amir’s relative holds pictures of the toddler and his family before the war
Both Israel and the US have taken charge of the food distribution, with the UN’s hundreds of aid centres shut.
Instead, the UN tries to organise convoys but says it can’t obtain the necessary permits – and faces draconian restrictions on aid.
Sometimes food is made available at communal kitchens called ‘tikiya’.
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3:49
Malnourished girl: ‘The war changed me’
‘I want life to be how it was’
Everyone is desperate for whatever they can get – and many leave with nothing.
“It’s been two months since we’ve eaten bread,” one young girl says. “There’s no food, there’s no nutrition. I want life to go back to how it was, I want meat and flour to come in. I want the end of the tikiya.”
Dr Adil Husain, an American doctor who spent two weeks at Nasser Hospital, treated a three-year-old called Hasan while he was there.
Weighing just 6kg, Hasan should be 15kg at his age.
“He needs special feeds, and these feeds are literally miles away. They’re literally right there at the border, but it’s being blockaded by the forces, they’re not letting them in, so it’s intentional and deliberate starvation,” Dr Husain tells me.
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