63. New York - The Financial Capital of World

Updated: Jun 6, 2020

Why New York is Financial Capital of the World ?


New York City (NYC), often called The City or simply New York (NY), is the most populous city in the United States. With an estimated 2018 population of 8,398,748 distributed over about 302.6 square miles (784 km2), New York is also the most densely populated major city in the United States. Located at the southern tip of the U.S. state of New York, the city is the center of the New York metropolitan area, the largest metropolitan area in the world by urban landmass. With almost 20 million people in its metropolitan statistical area and approximately 23 million in its combined statistical area, it is one of the world's most populous megacities.


New York City has been described as the cultural, financial, and media capital of the world, significantly influencing commerce, entertainment, research, technology, education, politics, tourism, art, fashion, and sports. Home to the headquarters of the United Nations, New York is an important center for international diplomacy.


Pic : New York City


Situated on one of the world's largest natural harbors, New York City is composed of five boroughs, each of which is a county of the State of New York. The five boroughs—Brooklyn, Queens, Manhattan, the Bronx, and Staten Islandwere consolidated into a single city in 1898. The city and its metropolitan area constitute the premier gateway for legal immigration to the United States. As many as 800 languages are spoken in New York,[18] making it the most linguistically diverse city in the world. New York is home to more than 3.2 million residents born outside the United States, the largest foreign-born population of any city in the world as of 2016.


As of 2019, the New York metropolitan area is estimated to produce a gross metropolitan product (GMP) of $2.0 trillion. If the New York metropolitan area were a sovereign state, it would have the 8th largest economy in the world. New York is home to the highest number of billionaires of any city in the world. New York City traces its origins to a trading post founded by colonists from the Dutch Republic in 1624 on Lower Manhattan; the post was named New Amsterdam in 1626.


The city and its surroundings came under English control in 1664 and were renamed New York after King Charles II of England granted the lands to his brother, the Duke of York.


1911 - A Trip Through New York City (speed corrected and added sound)


Please watch below video


https://www.youtube.com/watch?v=aohXOpKtns0


New York was the capital of the United States from 1785 until 1790,and has been the largest U.S. city since 1790. The Statue of Liberty greeted millions of immigrants as they came to the U.S. by ship in the late 19th and early 20th centuries and is a symbol of the U.S. and its ideals of liberty and peace. In the 21st century, New York has emerged as a global node of creativity and entrepreneurship and environmental sustainability, and as a symbol of freedom and cultural diversity. In 2019, New York was voted the greatest city in the world per a survey of over 30,000 people from 48 cities worldwide, citing its cultural diversity.


Many districts and landmarks in New York City are well known, including three of the world's ten most visited tourist attractions in 2013. A record 62.8 million tourists visited New York City in 2017. Times Square is the brightly illuminated hub of the Broadway Theater District, one of the world's busiest pedestrian intersections, and a major center of the world's entertainment industry.

Pic : Wall Street - New York Stock Exchange


Many of the city's landmarks, skyscrapers, and parks are known around the world. Manhattan's real estate market is among the most expensive in the world. New York is home to the largest ethnic Chinese population outside of Asia, with multiple distinct Chinatowns across the city. Providing continuous 24/7 service and contributing to the nickname The City that Never Sleeps, the New York City Subway is the largest single-operator rapid transit system worldwide, with 472 rail stations.


The city has over 120 colleges and universities, including Columbia University, New York University, Rockefeller University, and the City University of New York system, which is the largest urban public university system in the United States.Manhattan is home to the world's two largest stock exchanges by total market capitalization, namely the New York Stock Exchange, located on Wall Street in the Financial District of Lower Manhattan, and NASDAQ, headquartered in Midtown Manhattan.


Pic : Inside New York Stock Exchange - Trading in Progress


I. Etymology


In 1664, the city was named in honor of the Duke of York, who would become King James II of England. James's older brother, King Charles II, had appointed the Duke proprietor of the former territory of New Netherland, including the city of New Amsterdam, which England had recently seized from the Dutch.


II. Early history


In the precolonial era, the area of present-day New York City was inhabited by Algonquian Native Americans, including the Lenape. Their homeland, known as Lenapehoking, included Staten Island, Manhattan, the Bronx, the western portion of Long Island (including the areas that would later become the boroughs of Brooklyn and Queens), and the Lower Hudson Valley.



Pic : Goldman Sachs Head Quarters, New York


The first documented visit into New York Harbor by a European was in 1524 by Giovanni da Verrazzano, a Florentine explorer in the service of the French crown. He claimed the area for France and named it Nouvelle Angoulême (New Angoulême). A Spanish expedition, led by the Portuguese captain Estêvão Gomes sailing for Emperor Charles V, arrived in New York Harbor in January 1525 and charted the mouth of the Hudson River, which he named Río de San Antonio (Saint Anthony's River). The Padrón Real of 1527, the first scientific map to show the East Coast of North America continuously, was informed by Gomes' expedition and labeled the northeastern United States as Tierra de Esteban Gómez in his honor.


In 1609, the English explorer Henry Hudson rediscovered New York Harbor while searching for the Northwest Passage to the Orient for the Dutch East India Company. He proceeded to sail up what the Dutch would name the North River (now the Hudson River), named first by Hudson as the Mauritius after Maurice, Prince of Orange. Hudson's first mate described the harbor as "a very good Harbour for all windes" and the river as "a mile broad" and "full of fish". Hudson sailed roughly 150 miles (240 km) north, past the site of the present-day New York State capital city of Albany, in the belief that it might be an oceanic tributary before the river became too shallow to continue.


He made a ten-day exploration of the area and claimed the region for the Dutch East India Company. In 1614, the area between Cape Cod and Delaware Bay was claimed by the Netherlands and called Nieuw-Nederland (New Netherland).


Pic : On the Banks of Hudson River, New Jersey ( New York City on Other side )

The first non-Native American inhabitant of what would eventually become New York City was Juan Rodriguez (transliterated to Dutch as Jan Rodrigues), a merchant from Santo Domingo. Born in Santo Domingo of Portuguese and African descent, he arrived in Manhattan during the winter of 1613–14, trapping for pelts and trading with the local population as a representative of the Dutch. Broadway, from 159th Street to 218th Street in Upper Manhattan, is named Juan Rodriguez Way in his honor.


III. What Makes a City a Global Financial Hub ?


A financial center, or a financial hub, refers to a city with a strategic location, leading financial institutions, reputed stock exchanges, a dense concentration of public and private banks and trading and insurance companies.


In addition, these hubs are equipped with first-class infrastructure, communications

, and commercial systems, and there is a transparent and sound legal and regulatory regime backed by a stable political system. Such cities are favorable destinations for professionals because of the high living standards they offer along with immense growth opportunities.


Pic : At Entrance of Empire State Building, 33rd Street, New York


1.The Banking Industry


As the merchants were busy shipping goods, they needed financing. One of the oldest banks in the US, Bank of New York,was founded in 1784. ... This arrangement grew to be to the New York Stock Exchange and the street became the world famous "Wall Street".


2. Killer Mix of Different Industries and Qualified Manpower in One Place


Because it is the generally acknowledged capital of finance, fashion, advertising and business. It has the fastest growing tech ecosystem in the world, more college students than any other city, more museums, it is the largest city in the United States, and is the second largest real estate market in the world.


3. In General, Key Takeaways


Cities that are concentrations of commerce, trading, real estate, and banking tend to become global financial hubs.

  • These important cities employ a large number of financial professionals and are home to stock exchanges and corporate headquarters for investment banks.

  • Found around the world, examples include New York City, Frankfurt, and Tokyo.


4. This is Why New York became the Financial Capital of World ?


New York, commonly regarded as the finance capital of the world, has been ranked first in the World’s Financial Centers by the Global Financial Centers Index (GFCI). New York is famous for Wall Street, the most happening stock market and the New York Stock Exchange (NYSE), the largest stock exchange by market capitalization.


The city is a mix of various cultures from across the globe providing a diverse population and workforce. It plays host to some of the largest and finest companies (Fortune 500 and Fortune 1000), biggest banks (Goldman Sachs, Morgan Stanley, and Merrill Lynch, JP Morgan) and industries.


It is difficult to find a big name in the world of business that does not have a presence in the city. 


Pic : Park Avenue


5.New York overtakes London as world’s financial capital amid Brexit chaos, survey claims


Uncertainty surrounding the U.K.’s departure from the EU has seen New York overtake London as the financial center of the world, according to a new survey of financial professionals.


U.S. consultancy firm Duff & Phelps published its 2019 Global Regulatory Outlook . As part of the research, analysts surveyed 183 financial services professionals from 15 countries between March and April this year.


London and New York switched places in the ranking from 2018, with 52% of respondents choosing New York as the globe’s financial hub, while 36% chose London. Last year, 42% chose New York and 53% chose London.


The U.K. capital’s longer-term outlook looked even more bleak, with just 21% of those surveyed saying London would be the world’s more preeminent financial center in five years’ time. Meanwhile, 44% of respondents predicted New York would be the financial center of the world five years from now.


Hong Kong was predicted to see a rise in importance as a financial hub – although only 4% of respondents named the Asian hub as the global financial center in 2019, 12% said it would steal the crown from both New York and London within half a decade.


IV. 12 Interesting Facts About New York City


Who doesn’t love the Big Apple? World Strides certainly does! We did some research into one of our favorite cities in the United States and learned 12 interesting facts about New York City you may not have known.

  • A little over 8 million people live in New York City. That means 1 in every 38 people in the United States call the city home.

  • More than 800 languages are spoken in New York City, making it the most linguistically diverse city in the world. 4 in 10 households speak a language other than English.

  • Oysters were so popular in New York in the 19th century that the shells were used to pave Pearl Street. They were also used for lime for the masonry of the Trinity Church.

  • France gifted the Statue of Liberty to the United States in 1886 for its centennial celebration. The statue was shipped as 350 pieces in 214 crates and took 4 months to assemble at its current home on Ellis Island.


  • New York City’s Federal Reserve Bank has the largest gold storage in the world. The vault is 80 feet below street level and contains $90 billion in gold.

  • The New York Public Library has over 50 million books and other items and is the second largest library system in the nation after the Library of Congress. It is also the 3rd largest library in the world.

  • The United Nations headquarters was established in New York City in 1952 after World War II.

  • The first pizzeria in the United States opened in NYC in 1895. Since the 1960s, the price of a slice of pizza has been roughly the same price as a subway ride, generating the idea of “Pizza Principle” among economists.

  • The borough of Brooklyn alone would be the fourth largest city in the United States. Queens would also rank fourth nationally.

  • Times Square is named after the New York Times. It was originally called Longacre Square until the Times moved there in 1904.

  • New York City became the first capital of the United States in 1789.

  • More Chinese people live in New York City than any other city outside of Asia. More Jewish people live there than any other city outside of Israel.

Pic : NASDAQ Stock Exchange, Times Square, New York


Conclusion


New York is the most populous and the most international city in the country. ... Located where the Hudson and East rivers empty into one of the world's premier harbours,New York is both the gateway to the North American continent and its preferred exit to the oceans of the globe. Area 305 square miles (790 square km).


Every generation will have one or more Financial Capitals or Nerve centers of Human Activity. It was Babylonia 8000 years back, and Rome around 1700 Years back, may be London 200 years back and Its New York in our times.


Its a capital of finance, fashion, advertising and business, if any thing happens in New York Stock exchange , it will rattles the All the Stock exchanges across the world and it can happen other way also.


Now, Its our Nerve Centre of world wide Business activities and Financial Capital of World



MM Rao

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Sources :

https://www.investopedia.com/articles/investing/091114/worlds-top-financial-cities.asp

https://worldstrides.com/blog/2017/10/12-interesting-facts-about-new-york-city/

https://www.cnbc.com/2019/05/28/new-york-replaces-london-as-global-financial-capital-amid-brexit-chaos.html

https://en.wikipedia.org/wiki/New_York_City

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