The latest mergers & acquisitions figures are out, and they’re not pretty.

According to mergermarket, an M&A data watcher, the year’s global slowdown is not only continuing but accelerating. New York can hang on to a thread of good news only in that its rate of decline is not accelerating.

During the first three quarters of this year (which ended Sunday), global M&A activity was down 19.4 percent relative to the same period in 2011, but in the third quarter alone, activity was down 20.2 percent.

America and Europe shared the biggest declines, although their fates diverged in favor of New York in the last three months.

European M&A is down 23.2 percent year-to-date, while American M&A is down 23.1 percent.

For just the last quarter, though, American activity fell just 9.6 percent, while European activity fell a whopping 40 percent.

Energy & mining dominated both region’s charts.

The continued decline isn’t good news for New York’s budget. According to the city’s latest economic stats, financial-industry wages (and bonuses) totaled $84.8 billion last year, or 28.9 percent of $293.2 billion in total wages.

The city needs growth in finance — not a decelerated decline — to close next year’s $2.5 billion budget gap.

You may also like

In Pandemic Recovery, New York’s Tax Base Is More Fragile Than Ever

New York's exceptionally wealthy state tax base is also exceptionally fragile, due to its heavy dependence on the highly volatile (and portable) investment-driven incomes of Wall Street workers and fund managers. Read More

De Blasio’s (Apparent) Good Move Dissolves Into Phony “Savings”

Late Thursday, as hailed in this space, Mayor de Blasio finally made a decisive move—or at least seemed to make a move—in the direction of actually saving some money on labor costs by getting tough with a powerful (and powerfully self-entitled) municipal union. Read More

A grim toll gets worse

The full toll of the coronavirus pandemic in New York is likely thousands higher than the official death tallies, according to newly released federal data. Read More

Why New York?

#NYCoronavirus: It's increasingly apparent that New York is suffering more severely from the coronavirus pandemic than any other part of the U.S. and most of the rest of the world – raising stark questions for city and state leaders. What is it about New York, and especially New York City, that made it especially vulnerable to infection and death? And how can that be changed before the next virus breaks loose? Read More

A first look at de Blasio care

New York City Mayor Bill de Blasio made a splash this morning by announcing a plan "to guarantee health care" for every city resident. Although his office called it "the largest, most comprehensive plan in the nation," the proposal appears – based on limited details provided so far – to be a relatively modest expansion of existing safety-net programs. Read More

Single payer, double standard

The New York City Council's vote of support on Tuesday for a statewide single-payer health plan showed curious timing from a fiscal point of view. Two weeks before, sponsors of the New York Health Act told union officials that they were changing the bill in ways that could cost the city billions of dollars per year. Details of these high-stakes changes won't be available until next month, yet Council members chose to back the measure anyway – effectively endorsing a blank check. Read More

NYC pension costs shooting up

Taxpayer-funded pension contributions in New York City will need to increase by a total of $732 million between fiscal years 2018 and 2020 due to the pension funds' paltry investment earnings in the recently concluded 2016 fiscal year, City Comptroller Scott Stringer has just disclosed. Read More

Assembly busts budget cap

"Spending cap? What spending cap?" In effect, that's the state Assembly's opening public bid in state budget negotiations with Gov. Andrew Cuomo for the fiscal year that starts April 1. Read More

Subscribe

Sign up to receive updates about Empire Center research, news and events in your email.

CONTACT INFORMATION

Empire Center for Public Policy
30 South Pearl St.
Suite 1210
Albany, NY 12207

Phone: 518-434-3100
Fax: 518-434-3130
E-Mail: info@empirecenter.org

About

The Empire Center is an independent, non-partisan, non-profit think tank located in Albany, New York. Our mission is to make New York a better place to live and work by promoting public policy reforms grounded in free-market principles, personal responsibility, and the ideals of effective and accountable government.