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...moral of this tale is that you can try to hide, but you can't run; there is no "decoupling," as the Europeans had hoped when the global crash was still a stumble back in January. Just look at the stock markets since the beginning of the year. By market close on Oct. 7, the Dow Jones Industrial Average had dropped by 27.5%; the FTSEurofirst 300 Index of European shares was down 32.5% over the same period. The pattern continues. As go U.S. shares, so go Europe's, but faster and harder on the downswing - and more slowly...

Author: /time Magazine | Title: Gloat at Your Peril | 10/9/2008 | See Source »

...York, its only remaining rival as the world's financial capital. Hedge funds piled into Mayfair on the heels of private-equity players. Any self-respecting Russian oligarch has a Knightsbridge mansion, sends his kids to élite private schools and has listed his company on the London Stock Exchange. Affluent Chinese, Indians, Middle Easterners and many others are not far behind...

Author: /time Magazine | Title: London's Gathering Storm | 10/9/2008 | See Source »

...world is in the grips of a perilous market crunch, the boom is over and tough times loom. The U.K.'s FTSE-100 stock index has nosedived in recent days and is down about 35% in the past year. Three famous British banks have already imploded - Northern Rock, HBOS and Bradford & Bingley. And after a dramatic plunge in the stock price of other banks, the deeply rattled British government came to the rescue on Oct. 8, announcing an emergency $88 billion recapitalization package. The City has been through enough slumps to know what to expect next: layoffs, shrinking bonuses...

Author: /time Magazine | Title: London's Gathering Storm | 10/9/2008 | See Source »

...Time, but for years the area was as well known for its mean streets: 19 Greenwich neighborhoods rank among the most deprived in England. Since 2001, the local council has pursued a major state-funded regeneration program aimed at cutting crime and unemployment, and improving the decaying public housing stock. But these days, coexisting with the urban blight, are plenty of new, well-heeled residents in new, well-appointed residences: bankers and others who work at Canary Wharf, the docklands development where Barclays, Morgan Stanley, Credit Suisse and many others have their offices. Greenwich is just a short hop from...

Author: /time Magazine | Title: London's Gathering Storm | 10/9/2008 | See Source »

...every reason to be scared because financial services have a record of retrenching fast in a crisis. And the business in some sectors has evaporated. The volume of mergers and acquisitions, for example, is down by about two-thirds from its peak in 2006, while the public stock offerings that made the London Stock Exchange a shooting international star have fizzled. Given the role played by arcane financial engineering in triggering the current crisis - the troubles at AIG, for example, stem largely from its freewheeling London financial-products division - the future looks especially bleak for people working in structured finance...

Author: /time Magazine | Title: London's Gathering Storm | 10/9/2008 | See Source »

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