Some of the world’s biggest banks, asset managers and insurers are already preparing for life after Brexit and steering their European operations away from London to our capital. Paris is already home to four of the eight 1/3  BIS central bankers' speeches  global systemically important banks in the euro area, in addition to being number one in the region in insurance and asset management. Recent regulatory initiatives have made Paris even more dynamic. Capitalising on the reform of Negotiable European Commercial Paper (NEU CP) in 2016, a number of very innovative projects have been launched: for instance, the French telecoms company Orange and the fintech SETL have jointly set up a new central securities depository (CSD) called ID2S for the NEU CP market, using blockchain technology. Paris is also at the heart of cross-border initiatives, making the European financial market more integrated. The market exchange operator Euronext is continuing to expand its federal model and in November 2017 acquired the Irish Stock Exchange. The CSD Euroclear is also committed to fostering common infrastructures, and is even looking beyond Europe with partnerships in the United States with DTCC or in Asia thanks to Bond Connect. Building on this comprehensive financial ecosystem, Paris has also been one of the principal supporters of the renminbi’s move towards internationalisation. As of today, Paris is indeed the leading continental European centre for deposits and bond issuances in RMB.
Binghamton, on the other hand, has really been struggling with no signs yet of any meaningful recovery. Meanwhile, Northern New Jersey’s economy had been growing fairly steadily until this past winter when activity softened, probably due at least in part to the unusually harsh weather. Now that spring is finally upon us, we hope to see economic conditions improve more significantly. What kinds of jobs have been created during the recovery? Let me turn to the topic of today’s press briefing: how the types of jobs in the region have changed over the last business cycle. Firms often change the way they utilize workers and the mix of skills they employ during recessions and recoveries. The weakening demand during recessions forces firms to look for new ways to be more efficient to cope with hard times. These adjustments do not affect all workers equally. Indeed, it’s what we typically think of as middle-skilled workers – for example, construction workers, machine operators and administrative support personnel – that are hardest hit during recessions. Further, a feature of the Great Recession and indeed the prior two recessions, is that the middle-skill jobs that were lost don’t all come back during the recoveries that follow. Instead, job opportunities have tended to shift toward higher- and lower-skilled workers. As we’ll show, these same trends have played out in our region. While there’s been a good number of both higher-skill and lower-skill jobs created in the region during the recovery, opportunities for middle-skilled workers have continued to shrink.