Can Mumbai, Bangalore emerge as the global capitals?

The Russian capital as well as Indian cities of Mumbai, Bangalore and Hyderabad have every chance of becoming global capitals on par with cities such as New York, London and Tokyo, according to the latest issue of Forbes magazine.

The influential publication assessed the rapidly changing forces driving the global economy, such as the inflow of capital and labour resources, and the pace of infrastructure development, and looked into the future, ranking the Russian capital alongside Shanghai, Beijing, Sao Paolo, Dubai and the Indian cities of Mumbai, Bangalore and Hyderabad.

"Fifteen years ago, Moscow was in the midst of a particularly grungy interlude, filled with stolid people waiting in lines for shoddy consumer goods. Today, its hotel accommodations - cheap if dinghy a quarter century ago - are among the world's most expensive.

Russia's huge energy industry, which dominates all of Europe, is the key factor driving the transformation," Forbes wrote.

The article, published Wednesday, notes that Moscow has had a radical makeover since the collapse of the Soviet Union. The city, where Moscow State University was the tallest building at 240 meters (787 feet), now has a host of skyscrapers including the three tallest buildings in Europe, the highest of which is still under construction.

"With a population of 10 million, Moscow is already Europe's most populous city and could get bigger yet, particularly if energy prices rise," the magazine said.

Although Forbes expects most global capitals of the future to be outside the Western Hemisphere, it includes Calgary in Canada, Perth in Western Australia and the Texan pair of Houston and Dallas in its list.

But the article does recognise that the current centers of financial and political influence - such as Tokyo, New York, London, Paris, Seoul, Singapore and Hong Kong - will not fade into the background for some time to come.

Agencies

Will Intel shift out 2,000 jobs out of Shanghai?

Intel Corp announced on Thursday a reorganization of its China operations that would close a Shanghai plant and eliminate 2,000 jobs, while affected workers would be offered positions in other parts of the country.

The news comes just days after the world's largest chipmaker said it would close plants in Malaysia, the Philippines and the U.S., cutting as many as 6,000 jobs as quarterly profit tumbled 90 percent.

"In order to optimize its manufacturing resources in China, Intel plans to consolidate Assembly and Test operations (ATM) from Pudong to Chengdu over the next 12 months," the company said in a statement.

Intel said it would provide the affected employees an option to work at the Chengdu facility in the west, or Dalian in the north, both more than 1,000 kilometres from Shanghai.

"The decision to relocate is up to the employees," said Nancy Zhang, an Intel spokesperson in Beijing. Zhang said she was not aware of any subsidies or other incentives that employees who choose to relocate would receive.

An Intel employee who attended the meeting in Shanghai where Brain Krzanich, president of Intel's Manufacturing and Supply Chain group, announced the job losses said workers were upset about the need to move to keep their jobs.

Intel said it was committed to China, nevertheless, and would increase its registered capital in Intel China Ltd., the company's investment holding company based in Shanghai, by $110 million.

Intel said the moves were necessary "as a result of the current economic conditions" and that its investment in the new $2.5 billion Dalian factory would be increased in order to insure that it has the latest advanced chip technology.

After Intel's assembly and test facility is closed in Shanghai, the eastern port city will still be home to an Intel research and development center and the firm's China headquarters.

Agencies