The seven-week military conflict in the Middle East will redefine Hong Kong’s role as a global financial centre, positioning the city as a safe harbour for capital and investments.

Anecdotal evidence suggested that more banks had turned to Hong Kong to protect their businesses and committed themselves to expanding their presence in the city. At the same time, inquiries about adding allocations of mainland Chinese assets among global investors had recently increased, potentially enlarging the customer base for the city’s asset-management industry and family offices and driving demand for offshore yuan-linked financial products.

For years, Hong Kong’s status as a financial centre in the Asia-Pacific region has been challenged by Dubai, which has risen to prominence as a gateway linking Asia and Europe in capital flows, transport and logistics. With the war destabilising the Middle East – at one point forcing the closure of the Dubai International Airport and sending stocks in the Gulf region plunging – Hong Kong has re-emerged due to its geographical location, a pegged exchange rate, free capital flows and support from China’s economic strength.

“In that context, China and Hong Kong are attracting renewed attention,” said Gary Dugan, CEO of The Global CIO Office in Dubai, which advises family offices and ultra-high-net-worth individuals globally. “There is growing interest among some clients in increasing exposure to China and Hong Kong. It is less a simple flight to safety and more a reassessment of where investors see relative value, policy consistency and long-term strategic opportunity.”

Dubai now relies on trade, tourism and finance as the pillars of its economy, reflecting the success of its four-decade diversification away from oil for sustained growth. The United Arab Emirates city is home to Jebel Ali Free Zone, the biggest free-trade zone in the Middle East, and the second-largest stock market in the region, with combined market values of US$1.01 trillion. The city, also a global hub for gold trading, has a population of 4 million, about 80 per cent of which are foreign expatriates. Dubai’s economy grew by 4.7 per cent in the January-to-September period last year.

Before seeking a new referendum MPS needs to rebuild trust in the community through completing state audits, putting in place controls to prevent overspending and routine reports to the public.

For MPS Superintendent Brenda Cassellius, who just wrapped up her first year leading Milwaukee’s public school system, her tenure has been punctuated by some very big numbers.

The first is $252 million. That is the amount of new spending voters narrowly approved in an April 2024 referendum to support operations in Wisconsin’s largest school district. Just months later, MPS was rocked by revelations the district was months behind in filing key financial reports to the state, which led to former Superintendent Keith Posley’s resignation.

The second is $1 billion. MPS faces a deferred maintenance backlog exceeding $1 billion. The district’s enrollment has declined 30% over the last 30 years, leaving many schools at less than 50% full. That, in part, is driving a plan to close some schools and to improve others to help lower costs.

The final is $46 million, the deficit MPS was running for the 2024-25 school year, an unexpected shortfall which has led to hundreds of staff layoffs.

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Getting the district’s accounting, budgeting and financial reporting back on track has dominated Cassellius’s first year at MPS. In an April 15 interview with the Journal Sentinel’s editorial board, she talked in detail about the challenges putting that into order and progress she sees in restoring transparency into its operations.

State funding and aging buildings create budget nightmares

Cassellius says state needs to keep up its share of school funding

In an interview with the Journal Sentinel editorial board, MPS leader Brenda Cassellius says budgets and buildings are her two top worries.

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Cassellius said the on-going budget crisis is her top concern. She said the state’s failure to live up to its share of funding is exacerbating MPS’ budget woes. A group of school districts, teachers and parents filed suit against the state Legislature and its Joint Finance Committee claiming the current state funding system is unconstitutional and prevents schools from meeting students’ educational needs.

Funding for special education is especially critical. About 20% of MPS students have disabilities, almost twice the share of the city’s charter schools, and the average of 14% across Wisconsin.

“What’s keeping me up now, you know, is really just the budget crisis we’re in, with not only this year but multiple years going out without additional state aid, we’ve been not getting funding for what our needs are for our students, and particularly our students with special needs,” she said.

Although the state budget increased special education funding to a 42% reimbursement rate, the actual rate has been about 35%. Another component to the budget headache is the age of MPS buildings. The average age is 85 years-old compared to 45 across the nation.

“We have just kicked this can down the curb or kicked it down the street or whatever you call it for too long. And it’s time that we really take on a serious conversation about the conditions of the learning environments in which we send our children,” she said. “Particularly in Milwaukee Public Schools, we serve the most vulnerable children. Children who have language barriers, children who have disabilities, children in high-concentrated poverty.”

What needs to happen before MPS seeks another referendum

Voters need to be comfortable MPS has made tough budget decisions

In an interview with Journal Sentinel editorial board, Brenda Cassellius said voters will need to see budget improvements before seeking more spending

Cassellius said MPS will definitely need to go back to voters for a new referendum in the future. In addition to the 2024 measure, voters approved an $87 million plan in 2020.

Before doing that, she said the district first needs to rebuild trust in the community through completing required state audits, putting into place controls to prevent overspending and routine reports to the school board and public about finances.

“I don’t think that the voters are going to want us to bring something forward until they feel comfortable that we have done the cleanup that is necessary,” she said. “And we’ve built the trust that we have the sufficient controls in place.”

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In the interim, she’s hoping the state will meet its constitutional responsibility to adequately fund public schools.

“What the public expects is you know where the money is, you’re spending it as close as you can to children, you’re getting good on the promise around art, music, and PE, and the things the public said they wanted to fund,” Cassellius said. “And they want their kids to have so that they have a quality education and an excellent education in Milwaukee Public Schools, and that they had the right amount of staff that they actually need. In the school to be safe and to run a good operation.”

Rebuilding finance staff in wake of $46 million in overspending

MPS is rebuilding school finance staff in wake of reporting lapses

In an interview with the Journal Sentinel editorial board April 15, MPS superintendent discusses accountability for district’s financial problems.

The $46 million budget shortfall from the 2024-25 school year started coming into view last fall and was confirmed in mid-January. Cassellius noted that in addition to hiring a new superintendent, MPS also parted ways with its comptroller and CFO.

“We are really rebuilding the personnel and staff of the finance department. That is what’s critical, is having the right people in the right seats doing the work,” she said. “Also critical is making sure that you have the right controls in place. The audit findings found that we did not have proper controls in place and now we have those proper controls in place and when we find things we put new SOPs in place and that is what any business does.”

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Identifying that shortfall, though painful, was the result of better accounting.

“Being three years behind in auditing means that you don’t have full sight on your actual revenues and expenditures. And so we have now full sight of our revenues and our expenditures and that’s why we were able to see this new deficit of $46 million,” she said. “And we still continue to work with DPI on those processes to make sure that every month we’re doing monthly to actuals and doing those accounting, reporting that to the board. In a way that is consumable to the public that they can understand.”

Jim Fitzhenry is the Ideas Lab Editor/Director of Community Engagement for the Milwaukee Journal Sentinel. Reach him at jfitzhen@gannett.com or 920-993-7154.

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In any negotiation, the seller’s position matters as much as your own. In softer markets, vendors are often more flexible than they initially appear. Many enter the market with price expectations shaped by previous conditions. Over time, as enquiry levels remain low and properties sit unsold, those expectations tend to adjust. Patience becomes a big advantage.

Tracking how long a property has been listed, observing price reductions, and monitoring inspection activity can provide valuable insight into vendor motivation. The longer a property remains on the market, the more likely the seller is to consider alternative offers. Rather than rushing to meet an asking price, informed buyers allow time and market conditions to work in their favour.

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In softer markets, negotiation is not limited to price alone. A strong outcome is often defined by the overall structure of the deal rather than simply securing the lowest number. Settlement periods, contract conditions and inclusions can all materially affect the quality of a purchase. A longer settlement may allow buyers to organise finances more effectively. Appropriate clauses can reduce risk. In some cases, repairs or additional inclusions can be negotiated as part of the agreement. These are advantages that don’t exist in tightly contested markets. Understanding how to structure a deal, rather than focusing solely on price, is one of the most valuable skills a buyer can develop.

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Market conditions also change, where the best opportunities are found. In strong markets, off-market transactions are often seen as a way to avoid competition. In softer markets, the dynamic changes. On-market properties can become the most attractive opportunities. When demand weakens, listings tend to sit for longer. Vendors become more receptive to negotiation, and properties that might have attracted strong competition in different conditions are now available with greater flexibility. For buyers, this means opportunity is often visible rather than hidden. Well-researched, on-market properties can offer both price and terms advantages when approached correctly.

Effective negotiation is not about being aggressive. It is about being deliberate. Building rapport with agents, communicating well and presenting as a credible buyer can improve outcomes significantly. Agents are more likely to engage constructively with buyers who are organised, responsive and capable of transacting without friction.

At the same time, discipline remains vital. Buyers need to understand their borrowing capacity, set clear limits and avoid becoming attached to a single property. The ability to walk away is one of the strongest negotiating tools available. Without that discipline, even favourable market conditions can be undermined by emotional decision-making.

Soft markets do not eliminate competition, but they do change how you go about the buying process. This doesn’t just create opportunity but rewards those who know how to use it.

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Abdullah Nouh is the founder of Mecca Property Group and a Melbourne-based buyers’ advocate specialising in long-term, fundamentals-driven property strategy. He works with families and investors to build sustainable wealth through strategic residential and commercial acquisitions. Abdullah is currently completing a Master’s in Property at the University of Technology Sydney. Visit www.meccapropertygroup.com.au

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