Brexit the economy and house prices part 6

Thrugelmir

London has time zone. Interconnects US and Asian markets.

Rome has extremely poor infrastructure. Italy is also notroriously corrupt. Even the mail goes missing!

Ballard

Thrugelmir wrote: »

If you were a CEO earning £10m a year. You would have no hesitation in doing what was in best interests of your shareholders. That's the bottom line. I first encountered aggressive US capitalism some 30 years ago. Nothing since has changed my opinion.

Exactly. If it’s better for a company to relocate overseas they will.

Ballard

AFF8879 wrote: »

How about skilled labour pool, English as a first language, superior legal system, superior universities, better transport and logistics networks, financial services infrastructure, more varied culture and nightlife....

Though Berlin would be an infinitely better option than Rome IMO; but the reason London is more sought after both by professionals and tourists for decades is something that would take something catastrophic to reverse. If Brexit meant all trade with Europe would stop, then I might agree....

London is definitely the best city in Europe, possibly the world. It’s not everyone’s cup of tea but I feel very lucky to live here with the massive choice of theatre and music. In that respect I completely agree with you.

Two points that I would add, though, are that not all U.K. businesses operate out of London and business needs would come before those of employees. If there is a significant benefit to a company operating out of Amsterdam or Riga then that company would have to seriously consider moving.

Ballard

Thrugelmir wrote: »

London has time zone. Interconnects US and Asian markets.

Rome has extremely poor infrastructure. Italy is also notroriously corrupt. Even the mail goes missing!

That’d be an hour different to most of much of the EU and the same time zone as Dublin & Lisbon.

gfplux

AFF8879 wrote: »

How about skilled labour pool, English as a first language, superior legal system, superior universities, better transport and logistics networks, financial services infrastructure, more varied culture and nightlife....

Though Berlin would be an infinitely better option than Rome IMO; but the reason London is more sought after both by professionals and tourists for decades is something that would take something catastrophic to reverse. If Brexit meant all trade with Europe would stop, then I might agree....

Many would argue with most of what you say.

It is not better JUST because its British or in Britain.

Skilled Labour Pool, which is mobile or can be (sadly) replaced

English as a first language, there are many well educated skilled people that have English as one of their languages.

Superior Legal System, where did you get that one from?

Superior Universitys wherever they are welcome foreign students

Better Transport and logistics networks, now you are joking or perhaps you have never used either in most citys and countrys in the EU.

Financial Services infrastructure, would that be for raising capital. Borders never got in the way of that.

Varied culture and nightlife, another from left field. Where do you get your information from. I am not arguing that the Opera is better in London than Milan, the Ballet better in London than Moscow, that you can not see Cats or Phantom in Berlin or Paris, BUT you appear to be.

What you omitted to mention is that trailing Spouses do Influence the Location of International Headquarters and London has often had a great pull. However other cities have raised their allure so it is no longer a one horse race.

kabayiri

Herzlos wrote: »

...
But apart from inertia; what does London have that Berlin, Paris or Rome don't?

Why the focus on London yet again?

You do realise that the rest of the country does still exist right?

It's part of the Brexit driving force, this London-centric narrative.

All you end up with is more regional division, not less, and politicians end up scratching their heads wondering how they will ever reconcile things.

kabayiri

Ballard wrote: »

Exactly. If it’s better for a company to relocate overseas they will.

Being in IT, you will know that a number of tech companies are now choosing to dual locate between UK and India.

If things were challenging in UK, I would shift more resources to Mombai, not look at using Rome. I don't consider Italy to be particularly stable right now, but hopefully I will get a direct view in late autumn.

buglawton

The favourite EU place to send jobs in my organisation is Poland and Romania. This even after Asia has been a long term destination.

So IT workers are used to this in the UK job market. Globalisation has definitely depressed UK IT salaries and is a reason for young people to think carefully before entering a career in say, coding. But another less obvious aspect is that it's allowed large organisations including government to embark on massive IT projects that fail or go into endless mission creep, because such projects appear temptingly affordable in advance.

Ballard

kabayiri wrote: »

Being in IT, you will know that a number of tech companies are now choosing to dual locate between UK and India.

If things were challenging in UK, I would shift more resources to Mombai, not look at using Rome. I don't consider Italy to be particularly stable right now, but hopefully I will get a direct view in late autumn.

I think that you may be confusing me with another poster because I haven't worked in IT since 1993. I'm not sure why that sector has been brought into the equation as I'd have thought that IT would be least effected by Brexit. It's manufacturing that could be the big issue if the logistics in getting the stuff in and out of Europe gets hairy.

Also, why has Italy been mentioned two or three times over the past 24 hours? Have I missed a news story that Rome is planning to take over our industry?

fatbeetle

MILAN/ROME (Reuters) - Italy!!!8217;s economy minister said on Wednesday lower economic growth was expected to increase the deficit next year and slow the reduction of the public debt, but he reiterated his commitment to a prudent fiscal policy.

So being in the EU isn't doing great things for Italy's economy, and yet they are one of the largest contributors to the EU trough. They must be mad.