Brexit the economy and house prices part 7: Brexit Harder

Kohoutek

BRB_in_2019 wrote: »

Other Japanese companies aren't bothered because just in the past month or so Asahi spent £250 million buying Fullers and NTT Data spent £100 million on UK offices and an "innovation centre".

So Japan is still investing millions in the UK.
It looks like somebody is trying really, really hard to say "Brexit is bad!" when the reality is that just like always the news doesn't go all one way, they is a mix of good and bad.

Just like HMV, which went "bang" and would close with 2.200 jobs gone.
But now 27 shops will close & 455 jobs will go - because a Canadian company has bought it!
Canadian, so it looks like they aren't too concerned by your Brexit worries either.

No is saying foreign investment in the UK will completely dry up, but the point is that when the UK is outside the single market, it's unlikely to make economic sense to base your EU business in the UK (unless most of your sales are to the UK).

There are lots of non-EU businesses headquartered in the UK in order to sell products / services to the EU (mainly not the UK), e.g. the Japanese, Swiss and American banks, the Japanese automotive industry. In the financial sector, there are also EU businesses based in the UK to serve the EU (mainly French banks and insurance companies).

They support a lot of jobs and pay significant tax. They have also made public statements that they are not very happy with Brexit.

Thrugelmir

Kohoutek wrote: »

There are lots of non-EU businesses headquartered in the UK in order to sell products / services to the EU (mainly not the UK), e.g. the Japanese, Swiss and American banks, the Japanese automotive industry. In the financial sector, there are also EU businesses based in the UK to serve the EU (mainly French banks and insurance companies).

Banks need a London presence. Not least because it straddles the US and Asian timezones. Likewise London contains the legal and financial infrastructure to support the operations. Far too simplistic to talk about banks moving out entirely.

No concern for the 100,000 or so who lost their jobs in the GFC in London? Suddenly rather banker bashing it's a love in........Strange world we live in. Given that banks have made money thanks to Central Bank fiscal policies.

Kohoutek

Thrugelmir wrote: »

Banks need a London presence. Not least because it straddles the US and Asian timezones. Likewise London contains the legal and financial infrastructure to support the operations. Far too simplistic to talk about banks moving out entirely.

No concern for the 100,000 or so who lost their jobs in the GFC in London? Suddenly rather banker bashing it's a love in........Strange world we live in. Given that banks have made money thanks to Central Bank fiscal policies.

Well done for arguing the straw man. I wasn't saying the GFC was great (in fact I didn't mention it at all - your point is quite bizarre) or that banks would move out entirely, but rather a gradual process e.g. jobs being moved and new jobs being created outside the UK.

"Legal infrastructure" doesn't mean anything. Not sure what you mean by "financial infrastructure" either. The financial infrastructure for USD is in the US, GBP in the UK, EUR in the EU. You can access that infrastructure from London or somewhere else, subject to regulation. The more significant point is that, if you want to sell financial services to the EU, it makes a lot more sense to be in the single market than not.

Crashy_Time

Arklight wrote: »

Its almost unheard of for either the Japanese government or Japanese Business to express opinions on other nations' politics.

The fact both have complained about Brexit now shows how worried the Japanese are and should make Brexiter's blood run cold.

Japan has sunk hundreds of millions of British pounds into investing in Britain, a global facing country that was part of the EU.

What do they think and what are they planning now Britain's foreign policy is being decided by a fractured weak government whose main aim is to pander to poorly educated gammons?

:rotfl: Actually it is a fractured weak government which has people at the top table whose main aim is to pander to the EU and sabotage Brexit. The fact that they are failing to do this so spectacularly, in fact they are making No Deal a nailed on certainty, is really funny to behold. The EU starting to lose it in public is also great entertainment, and of course Japan are experts at running a housing market and an economy?:rotfl:

Thrugelmir

Kohoutek wrote: »

Well done for arguing the straw man. I wasn't saying the GFC was great (in fact I didn't mention it at all - your point is quite bizarre) or that banks would move out entirely, but rather a gradual process e.g. jobs being moved and new jobs being created outside the UK.

"Legal infrastructure" doesn't mean anything. Not sure what you mean by "financial infrastructure" either. The financial infrastructure for USD is in the US, GBP in the UK, EUR in the EU. You can access that infrastructure from London or somewhere else, subject to regulation. The more significant point is that, if you want to sell financial services to the EU, it makes a lot more sense to be in the single market than not.

Banks don't operate in isolation. London is a complete financial centre. Rather like New York and Tokyo. Take a look at all the major global banks see how many are actually expanding headcount.

Something I picked up this evening in the news.

City AM reveals that experts at the London Stock Exchange estimated that 230,000 UK financial jobs were at risk following the referendum on Brexit. Subsequently HR consultants Oliver Wyman said 75,000 City jobs would go abroad on leaving the EU. A Reuters survey of the 132 biggest and most internationally focused finance firms in September 2017 suggested 10,000 jobs would go. A year on that number was revised down to 5,766. The latest version of this same survey has seen the number trimmed to 2,000. Yet another example of ‘expert’ opinion’s forecasts being wrong and revised towards reality.

Brexit is a smokescreen........

gfplux

I applaud Tusks remarks and thank him for speaking on behalf of the EU27 and the frustration at Britain’s Governmental chaos.

Only extremists think that Britain’s Government have conducted themselves well over Brexit.

We are in the end game with a no deal looking more likely. Those who welcome a no deal exit should except (but won’t) that the EU27 will come to the trade negotiations with Britain with virtually no good will. They see that the chaos inside Britain’s Parliament has damaged them and their industries, as a once respected member leaves in chaos.

The Brexit extremists will not recognise that the EU27 are upset and could become angry at Britain’s chaotic approach to the leaving negotiations. They will continue to blame only the EU.
They will continue to point to irrelevant matters while the Country of my birth sails over a cliff.

President Tusk May be frustrated but I am angry.

Tromking

Your anger pleases me.
Sailing over a cliff????
Is Luxembourg a landlocked country by any chance?

gfplux

Perhaps Britain and the EU should agree to disagree and Britain should leave with no deal as any deal will be unacceptable to the chaotic British Parliament.

Then in a few years sit down and begin to negotiate a trade deal. I suspect that will take the normal 7/8 years, if there were good will on both sides!

If I lived in Britain I would be stockpiling goods.

ukcarper

If the concern of EU is Irish border I can't understand their stance on backstop as that is the thing that is going to lead to a hard border.

triathlon

gfplux wrote: »

I applaud Tusks remarks and thank him for speaking on behalf of the EU27 and the frustration at Britain’s Governmental chaos.

Only extremists think that Britain’s Government have conducted themselves well over Brexit.

We are in the end game with a no deal looking more likely. Those who welcome a no deal exit should except (but won’t) that the EU27 will come to the trade negotiations with Britain with virtually no good will. They see that the chaos inside Britain’s Parliament has damaged them and their industries, as a once respected member leaves in chaos.

The Brexit extremists will not recognise that the EU27 are upset and could become angry at Britain’s chaotic approach to the leaving negotiations. They will continue to blame only the EU.
They will continue to point to irrelevant matters while the Country of my birth sails over a cliff.

President Tusk May be frustrated but I am angry.

Same here, Tusk is my hero of the week.
Wait to we start losing the millions of top quality Polish workers that have transformed the UK, because that is what is going to happen if the Brexiteers get their way. Tusk will not mind though, he has been encouraging them to return to Poland for a few months now