5 ms·

It seems Brexit is the scapegoat for every failure now.

Jonnax 7y ago
"The drastic fall of Sterling, as well as the uncertainty over future trading arrangements with the European Union, have increased both present costs and future risks for the firm. This has made it increasingly hard to win contracts outside of the UK." At the end of the day businesses have higher costs or are leaving the UK because of Brexit. There's no point denying the reality. Nobody can argue that right at this moment Brexit is driving business success. Bank of America spent $400 million to relocate from UK to Ireland. [1] for example. And they're not coming back. https://www.google.com/amp/s/amp.ft.com/content/b9d43bba-2f7a-11e9-8744-e7016697f225 https://www.google.com/amp/s/amp.ft.com/content/b9d43bba-2f7...
- EmbarrassedFuel 7y ago
  Don’t take everything at face value: a fall in Sterling necessarily means that an exporters products are cheaper overseas, so should boost sales. Unless their costs were already higher than their revenues, in which case they were doomed anyway. The reason brexit will be bad for exporters is the possible future imposition of tariffs. This hasn’t happened yet, so actually in the short term brexit is relatively good for them. Just to be clear I’m against brexit, however in this case blaming brexit for the failure is wrong.
  - mytailorisrich 7y ago
    Yes, but equally it means that imports are more expensive. We can interpret the statement as implying that the company imports a lot of parts, etc. Let's remember that Ireland uses the Euro so they just need to import from across the border to feel the pinch.
    - racino84 7y ago
      This manufacturer is in Northern Ireland, so they can use Euros if they want anyway. And current plans are for a frictionless border. The argument as Brexit causing it to close is silly, its grossly mismanaged.
    - zelos 7y ago
      If their finished product costs less than its constituent parts, they're kind of doing manufacturing wrong.
  - tonyedgecombe 7y ago
    This hasn’t happened yet, so actually in the short term brexit is relatively good for them. Except that isn't born out by the figures, UK manufacturing is weakening at the moment. The pound might be delivering higher profits on foreign trade but it isn't delivering more orders yet.
- kmlx 7y ago
  they didn't go thru with it. like most other banks, they were in fact waiting for handouts. some countries were actually hoodwinked into giving them. they're currently hiring all across the world, including the UK: https://careers.bankofamerica.com/search-jobs.aspx?c=&r=emea https://careers.bankofamerica.com/search-jobs.aspx?c=&r=emea
  - Jonnax 7y ago
    https://www.google.com/amp/s/mobile.reuters.com/article/amp/idUSKBN1O20PD https://www.google.com/amp/s/mobile.reuters.com/article/amp/... Says they completed it in December with 125 job moves. They don't need to fire everyone in the UK to change where their money moves.
- jaclaz 7y ago
  >At the end of the day businesses have higher costs or are leaving the UK because of Brexit. Though I personally (and not being involved in it directly or indirectly) think Brexit is essentially a "stupid" move by the UK, I don't think that it - in itself - should cause any particularly dramatic change, after all the world worked fine even before the European Economic Community and the consequent easyness in import/export within the EU. Surely there will be some changes in procedures and probably some added bureaucracy but nothing that cannot be taken care of. From experience, in the '70's and '80's exporting from Italy to the UK involved having a "special" status as "registered exporter" at the Ministry and filling a number of Customs and Bank forms (only for the record and as a curiosity, some of these forms were needed in some 10 copies and at the time the "most powerful" electric typewriter we had available could make at the most 6 or 7 carbon copies, so each form was typed twice). I have the feling that Brexit is used as a sort of scapegoat or that linking it directly to the bad results of companies (most probably due to a number of different reasons) is a way to attempt influencing the people to be against it.
  - pjc50 7y ago
    The most recent round of proposals involved filling in customs forms for moving goods within the UK (to Northern Ireland). Not only is it a cost, but it's an uncertain one that's impossible to properly prepare for. Especially when the government keeps threatening "no deal".
- racino84 7y ago
  > Bank of America spent $400 million to relocate from UK to Ireland. [1] for example. And they're not coming back. I had no idea Bank of America closed its Canary Wharf London office and will "never come back" from Ireland.
  - nbevans 7y ago
    They haven't closed it. My friend works for them in the City. These banks aren't going anywhere.
    - racino84 7y ago
      /s
cm2187 7y ago
You can bet it will be, even though we are at the end of an economic cycle, with half of the world already in recession or on the verge of a recession, and the other half dangerously heading that way.

"The drastic fall of Sterling, as well as the uncertainty over future trading arrangements with the European Union, have increased both present costs and future risks for the firm. This has made it increasingly hard to win contracts outside of the UK." At the end of the day businesses have higher costs or are leaving the UK because of Brexit. There's no point denying the reality. Nobody can argue that right at this moment Brexit is driving business success. Bank of America spent $400 million to relocate from UK to Ireland. [1] for example. And they're not coming back. https://www.google.com/amp/s/amp.ft.com/content/b9d43bba-2f7a-11e9-8744-e7016697f225 https://www.google.com/amp/s/amp.ft.com/content/b9d43bba-2f7...

EmbarrassedFuel 7y ago
Don’t take everything at face value: a fall in Sterling necessarily means that an exporters products are cheaper overseas, so should boost sales. Unless their costs were already higher than their revenues, in which case they were doomed anyway. The reason brexit will be bad for exporters is the possible future imposition of tariffs. This hasn’t happened yet, so actually in the short term brexit is relatively good for them. Just to be clear I’m against brexit, however in this case blaming brexit for the failure is wrong.
- mytailorisrich 7y ago
  Yes, but equally it means that imports are more expensive. We can interpret the statement as implying that the company imports a lot of parts, etc. Let's remember that Ireland uses the Euro so they just need to import from across the border to feel the pinch.
  - racino84 7y ago
    This manufacturer is in Northern Ireland, so they can use Euros if they want anyway. And current plans are for a frictionless border. The argument as Brexit causing it to close is silly, its grossly mismanaged.
  - zelos 7y ago
    If their finished product costs less than its constituent parts, they're kind of doing manufacturing wrong.
- tonyedgecombe 7y ago
  This hasn’t happened yet, so actually in the short term brexit is relatively good for them. Except that isn't born out by the figures, UK manufacturing is weakening at the moment. The pound might be delivering higher profits on foreign trade but it isn't delivering more orders yet.
kmlx 7y ago
they didn't go thru with it. like most other banks, they were in fact waiting for handouts. some countries were actually hoodwinked into giving them. they're currently hiring all across the world, including the UK: https://careers.bankofamerica.com/search-jobs.aspx?c=&r=emea https://careers.bankofamerica.com/search-jobs.aspx?c=&r=emea
- Jonnax 7y ago
  https://www.google.com/amp/s/mobile.reuters.com/article/amp/idUSKBN1O20PD https://www.google.com/amp/s/mobile.reuters.com/article/amp/... Says they completed it in December with 125 job moves. They don't need to fire everyone in the UK to change where their money moves.
jaclaz 7y ago
>At the end of the day businesses have higher costs or are leaving the UK because of Brexit. Though I personally (and not being involved in it directly or indirectly) think Brexit is essentially a "stupid" move by the UK, I don't think that it - in itself - should cause any particularly dramatic change, after all the world worked fine even before the European Economic Community and the consequent easyness in import/export within the EU. Surely there will be some changes in procedures and probably some added bureaucracy but nothing that cannot be taken care of. From experience, in the '70's and '80's exporting from Italy to the UK involved having a "special" status as "registered exporter" at the Ministry and filling a number of Customs and Bank forms (only for the record and as a curiosity, some of these forms were needed in some 10 copies and at the time the "most powerful" electric typewriter we had available could make at the most 6 or 7 carbon copies, so each form was typed twice). I have the feling that Brexit is used as a sort of scapegoat or that linking it directly to the bad results of companies (most probably due to a number of different reasons) is a way to attempt influencing the people to be against it.
- pjc50 7y ago
  The most recent round of proposals involved filling in customs forms for moving goods within the UK (to Northern Ireland). Not only is it a cost, but it's an uncertain one that's impossible to properly prepare for. Especially when the government keeps threatening "no deal".
racino84 7y ago
> Bank of America spent $400 million to relocate from UK to Ireland. [1] for example. And they're not coming back. I had no idea Bank of America closed its Canary Wharf London office and will "never come back" from Ireland.
- nbevans 7y ago
  They haven't closed it. My friend works for them in the City. These banks aren't going anywhere.
  - racino84 7y ago
    /s

cm2187 7y ago

You can bet it will be, even though we are at the end of an economic cycle, with half of the world already in recession or on the verge of a recession, and the other half dangerously heading that way.