UK Tech Sector Reacts To Brexit: Some Anticipate Slow Down, Some Contemplate Relocation
In the aftermath of the United Kingdom voting to leave the European Union, UK's technology industry is reassessing its position, with many of them considering moving to a continental location. According to reports, Samsung, LG, and Acer have noted that the UK leaving the EU will affect their operations. From a BBC report:As news of Brexit broke, tech firms including BT, TalkTalk and software firm Sage reported share price falls. [...] "I have concerns that the local market might slow down," said Drew Benvie, founder of London-based digital agency Battenhall. From a report on The Guardian:Britain's financial technology sector is particularly hard-hit, with the prospect of losing access to European markets an unappealing one. "Fintech" has long been one of the UK's most promising growth areas, in part due to London's position as the financial capital of Europe. [...] Not one of the 14 billion-dollar tech firms based in the UK the Guardian asked said leaving the EU would be good for their business.Toby Coppel, the co-founder of venture capital firm Mosaic, said: "The next entrepreneur who's 22 years old, graduating from a technical university in Germany may, instead of moving to London to do their Fintech startup, decide to go to Berlin instead. I think that's one of the biggest concerns I have about the trajectory of the London technical ecosystem."
It's still really up in the air what "leaving" means, beyond "UK not subject to absurd EU regulations".
You can be pretty sure deals will be worked out such that mobility between EU states will be nearly what it was for professionals, doubly so for businesses.
The whole "financial disaster" angle is a load of crap, the pound is already re-stabilizing and didn't fall that far to start with!
"There is more worth loving than we have strength to love." - Brian Jay Stanley
Every bit of damage done now is self inflicted. The UK is still the UK. No country has refused to do business with them. People who are panicking shouldnt be in the finance industry. This is going to make the people who invest very rich when everyone realizes what dumb dumbs they were for dumping their shares.
I see where slashdot stands on the issue
Is that a joke?
has zero people born in the UK and about sixty people born in the EU, this is going to hurt. The UK economy is driven by people that are not from the UK, even if the vast majority of the the people driving the economy aren't from the UK.
You mean England, which is the only piece of the UK which will be out of the EU in five years. Scotland will be independent, Northern Ireland will reunite with Ireland, and Gilbraltar will become a self-ruling part of Spain.
the trouble with Britain and America right now is that there's been 40 years of policy that benefits well educated upper middle class college grads and hurts blue collar workers. The Blue collar guys sucked it down in stride for those 40 years but it sounds like they're at their wits end. They're desperate to do _something_ but they don't know what. They've got a lot of ideology and beliefs that make it hard to go the Scandinavian Socialism route to solve their economic problems and there's no way they can compete on a global stage with slave labor let alone the coming robots. But they've got to do something Britain gets "Brexit" on over here we get Trump.
Not sure about the UK but 20 years ago phone polls would like the upper cast keep tabs on voting patters and focus their political campaigns, but now that everybody has a cell phone and you can't do polling calls to them the old political tricks aren't working. It doesn't do any good to have even unlimited funds if you don't know where to put them and you needed those phone polls to tell you what to do next. So Britain had no idea Brexit was coming (Cameron's resignation showed that) and the US is desperately trying to Stop Trump...
It's gonna get really, really messy from here on out.
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Scotland would be loaded with 130 billion pounds of debt.
said the virgin old slashdotter living in his mom's basement, using his reproductive system to jack off
meanwhile the race will be carried on by normal men and women for millennia.
"Toby Coppel, the co-founder of venture capital firm Mosaic, said: "The next entrepreneur who's 22 years old, graduating from a technical university in Germany may, instead of moving to London to do their Fintech startup, decide to go to Berlin instead."
GOOD!
Go to bloody Berlin and allow some of the locals to have a job!?
Globalisation is fan-tastic for a small portion of very highly skilled people. If you're mid-skilled or lower, you are _boned_. Unemployment is up, wages are down.
Sure we can buy a $6 toaster from China and have a website built in India for $300 but your average person is NOT better off. Globalisation is screwing a heap of people.
They voted to leave. They deserved to be part of England. Cornwall which receives economic development funds from EU wants the UK to make up for the shortfall of losing that EU subsidy. Keep in mind Cornwall voted to leave EU. Why did they vote against their own interests?!?! I'm only a idiot American but Wales is like the Southern states of US right? Poor and stupid.
If you haven't visited Washington D.C. recently you ought to. For our "Servants" in Washington, Money is clearly not an object -- they will drain every drop of blood from every private sector citizen in all 50 states, and derelict all other cities, to make sure they and their patrons are maintained in the style to which they have become accustomed. And then they will extract more. It hasn't taken the leaches in Brussels long at all to build their palaces and award themselves outrageous pay and perquisites. They have to keep up with the "Joneses" in D.C., after all. This UK vote was obviously not according to the Serpants' plan -- neither there nor here. I can hardly believe they didn't just print the money to "accidently" miscount the vote. I'm sure Obama/Clinton would have authorized a loan for that cause if asked. Look to Switzerland for a better idea of how it is possible to be part of the EU for purposes of trade yet still largely sovereign. This is a huge opportunity for the UK to pull itself out of the black hole which has been dragging down their economy for some time. Good for them. Too bad we can't do something equivalent over here.
I suspect the Asian nations will be pleased with brexit simply because they get access to the British market and goods without the EU getting in the way. Maybe this will be the end of expensive DSLR cameras that are limited to 29'59" of recording because the EU arbitrarily defined 30 minutes or more as a video camera and slapped much higher tariffs on them.
Maybe the next couple years will be time to invest in Britain rather than try to escape. Look at both sides of the possible effects before you jump.
{^_^}
Why have a border? What is the purpose of a border? It is to keep people out because you think they are evil, will drink the milk out the bottle from your fridge, look ugly and smell bad too. Why should poor countries be stuck with keeping the bad people when they would do more damage? At least the richer countries can catch the criminals and jail them or something.
Gotta look out for "your own" .. but is that even moral? Does God value the human life of a person in one country over another? You can allow the deaths of thousands to save a few of your own? How is that moral?
Why would you lock yourself out of interacting with foreigners? That will only breed mutual hatred and an arms race. Keeping people out is not sustainable. Eventually the other countries will want in. And there will be a big war. . Eventually there will be a war, that is guaranteed. At some point you are going to want something from another country and they will refuse to give it to you. Or vice versa. They will want something of yours, you will refuse to give it .. and they will try to take it. Then you will war.
The only sustainable future for humanity is for everyone to get along with each other. This is only possible through interaction, through everyone understanding the concepts of free speech, freedom of religion, right to a fair trial before punishment, right not to be tortured etc.
Its true a lot of third worlders don't understand these concepts, and you are afraid they will bring it to your country. But how does isolating these countries help? How will they learn these ideas if not through interaction? If you are cool with them never learning the values of freedom, eventually they will war. They will be ruled by dictators who build big weapons and will eventually try to take your stuff by force .. it may take 50 years or 100 .. but they will .. and with the nukes of today if even a few get through it's devastating.
Ever noticed that all the places that have ancient border walls are now tourist attractions that you can visit from both sides and still be in the sea country. It's not like the Great Wall of China or Emperor Hadrian's wall demarcates a border to this day .. What we have are failed empires.
The primary issue for the tech sector will be that the UK can no longer be used to take advantage of "the final assembly tariff loophole".
This is where you do all but the final assembly elsewhere, and then ship the parts to some EU country for final assembly, making it therefore "Manufactured in the EU". This exempts the product from a number of tariffs, and additional VAT.
This is the European equivalent of "the NAFTA loophole", where you ship the parts to a Maquiladora to avoid a U.S. tariff,and then assemble them as "a product of Mexico". The "assembly" sometimes means taking a pallet of boxes, and a pallet of items, cutting the shrink wrap, putting the China-printed "Made in Mexico" sticker on the item, putting the items in the boxes, putting the "completed items" on three pallets instead of two, and trucking them to the U.S.. Et Voila! No Tariff!
AFAIK, Apple moved their operations like this out of Ireland and into an EU country that's former Eastern Block (read: cheap factory labor) several years ago. I have no idea how many companies are using the UK to gateway like this these days, but my guess is: "not many"; meaning it's the primary issue, but as things go, it's mostly meaningless.
And why would the EU with 450+ M people give such good deals to the UK ?
Hopefully the EU will remember Europe's history and not try to really turn the thumbscrews on the UK no matter how well deserved. The last time a European country screwed up and really annoyed the continent was Germany. The punitive measures Europe imposed after the First World War collapsed the economy and directly lead to the rise of the Nazi party.
We already have right wing nut jobs in the UK using posters worryingly similar to Nazi propaganda. So by all means give us an economic slap for this utterly insane decision (we can hope it might bring the leavers to their senses) but please resist the urge to give us the full economic punch the UK richly deserves since that could lead to something far worse.
Scotland would be loaded with 130 billion pounds of debt.
Didn't you know? You aren't allowed to talk about that kind of stuff. It doesn't exactly square with the "We're all gonna die in agony" crap we're getting from the mainstream media.
I've calculated my velocity with such exquisite precision that I have no idea where I am.
Globalisation is screwing a heap of people.
Well, you've really screwed the pooch then.
Globalization as it's usually framed is essentially free movement of goods and money, without the free movement of labour. This is great for companies as they can always move things to the cheapest area and since the labour can't follow, they get to squeeze people regionally.
Being in the EU we had free movement of people.
Being outside we'll wind up with a bunch of agreements, i.e. free movement of goods and money (beneficial to companies) without the attendant benefit to people of free movement of labour. Leaving the EU is actually a boost to the worst parts of globalization.
SJW n. One who posts facts.
You are giving Bam-Bam too much credit. He was always a shoot-from-the-hip kind of guy with a blunderbuss and always amazed he's hit anything. He wouldn't have the foresight to predict what would happen with a Brexit. He mostly just saw it as a vehicle for self-promotion of his world view that the elites are always against him because he's successful in his own mind.
It is good to see him latch on to Brexit with both hands. If it turns out badly as I suspect it will, he'll have to find a way to back out of his support. That shouldn't won't be hard since he doesn't really hold any of his positions with intellectual analysis. However, it would make his chances to do to the U.S. what he's done to his investors a bit less favorable.
They already have a special deal - it's called the Common Agricultural Policy.
They're the next major nation to have an election coming up. No doubt Mme. Le Pen will produce some choice nuggets of wisdom. I'm going to stock up on popcorn right now.
Confucius say, "Find worm in apple - bad. Find half a worm - worse."
There is not politician who could take Cameron's spot and would be willing to invoke Article 50.
Well he is certainly leaving a poison chalice for his successor. The Tories won't want to be seen as ignoring the referendum result and will probably find an expendable fall guy who will have a brief Premiership during which they invoke Article 50 then be ousted and replaced by someone that can reassure the electorate that they will "sort out the mess that [expendable fall guy] has created". Boris might fit that role since he has inexplicable public appeal.
If they don't invoke Article 50 then UKIP, enlarged with more Conservative defectors, will run on a "we will invoke Article 50" ticket at the next Westminster election. But since that would then not be the straight in/out vote of the referendum it's by no means certain that they would win a Westminster majority.
Boris has a natural charisma. Everyone in the country loves him. Most of the people can't actually state a single policy of his other than the bicycles, but they love him anyway.
That's WHY it's retained its position as the financial capital of Europe. It's "outside" the major monetary policies of the EU and thus cannot be "spoiled" but any of the EU members. That doesn't change...
Browsing at +1 - no ACs, I ignore their posts. So refreshing!
It's OK. They are in the UK and so their team using maths to solve the red tapes problem will be a non-issue..
Browsing at +1 - no ACs, I ignore their posts. So refreshing!
[Proposed more accurate and concise headline.]
The law is not an ass. No really.
The tech companies should all promise to move to Scotland or Ireland if they succeed from Great Britain and rejoin the European Union.
If they move, they had better only rent a location on the Continent - because the breakup of the EU isn't going to stop with Britain.
It is slightly unfair but mostly true. A lot of the people who voted leave are out-and-out racists. Leave was particularly popular in areas which saw their industries destroyed in the 1980s when Thatcher and the free market tore up the social contract in which the aim of the economy was to provide jobs, homes and pensions for the UK's citizens.
Since then, successive governments have more or less abandoned these areas which are now into their third generation of unemployment and reading the Sun.
This piece about Ebbw Vale in Wales, one of the poorest places in the UK, shows the level of idiocy.
tl;dr
Standing outside an area where the EU has subsidised factories, roads, jobs, training.
Why did you vote to leave the EU?
Immigration.
Are there many immigrants round here?
No.
I watched the BBC coverage overnight on Friday online in the US. The same question kept coming up in my mind. Is this a repeat of 1914 or 1938?
Nigel Farage was absolutely chuffed about the results. So was Vladimir Putin.
Due to how VAT works, that's not been a loop hole in the EU for import taxes.
Change is certain; progress is not obligatory.
Due to how VAT works, that's not been a loop hole in the EU for import taxes.
I think you missed the part where the device is (finger quote)made in Europe(finger quote), and therefore not imported.
Lets face it, Nicola Sturgeon just loves losing referendums doesn't she.
I suspect this is the primary reason she's reluctant to push full steam for another one..
A lot of the people who voted leave are out-and-out racists. Leave was particularly popular in areas which saw their industries destroyed in the 1980s when Thatcher and the free market tore up the social contract in which the aim of the economy was to provide jobs, homes and pensions for the UK's citizens.
You even contradict yourself. Do you have any evidence of broad scale racism, because I haven't seen it.
I have heard a lot of people discussing why they voted 'leave'. None of them have used racism as a reason. None.
You're 100% wrong about that. The media pushing for the Brits to leave were the loony-tunes right wing tabloids and their ilk. The mainstream are still trying to portray this as a triumph of racism and xenophobia. However, one of the few polling agencies to get it right accurately identified what was happening: "Stay" campaigners and mainstream media did exactly what I said, and the result was that a lot of people who were undecided reacted negatively.
Please try to keep up.
I've calculated my velocity with such exquisite precision that I have no idea where I am.
Where's the contradiction?
My evidence has been gained from living in England for several decades. Ask someone if they're a racist and they'll probably deny it, perhaps indignantly, but listen to them talking amongst people they know and you might hear a different story. Most people who hold such views have learnt to hide their racism because it's not publicly acceptable any more but it's still there.
Not all of them..
http://www.bbc.co.uk/news/uk-3...
I still haven't however seen evidence that racism was a factor for most Leave voters.
Not quite free movement of goods. Individual consumers are restricted in buying things in other countries where they're cheaper and importing them. It's only businesses that get free movement of goods.
"When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
Yes, some of them have been emboldened to come out of the woodwork by the result, which doesn't detract from my argument. I didn't say most Leave voters are racist nor do I believe it but a significant fraction are. It's hard to come to any other conclusion when someone says they're voting Leave because of immigration when their life is hardly affected by immigrants. I'd guess 15-20% of the population believe that the country would be better off without any foreigners; far fewer would say so but a Leave vote was the perfect means to express such views.
It's more understandable for those whose livelihoods have been undercut by immigrants willing to work for less but they are mistaken if they think their lot will get better as a result of Leave. Their anger is directed towards the wrong target (whether that's the EU or foreigners) and those in charge of Leave don't give a toss about their lives anyway.
After brexit my business goes down with european countries.