The consequence thread (Brexit)

[chalga]

28 June 2016 • 9:46pm

 

Vodafone has warned that it could move its headquarters out of the UK if Britain’s negotiations to leave the European Union resulted in a curb on free movement.

 

The telecoms giant said it would “continue to evaluate the situation and will take whatever decisions are appropriate in the interests of our customers, shareholders and employees” while negotiations are ongoing.

 

It added that while it was too early to “draw any firm conclusions regarding the long-term location for the headquarters”, it had benefited from EU business policies. It has its headquarters in London and further offices in Newbury.

 

Vodafone said that the free movement of people, capital and goods which are part of EU membership had helped drive its growth. “It remains unclear at this point how many of those positive attributes will remain in place once the process of the UK’s exit from the EU has been completed,” it said.

 

The UK generated just 11pc of group profits in the last financial year, compared to 55pc from its European operations. “The very large majority of our 462 million customers, 108,000 employees and 15,000 suppliers are based outside the UK,” it said.

 

Vodafone said the single legal framework spanning all member states, retaining freedom of movement were "integral to the operation of any pan-European business".

 

In the meantime, the company said it would strengthen its regulatory and public policy activities in Brussels to "to ensure the group's substantial businesses within the European Union continue to be represented appropriately".

 

The company, which launched in 1984, was the first UK mobile network.

 

Elsewhere, hundreds of British jobs at credit card company Visa could be forced to relocate to the continent in order to keep its operations within the EU, according to Sky News.

 

Its American sister company is understood to have stipulated that data from Visa card transactions should not leave Europe, prompting German regulators to request that Visa’s UK-based data centre should be shifted to another EU market after Britain’s exit.

 

http://www.telegraph.co.uk/business/2016/06/28/vodafone-warns-it-may-move-its-hq-out-of-the-uk/

Edited June 29, 2016 by chalga

[L00b]

Vodafone has warned that it could move its headquarters out of the UK if Britain’s negotiations to leave the European Union resulted in a curb on free movement.

I'm hearing a lot of noises from Dublin, via private channels, about Vodafone and Visa (and a couple more, but less notorious) at the moment. There's a lot more household name companies on the ground there right now, scouting offices and locations.

 

Good on the Irish, trust them to make the most business out of a bad situation.

Its American sister company is understood to have stipulated that data from Visa card transactions should not leave Europe, prompting German regulators to request that Visa’s UK-based data centre should be shifted to another EU market after Britain’s exit.

I hear that's down to an EU Directive or two about privacy and data security (the EU equivalent of the UK's DPA, of you will).

 

Presumably that, amongst other straightforward cause-and-effect situations, was known to thinking/planning pro-Leavers, so it shouldn't come as a surprise to them. But so far, it still doesn't look like they had a plan to deal with the teeth, after kicking the tiger up the @rse.

Edited June 29, 2016 by L00b

[foxy lady]

No doubt foxy what ever her name is will wright to the Economist ,the FT and the Telegraph and correct them :hihi:

 

No but I might write and tell them that the FTSE is now back to just 4% below where it was 12 months ago, whilst the major European stock markets have lost rather more ground.

Edited June 29, 2016 by foxy lady

[nightrider]

No but I might write and tell them that the FTSE is now back to just 4% below where it was 12 months ago, whilst the major Europen stock markets have lost rather more ground.

 

I assume you mean the FTSE 100? The FTSE 250 is around 11-12% down on 12 months ago

[foxy lady]

I assume you mean the FTSE 100? The FTSE 250 is around 11-12% down on 12 months ago

 

 

And 4% points above where it was 6 months ago.

 

The FTSE 250 is currently 140% up on what it was 7 years ago. When a market is averaging 20% growth per year the odd small back slide doesn't make a fat lot of difference.

 

What rate is your ISA paying?

Edited June 29, 2016 by foxy lady

[tzijlstra]

No but I might write and tell them that the FTSE is now back to just 4% below where it was 12 months ago, whilst the major Europen stock markets have lost rather more ground.

 

Yes, and Vodafone just announced it is considering moving its business to Europe, that doesn't automatically mean it will delist in London and go to, let's say Frankfurt, but chances are...

 

Remind me, what market-capitalisation does Vodafone have?

 

To quote the Clash:

 

London's burning with boredom now

London's burning dial nine-nine-nine-nine-nine

London's burning with boredom now

London's burning dial nine-nine-nine-nine-nine

[foxy lady]

Yes, and Vodafone just announced it is considering moving its business to Europe, that doesn't automatically mean it will delist in London and go to, let's say Frankfurt, but chances are...

 

Remind me, what market-capitalisation does Vodafone have?

 

To quote the Clash:

 

And HSBC have been saying for at least 10 years that they were considering relocating to Hong Kong. They haven't gone yet, but major companies do go through this sort of excercise frequently. It's part of their job.

[tzijlstra]

And HSBC have been saying for at least 10 years that they were considering relocating to Hong Kong. They haven't gone yet, but major companies do go through this sort of excercise frequently. It's part of their job.

 

It is indeed part of their job. They create an overview of reasons to invest somewhere or not. Until the UK has made clear what it wants to do, exactly, they are not going to invest here. And that overview the HSBC has for where to base its HQ, which you rightly point out has been active for a significant period of time, has just had more boxes ticked in the - let's go to Hong Kong scenario.

 

These companies aren't saying these things because they are participating in Project Fear, they are saying it because they are pragmatic.

[MobileB]

And 4% points above where it was 6 months ago.

 

The FTSE 250 is currently 140% up on what it was 7 years ago. When a market is averaging 20% growth per year the odd small back slide doesn't make a fat lot of difference.

 

What rate is your ISA paying?

 

Which is the whole point we are trying to make. The FTSE100 is 36% made up of banks, mining companies and energy companies. Global companies that are affected by world events.

 

The FTSE250 is made up primarily of UK companies - names that we recognise. It's rise over the past 7 years, but particularly since 2012, has been because the British economy has been stronger, particularly against Europe.

 

Suddenly, the dimensions have changed since the vote last Thursday. The British economy is no longer safe and hence the big falls in the FTSE250. And that will continue whilst there is all this uncertainty. And suddenly our British companies that now have had their independence day are going to suffer.

 

Never mind the BMW, I think this one if for you:

 

http://www.dailystar.co.uk/news/latest-news/518063/woman-viral-hilariously-honest-eBay-advert-Fiat-500-car-UK

[truman]

And 4% points above where it was 6 months ago.

 

The FTSE 250 is currently 140% up on what it was 7 years ago. When a market is averaging 20% growth per year the odd small back slide doesn't make a fat lot of difference.

 

What rate is your ISA paying?

 

And all this growth occurred while we were in the Evil Empire...can't be so bad can it?