Rats Leaving a Sinking Ship or Are They Preparing For Our Survival?

There are many definitions for the word/term perspective, and one is about how you perceive things, how you view situations and things, how you see something.

There are many definitions for the word/term perspective, and one is about how you perceive things, how you view situations and things, how you see something.

An example may be two people looking at a piece of art, perhaps an abstract piece of art, or something like a Jackson Pollack painting.

One viewer may see one thing in the painting, and a second viewer may see something else, something totally different.

Rats Leaving a Sinking Ship or Are They Preparing For Our Survival?

We all have different views and view points. And the Brexit of course is no different.

From the start there has been a polarisation in the country of those that are for us leaving the EU, and those wanting us to stay in the EU.

In the Referendum that was put to a vote on June 23, 2016, the leave vote won, by a small majority, around 52%, and those that were asked why they voted to leave for many they based their leave decision on two (2) factors:

* The NHS: Leaving the EU we were told would provide more money for our NHS.

* Immigration: Leaving the EU we were told we could control immigration to a greater degree.

Both good reasons to leave the EU, however they were short-sighted.

Leaving the EU is not going to allow more money to be given to the NHS, and while some immigration may be limited following the full break, more immigrants came to the UK to try and beat any deadlines then ever before after the vote.

Add to this any politicians that spearheaded the leave campaign are gone, they left.

Name one major politician who was pro-leave that is still in office?

There you go.

But the facts are we are leaving the EU, and need a proper plan in place by March 29, 2019.

Rats Leaving a Sinking Ship or Are They Preparing For Our Survival?

So on one end we have those thinking leaving was and is a good idea, and on the other end, those that do not.

As to who is right, who knows and it may be no one is 100% accurate, but many businesses are not taking chances.

Many industries and business are seeing the writing on the wall and making preparations to leave the UK, or to set-up major hubs and headquarters in EU countries. This in order to insure they can still trade and operate in the UK and the EU.

Airlines especially are concerned about how they may continue to operate after the full Brexit from the EU and the “open skies” agreements.

There are some industries that will feel the leave from the EU, those industries that rely on immigration for workers, supplies and trading in the EU, and any new tariffs that may be imposed.

As consumers many of us are concerned about rising prices for certain items, such as food, wine, and anything we rely on to be imported from the EU. Some industries are stockpiling items.

Will we be required to have Visa’s now to visit and holiday in the EU?

This is just the start of many questions as to how the leave vote will affect us all.

Not All Will Survive

The facts are that every industry in the UK will be impacted in some way by our leaving the EU; and not all companies will survive.

In fact there are those investors that are buying shorts betting some companies, and banks, do not survive the Brexit, that is how sure some are they will be business casualties.

It does become every man, or in this instance, every business for themselves.

Our major industries and companies have a strong survival instinct and are going to do what must be done to preserve their business, jobs, and money, whatever it takes. And that may mean relocating to the EU, and leaving our sinking island behind.

If it is even really sinking.

There are still the strong followers of the leave campaign that feel the UK will be stronger and better off once we get out of the EU, and develop our own market.

Not all may have their confidence.

In fact, if we are to look at some numbers, one must wonder who is confident about our being better off after leaving the EU?

Assets Being Moved Out of the UK

Even if a small majority did vote to leave the EU, the outcome is we voted to leave the EU, the rest who voted to stay, are now along for the ride.

According to EY/Ernst and Young, a “conservative figure as to how much in assets is being “shifted” by financial firms from the UK to the EU in anticipation of the Brexit is £800 billion!

That is just short of £1 trillion.

Rats Leaving a Sinking Ship or Are They Preparing For Our Survival?

Does this instil confidence that they are insuring our financial services go on after we leave, or are they insuring their own business and assets are protected?

Remember perspective?

And this is just the financial sector. We still have the airlines, who many have opened major offices in the EU, and other large industries who are relocating their headquarters.

A Financial Services Leader at EY, Omar Ali stated, “In anticipation of the parliamentary vote in January, the City will be watching closely to see if the proposed Brexit deal will be accepted or whether it’s back to the drawing board for the government. As things stand, and per regulatory expectations, financial services firms have no choice but to continue preparing on the basis of a “no deal” scenario.”

The City is further ahead in implementing its Brexit contingency plans than many other sectors and our numbers only reflect the moves that have been announced publicly. We know that behind the scenes firms are continuing to plan for a no-deal scenario.”

The closer we get to 29 March without a deal, the more assets will be transferred and headcount hired locally or relocated. Inevitably, the contingency plans are for day 1 only, and in the event of no deal will represent the tip of the iceberg as longer term plans will be more strategic and extensive than those publicly announced to date.”

While this means new and more jobs at the new centres in the EU, only a small portion of those losing their jobs here in the UK may transfer to a new job, which means redundancies and job losses.

Again the question is, are these major, big league companies and players in our economy and finance sector rats leaving a sinking ship, or preparing for our survival.

Perspective.

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