Topic: | Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Good news - post Brexit | |
Posted by: | Joe Conneely | |
Date/Time: | 20/07/16 12:42:00 |
I think there is little doubt that the key opportunity for an overseas acquirer from Japan to buy ARM is because of the sudden drop in UK sterling's value versus the Japanese yen (which was reflected in the buyers comment that they had been delivered a once in a lifetime opportunity to do the deal). The reason for the major drop in UK currency is because the UK electorate in 24 hours created the ideal scenario for a devaluation (based on the foreign exchange markets' uncertainty of what would then happen going forward to the UK economy). This is an event which many major Central Banks have been trying to achieve in creating a competitive boost, including ironically the Bank of Japan. I used to do a lot of work with Japanese companies over many years. In my experience they are pretty firm on any commitments made unless matters go very wrong. Also in the non-financial sector they typically run pretty tight Japanese management teams given the costs of sending such expats overseas. I therefore would not agree with many of the comments made plus over many decades inward Japanese investment has been very positive for the UK economy. The opposing belief that innovative UK companies support UK jobs versus foreign owned groups is questionable - look at the way Dyson has structured its manufacturing operations. |