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How will Brexit affect this industry?

kukulec

Well-known member
Jan 25, 2015
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If during the exit negotiations the the europeans will act according to their promise, setting up taxes and duties, then I guess it will be a bit easier for companies like Focal, Elac, Dali, Canton, and a lot harder for all those registered in the UK not having factory in China.
 

jjbomber

Well-known member
Dec 22, 2006
687
228
19,270
drummerman said:
As per title
It won't make any difference at all, as we will have a trade agreement by then anyway. In the short term, the exchange rate is being fixed at a low level to punish us for exercising our democratic right. That should be great news for exporters, as our products will be a lot cheaper to foreign purchasers. The smart ones may even hedge at a low rate for the next few years.

of course, Brexit will get the blame for manufacturing moving to China, but it's been happening for years and won't change.
 

abacus

Well-known member
Sep 24, 2008
399
155
19,070
Consider this, any one that trades with anyone outside of the EU has serious taxes and obstacles put in their path, however despite this, we still sell 56% of our products to countries outside the EU, (Way more than we sell to the EU) once we leave the EU and all these barriers disappear, we will be able to sell even more than we do now, to even more countries, thus the EU (Despite what they try and make you believe) is an inward-looking irrelevance in the real world. (Talk to anybody outside the EU (Business and public) and you will find that the EU is nothing but a joke, that has little relevance in a global world, due to its inward-looking mentality).

Problems, Short term yes, but once were out, this industry will just get better.

The currency markets don’t like uncertainty (Hence the reason the £ has dropped) but once our cards are on the table, it will improve once more. (Nothing to do with punishing us, it’s just how the markets work)

Hope this helps

Bill
 

CnoEvil

New member
Aug 21, 2009
556
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jjbomber said:
...the exchange rate is being fixed at a low level to punish us for exercising our democratic right.
The exchange rate is a result of the confidence in Sterling by the currency markets, not by the EU to punish us.....that will come later when we try and get a deal and every EU country will have its own sticking point....like the deal with Canada, which after 8 years has stalled because of a small area in Belgum that most people haven't heard of.
 

kukulec

Well-known member
Jan 25, 2015
40
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10,545
(Talk to anybody outside the EU (Business and public) and you will find that the EU is nothing but a joke) - omfg. maybe you told the same s**t when UK destroyed its own car industry *dash1*
 

CnoEvil

New member
Aug 21, 2009
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abacus said:
Consider this, any one that trades with anyone outside of the EU has serious taxes and obstacles put in their path, however despite this, we still sell 56% of our products to countries outside the EU, (Way more than we sell to the EU) once we leave the EU and all these barriers disappear, we will be able to sell even more than we do now, to even more countries, thus the EU (Despite what they try and make you believe) is an inward-looking irrelevance in the real world. (Talk to anybody outside the EU (Business and public) and you will find that the EU is nothing but a joke, that has little relevance in a global world, due to its inward-looking mentality).

Problems, Short term yes, but once were out, this industry will just get better.

The currency markets don’t like uncertainty (Hence the reason the £ has dropped) but once our cards are on the table, it will improve once more. (Nothing to do with punishing us, it’s just how the markets work)

Hope this helps

Bill
The problem I have, is that the Single Market is the most sophisticated Market in the world and is on a our doorstep...with 44% of our exports going there and 500m people to sell to. No other single country can compete with this. Both China and America have said that we will be taken less seriously once we are not part of this big Market.

As you have stated, there are upsides, but it remains to be seen if they outweigh the downsides....and the uncertainty could last 6-10 years.
 

CnoEvil

New member
Aug 21, 2009
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To answer your question...expect price rises on any component that isn't made in the UK, or is made with parts that originate outside the UK.
 

CnoEvil

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Aug 21, 2009
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kukulec said:
(Talk to anybody outside the EU (Business and public) and you will find that the EU is nothing but a joke) - omfg. maybe you told the same s**t when UK destroyed its own car industry *dash1*
The EU is a nightmare to sell into, if outside it...as Canada will testify....this could be seen as an argument to remain within it.

IMO. The EU will have to change, or it will implode....and I would like to have seen us having a say in that change.
 

radiorog

Well-known member
Jan 1, 2013
54
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Im not sure how it all works,so dont really know answer to your question drummerman, but being a cyclist, im sure you noticed the 10% increase in bike prices and most components just a few days after brexit.
 

jjbomber

Well-known member
Dec 22, 2006
687
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CnoEvil said:
....like the deal with Canada, which after 8 years has stalled because of a small area in Belgum that most people haven't heard of.
Which is why we must leave. Then Germany leaves and the EU falls apart. The Euro currency should be on the floor at the moment. I told you about the footsie being fiddled ahead of the Brexit vote. Now we are seeing it in the currency market.
 

CnoEvil

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Aug 21, 2009
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jjbomber said:
CnoEvil said:
....like the deal with Canada, which after 8 years has stalled because of a small area in Belgum that most people haven't heard of.
Which is why we must leave. Then Germany leaves and the EU falls apart. The Euro currency should be on the floor at the moment. I told you about the footsie being fiddled ahead of the Brexit vote. Now we are seeing it in the currency market.
The FTSE rose, simply because the value of the assets in the multi national companies that make it up, hold Dollars, which were then worth more when priced in Sterling.

If The EU falls appart, the fallout will almost certainly effect us (as nothing globally happens in isolation)....this is why it makes more sense to have it reformed.....all imo.
 
May 28, 2013
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Spot on Cno. Shipping costs are also due to rise significantly due to oil priced in $ and the demise of Hanjin Shipping. Importers are going to have margins squeezed big time. With the Yuan tied to the $, all those "British" brands made in Asia are going to cost more and my own "Made in japan" electronics are bound to go up. Danish Dalis, Dynaudio, Gamut and Raidho etc priced in Euros will cost more. The Canadians have found out that 7 years of negotiation with the EUSSR communists can be undone by the Belgian socialist province of Wallonia. Speaks for itself. Hopefully we can do a better deal with Canada and import more of its excellent HIFI products.

As for our car industry, destroyed by Labour's nationalisation, Red Robbo and the communist unions. Saved by Thatcher bringing in the Japanese and Germans/Ford to save JLR, Rolls, Mini, Bentley, Aston Martin etc.
 

Womaz

New member
Dec 27, 2011
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CnoEvil said:
kukulec said:
(Talk to anybody outside the EU (Business and public) and you will find that the EU is nothing but a joke) - omfg. maybe you told the same s**t when UK destroyed its own car industry *dash1*
The EU is a nightmare to sell into, if outside it...as Canada will testify....this could be seen as an argument to remain within it.

IMO. The EU will have to change, or it will implode....and I would like to have seen us having a say in that change.
The EU is finished , it didn't work. It was just a matter of time before it went tits up! Part of me thinks we will get the blame for starting the exodus , but hey it's done now.

i was a remain voter for selfish reasons , but must admit I was very very close to voting to leave .
 

CnoEvil

New member
Aug 21, 2009
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Womaz said:
The EU is finished , it didn't work. It was just a matter of time before it went tits up! Part of me thinks we will get the blame for starting the exodus , but hey it's done now.
IMO. A bit like Deutsche Bank, it won't be let fail....there is too much at stake....but it will have to change.

We may not get the full blame, but we certainly haven't helped....but it's their intransigence that is really the cause.
 

Electro

Well-known member
Mar 30, 2011
43
2
18,545
CnoEvil said:
jjbomber said:
...the exchange rate is being fixed at a low level to punish us for exercising our democratic right.
The exchange rate is a result of the confidence in Sterling by the currency markets, not by the EU to punish us.....that will come later when we try and get a deal and every EU country will have its own sticking point....like the deal with Canada, which after 8 years has stalled because of a small area in Belgum that most people haven't heard of.
It strikes me that this is a perfect example of why Brexit is a good idea if this is how the EU treats it's trading partners, it is utter stupidity imo .

They should have a majoity voting system.

It surprises me that anything ever gets done in the eurozone .*smile*
 

CnoEvil

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Aug 21, 2009
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Electro said:
It strikes me that this is a perfect example of why Brexit is a good idea if this is how the EU treats it's trading partners, it is utter stupidity imo .

They should have a majoity voting system.

It surprises me that anything ever gets done in the eurozone .*smile*
While we are part of the EU, it's not an issue for our access....but it's certainly going to be when we try and get in again.
 

nopiano

Well-known member
Feb 15, 2009
265
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19,070
Electro said:
CnoEvil said:
jjbomber said:
...the exchange rate is being fixed at a low level to punish us for exercising our democratic right.
The exchange rate is a result of the confidence in Sterling by the currency markets, not by the EU to punish us.....that will come later when we try and get a deal and every EU country will have its own sticking point....like the deal with Canada, which after 8 years has stalled because of a small area in Belgum that most people haven't heard of.
It strikes me that this is a perfect example of why Brexit is a good idea if this is how the EU treats it's trading partners, it is utter stupidity imo .

They should have a majoity voting system.

It surprises me that anything ever gets done in the eurozone .*smile*
A letter in today's Torygraph said that Article 50 only requires qualified majority voting. Can't claim I understand what that it means, but seems to mean that Wallonia cannot veto.
 

CnoEvil

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Aug 21, 2009
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nopiano said:
A letter in today's Torygraph said that Article 50 only requires qualified majority voting. Can't claim I understand what that it means, but seems to mean that Wallonia cannot veto.
My understanding is that Article 50 is a small, fairly vague 250 word section of the Lisbon Treaty, that is the formal legal process that lays out how a member state may leave. The triggering of it is solely down to the country wishing to leave.

The two years laid down is simply for "The Divorce Settlement", which is totally separate from "The framework agreement" for future relations.

The general consensus between Constitutional Lawyers is that the whole process is more likely to take 10 years. The 2 year period may only be extended if every one of the remaining states votes for it to happen. Failure to do so results in the exiting state falling out of the EU with no new provisions in place.

The EU Commission will be in charge of managing the talks and the process has been deliberately configured to give them the upper hand.

Once the article 50 trigger is pulled, the EU council of ministers will, by "qualified majority voting", agree a negotiation mandate, in the form of directives to the commission.

Qualified Majority Voting: Designed by the Treaty of Rome to be the principal method of reaching decisions in the Council of Ministers, qualified majority voting (QMV) allocates votes to member states in part according to their population, but heavily weighted in favour of the smaller states. The current allocation is set out inAppendix 4, from which it can be seen that Germany has one vote for every 8 million inhabitants whereas Luxembourg has one for every 200,000.

There is only one precedent of a country leaving, which was Greenland in 1985 after two years of negotiation. It has a population of 55,000, and only one product: fish.
 

Gray

Well-known member
Nov 27, 2015
990
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5,770
You'd have expected to have seen Strapped for cash by now wouldn't you?

Looks like he meant it when he said he was going. (Maybe he and a few others emigrated to mainland Europe while they still could)
 

tino

Well-known member
Sep 29, 2011
135
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If you consider a decent hifi to be a luxury item, then probably Brexit or the recent recession won't have that much effect for people in the UK with disposable income. Should Brexit come to fruition I am more worried about increased red tape with Europe and the rest of the world making it harder for companies to certify or export their products, and very unfavourable trade terms with countries like US, China, Korea.
 

CnoEvil

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Aug 21, 2009
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ifor said:
Womaz said:
, but hey it's done now.
No it's not.
I get the feeling that Europe is taking a hard line (to make us think again) and then will give us extra time, in order for "buyer's remorse" to set in (triggered by our economy going into freefall).

Those countries left in the EU, especially Germany, are very worried about the potential fallout from the UK's exit, so imo will do what they can to stop us triggering Article 50. There were even hints that even after it had been triggered, there might be a way to back out.
 

jjbomber

Well-known member
Dec 22, 2006
687
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CnoEvil said:
I get the feeling that Europe is taking a hard line (to make us think again) and then will give us extra time, in order for "buyer's remorse" to set in (triggered by our economy going into freefall).

Those countries left in the EU, especially Germany, are very worried about the potential fallout from the UK's exit, so imo will do what they can to stop us triggering Article 50. There were even hints that even after it had been triggered, there might be a way to back out.
They are taking a hard line so that the German people will want to remain. If Germany votes to leave then the EU is gone and the Euro is history. Our economy is going to soar as we are free from all the red tape. Germans will want to follow us eventually, but the longer the politicians stay in, the longer they can keep their back-handers and corruption receipts flowing.
 

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