back to article Vendors suspend tech orders as Brexit slaps Brit pound

If there is one thing the IT industry despises it is uncertainty and there was lashing of the stuff poured across the UK following the Brexit vote. Most major vendors already came out in favour of the Remain camp - including Microsoft, IBM, HPE, SAP, EMC, Cisco and many others - the result was so unexpected for the community …

  1. AMBxx Silver badge


    Do none of these companies bother to buy currency in advance or hedge in some way? Airlines manage it pretty well and they have the oil price to worry about too.

    Just glad I put a 20k order through yesterday

    1. Voland's right hand Silver badge

      Re: Hedging

      Just glad I put a 20k order through yesterday

      What makes you think that the seller will not declare force major and cancel it?

    2. Steve Crook

      Re: Hedging

      Amazed you got anyone to take on a transfer. Transferwise had put up the shutters from first thing yesterday.

      The markets going to the shitters was always going to happen with a Leave. If things behave as normal, the £ will rise over the next couple of weeks to close to where it was prior to the vote as people (traders) come to realise the Four Horsemen are not abroad.

      1. AMBxx Silver badge

        Re: Hedging

        It was an existing quote from SAP. Marginal cost of electronic software delivery is zero, so I'm sure SAP can weather my order.

      2. Blank Reg

        Re: Hedging

        So far this morning I've been seeing the currency traders predicting a further 15-20% drop in the pound over the coming months. The UK have voted for a recession and all that comes with it.

        1. John Brown (no body) Silver badge

          Re: Hedging

          I'd not trust a traders predictions at all, especially a currency trader. They are the ones making a profit out of the fluctuations so it's very much in the interests to talk it down so they can short it and buy another Ferrari.

  2. SImon Hobson Bronze badge

    I really can't understand why the mass kneejerk. Surely everyone knew that this morning, we'd wake up, look at the news, and regardless of which way the vote went - we'd still be in the EU, we'll still be in the EU next week, we'll still be in next month, and it's fairly certain we'll still be in for another couple of years. There won't be massive trade barriers until we leave, in fact, f**k all changes really in the short term.

    So why is everyone panicking ? Indeed, the four horsemen aren't abroad - in fact their horses are still out at grazing, and they are still in bed.

    1. Steve Davies 3 Silver badge

      Uncertainty replaced by certainty

      We have been told for years that the markets hate uncertainty.

      Well we know the result and the markets crash.

      Or is there some other 'uncertainty' we should be told about?

      Hang the lot of them I say.

      1. Derpity

        Re: Uncertainty replaced by certainty

        While I don't disagree with your final assessment there's still a boat load of uncertainty. For example - what will the new trade agreements look like with the rest of Europe? That's not likely to be resolved in the near future and can have huge impacts on the economy, which in turn effects the markets.

        As a Yank, I'm taking a beating on the market already today but such is life with globalization. A butterfly flaps its wings and so forth...

    2. Roland6 Silver badge

      we'd still be in the EU, we'll still be in the EU next week, we'll still be in next month, and it's fairly certain we'll still be in for another couple of years. There won't be massive trade barriers until we leave, in fact, f**k all changes really in the short term.

      The world changes the moment the UK government initiates Article 50, at which point the UK steps onto the exit conveyor and will exit the EU in two years (more if the remaining EU members wish to be generous), on whatever terms that have been agreed by then and that includes none.

      Given the statements made today, it looks like the (major) EU members want to see the UK on the exit conveyor before the end of June 2016. So leave could become very real in a matter of days...

      Hence why companies such as investment banks are already making noises about relocating significant parts of their operations out of London to Dublin and Frankfurt; because currently those transfers of operations will be wholly within the EU and hence much simpler to effect.

      So whilst there is likely to be few trade barriers to financial services trading, it will be pointless having your EU operation based outside of the EU. Given the revenue the UK government derives from the London financial market, this will be a loss that won't be easily replaced. With many companies doing similar in the next couple of years the UK economy is going to very rapidly contract.

  3. Immenseness

    Bah Humbug

    I think it is less knee-jerk and more the guillible (including our pension funds) buying and selling by the bucketload as they are told to, like good little boys and girls (ooh look - uncertainty! Better sell that, here let me take it off your hands and sell you this instead), with the usual rich greedy gobshites playing the system and taking money out of our pension funds on each transaction.

    When the market goes up - the rich greedy gobshites make a profit. When the market down the same rich greedy gobshites make a profit and guess who has to stand the loss? The rest of us in one way or another.

    1. Mark Eaton-Park

      Re: Bah Humbug

      Well perhaps you should insist that your pension company doesn't employ rich greedy gobshites to manage your stocks for their school mate's benefit.

      Whenever it looks like the rich might get a bit poorer it is time for them to raid the public chest, you know the one they don't pay their share into but always seem to take more than their share out of.

  4. A Non e-mouse Silver badge

    I've had one reseller rescind all their quotes today due to the currency markets. I'm expecting another to say the same in the next hour or so too.

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Other stories you might like