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Jewels Of British Industry At Risk Of Falling Into American Hands

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Shit and bust.

http://www.independent.co.uk/news/business/news/jewels-of-british-industry-at-risk-of-falling-into-american-hands-2017227.html

Jewels of British industry at risk of falling into American hands

By Alistair Dawber

American companies are preparing to launch daring takeover bids for a host of Britain's biggest corporate names – including BAE Systems and AstraZeneca – thanks to the weakness of the pound against the dollar.

Sterling has lost about a quarter of its value against the dollar in the last two-and-a-half years, and combined with the feeble recovery in the UK economy, British firms have become much cheaper for American suitors looking for a good deal.

Following the controversial takeover of Cadbury earlier this year by the US food giant Kraft, and the buyout of Gatwick Airport by an American private equity firm, analysts at Standard & Poor's predicted last week that a number of well-known UK companies, including AstraZeneca, BAE Systems and the contractor Balfour Beatty, could soon fall into American hands.

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This is fantastic news.

Bae has basically only got one customer, the UK government.

This means that instead of buying off the shelf stuff like Chinook helicopters we have had to ask Bae to design us something not as good at ten times the price for delivery ten years after you actually want them.

The government has already told the Mod to slash it's budget 25-30% and made a speech the other day about it no longer being efficient to keep paying over the odds for substandard kit just to maintain British arms manufacturers.

If Bae gets sold it means we don't have to spend billions a year subsidising them. :)

It also means we will stop subsidising them and many thousands of high tech jobs will go. :(

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My feeling is the pound will continue to strengthen against the euro because of the problems in euro land.

If Yankee starts buying these British companies we could well see sterling appreciate against the dollar too.

Didn't sterling jump when Prudential's attempt to purchase that thing in Asia collapsed?

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This is fantastic news.

Bae has basically only got one customer, the UK government.

This means that instead of buying off the shelf stuff like Chinook helicopters we have had to ask Bae to design us something not as good at ten times the price for delivery ten years after you actually want them.

The government has already told the Mod to slash it's budget 25-30% and made a speech the other day about it no longer being efficient to keep paying over the odds for substandard kit just to maintain British arms manufacturers.

If Bae gets sold it means we don't have to spend billions a year subsidising them. :)

It also means we will stop subsidising them and many thousands of high tech jobs will go. :(

We'll wind up subsidising Boeing and Lockheed-Martin instead.

A long time ago, a close friend set up an organisation called "engineers for peace". He'd studied the changing of companies in the UK who moved from producing consumer and industrial products, and became costs-plus government arms producers only: Marconi, Decca, much of STC, BAC (British Aircraft Corporation), because costs-plus is what it says, we'll make your weapons system for what we think it will cost, then add a profit. Production for the consumer was thought to be more cost-effective moved offshore, to the Far East.

Blue Streak...TSR2.....Nimrod..... countless other projects. Where was that "peace dividend" we were all promised as the iron curtain fell?

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If Bae gets sold it means we don't have to spend billions a year subsidising them.

It also means we will stop subsidising them and many thousands of high tech jobs will go. :(

Nevermind; they'll be able to get one of those '2.5 million new private sector jobs' that are going to be created 'over the next five years'.

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With the US about to print + $5 Tillion than YES if i was a large US company i buy everything in sight!

Pocket change to pay later.

Mike

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Guest sillybear2

Ahh, the wonders of printing to make your exports (what exports?) cheap whilst leaving the door open for anyone to wonder in a buy up whatever they like.

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With the US about to print + $5 Tillion than YES if i was a large US company i buy everything in sight!

Pocket change to pay later.

Mike

Providing the dollar holds its value.

If the US does print $5tr it's going to be one hell of a roller-coaster ride.

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We'll wind up subsidising Boeing and Lockheed-Martin instead.

A long time ago, a close friend set up an organisation called "engineers for peace". He'd studied the changing of companies in the UK who moved from producing consumer and industrial products, and became costs-plus government arms producers only: Marconi, Decca, much of STC, BAC (British Aircraft Corporation), because costs-plus is what it says, we'll make your weapons system for what we think it will cost, then add a profit. Production for the consumer was thought to be more cost-effective moved offshore, to the Far East.

Blue Streak...TSR2.....Nimrod..... countless other projects. Where was that "peace dividend" we were all promised as the iron curtain fell?

Aye, theres the rub.

Diverting what was left of the military industrial base into the production of high technology civilian products might have given this country a long term future. Instead, the UK economy is now a usurer's paradise.

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This is good, it backs up my theory that the pound is likely to rise in value somewhat over the next 6-12 months.

oh great how useful, a strong pound. That will all the difference in the real world of plant closures and rising unemployment. And our Market is europe and will always be that way.

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Didn't sterling jump when Prudential's attempt to purchase that thing in Asia collapsed?

It seemed to yes. Also, it dropped at the point they announced the deal originally.

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This is fantastic news.

Bae has basically only got one customer, the UK government.

This means that instead of buying off the shelf stuff like Chinook helicopters we have had to ask Bae to design us something not as good at ten times the price for delivery ten years after you actually want them.

The government has already told the Mod to slash it's budget 25-30% and made a speech the other day about it no longer being efficient to keep paying over the odds for substandard kit just to maintain British arms manufacturers.

If Bae gets sold it means we don't have to spend billions a year subsidising them. :)

It also means we will stop subsidising them and many thousands of high tech jobs will go. :(

I watched a fascinating telly program which explained how BAE are building the new class of nuclear hunter killer submarines up in Barrow.

Personally I think it's vital to maintain the skills needed to design and build our own armaments... being able to design and manufacturer your own submarines, new generation destroyers and aircraft carriers is, I believe essential for our security.

Chinooks are an interesting subject.... all Chinook production is subject to American priority... if there are any orders for airframes and parts on the order books placed by the US military we are denied supply... we are a LOW priority.

Also, we purchase something like 7 brand new Chinook airframes specifically for special operations... as far as I know these are still gathering dust in a hangar somewhere... the Americans refused to give us access to the on board software codes so we have no way of making these aircraft operational... essentially we've spend millions of pounds for nothing.

As far as being substandard... I believe that our latest generation destroyers and subs are some of if not the best in class anywhere in the world.... BAE are capable of manufacturing world class products which we can sell to other countries. I also understand that the Eurofighter/ Typhoon is one of the best fighter aircraft in the world.

If the Americans buy BAE we will be an even bigger poodle... if the yanks don't want us to have a particular piece of kit we won't be able to produce our own.

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A long time ago, a close friend set up an organisation called "engineers for peace". He'd studied the changing of companies in the UK who moved from producing consumer and industrial products, and became costs-plus government arms producers only: Marconi, Decca, much of STC, BAC (British Aircraft Corporation), because costs-plus is what it says, we'll make your weapons system for what we think it will cost, then add a profit. Production for the consumer was thought to be more cost-effective moved offshore, to the Far East.

Cost-plus was the norm for MOD contracts, back when I worked for Ferranti. It was more about what a project did cost, plus a profit. If it turned out to cost more than originally thought, the extra was passed on to the MOD.

No risk for the company at all, and all the incentive was toward cost-bloat rather than efficiency/frugality.

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Ahh, the wonders of printing to make your exports (what exports?) cheap whilst leaving the door open for anyone to wonder in a buy up whatever they like.

Or the wonders of consuming vastly more wealth than you create, leaving a shortfall to be funded by various kinds of asset sales.

At least trying to boost exports acknowledges the problem, and tries to address it somewhat.

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Part of Tate and Lyle also sold this week also.

If it helps you can think of the financeer's as pimps, uk businesses as the prostitutes who must spread their legs, and the american's as their clients.

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I watched a fascinating telly program which explained how BAE are building the new class of nuclear hunter killer submarines up in Barrow.

Personally I think it's vital to maintain the skills needed to design and build our own armaments... being able to design and manufacturer your own submarines, new generation destroyers and aircraft carriers is, I believe essential for our security.

In the long run, military capability must be underpinned by a robust industrial economy. It may well be that our long-term security is better served by devoting our limited resources toward energy independence and UK science/engineering in general.

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In the long run, military capability must be underpinned by a robust industrial economy. It may well be that our long-term security is better served by devoting our limited resources toward energy independence and UK science/engineering in general.

Yes. We can't go on buying oil from the Middle East, gas from Russia, and solar panels from China indefinitely without trade goods (not paper promises) passing in return.

Oh I forgot. Our foreign policy is to build lots of nasty weapons, and steal stuff. That works for piddling "threats" like Iraq seeking to benefit from "OUR" oil, but somehow, I don't think the same strategy will play well in Asia.

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Guest sillybear2

Or the wonders of consuming vastly more wealth than you create, leaving a shortfall to be funded by various kinds of asset sales.

At least trying to boost exports acknowledges the problem, and tries to address it somewhat.

Indeed, this is the natural consequence of running endless trade deficits, that's why the Germans own our electricity generators. It's also a death spiral, they're now using the capital and dividends from those assets as collateral to buy even more of our stuff. If you buy a bottle of HP sauce these days it's added to the trade deficit!

Not to worry, destroying the value of the pound will automatically make us a world class exporter (not just push up the price of everything and make our structural current account deficit even worse, and put a big "fore sale" sign over all our companies).

Edited by sillybear2

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Ahh, the wonders of printing to make your exports (what exports?) cheap whilst leaving the door open for anyone to wonder in a buy up whatever they like.

I've just finished a shift on the docks loading chemicals. You'd be very surprised how many ships leave fully loaded.

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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