Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Tokyo  >  Honda Motor Co Ltd    7267   JP3854600008

Mes dernières consult.
Most popular
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Companies prepare for disorderly Brexit as talks stall

share with twitter share with LinkedIn share with facebook
share via e-mail
12/07/2017 | 11:02am CEST
FILE PHOTO: The late winter light shines on the buildings in the City of London financial district of London

LONDON (Reuters) - Big companies are stepping up their plans in case Britain crashes out of the European Union without a deal as Prime Minister Theresa May struggles to get talks back on track after a major setback.

Britain is aiming to agree with the EU on Dec. 14 to move the Brexit talks on to the second phase. This would focus on trade and a two-year transition deal to smooth the departure after March 2019. But the timetable has been thrown into doubt after discussions broke down in Brussels on Monday.

Senior executives in the financial services sector, which accounts for about 12 percent of the economy, told Reuters May's efforts to secure a transition deal had come too late and they had no choice but to start restructuring.

Big supermarkets such as Tesco and Sainsbury's have been working with suppliers to identify potential delays, shortages or price rises. They have lined up alternative providers, according to suppliers and sources in the industry.

The uncertainty is particularly painful for the manufacturing sector as low margins make it risky for them to restructure unless it is essential. They have been holding off on investment but are preparing for new certification that would allow them to sell in Europe if there is no deal.

"The delay is so great and the uncertainty is so great that companies have no choice but to start triggering their plans," the head of one of Britain's largest companies said.

Paul Drechsler, the president of the blue-chip business lobby group the CBI, said businesses were now having to plan for the worst while hoping for the best.

"No company wants to move jobs or shift production – but business will if it has to," he said. "There's no time to waste. In the immediate term, business needs to know the details of any transition deal – Rome is burning on that issue."

Britain and the EU are working to get talks back on track this week but the chairman of one large international bank said its executives had decided to plan for the worst at a conference call on Tuesday.

"The question is no longer whether we are moving (operations to the EU), it is a question of how big those moves are?," he said.

Like other executives, he had been asked by his board and the government not to divulge their thinking.


The chairman said the bank has started discussions with customers about rerouting client activity to European hubs, including rewriting thousands of contracts.

Senior employees were told last month if they had to relocate to Europe, he said.

Another senior executive at a large U.S. bank said that he was increasingly concerned that May's government could collapse after the Brussels talks broke down over a dispute about the Irish border, adding to the uncertainty.

"We are at the maximum point of danger," he said.

The financial sector needs extra time to make sure its clients are prepared. For instance, a British bank opening a subsidiary in Europe may need its clients to adopt a new sort code throughout their own supply chains.

In other sectors, companies are making smaller changes that would enable them to operate in Europe after Brexit, from preparing compliance changes to drawing up shadow supply chains and looking for additional warehouse space.

Food retailers are lining up alternative suppliers in Britain or outside the EU in case delays at borders or new tariffs disrupt deliveries. Around 30 percent of Britain's food and drink comes from the EU.

Some changes would need to be made early next year in time for the 2019 departure. Changing a fresh fruit supplier could require a lead time of a year, depending on the growing cycle.

Ali Capper, a partner in Stocks Farm in Worcestershire, central England, and a chair of the Horticulture and Potatoes Board at the National Farmers Union, said there were signs retail customers were requesting more British produce.

Ireland provides almost 70 percent of UK beef imports, or 270,000 tonnes a year. Were tariffs or border delays to make Irish beef less competitive, supermarkets could look further afield, for instance to Argentina.


Many manufacturers are unwilling to sign off on new plans until they know how Britain will trade in the future.

The drugs sector has been among the first to move to comply with EU regulations. GlaxoSmithKline and AstraZeneca are preparing to set up new facilities in mainland Europe to test batches of drugs made in Britain and many firms are transferring UK product licences to continental offices.

Autos and aerospace firms are focusing on certification. According to the aerospace and defence trade body, ADS, some companies are considering applying to the European Aviation Safety Agency for a status that would enable them to sell in the EU if Britain was no longer a member state.

Japanese carmaker Honda, which builds around 8 percent of British cars at its plant in Swindon, is considering increasing its warehouse capacity in Britain and stock levels to counter any new border delays.

Manufacturers reluctance to sign off on big plans has had a knock on effect on companies in the supply chain.

"The biggest impact we see is a general unwillingness to make investment and capacity decisions as result of the continued uncertainty," said Stephen Cheetham, owner of PK Engineering Ltd of Hereford, a supplier of components to the aerospace and scientific industries.

"We would expect continued paralysis and short-termism until a trade deal is finalised," he told Reuters.

Having a transition deal will allow businesses to survive the two years after Brexit by allowing them to defer any big decisions until the final parameters of Brexit are worked out, said Andrew Bonfield, finance director of National Grid and chairman of the 100 Group of finance chiefs.

"It's about the avoidance of a cliff edge," he said.

(Additional reporting by Costas Pitas and Ben Hirschler; editing by Guy Faulconbridge and Anna Willard)

By Kate Holton and Andrew MacAskill

Stocks mentioned in the article
ChangeLast1st jan.
ASTRAZENECA -0.64% 5467 Delayed Quote.7.44%
GLAXOSMITHKLINE -1.13% 1558.2 Delayed Quote.19.17%
GOLDMAN SACHS GROUP 1.43% 229.68 Delayed Quote.-11.13%
J SAINSBURY -0.12% 329 Delayed Quote.36.45%
JP MORGAN CHASE & COMPANY 2.53% 109.1 Delayed Quote.-0.54%
TESCO -0.23% 254.8 Delayed Quote.22.06%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on HONDA MOTOR CO LTD
05:29pHONDA MOTOR : and Panasonic to Begin Research Experiment on Battery Sharing Usin..
12:57pHONDA MOTOR : Drunk driver caught 87km/h over limit near Byron Bay
11:45aHONDA MOTOR : Press TV Sports bulletin
07/15HONDA MOTOR : SA's Brad Binder takes his first Moto2 win
07/15HONDA MOTOR : SA's Brad Binder takes his first Moto2 win
07/15HONDA MOTOR : Marquez wins German MotoGP Grand Prix, 5th victory of the season
07/15HONDA MOTOR : Spain's Jorge Martin wins Moto3 race at German GP
07/14HONDA MOTOR : Marquez earns pole position for German MotoGP Grand Prix
07/14HONDA MOTOR : Firm caught making copy motorcycles
07/14HONDA MOTOR : set to celebrate 20 years in Florence County
More news
News from SeekingAlpha
07/15Profitable Alternatives To Tesla Are In Japan 
07/11Nissan's Most Competitive Vehicle Is Only $20,000 
07/11Shanghai speeds up foreign auto investment 
07/09Prius Sales Are Falling, But Other Toyota Hybrid Models Are Witnessing Strong.. 
07/07STOCKS TO WATCH : A New Beverage Giant Steps Out 
Financials ( JPY)
Sales 2019 15 611 B
EBIT 2019 -
Net income 2019 709 B
Debt 2019 4 649 B
Yield 2019 3,50%
P/E ratio 2019 8,34
P/E ratio 2020 7,75
EV / Sales 2019 0,68x
EV / Sales 2020 0,65x
Capitalization 5 963 B
Duration : Period :
Honda Motor Co Ltd Technical Analysis Chart | 7267 | JP3854600008 | 4-Traders
Technical analysis trends HONDA MOTOR CO LTD
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 20
Average target price 4 171  JPY
Spread / Average Target 27%
EPS Revisions
Takahiro Hachigo President, CEO & Representative Director
Seiji Kuraishi COO, Representative Director, VP & Head-Strategy
Kohei Takeuchi Senior MD, Head-Finance & Administration
Yoshiyuki Matsumoto Senior Managing Director, Head-R&D
Toshiaki Mikoshiba Senior MD, GM-North America & Head-Sales
Sector and Competitors
1st jan.Capitalization (M$)
HONDA MOTOR CO LTD-16.13%53 049
TOYOTA MOTOR CORP-0.30%211 263
VOLKSWAGEN-13.49%83 690
DAIMLER-19.14%71 564