EVERETT — While stock markets around the world plunged in reaction to Britain’s vote to leave the European Union, companies and investment analysts around Puget Sound took the news in stride.
The Leave campaign’s victory on Thursday — popularly known as Brexit — surprised many. However, it did not create anarchy. Britain still belongs to the E.U. for now. Negotiating its exit likely will be a lengthy process, and until it is finished, the United Kingdom’s trade policies and other international ties will stay the same.
The fireworks Friday in financial markets was “really because markets were not expecting it,” said Ian Toner. He’s the head of research at Verus, a Seattle-based investment firm and a British citizen who voted by mail in the referendum.
“The real impact for businesses in the Puget Sound is long term,” as the U.K. negotiates its own international policies, he said. That could mean a more tailored trade policy for Britain and America. Right now, Britain’s international trade abides by E.U. trade policy set in Brussels.
The E.U. has trended toward greater and greater policy centralization since Britain joined in 1973. The E.U. is expected to consider big policy debates covering a wide range of issues in the next few years, meaning more power could shift from member nations to Brussels. While less dramatic than Thursday’s vote, the outcome of those debates also would affect Britain’s economy.
“Voting to remain involved uncertainty, too. There was no status quo choice in this election,” Toner said.
The U.K. and its trading partners, including the rest of the E.U., have “a lot of interest in ensuring a smooth transition and that there’s as little uncertainty for businesses as possible,” he said.
Peter Zieve, owner of Electroimpact, is not worried by the news. His company has 120 employees and a major manufacturing operation in the U.K. About 20 percent of the company’s sales and purchases are connected to the U.K.
“I guess it just doesn’t make much difference,” he said about the Leave victory. “Over the years, so many big things have happened — and business goes on.”
His Mukilteo-based company celebrated its 30th anniversary Friday.
The uncertainty of future trade relations likely won’t affect his company’s ability to close deals now, he said. “We’re in aerospace, there are no contracts. Have you seen a Boeing contract? They’re one page.”
Boeing issued a statement in response to Brexit, saying, “As a global business we constantly manage changes in political circumstances and we will continue to do so now” in Europe.
The aerospace giant’s connections with the U.K. go back to the 1930s. Britain “is an important base of operations for supporting airline and defense customers, and the company maintains an important network of suppliers and technology partners. These relationships — and our commitment to our customers in the U.K. and Europe — will continue following the decision of the people of the U.K. in this referendum,” Boeing said.
Other aerospace companies issued similar statements balancing the uncertainty with an expectation that business will go on.
“British airlines will still need airplanes,” said Scott Hamilton, an aerospace analyst and owner of Leeham Co. in Issaquah.
Similarly, individual investors shouldn’t panic despite markets’ reactions on Friday. People “should stay invested,” said Kate Warne, an investment strategist with Edward Jones. “Focus on the fundamentals, not short-term market moves.”
Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com. Twitter: @dcatchpole.
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