Since the shock Brexit result after the June 23rd referendum, it seemed the country was going into melt down. The UK was plunged into uncertainty after the announcement that the 52% majority voted to leave the European Union. Even though the UK is likely to remain in the European Union for several years as the process evolves, the effects of the decision have been felt immediately. The FTSE 100 index of leading shares plummeted 8% after opening on Friday morning after the result. The value of the Pound tumbled to a 30-year low, falling nearly 10%.
Now, nearly two months post the Brexit announcement, UK market confidence is showing signs of improvement. With the recent appointment of new Prime Minister Theresa May, shares in the banking sector made promising improvements: RBS was up 1.34%, Barclays up 2.17% and Lloyds up 2.5%.
Last month, German industrial giant Siemens announced that it will continue to invest in the UK. In the months leading up to the referendum Siemens had warned its workforce that increasing costs teamed with the uncertainty of the UK leaving the Union could make the UK an unattractive place to do business.
Hearing that the engineering and technology manufacturer remains fully committed to their continued manufacturing in the UK comes as a great relief. Siemens employs 14,000 people in the UK, across 13 UK based plants.
Chief Executive Joe Kaeser announced to various media outlets that the company still regards the UK as a “good place to do business” regardless of whether we are in or out of the European Union. It seems that it is not all doom and gloom, and with the initial shock of the result wearing off, we should start to see increased market confidence.