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Message: <blockquote data-quote="HH" data-source="post: 24607" data-attributes="member: 1642">Here is this week's commercial awareness update! Hope you guys enjoy it <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite1" alt=":)" title="Smile    :)" loading="lazy" data-shortname=":)" /> Covered this week:<ul> <li data-xf-list-type="ul">HSBC cuts 35,000 jobs ([USER=3460]@Alice Manners[/USER])</li> <li data-xf-list-type="ul">Storm Dennis: An insurance perspective ([USER=3442]@Rachel S[/USER])</li> <li data-xf-list-type="ul">UK Government's New Immigration Policy ([USER=3115]@Ayah[/USER])</li> <li data-xf-list-type="ul">JPMorgan in talks to enter the UK’s consumer banking sector ([USER=1642]@HH[/USER])</li> <li data-xf-list-type="ul">Morgan Stanley agrees to buy ETrade [USER=4295]@Jiraiya[/USER] </li> </ul>HSBC cuts 35,000 jobsBy [USER=3460]@Alice Manners[/USER] The StoryAfter a fall in profits, HSBC has said that it will cut an estimated 35,000 jobs over the next three years, around 15% of the groups’ global workforce. This is an ambitious move to save costs and is on top of the 4,700 redundancies that HSBC last year blamed on an “increasingly complex and challenging global environment.”The ‘delayering’ targets senior managers and comes after Morrisons and Asda’s decisions in January to remove hundreds of management roles.Deutsche Bank has also pledged to cut 18,000 jobs by 2022.Impact on Businesses and Law FirmsIn the same media release HSBC warned about the economic disruption caused by coronavirus and predicted this impacting their performance in 2020. Alongside continued Brexit uncertainty (and historically low interest rates for banks) we will almost certainly see other businesses embarking on similar cost-saving drives.Law firms will play a role as more companies choose to restructure. From an employment perspective, they will also be involved drafting settlement agreements or dealing with any litigation that may arise.Through the restructuring, HSBC is dramatically reducing its presence in European equities, rates and derivatives. This is an area in which technology and artificial intelligence is having a significant impact - traders which rely almost entirely on machines have a significant share of the European stock-trading market. We may therefore see more financial institutions rethinking their strategy in this area.Despite the risks stemming from coronavirus, HSBC are moving more resources to Asia and the Middle East and therefore work may increase for international law firms focusing on growth in this area.Businesses cutting jobs at management level may need to consider the recent government plans to only allow high-skilled workers into the UK through a points-based immigration system, and the rise in the national living wage. However, the use of technology and artificial intelligence could play a role in reducing the need for operations staff.Storm Dennis: an insurance perspectiveBy [USER=3442]@Rachel S[/USER]  (Rachel Strickland)The storyStorm Dennis swept across the UK on the 15th and 16th of February leading to hundreds of flooded properties and significant travel disruption. Storm Ciara wreaked similar havoc a week before, raising fear that climate change is making extreme weather conditions the norm.Insurance company Aon reported $82 billion of economic damage from flooding last year, the greatest of any natural peril. The UK government has been criticised for lack of preparation with the £4 billion pledge for flood defences within the conservative manifesto yet to materialise. The mismatch in government funding and the increasing risks of extreme weather conditions presents opportunities for insurers and reinsurers (insurance cover bought by insurers) to underwrite flooding insurance policies.Impact on businesses and law firmsSignificant weather will interrupt businesses’ operations and disrupt supply chains. It will also mean expensive property damage claims. For example, Reinurance group, Swiss Re missed analyst’s expectations for the year after a string of expensive natural catastrophes.Insurtech companies and the growth of sophisticated catastrophe models are increasing insurers’ willingness to underwrite the unpredictable and destructive effects of flooding. Similarly, parametric (a predetermined pay-out if the insured risk occurs) insurance as opposed to traditional indemnity insurance provides greater certainty for insurance companies.Insurance lawyers will play a role in determining if a client is liable for damages and drafting and negotiating insurance policies. Property damage claims are complex and lawyers will have to scrutinise wording, or consider multiple events and occurrences and how to allocate losses. While business interruption claims require extensive documentation of the perceived income on businesses’ profitability. With more claims, lawyers may also aid insurance companies issue catastrophe bonds (debt funding based on the occurrence of a catastrophe). Firms like RPC and HFW have strong insurance sector focuses, and Clyde & Co has launched a cross-practice Climate Change Resilience Initiative to help clients identify and mitigate associated risks.</blockquote>

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