-
Hey Guest, do you have a question for graduate recruitment? Gemma Baker from Willkie is live to answer your questions!
-
Get line-by-line feedback on your applications, access to our weekly application workshops, and our law firm profiles. Use the coupon code 'SIXWEEKS' at checkout for 10% off.
Learn commercial awareness with me ahead of training contract interviews
- Thread starter Jaysen
- Start date
- Feb 17, 2018
- 4,719
- 8,627
A few recent stories that caught my eye:
1. The UK's competition regulator (the CMA) blocked Microsoft's attempted acquisition of Activision Blizzard. The concern centres on the future of cloud gaming if Microsoft made some of the Activision titles exclusive to its cloud service.
2. JP Morgan bought First Republic, another bank that collapsed following SVB. The bank had been squeezed by rising interest rates and high outflows (customers withdrawing their money).
--
I'd recommend the FT news briefing as a basic way to stay up to date with the financial news of the day. It's only 10 minutes and can be easily turned into a habit (e.g. listening to it as you're getting ready in the morning).
Curious to know if anyone recommends any other podcasts?
1. The UK's competition regulator (the CMA) blocked Microsoft's attempted acquisition of Activision Blizzard. The concern centres on the future of cloud gaming if Microsoft made some of the Activision titles exclusive to its cloud service.
2. JP Morgan bought First Republic, another bank that collapsed following SVB. The bank had been squeezed by rising interest rates and high outflows (customers withdrawing their money).
--
I'd recommend the FT news briefing as a basic way to stay up to date with the financial news of the day. It's only 10 minutes and can be easily turned into a habit (e.g. listening to it as you're getting ready in the morning).
Curious to know if anyone recommends any other podcasts?
Law firms podcasts are often quite good as well
I also listen to
- Watson daily
- McKinsey podcast
- EY & Deloitte podcasts
just to bend a few
- Feb 17, 2018
- 4,719
- 8,627
It would be FT briefing but outside of that maybe solutions for a better world (baker McKenzie) or Ashurst podcast
Very interesting commercial updates this week:
1) Google Brain-Deepmind merger: Interesting development after the CMA blocked Microsoft’s acquisition of Activision Blizzard. The EU is really keen on significantly strengthening the DSA and it could mean more stringent requirements for tech M&A deals in Europe. Not to say that such stringent regulatory requirements would negatively affect future tech deals, but it does raise concerns about how conducive Europe/UK could be to such tech companies. I also feel the Activision Blizzard case could involve huge work for antitrust lawyers. Important reasons that come to mind about this case not getting the green light could potentially be non-compliance to merger control systems and breaching the regulatory thresholds.
2) China is now the leader for global IPO listings. I think that could be because China has a diversified investment climate (similar to the US). The irony is that Microsoft recently labelled the UK not fit for business growth but then even the FTC raised concerns about the Activision Blizzard deal yet US continues to attract the most tech deals because of the huge number of IPO listings that happen there. Maybe the UK can think along the same lines and diversify IPO listings to boost investments subsequently creating more business opportunities and eventually more work for M&A and ECM lawyers.
3) Also, @Jaysen the legal services board (LSB) is looking to regulate NDA agreements within law firms because they think law firms are misusing the advantages of an NDA. How do you think this could affect the way law firms work in the future?
1) Google Brain-Deepmind merger: Interesting development after the CMA blocked Microsoft’s acquisition of Activision Blizzard. The EU is really keen on significantly strengthening the DSA and it could mean more stringent requirements for tech M&A deals in Europe. Not to say that such stringent regulatory requirements would negatively affect future tech deals, but it does raise concerns about how conducive Europe/UK could be to such tech companies. I also feel the Activision Blizzard case could involve huge work for antitrust lawyers. Important reasons that come to mind about this case not getting the green light could potentially be non-compliance to merger control systems and breaching the regulatory thresholds.
2) China is now the leader for global IPO listings. I think that could be because China has a diversified investment climate (similar to the US). The irony is that Microsoft recently labelled the UK not fit for business growth but then even the FTC raised concerns about the Activision Blizzard deal yet US continues to attract the most tech deals because of the huge number of IPO listings that happen there. Maybe the UK can think along the same lines and diversify IPO listings to boost investments subsequently creating more business opportunities and eventually more work for M&A and ECM lawyers.
3) Also, @Jaysen the legal services board (LSB) is looking to regulate NDA agreements within law firms because they think law firms are misusing the advantages of an NDA. How do you think this could affect the way law firms work in the future?
Hi all,
Out of interest, I've been following the UK's equities market and in particular why some UK listed companies are moving their primary listings from the LSE to another market (CRH in Feb/Mar) or why some are rejecting London as their IPO venue (Softbank's Arm). Does anyone have any thoughts on how this might affect international law firms?
Out of interest, I've been following the UK's equities market and in particular why some UK listed companies are moving their primary listings from the LSE to another market (CRH in Feb/Mar) or why some are rejecting London as their IPO venue (Softbank's Arm). Does anyone have any thoughts on how this might affect international law firms?
- Feb 17, 2018
- 4,719
- 8,627
Tagging our resident commercial awareness expert @Jake Rickman who is going to share his thoughts on these
I think this is a really profound development and one to keep an eye on because it hits on so many different aspects of the commercial world that ultimately influence the large international firms. So definitely a great one to raise.
We partially addressed this back in January with this article, "Corporate governance concerns mount for FTSE 100 companies", as well as the March article "SoftBank-owned semiconductor spurns the LSE".
I actually missed the fact that CRH decided to list in New York. Definitely adds credence to idea that the LSE is struggling to stay competitive.
I think as well it is worth bearing in mind how massive the US markets are and how some prospective clients like SoftBank view it as more favourable than the UK from a regulatory perspective.
In terms of how it might impact law firms, I suspect there is quite a bit of uncertainty and anxiety about the future of London as a global financial and legal capital, which could feasibly result in some international firms choosing not to invest as heavily in their London/UK presence. That is, that they might choose to follow potential client money and double down in the US markets. This would of course negatively impact firms active in the equity capital markets spaces.
There are a couple of interesting connections worth exploring from this perspective:
1. Among of the largest US firms that specialise in corporate and private equity work, some of them (e.g., Proskauer and Craveth) have never had a substantial presence in London.
2. You can start to see why the largest UK firms like Clifford Chance and Freshfields have been so neurotic about expanding their US market share.
On the other hand, the UK government seems quite determined to reverse the tide and the perception that London is not competitive (even if some of their approaches might be described as ham-fisted). I cannot recall the exact plan off the top of my head and which public bodies have been enlisted to enact it, but there is some substantial regulatory reform related to LSE listing guidelines coming down the pipeline.
This is an obvious opportunity for the international firms with commendable UK regulatory and advisory practice areas (e.g., thinking of a firm like Freshfields, though I have no idea which firms in particular have been drafted in to advise).
As of today, (Monday 15 May) the EU has reached a different decision than the UK's Competition Market Authority (CMA) did a couple of week's back re: Microsoft's attempt to acquire Activision. (BBC article)
This does not change the effect of the CMA's decision in that it still effectively blocks the merger, but now all eyes will be on the US's competition authority, the Federal Trade Commission (FTC), which should release its own decision in a few month's time as to the effect of the merger on US competition law (commonly referred to as anti-trust law).
One area that this development touches upon is the regulatory divergence between the UK and EU following Brexit. My understanding is that prior to Brexit, the UK's CMA was subordinate to the EU's competition authority, but now it has much more independence. This ties in with wider perceptions that the UK might be less advantageous for big businesses compared to other jurisdictions (see my post above). The outcome of the FTC decision will go a long way in shaping these discussions, so this is an international story to keep an eye on, especially if you are interested in competition and/or corporate/M&A law.
This does not change the effect of the CMA's decision in that it still effectively blocks the merger, but now all eyes will be on the US's competition authority, the Federal Trade Commission (FTC), which should release its own decision in a few month's time as to the effect of the merger on US competition law (commonly referred to as anti-trust law).
One area that this development touches upon is the regulatory divergence between the UK and EU following Brexit. My understanding is that prior to Brexit, the UK's CMA was subordinate to the EU's competition authority, but now it has much more independence. This ties in with wider perceptions that the UK might be less advantageous for big businesses compared to other jurisdictions (see my post above). The outcome of the FTC decision will go a long way in shaping these discussions, so this is an international story to keep an eye on, especially if you are interested in competition and/or corporate/M&A law.
Another development to keep an eye on is the debt ceiling negotiations ongoing in the United States. This is really more of a political development primarily between the US Republicans — which control the lower house of Congress (the House of Representatives) — and the Democrats, which control the upper house of Congress (the Senate) and of course the White House viz President Joe Biden.
A simple summary is that Kevin McCarthy, who is the Speaker of the House of Representatives and de jure leader of the Republicans, is trying to play hardball with the White House and Congress by refusing to agree to raise the borrowing limit of the US government unless the Senate and White House agree to some Republican-friendly measures. Things are complicated because McCarthy made an uneasy alliance with the far-right fringe members of the Republican Party when the Republicans took over control of the House of Representatives in January 2023. My current read on the situation is that the fringe wing is not interested in negotiations.
This is really more of a political issue than anything, and harkens back to Obama's days as president when the Republicans would routinely hold the debt ceiling hostage as a way to frustrate his presidency. But the consequence of not raising the debt ceiling is that the Federal Government defaults on its debt, which would have potentially profound implications for the rest of the commercial world. For starters, it would be the first time that the US has defaulted on its treasury bonds, which nearly everyone treats as an unassailably safe asset precisely because no one ever expects the US to default on its debt obligations.
It is a fluid situation. My understanding is that 1 June is the backstop date that an agreement has to be reached. Otherwise the Federal Government will not meet its 1 June treasury bond interest payments and will begin defaulting on its debt obligations.
If this still looks like an issue next week (and I suspect it will), I may write an article on it. But feel free to ask any questions or start a conversation about it before then.
A simple summary is that Kevin McCarthy, who is the Speaker of the House of Representatives and de jure leader of the Republicans, is trying to play hardball with the White House and Congress by refusing to agree to raise the borrowing limit of the US government unless the Senate and White House agree to some Republican-friendly measures. Things are complicated because McCarthy made an uneasy alliance with the far-right fringe members of the Republican Party when the Republicans took over control of the House of Representatives in January 2023. My current read on the situation is that the fringe wing is not interested in negotiations.
This is really more of a political issue than anything, and harkens back to Obama's days as president when the Republicans would routinely hold the debt ceiling hostage as a way to frustrate his presidency. But the consequence of not raising the debt ceiling is that the Federal Government defaults on its debt, which would have potentially profound implications for the rest of the commercial world. For starters, it would be the first time that the US has defaulted on its treasury bonds, which nearly everyone treats as an unassailably safe asset precisely because no one ever expects the US to default on its debt obligations.
It is a fluid situation. My understanding is that 1 June is the backstop date that an agreement has to be reached. Otherwise the Federal Government will not meet its 1 June treasury bond interest payments and will begin defaulting on its debt obligations.
If this still looks like an issue next week (and I suspect it will), I may write an article on it. But feel free to ask any questions or start a conversation about it before then.
Similar threads
