Learn commercial awareness with me ahead of training contract interviews

[Jaysen]

Hey all,

This is a bit of an experiment. Much of my time has been recently focused on building TCLA and I'm now 'getting back into' staying on top of current business affairs.

I'll use this thread for accountability/reflect on what I'm doing and what is/isn't working for me.

You are very welcome to use this thread to do the same, share things you're reading about and ask any questions - and we can do it together.

 

[Jaysen]

This week, I've found The Economist's Espresso to be very good for snappy, relevant updates. When I was applying, I used to read The Economist weekly because I like that the articles were opinionated and reflected the history of a topic (and they helped me to develop my own opinions on these topics).

There is a free trial available and you can also get a very good discount if you sign up and speak to staff via the live chat function during the cancellation process.

Relevant stories I am reading:

1. The US and Swiss National Bank increased interest rates this week - I find it interesting that they went ahead despite the current banking scandal.

2. The Bank of England is deciding whether to raise interest rates today - inflation is now up to 10.4%

Feel free to share any relevant stories you have read this week below.

 

[Jaysen]

The Bank of England has raised interest rates to 4.25%. The view is that the banking system remains robust despite the current situation regarding SVB/Credit Suisse.

 

[Jaysen]

TikTok’s boss was in the US this week facing a congressional hearing, amid threats from the US to force a sale or ban the app.

The company is owned by Chinese technology firm Bytedance, which has led to national security and data concerns given the scale of its popularity in the US.

 

[Jaysen]

Germany's largest bank, Deutsche Bank, is now under attention with its share price falling about 8% on Friday. The concern spread to several major banks across Europe.

While investors remain concerned that rising interest rates could impact more banks following the fallout from Silicon Valley Bank, many European banks are in a different situation given the regulations that have been put in place after the financial/Eurozone crisis.

 

[Jaysen]

First Citizens has agreed to buy Silicon Valley Bank, which has seen financial stocks somewhat recover this morning.

First Citizens has a history of buying failed banks. It will be buying $72bn of SVB assets and all of the deposits and loans that were transferred to a bridge bank after SVB's collapse.

 

[Jaysen]

When trying to understand the commercial world, one of the things I find most helpful is to write about it and send it to someone else. Writing about it is a very good exercise to see if you actually understand it and sending it to someone else forces you to learn how to explain it clearly.

I recommend writing about commercial topics you are trying to understand in your own words. If you realise you don't understand something, this can be a very helpful exercise to find out what you don't know (and then research that thing).

Some of you may have seen that I have been doing this on LinkedIn recently;

• Understanding law firms as a business
• What I wish I knew about M&A

 

[ALYH]

TikTok’s boss was in the US this week facing a congressional hearing, amid threats from the US to force a sale or ban the app.

The company is owned by Chinese technology firm Bytedance, which has led to national security and data concerns given the scale of its popularity in the US.

Hi Jaysen, in preparation of a video interivew, I have chosen this as one of the recent news that I found interesting. I was thinking about impact of a potential TikTok ban in the US on law firm's clients and consequently on the lawyer's work. I assume this news would more likely affect law firms that have a big focus in the entertainment and media/ marketing industry.

My initial thought are that in the event of a TikTok ban, many companies (e.g. fashion retailers or product-based companies) that rely heavily on TikTok as part of their marketing strategy to reach the younger generation would face a crisis. For example, if they have signed contracts with influencers to create marketing content on TikTok, what does the ban mean for the contracts?

What do you think? and do you have any further ideas?

Appreciate your input on this!

 

[Jaysen]

Hi Jaysen, in preparation of a video interivew, I have chosen this as one of the recent news that I found interesting. I was thinking about impact of a potential TikTok ban in the US on law firm's clients and consequently on the lawyer's work. I assume this news would more likely affect law firms that have a big focus in the entertainment and media/ marketing industry.

My initial thought are that in the event of a TikTok ban, many companies (e.g. fashion retailers or product-based companies) that rely heavily on TikTok as part of their marketing strategy to reach the younger generation would face a crisis. For example, if they have signed contracts with influencers to create marketing content on TikTok, what does the ban mean for the contracts?

What do you think? and do you have any further ideas?

Appreciate your input on this!

Of course - I'll share some thoughts this evening!

 

[Asil Ahmad]

Hello Jaysen,

The way I keep up to date with current affairs is a number of things:

1) I listen to the FT podcast and to BBC Wake up to Money every morning on my way to work as well as reading Watson's Daily anmd reading the FT.
2) Once a month me and my friend we choose a business story for each other to present, so my friend will choose a story for me and I will choose a story for my friend. Then we discuss the legal and commercial implications of that story as well as doing a SWOT and a PESTLE analysis of that story.
3) This is a bonus but I like listening to Patrick Boyle on Spotify or watch his Youtube videos about current trends which is really helpful.

Would love to hear other ways how to do extra to build my commercial awareness further as I am still at a beginner level with my commercial awareness.

 

[Jaysen]

Hi Jaysen, in preparation of a video interivew, I have chosen this as one of the recent news that I found interesting. I was thinking about impact of a potential TikTok ban in the US on law firm's clients and consequently on the lawyer's work. I assume this news would more likely affect law firms that have a big focus in the entertainment and media/ marketing industry.

My initial thought are that in the event of a TikTok ban, many companies (e.g. fashion retailers or product-based companies) that rely heavily on TikTok as part of their marketing strategy to reach the younger generation would face a crisis. For example, if they have signed contracts with influencers to create marketing content on TikTok, what does the ban mean for the contracts?

What do you think? and do you have any further ideas?

Appreciate your input on this!

It's great to see you share your initial thoughts on this!

When questions ask you to relate a story you are interested in to a law firm, the goal is to see if you can understand what commercial lawyers actually do, and I think the link you made between TikTok's ban and signed contracts with influencers is relevant.

Some other ideas:

• Could this lead to lawsuits for the impact on freedom of speech? Covington & Burling has already previously sued on behalf of TikTok.
• How does this relate to the relationship between protecting national security and supporting commercial business? This has been a recurring issue (e.g. Huawei). How can lawyers advise on this relationship?
• How should technology companies be regulated? What recourse do they have?
• How should lawyers advise businesses when sharing data across borders?

As you'll see, there are many different directions you could take this, so the most important part is to find the ones that you find interesting (because you'll research it widely and be able to discuss it).

 

[Jaysen]

Hello Jaysen,

The way I keep up to date with current affairs is a number of things:

1) I listen to the FT podcast and to BBC Wake up to Money every morning on my way to work as well as reading Watson's Daily anmd reading the FT.
2) Once a month me and my friend we choose a business story for each other to present, so my friend will choose a story for me and I will choose a story for my friend. Then we discuss the legal and commercial implications of that story as well as doing a SWOT and a PESTLE analysis of that story.
3) This is a bonus but I like listening to Patrick Boyle on Spotify or watch his Youtube videos about current trends which is really helpful.

Would love to hear other ways how to do extra to build my commercial awareness further as I am still at a beginner level with my commercial awareness.

Thanks of sharing Asil - it's useful to see what you are doing at the moment as it gives me ideas for how we can help to teach this.

I think all of the points you mentioned above are great - especially the practise you do with your friend and finding something you enjoy.

The thing I would be checking now is whether you feel you are becoming more comfortable with understanding the commercial news over time. I'd be asking myself as I listen to a story: What is my opinion? Do I agree with what is being said here? How would I summarise what happened? If you find yourself struggling on these things, it may be something to practice, which will then be useful to see any gaps in your knowledge.

 

[Asil Ahmad]

Thanks of sharing Asil - it's useful to see what you are doing at the moment as it gives me ideas for how we can help to teach this.

I think all of the points you mentioned above are great - especially the practise you do with your friend and finding something you enjoy.

The thing I would be checking now is whether you feel you are becoming more comfortable with understanding the commercial news over time. I'd be asking myself as I listen to a story: What is my opinion? Do I agree with what is being said here? How would I summarise what happened? If you find yourself struggling on these things, it may be something to practice, which will then be useful to see any gaps in your knowledge.

Yes I understand the news stories because I have an interest in the stories that I am reading and also can give an opinion about it.

I think the thing that I struggle with more is analysing the PESTLE analysis of a story. But I am working on this by watching Youtube videos and reading articles about understanding PESTLE better.

 

[ADKM]

Hi Jaysen, this is a great thread. Here’s how I go about when working on my commercial awareness:

1) I have regularly started listening to the FT news briefing podcast, and then read up on the main stories for that day’s podcast. This way I know the main commercial stories and I try and think about the implications of these stories from a political and economic perspective allowing me to come up with interesting observations.
2) I read the Watson’s daily news everyday and practice weekly quizzes helping me to keep up with the most important weekly commercial stories.
3) I read the TCLA newsletters which have some really interesting stories which have helped me to understand how law firms operate and how they structure their business to advice clients.

I feel I have started to enjoy reading about commercial topics which makes me want to think beyond an article and analyse its implications on a law firm and their clients. This week so far I have found two stories particularly interesting:

1) With London on the back foot in terms of companies wanting to list on the LSE, the IPO boom in the Middle East is an important eye opener for law firms as this move is attracting a lot of global investors to invest in places like the UAE and with the country being a tax haven, investors and corporations can benefit big time from reduced taxes. This means opportunities for global law firms to expand their Middle East offerings and consolidate their revenues (for example, for a firm like shearman I think this move might actually benefit them a lot when one considers they have recently lost partners due to more lateral hires and a reduction in the PEP figures).

2) China increasing its bailout programs to developing countries to protect the OBOR infrastructure program. With the banking crisis ongoing and borrowing costs at an all time high, countries like Sri Lanka have requested China for a debt restructuring trade off but to no avail. I think this is significant especially considering IMF’s recent loan package to SL. I look at this news as an opportunity for law firms with strong finance practices to be heavily involved should debtors like SL and similar developing countries face a problem in repaying their loan obligations. Finance teams can advise these debtors on ways to structure their debt to ensure their efficient disposal or even advise on ways to inflate their sovereign wealth fund (my logic behind this is similar to the recent request by US lawmakers to increase insurance deposits). This way it gives enough backup to debtors in terms of liquidity in times of credit and cash crunches.

 

[Jaysen]

Yes I understand the news stories because I have an interest in the stories that I am reading and also can give an opinion about it.

I think the thing that I struggle with more is analysing the PESTLE analysis of a story. But I am working on this by watching Youtube videos and reading articles about understanding PESTLE better.

That sounds sensible Asil. From my perspective, PESTLE is just one way to analyse a story you read about. It can be a useful structure to have but not all topics lend themselves well to this kind of structure.

 

[Jaysen]

Hi Jaysen, this is a great thread. Here’s how I go about when working on my commercial awareness:

1) I have regularly started listening to the FT news briefing podcast, and then read up on the main stories for that day’s podcast. This way I know the main commercial stories and I try and think about the implications of these stories from a political and economic perspective allowing me to come up with interesting observations.
2) I read the Watson’s daily news everyday and practice weekly quizzes helping me to keep up with the most important weekly commercial stories.
3) I read the TCLA newsletters which have some really interesting stories which have helped me to understand how law firms operate and how they structure their business to advice clients.

I feel I have started to enjoy reading about commercial topics which makes me want to think beyond an article and analyse its implications on a law firm and their clients. This week so far I have found two stories particularly interesting:

1) With London on the back foot in terms of companies wanting to list on the LSE, the IPO boom in the Middle East is an important eye opener for law firms as this move is attracting a lot of global investors to invest in places like the UAE and with the country being a tax haven, investors and corporations can benefit big time from reduced taxes. This means opportunities for global law firms to expand their Middle East offerings and consolidate their revenues (for example, for a firm like shearman I think this move might actually benefit them a lot when one considers they have recently lost partners due to more lateral hires and a reduction in the PEP figures).

2) China increasing its bailout programs to developing countries to protect the OBOR infrastructure program. With the banking crisis ongoing and borrowing costs at an all time high, countries like Sri Lanka have requested China for a debt restructuring trade off but to no avail. I think this is significant especially considering IMF’s recent loan package to SL. I look at this news as an opportunity for law firms with strong finance practices to be heavily involved should debtors like SL and similar developing countries face a problem in repaying their loan obligations. Finance teams can advise these debtors on ways to structure their debt to ensure their efficient disposal or even advise on ways to inflate their sovereign wealth fund (my logic behind this is similar to the recent request by US lawmakers to increase insurance deposits). This way it gives enough backup to debtors in terms of liquidity in times of credit and cash crunches.

Thanks for sharing Aditya. Identifying stories you find interesting and explaining them in your own words is a great way to test your understanding. I'm particularly glad to see your opinions and thoughts on this!

 

[Jaysen]

A few updates I'm reading:

1. In the space of digital regulation: China's regulator introduced new rules for dealing with generative AI, while the European Commission launched the European Centre for Algorithmic Transparency (ECAT).
2. Many news organisations (including the BBC) have been battling with Twitter over being labelled as 'government funded'.
3. Several public companies have received takeover bids from private equity firms, including Network International (from a group of private equity firms), THG and John Wood Group (the latter two from Apollo).
4. Apple has opened its first store in India.

 

[newtothis]

That sounds sensible Asil. From my perspective, PESTLE is just one way to analyse a story you read about. It can be a useful structure to have but not all topics lend themselves well to this kind of structure.

May I ask how you 'know' when a PESTLE framework may not be the best to analyse a new story?

I know that there are a bunch of other frameworks such as SWOT, Porter's 5 forces, Macroeconomic vs microeconomic factors etc. but I find it very difficult to analyse commercial awareness topics/news stories on the spot.

 

[Jaysen]

May I ask how you 'know' when a PESTLE framework may not be the best to analyse a new story?

I know that there are a bunch of other frameworks such as SWOT, Porter's 5 forces, Macroeconomic vs microeconomic factors etc. but I find it very difficult to analyse commercial awareness topics/news stories on the spot.

Of course:

I think it depends on the situation in which you are being asked to discuss a news story.

In an application or interview, the question will typically be to discuss a news story that interests you and/or how it relates to a firm.

In these situations, you don't need to use a framework to answer the question. That's not to say it's wrong to have a framework if it helps you to structure your answer, but you can also talk about what interests you about the topic and/or discuss the most memorable aspects of what you have read.

 

[Jaysen]

Updates:

1. Inflation fell but it's still higher than expected (10.1%). The next Bank of England meeting is in early May and we can expect another rise in interest rates. If I was an applicant, I'd check that I understand why central banks care about managing inflation and the costs of rising interest rates for businesses/the economy.
2. The EU will be investing more than 43bn in the production of semiconductors under the European Chips Act. This follows the huge supply chain disruption during the pandemic.
3. The pension fund NEST has said it will vote against the re-election of the chairman of BP. This comes after BP scaled back its climate commitments for 2030.