Brexit, BP, Lego, e-scooters, Airbus, Wigan Athletic, DWF, Freshfields: your commercial news round-up
updated on 02 July 2020
While aspiring lawyers are not expected to know absolutely everything about the law, one key skill that law firms are seeking in their future trainees is commercial awareness; which is why we have collated some of the week’s most important updates all in one place. It is vital that you have a solid grasp on how the business and legal worlds are currently faring in the current climate and can apply this knowledge in your training contract applications and interviews.
- In a bid to enable cross-border market access once the Brexit transition period ends, the UK and Switzerland have agreed to negotiate a financial services trade agreement, relating to insurance, banking, asset management and capital market infrastructure. Chancellor Rishi Sunak said the agreement was “about our vision of the world economy as open, global and free – a vision shared by Switzerland, with our long history of trade and finance”. The financial services trade agreement will enable investors in Britain to buy and sell shares on the Swiss exchange, with Swiss investors being able to buy and sell shares on the London Stock Exchange, as well as other platforms in the City.
- Oil giant BP has sold its petrochemical business to Ineos – a privately owned UK multinational chemicals company – in a deal worth £4.1 billion. The deal is part of BP’s effort to support its move to becoming a lower-carbon company, with plans to cut carbon emissions by 2050. The firm will reveal further details about how it will get there in mid-September. Greenpeace UK said the sale money from BP’s recent deal “must be invested in a transition to renewable energy”.
- Several companies, including Lego, Ford, Adidas, Coca Cola and Aviva have recently boycotted advertising on social media platforms, in a call for “urgent action” to put an end to hate speech, discrimination and misinformation. Lego is the latest company to join the other big names, confirming that it will halt paid advertising on social media platforms for at least 30 days. The Stop Hate for Profit campaign has had more than 400 companies join its mission to deal with “hate, bigotry, racism, antisemitism and violence”.
- Rental e-scooters will be legal on roads in Great Britain from Saturday 4 July, as an attempt to ease pressures on public transport during the pandemic. It is hoped that the first rentable e-scooters will be available next week, according to the Department for Transport (DfT). A full or provisional car, motorcycle or moped licence is required and the user must be aged 16 or over. Transport Minister Rachel Maclean explained that the trails would enable the government to test whether e-scooters could offer “clean and cost-effective travel that may also help ease the burden on the transport network, provide another green alternative to get around and allow for social distancing”.
- Aviation giant Airbus has revealed plans to cut 1,700 jobs in the UK as part of a major restructuring following the coronavirus crisis. There are also plans to cut 5,000 jobs in France and 6,000 jobs in Germany. This decision comes after a 40% decline in commercial aircraft business activity leading to a collapse in production.
- Despite Championship side Wigan Athletic going into administration following the pandemic’s significant impact on the club’s finances, an administrator for the club has revealed that there have been 10 different parties who have expressed an interest in taking over ownership.
- DWF will close two international offices (Brussels and Singapore) and scale back two more offices – in Dubai and Cologne – in a bid to generate an increase in profitable growth. Around 60 people are expected to lose their jobs, according to the Law Gazette. Group Chief Executive Sir Nigel Knowles said: “The decision to close two of our smaller locations will help drive operational improvements across our business to generate more profitable growth. Longer-term, these markets remain of interest but this is the right move for DWF at this time.”
Meanwhile, magic circle firm Freshfields is set to launch a new office in Silicon Valley – San Francisco’s tech hub and home to some of the world’s largest companies.
Be sure to check the News every Thursday for this weekly commercial news round-up. Follow @LawCareersNetUK on Twitter and like us on Facebook for instant business news updates.
