London, Uber, Thorntons, Greggs, NatWest, In The Style: your commercial news round-up

When reading a news story, it’s important that aspiring lawyers take on an analytical mindset in order to get the most out of their reading – for example, how will X impact on a firm’s clients? What impact will it have on Y sector? And, what about the firm itself? It’s also important for candidates to choose a story that they are genuinely interested in – this is something that will shine through at all stages of the application process, including the preparation side of it. It’s unlikely you’ll want to take the time out to read around a commercial or legal issue that is of no interest to you, plus your interest (or lack of) will be obvious.

Read the round-up below to see whether any of the summarised news stories from the week pique your interest.

• London remains the second biggest global financial centre, behind New York, despite the pressures of both Brexit and the pandemic. European cities Frankfurt and Zurich are a number of places behind the City of London, while the gap is narrowing between London and its largest Asian competitors, Shanghai, Hong Kong and Singapore, according to the international study of financial centres. However, the UK’s Brexit deal and the absence of an equivalence deal for financial services has raised concerns and resulted in a loss of business for the City. Negotiations over future regulatory cooperation on financial services are underway between the UK government and the EU.

London lost its position as Europe’s largest share trading centre to Amsterdam in January. The Netherlands’ capital reportedly trades an average €9.2 billion shares a day, according to CITY A.M.

• Meanwhile, Britain could face trade sanctions after the EU launched legal action against the UK following the government’s unilateral decision to offer businesses operating in Northern Ireland an extended period to adapt to the post-Brexit rules.
   
• Following the Supreme Court’s ruling that Uber drivers were workers, the ride-hailing firm has confirmed that its 70,000 UK drivers will receive the National Living Wage, plus holiday pay and pensions. This move is likely to have an extensive impact on the gig economy, according to union leaders and employment experts. In addition, concerns over an increase in Uber fares have been raised by analysts, following a similar ruling in California that subsequently saw the company elevate prices. Uber Eats’ couriers will not benefit from the move.
   
• All 61 Thorntons stores will permanently close, putting more than 600 jobs at risk after a turbulent stint as a result of the pandemic. After more than a century on the high street, the obstacles that the pandemic presented, including the forced closure of non-essential shops over the Christmas and Easter holidays, have taken their toll on the well-known chocolate maker. The company, which was bought by Ferrero in 2015, has shrunk from 252 stores to 61 over the past five years.
   
• In other food industry news, despite reporting its first loss for 36 years in 2020, British bakery chain Greggs is set to open 100 new shops this year after making a “better-than-expected start to 2021”, according to Chief Executive Roger Whiteside. In a bid to weather the pandemic and the temporary closure of its shops, the bakery chain did rely on support from lenders and the government “to mitigate the impact of covid and protect as many jobs as possible,” Greggs Chair Ian Durrant explained.

• The Financial Conduct Authority (FCA) has launched criminal proceedings against NatWest, after accusing the bank of “failing to comply with money laundering rules” between November 2011 and October 2016, according to Sky News. The FCA said: "The case arises from the handling of funds deposited into accounts operated by a UK incorporated customer of NatWest.

"The FCA alleges that increasingly large cash deposits were made into the customer's accounts.”

Meanwhile, Investment bank Morgan Stanley will offer bitcoin funds to its wealth management clients, according to CNBC.

• Online fashion retailer In The Style began floating on the London Stock Exchange’s junior market, otherwise known as the alternative investment market (AIM), today, following the completion of its initial public offering. According to BusinessLive, the retailer’s market capitalisation is now around £105 million after being launched in 2013 by entrepreneur Adam Frisby with £1,000 of seed capital. The firm revealed that on admission it has more than 52 million ordinary shares in issue, as well as around a 44.2% free float.

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.