Reply to thread

Message: <blockquote data-quote="Jaysen" data-source="post: 11320" data-attributes="member: 1">Hi everyone!Welcome to the last commercial news update in May. We've introduced a shorter word count to these updates; do let us know if you have any comments on that.Commercial News Update – 29 May 2019Topics covered this week:<ol> <li data-xf-list-type="ol">Facebook's GlobalCoin in 2020 ([USER=980]@Angel[/USER])</li> <li data-xf-list-type="ol">May’s departure, European elections and a no-deal Brexit ([USER=1]@Jaysen[/USER])</li> <li data-xf-list-type="ol">British Steel's insolvency ([USER=1160]@Alice G[/USER])</li> </ol>Facebook’s GlobalCoin in 2020 (by [USER=980]@Angel[/USER])The story Facebook is developing a digital payment system, “GlobalCoin”, set to begin by 2020. Based on various reports, the tech giant has met with several other high-frequency trading firms, cryptocurrency exchanges, and bank officials (including governor of the Bank of England, Mark Carney) to realise this secretive initiative, code-named as ‘Project Libra’.Just to refresh one’s memory, cryptocurrency is a form of digital currency that relies on a peer-to-peer network of users. It embodies the traditional aspects of money (as a medium to store value, a form of unit of account, and a medium of exchange) while moving away from the need to rely on a central authority (such as the bank).Impact on businesses and law firmsThere are several foreseeable challenges to such a project, and these challenges are nothing new.  First, there is the consideration to create a secure and reliable method to update a public ledger especially when uncountable number of ‘miners’ (the users) around the world have access to the ledger at any one time. Second, necessary incentives must be created for these users to want to contribute resources to verify the transactions. Finally, there is a question of whether the law can, or should, keep up with the pace of these innovations. As the law stands, this is not a heavily regulated area (if at all). For instance, property law does not readily provide an answer for what is to happen to the crypto-assets of an owner who dies without passing them on. Some academics go to the extent of viewing such digital currencies as nothing more than a form of speculative investment and not to be politically implemented.For now, what is certain is that the news of Project Libra is favourable to investors. As soon as the report was out, existing digital currencies such as Bitcoin, Litecoin, and Ethereum observed a rise in value respectively.May’s departure, European elections and a no-deal Brexit (by [USER=1]@Jaysen[/USER])The storyIt has been a busy week for UK politics.Last Friday, Theresa May announced her resignation from office, giving up the battle to push her with withdrawal agreement through Parliament for a fourth time. It didn’t take long for MPs to announce their plans to run for Tory leader.On Monday, the European election results were announced. In the UK, the Brexit Party was the clear winner, securing 32% of the vote, while the Conservatives saw their vote collapsing to just 9%.Impact on businesses and law firmsThe results of the European election and the success of the newly-formed Brexit Party means the odds of our future prime minister pursuing a no-deal Brexit has just increased.  The candidates will be keenly aware that a failure to take Britain out of the EU will only embolden Nigel Farage and his Brexit Party. Several candidates, including frontrunner Boris Johnson, has said Britain should leave the EU on October 31, 2019, with or without a deal.Suppose a no-deal Brexit passes through Parliament, what will the impact on law firms be? On the plus side, there will be an increase in advisory work for lawyers; clients will need legal advice to handle the uncertainty: How do they deal with multiple regulatory bodies? What legislation applies to them? What is the impact on their contracts? How do they cost-efficiently restructure their supply chains?However, while advisory work will lead to more demand for legal services, it could be countered by a fall in revenue as businesses hold back investment. If they cannot absorb this cost, law firms may need to restructure their own practices.The impact will also be global; for example, law firms may need to temporarily close their offices in South Korea as they’ll lose the benefit of the current EU-Korea free trade agreement. Closer to home, they’ll also need to consider how they can continue to service EU clients in the event of a no-deal Brexit. We've already seen thousands of UK lawyers register in Ireland to maintain legal privilege in disputes, while several firms have also opened up further bases within the EU.British Steel's insolvency (by [USER=1160]@Alice G[/USER])The storyLast week, British Steel went into insolvency just three years after being acquired by the private equity group Greybull Capital whose failed “turnarounds” have included Comet and Monarch. The UK government is constrained by what it can do to save British Steel due to EU state aid rules and so a bail-out has been denied, however, the Treasury has granted an indemnity to allow British Steel to continue operations for now. As an integral industry to the defence and construction sectors and with thousands of jobs in Teeside and Scunthorpe at risk, it is hoped that a buyer will come forwards soon.Impact on businesses and law firmsIf the Scunthorpe blast furnace were to be permanently closed, the UK would be left with only one in Port Talbot, Wales. This would probably lead to the UK relying increasingly on steel from elsewhere in the world which would lead to increased costs for businesses like Network Rail who rely on British steel. Steel materials are ordered months in advance which is why Brexit uncertainty is deemed to have been such a huge influence, other companies of a similar nature will no doubt be worrying about their immediate futures too.Law firms are essential during the insolvency process. They help to  advise, negotiate and draft the relevant documents, in the sale of a company or its assets. Pensions and employment issues are significant in these circumstances and lawyers are drafted in to help companies manage their obligations to staff. Should a private equity firm buy British Steel, law firms who represent them will be involved throughout the process of a “turnaround” right up until the firm either sells on or lists British Steel.</blockquote>

Verification: Our company is called, "The Corporate ___ Academy". What is the missing word here?

Top Bottom

Search

Search

Reply to thread