Commercial Awareness Update 19th December by Ben Triggs

1. Christmas strikes

Workers across a range of sectors will strike over the Christmas period causing disruptions to transport and the postal service just before the holidays. Today 3,000 employees at Crown post offices will walkout over concerns over pension changes, job security and cuts. The Post Office continues to make wholesale changes to modernise its service and become more efficient. They have reduced losses from £120 four years ago to £26 million last year, and aim to break even next year. 

Meanwhile, rail strikes continue on Southern as conductors walk out for two days this week. Earlier this year Southern announced it would be down-grading the role of conductor on its services, as new trains with driver operated doors are set to be introduced. The RMT Trade Union claim the strikes are necessary to protect customer safety, as well as the jobs of their members. For those planning to travel around Christmas, there’s more bad news as British Airways cabin crew members belonging to union Unite, will strike on Christmas and Boxing day. However, both sides hope the row over pay can be solved and the strikes called off – talks are ongoing. 

These strikes will be problematic for many in the UK, but compared to times of mass-industrial action these are relatively small-scale. Before Thatcherism, the Trade Unions had much more power and it wasn’t uncommon for whole industries to strike – many of which were state owned. In 2015, fewer days were lost to strike action than any other year since records begun in 1965. The Winter of Discontent and other strike action led to 29 million working days lost to industrial action in 1979, compared to just 170,000 last year.

Questions to ask yourself… Do the unions still have too much power to strike? Could the strike action mean the public turn against the unions? Does this strike action suggest an attitude of gloom within Britain?

2. Boost for the banking sector

Last week the FTSE 100 rose above 7,000 points, as shares in leading banks made significant gains. Royal Bank of Scotland closed 4.7% up and Barclays’ share price rose by 2.4%, helped by the announcement of increasing interest rates in the US. On Wednesday the Federal Reserve announced it would hike its benchmark interest rate by 0.25% to the range of 0.5% to 0.75% - with three more increases planned for 2017. 

This is unlikely to affect customers directly, but the higher interest rates will allow banks to charge more for lending to other banks. In general, higher interest rates are good for banking as it gives them the opportunity to make more profit. It’s only the second time in a decade interest rates have gone up in America.

In other banking news, Barclays have sold their French retail banking division to private equity firm AnaCap. Barclays are selling off their assets in Europe as they aim to streamline operations. Earlier this year, the bank sold its African operation and have scaled down in Italy, Spain and the Middle East.

Questions to ask yourself…  What is the long term impact of increases in interest rates? Is this a good thing for the global economy?

3. Apple and Ireland to challenge European tax ruling

Apple and the Irish Government are set to challenge the European Commission’s ruling that the US tech giant has to pay Ireland €13 billion in back taxes. The Commission ruled the tax deal Apple did with Ireland was illegal because it allowed Apple to pay much less than other companies in the country. Apple’s European headquarters is in Ireland, where corporation tax is set at 12.5%. 

Apple are set to challenge the ruling claiming the European Commission has overlooked the advice from Irish tax experts. The Irish Government will also challenge the ruling, claiming EU regulators have interfered with national sovereignty and have misinterpreted Irish tax law. It may appear odd for Ireland to challenge something which will increase their tax receipts, but the Government maintaining a pro-business stance and maintaining good relations with Apple could be more beneficial in the long run.

Questions to ask yourself… Should countries be giving favourable tax deals to large corporations?  What are the disadvantages of Apple having their European headquarters in Ireland?

4. JustEat’s spending spree

Food delivery app JustEat has announced plans to acquire rivals Hungry House and Canadian company SkipTheDishes. They claim to have reached a deal with Hungry House’s German owners Delivery Hero to acquire their competitor for £200 million – which could rise by £40 million dependent on performance.  

JustEat has acquired a number of its competitors in 2016 as they grow their global market share. In August they bought the assets of British start up takeaway.com and have also acquired takeaway delivery services in Spain, Italy, Brazil and Mexico. JustEat reported a 59% increase in revenues to £171.6 million in the first six months of 2016.

Commercial Awareness Update 21st November by Ben Triggs

Dollar reaches 14-year high

The US dollar jumped to a 14-year high as markets anticipate a huge spending boom by President-elect Donald Trump. Optimism in America led to the Dollar index - which measures the Dollar against a number of other currencies - reaching its highest level since mid-2002. After the initial shock of the Trump victory, the dollar dipped but has risen ever since as the markets speculate on his forthcoming presidency. The President-elect has promised public spending on infrastructure and construction - which could cost as much as $1 trillion - and experts believe this will provide a short-term boost to the economy. This public spending can also have a positive long-term impact for the US economy, but this will rely on the projects being a productive use of taxpayers money with little long-term wastage.  

A rise in interest rates is also expected to boost the value of the dollar. In the coming months, inflation is likely to rise - especially as Trump has pledged to restrict free trade - and with the current positive economic outlook, will encourage the Federal Reserve to push up interest rates. The rates are currently at 0.5% but most believe they will be increased next month.

Trump’s pro-business and spending stance did have an impact on the bond market - it’s lost $1 trillion worldwide since the US presidential election. Low-yield ‘safe’ bonds are being sold off in what many have coined the "Trump Dump", as investors pursue more lucrative investment strategies. With inflation rising, bond prices are likely to increase - the more you pay for a bond, the lower the yield (or potential earnings). Plus, Trump’s pro-business stance has encouraged investors to take money from bonds and put them in stocks - believing they will see strong returns.

Questions to ask yourself… Is a strong dollar good for the global economy? Is the market's current positivity about the Trump presidency an example of short-termism?

Click here for Finimize's more in-depth analysis.

Facebook to expand UK workforce by 50%

Last week Facebook announced it would boost its UK workforce by 50% when it opens a new London headquarters in 2017. There are plans to hire another 500 members of staff, including high-skilled engineers, marketers and salespeople. Facebook's engineers in the current London office have helped with the development of their new product, Workplace - a business platform to help internal communication flow between staff. 

After the EU Referendum there were many companies considering moving operations out of London but it remains the tech stronghold of Europe. Google has also committed to building a new headquarters in the capital which will provide 3,000 more jobs when it opens in 2020. London Mayor Sadiq Khan suggested this investment is a “sign that London is open to talent, innovation and entrepreneurship”.  

Questions to ask yourself… What makes London a tech hub? How does Britain improve technical skills among its workforce? 

Build-up to the Autumn Statement

Chancellor Philip Hammond will give his first Autumn Statement this Wednesday, as the Government will outline its plan for the economy. The Prime Minister Theresa May is keen to help out lower income households, but most of the attention will be on how Hammond aims to boost a potentially stuttering economy after Brexit. With ex-Chancellor George Osborne’s target of cutting the deficit being scrapped, this statement could spell an end to austerity. The cost of Brexit has also been a key topic this week, with forecasts suggesting it could leave a £100 billion blackhole in the budget.

What we think could be announced:

• Hammond has suggested £1.3 billion will be spent on improving roads across the UK
• The Chancellor is expected to back Osborne’s plans to cut corporation tax from 20% to 17% by 2020
• The personal allowance on income tax may be raised - it could be increased to £11,500 from today (previously scheduled for the 2017/18 tax year)
• To encourage savings, the amount people can put in ISAs before being taxed could be raised
• The idea of reducing VAT to 17.5% may be suggested, but this is unlikely to happen this tax year
• Increased tax on employees benefits - making gym memberships, private healthcare and similar more expensive for workers

Questions to ask yourself… What is the priority for the UK economy in the next six months? Should the Government continue spending and run at a deficit?

What happened in Britain?

The UK economy got some good news last week as data showed that prices for everyday consumer goods and services (like rent, groceries, clothing, etc.) weren’t increasing as much as feared. Also, retail sales (e.g. stuff sold in stores) grew by 7% versus a year ago - the strongest increase in 14 years. Economists continue to warn that prices will rise next year (as the weak pound makes imported goods more expensive), which will mean people won’t be able to buy as much stuff. But the pain has been delayed for longer than most economists were expecting.

And finally… 

Snap Inc., the owner of popular social media app Snapchat, officially began the process to become a publicly traded company (i.e. to have its shares traded on a stock exchange via an IPO). At a rumoured valuation of $25-35 billion, it would be the biggest US tech IPO since Facebook in 2012. The IPO is expected to take place in the first half of next year.

Autumn Statement 2016: What happened

The Autumn Statement for 2016 was announced yesterday (Wednesday 23^rd November) and as a follow-up to last week’s post about what to expect, we will be running through the anticipated areas of development, what happened in regards to them, and how the Statement and its proposals will have an impact.

Office for Budget Responsibility (OBR):

As noted in our previous post, the OBR had a particularly challenging task of predicting the British economy due to the uncertainty surrounding Brexit.

The OBR predictions for the growth of the UK economy are as follows:

Year	Growth (%)
2016	2.1
2017	1.4
2018	1.7
2019	2.1
2020	2.1
2021	2.0

The OBR also forecast the amount borrowed in the coming years as follows:

Year	Amount borrowed (£bn)
2017-18	59
2018-19	46.5
2019-20	20.7
2020-21	17.2

In regards to the challenges they faced, the OBR provided a counterfactual based on what the predictions would have been had there been no referendum in June. They found that as a direct result of the referendum result, we are borrowing £3.5bn more this year, £10bn more next year and £15.6bn more in 2018-19, than we would have been without the referendum.

Public borrowing and spending:

In the Budget given by George Osbourne in May, the forecast for the financial stability of the government until 2021 was £122bn more optimistic than that given by Hammond. As a result, public expenditure will fall from 45% in 2010 to 40% this year, although certain budgets (such as defence, pensions and health services) will be protected.  

National debt is also predicted to rise to alarming levels next year (from 84.2% of GDP to 90.2%), and the total amount borrowed is expected to reach just under £2 trillion by 2021. While an increase in the amount of public borrowing was foreseen, the scale of the increase has led to concern among some economists.

Investment:

There were many calls for investment in certain areas, and Philip Hammond announced which sectors would be the focus of public investment.

Infrastructure:

As the Former Secretary of State for Transport, a high level of investment in transport and infrastructure was expected from the current Chancellor. Hammond announced an investment of £1.3bn in English local transport networks – while this decision was largely praised, some have noted its relative significance given it represents 0.08% of GDP. Hammond also expressed his plans to invest £1bn in digital infrastructure, including 5G technology and £2bn per year by 2020 into R+D funding. The above are part of the government’s goals to have invested £23bn in innovation and infrastructure by 2021. 

This extra funding for those in these sectors will be much welcomed due to the significant demand by citizens for improved roads and railways.

Housing:

There has been a notable demand in the past few years for more affordable housing in the UK. Hammond stated this afternoon his intention to invest £2.3bn into a housing infrastructure fund in order to create 100,000 new homes in high-demand areas, alongside another £1.4bn into a fund to build 40,000 affordable homes.

He also announced plans to implement a large-scale regional pilot for the Right-to-Buy schemes and a ban on upfront fees by letting agents, to be effective as soon as possible. The rest of the UK will follow Scotland’s precedent on this matter, where the fees are shifted to the landlords, who have significantly higher bargaining power than prospective tenants.

These changes in the housing industry should help increase the number of homeowners in the UK.

Taxation and pay:

It was revealed that the income tax thresholds will be raised in April 2017 (from £11,000 to £11,500) and again in 2020 (to £12,500) and that the higher rate income tax threshold will be increased to £50,000 by the end of Parliament. Furthermore, the national living wage will see a rise of 30p to £7.50 in April, which is smaller than the rise that was predicted in the March Budget.

While fuel duty has been frozen for a 7^th year, saving the average driver up to £350 annually, insurance premium taxes will be raised 2% to 12% in 2017. We can also expect to see the introduction of a sugar tax on soft drinks in 2018.

In terms of corporation tax, while there was some indication by the Prime Minister that the nation would see a further slash of tax to 15%, the Chancellor has stuck to his intentions and kept the tax level for the coming year at 17%, as was announced in March.  

Hammond intends on raising £32bn by cracking down on tax avoidance schemes.

Other:

Exports:

While there was little clarification on a Brexit strategy, some comfort has been offered to those that are concerned about a decrease in exports to the EU following Britain’s departure. The UK Export Finance funds will be doubled, a change that has been deemed as “vital for small businesses to reach new markets [especially] in the wake of Brexit” by the Chairman for the Federation of Small Businesses, Mike Cherry.

Salary sacrifice schemes:

The salary sacrifice schemes that allow employees to accept benefits in lieu of pay will be restricted, meaning that income will increase for a number of people, resulting in more taxes flowing to the State budget.

The Autumn Statement is somewhat indicative of a stable and strong post-Brexit economy; however, this is dependent on large amounts of borrowing to sustain the immediate aftermath of the referendum. The demand for investment in infrastructure was satisfied and, overall, the changes made will increase the amount of money in the pockets of the general population. However, the lack of clarity regarding Britain’s goals and strategy for leaving the EU leaves a lot to speculation – and the fulfilment of these proposals will be dependent on the terms on which the nation leaves the EU.

- Ellie Dobbyne

Autumn Statement 2016: What to expect

The Autumn Statement is due to be delivered by Philip Hammond next Tuesday (November 23rd), and there has been a lot of speculation over what UK citizens can expect. The Autumn Statement is an annual report by the Chancellor updating the public on the country's taxation and spending plans. The future of Britain’s relationship with the EU and the weakening of the GBP reinforces the importance of this year’s Statement. 

Challenges for the OBR: 

The Office for Budget Responsibility (OBR) provides independent economic forecasts for the next 5 years of the UK economy. They are expected to release a forecast on Tuesday, soon after the Autumn Statement. 

This year will prove particularly challenging to the OBR given the level of uncertainty surrounding government policy, especially regarding Brexit strategy. The OBR, however, will be showing its workings to shed light on how they calculated their predicted figures despite this lack of political and economic foreseeability.  

Brexit: 

The BBC interviewed several business owners across the UK and asked them what they would like to see Mr Hammond address in the Statement. All their responses include more clarity regarding Britain’s position in terms of a Brexit agreement, a thought that most the UK public can empathise with. Furthermore, in the infrastructure industry, business owners would like confirmation of access to the single market as they fear they would struggle to find skilled labourers without access to EU workers. The Prime Minister, Theresa May, has expressed support for free trade agreements, and this may lead to the Statement indicating plans to reach an agreement to facilitate access to the single market. 

Corporation tax:

Before his dismissal, Former-Chancellor, George Osbourne, expressed plans to further reduce the corporation tax from 17% to 15%. This was intended to retain London’s status as the home to a significant number of large businesses following Britain’s decision to leave the EU. The threat of Brexit saw several companies threaten to move their headquarters to other countries, such as Ireland – where their 12.5% corporation tax and position as an EU Member State is desirable. However, Hammond has suggested that he has no intention of further reducing corporation tax, which was 20% before the Budget earlier this year. This may indicate the Chancellor’s faith in a strong post-Brexit Britain. 

National debt:

Differing from his predecessor again, Hammond has indicated that the nation may seek to borrow in order to survive an inevitable post-Brexit depression, before it regains its strength. Spectators will be looking at whether this increase in borrowing will lead to a move away from the Party’s policy of austerity. 

Investment:

There have been strong hints towards an increase in funding for infrastructure in the coming year, which was requested frequently by those interviewed by the BBC. The increased demand for better quality roads and railways has pushed the possibility of investment into this area, which will be well received by many. 

There has also been a lot of demand for investment into healthcare, particularly the NHS and mental health services. This has proved a highly controversial area for the government and Leave campaigners following the well-publicised bus scandal, in which the Leave campaign mislead the public that it would invest in the NHS with the money no longer going to the EU. 

What’s to come in the Autumn Statement is very much speculative, but what is certain is that the nature of the plans for the UK budget will rely heavily on Hammond’s faith in a post-Brexit Britain. The UEACA Society will be making a follow-up post next week summarising the Statement and its implications for the future of Britain.

- Ellie Dobbyne

Your Commercial Awareness update 17th October 2016 by Ben Triggs

1. 'Hard Brexit' could cost £66 billion

A leaked document from the Treasury shows Britain could lose up to £66 billion each year in tax receipts 15 years after a ‘hard Brexit’. The papers were circulated to MPs in April after a controversial study into the impact of leaving the EU by then Chancellor George Osborne. It also suggested that leaving the single market would cause Britain’s Gross Domestic Product (GDP) to drop 9.5% over the next 15 years, compared to staying in the EU. There was widespread criticism at the time of publication, but it’s believed the Treasury stand by their predictions today. 

The debate between MPs seeking a 'soft Brexit' and those after a 'hard Brexit' has intensified in the past week, as more pressure is being put on Theresa May to give the House of Commons a vote on the Brexit negotiation strategy. Even within the Conservative Party, pro-Remainers are calling for a vote to legitimise the Government policy on Brexit. Labour MPs are putting forward an Opposition Day motion which calls for MPs to be able to scrutinise a plan before Article 50 is triggered, which many ‘rebel’ Tory MPs are contemplating backing.

Commentators suggest the Theresa May government will topple if they try to force through a negotiation strategy without the scrutiny of elected representatives in the House of Commons. 

Questions to ask yourself… Should the Government have to consult Parliament if there has been a referendum on the issue? Why would Brexit potentially lead to lower tax receipts?

2. Marmite-gate

Last week Tesco stopped stocking Marmite and other Unilever products in a row over price hikes. Tesco refused to accept Unilever’s price increase of around 10%, set due to the falling value of the pound and the impact it was having on importing goods and ingredients to make their products. Tesco boycotted 100s of Unilever’s products, including Marmite, Pot Noodle and Domestos, and withdrew them from their website. The likelihood was these increases would be passed onto the customer and Tesco believes Unilever's reaction to exchange rate changes was excessive. Many commentators actually suggest the falling price of the pound actually benefits Unilever overall because they can export their goods abroad much cheaper. After a two day stand-off with the leading supermarket, a compromise was reached and Unilever’s products are now fully available.

Bank of England Governor, Mark Carney has claimed inflation will rise due to the lower value of the pound. In recent times, there has been very low inflation but analysts believe it will rise to 3% by the end of next year. The Government target is 2%, but Carney is happy to miss that target if it means continued economic prosperity and high employment. Food and fuel prices are going to be the key components of inflation as it will become more expensive import them from abroad. Fuel prices have already risen since Brexit and are expected to rise again by 5p per litre after another poor week for the pound. 

The pound lost 2% last Tuesday alone and finished the week at around $1.21. The weak pound is making a number of people nervous but a former International Monetary Fund (IMF) chief has described it as ‘desirable’, suggesting the UK is rebalancing “remarkably well” and the pound losing value is a necessary part of this rebalance.

Questions to ask yourself… Who benefits if inflation increases? What will make the pound gain value again?

3. A second Scottish independence vote?

Nicola Sturgeon has started the process for a potential second referendum on Scottish independence by submitting a first proposal for consultation. At the Scottish National Party (SNP) conference, she expressed her desire to give the Scottish people an independence vote before the UK formally leaves the EU in 2019. The SNP believes if the UK goes for a hard Brexit, Scotland should have the opportunity to remain in the single market by voting for independence. The British government suggest they would reject a proposal for Scotland to get a second referendum as the issue was laid to rest by the first in 2014.

This isn't the only problem for Sturgeon - the polls currently suggest the Leave vote has not swayed enough people towards Scottish independence. In the first referendum 55% voted for Scotland to remain in the UK and it would require a large swing to change the result.

Questions to ask yourself… Is it undemocratic to have a second vote on the same issue so close to the first? Would the EU welcome an independent Scotland?

4. CMS, Nabarro and Olswang set to merge

Partners at law firms CMS Cameron McKenna, Nabarro and Olswang have agreed to a merger, which is expected to take place in May next year. Trading under the name CMS Cameron McKenna Nabarro Olswang (or CMS for short), they will become the sixth biggest law firm in the UK, with a total revenue of just under £1 billion globally. Law firms are trying to broaden their service and break into new markets and this merger aims to accelerate this process, allowing them to compete with Magic Circle firms. The new firm will have offices in 36 countries and employ 4,500 lawyers. As the law market becomes increasingly global, City law firms have struggled to stay as competitive - this merger aims to counter this.

The role of technology is having a greater impact on the law sector, with firms aiming to become more efficient with modern tech. After the merger, CMS plans to invest more in artificial intelligence which is increasing the amount of automation for routine work in the sector. 

Questions to ask yourself… What are the potential disadvantages of this merger for the firms involved? Will this start a trend of small law firms seeking mergers?

5. Update on last week

Last week we discussed the potential of a spring 2017 Initial Public Offering (IPO) for Snap Inc. - the company that owns Snapchat - worth $25 billion (read more just here). This week, Snapchat’s founder Evan Spiegel is said to have appointed both Goldman Sachs and Morgan Stanley to lead this operation. 

Questions to ask question… What are the advantages of floating a company on the stock exchange?

France’s New Legislation Preventing The Casting Of ‘Super-Skinny’ Models

This was originally posted on Fashion, Law and More.

On 17th December, the French senate agreed on a new bill which imposes a requirement for models to provide their agencies with doctors’ notes, which confirm that they are at a healthy BMI Index. The punishment for those who cannot produce such confirmation is “up to six months in jail and a fine of €75,000 (around £54,500).” Alongside this, a requirement of disclosing when photo manipulation software has been used on a photograph of a model  “in order to narrow or widen the silhouette” was created. Such images must bear the words  “photograph touched up”, otherwise heavy fines will be imposed (although, from the sources I have read, it is unclear whom would pay these fines).

Although this seems like a step in the right direction to combat overly skinny models being seen as the ideal, I don’t think this is the correct means.

AU NATUREL: WHAT ABOUT THE ‘NATURALLY SKINNY’?

For a number of models their genes will luckily have provided them with excellent metabolisms where they are able to eat pretty much whatever they wish, doing very little exercise, and not gain weight. The new legislation  may lead to a bias against such individuals because it does not appear to take this into account, as the BMI Index will be used as the indicator for being ‘too skinny’.

As BMI considers height and weight (amongst age and sex), generally: the taller an individual is, the heavier they should be. So, the outcomes are already skewed for skinny models who are commonly 5ft 9 and above for girls and 6ft and over for guys. Of course, there is in an issue with undereating and anorexia within the fashion industry and the law’s scope will catch this. However, for those who are naturally tall and slim, they are also likely to be caught. This could be detrimental to models’ livelihoods as their incomes may suffer twofold. Firstly, by not being booked for catwalk shows they are very unlikely to be scouted out for editorials, which are the ‘big jobs’ where models can earn the most. Secondly, by being deemed under the ideal BMI, models will consequently have to gain weight. This might make them ‘too big’ for designers’ preferences and thus they won’t be booked for a job. In a way, the new legislation could lead to unfair, almost discriminatory, and vicious cycle.

“IF YOU SCRATCH MY BACK, I’LL SCRATCH YOURS”

After having read that a doctor’s decision will be which determines whether a model can work or not, issues of corruption came to mind. Fashion, and, in particular, modelling, are very competitive industries and many will do a lot and go to great length to succeed. It is plausible to say that some might even break the law. With reliance on a doctor’s opinion so strong, it wouldn’t come at a surprise that agencies may attempt to bribe or even coerce doctors to provide the necessary certification for models. Also, probably even worse of all, it may arise that certain doctors are ‘known’ to sign-off models who fall under the minimum acceptable BMI and thus many unhealthy models may go under the radar. Lastly, the creation or forgery of certifications might arise. I hope that the French government have considered such possibilities and have or intend to implement some corresponding legislation/regulations in order to prevent them.

UNANSWERED QUESTIONS

There are a few final thoughts that I have which I cannot seem to find answers for from the sources I have read.

HOW LONG WILL A DOCTOR’S CERTIFICATE BE VALID FOR?

This is an issue as models may be directed by an agency to gain weight in order to meet the necessary BMI, and then upon receiving the ok, directed to then lose weight. Timing here is key. For this law to work, models must be checked by doctors very close to the beginnings of fashion weeks. If not, confirmations may be redundant when it comes to shows and doctors could be faced with disciplinary action for appearing to certify models when they are not fit and healthy.

DOES THE LEGISLATION TARGET FEMALE MODELS MORE THAN MALES?

When we think of underweight models, we probably automatically assume that these individuals are female. But the issue affects males too. In general, the news stories that discuss anorexia in the fashion industry rarely discuss how males are faced with pressures to lose weight. I hope that this law’s execution doesn’t follow suit so males and females are treated equally.

SHOULD DOCTORS BE DECIDING WHETHER MODELS ARE FIT TO WORK?

Of course, the issue of being underweight relates to the medical industry but, just like using the BMI Index, are doctors the correct people to certify models? Personally, I believe that an independent body would be best to do so. It would be comprised of medical professionals and individuals with knowledge and understanding of the fashion/modelling industry who, in combination, would be better suited to provide a judgment on a model’s suitability to work. Moreover, an independent body would be impartial and thus it would hopefully prevent the possible corruption that could emerge, as aforementioned.

Well, for now the Bill will be finalised and will come into force in 2016. It will be interesting to read the final version and also see how it will be enforced. Also, this latest development may contribute to the ongoing discussion in the UK parliament on the same matter of underweight models. It will be interesting to see whether France’s legislation influences parliament into coming to a decision on how to tackle this issue.

James Ford - Life Lessons from Earlham Hall to Singapore

On Monday 7th December, UEA graduate James Ford returned to Earlham Hall after 27 years. James is currently Senior Vice President and General Counsel for GlaxoSmithKline, the sixth largest pharmaceutical company in world, and his career has allowed him to work all over the world. He came back to UEA to give current students some advice on how to succeed in an international company.

Be authentic. 
One sentence that stuck out from James' talk was 'Be smart enough. Do not be the smartest.' While academic strengths are important, they are not the be-all and end-all. When working for such a large company, employees have to show that they can communicate and have chemistry with anyone that they meet. By being authentic, you can be more relatable and accessible to those you work with, and this is vital for any company to succeed.

Learn the basics. 
This seems pretty obvious. It is important to remember, especially in large companies, that there are masses of people who are above you when you are new to the industry. As James put it, you will be the 'snake's belly' for a while. Instead of being bogged down by making coffee and photocopying, take the opportunity to observe and learn how the company fits together and what your role in it could and will be.

Experiment early. 

When James was a trainee lawyer, he took the opportunity to go on secondment in Hong Kong. This was an unforgettable and invaluable experience. This willingness to adapt and throw himself into opportunities is how James started his career at what was SmithKline Beecham. After qualifying, James accepted a job in a private practice firm, with an appealing salary, but soon realised that it wasn't the firm for him. This experience pushed him to question whether he would be better suited in an in-house position and he ended up taking a job at SKB (now GSK).

Take calculated risks. 

Very similar to the above, risk-taking has been a key aspect throughout James' career. Starting out in London, he has gone on to accept positions across the globe, including America, Saudi Arabia and Australia. While James admitted that each time he and his family moved it was a struggle to adjust, he believed it was worth it, and that it made his job more interesting and rewarding. 

Believe in yourself. 

While in New York, James spent a difficult and stressful 5 months completing the New York Bar. American lawyers and British lawyers are trained to think differently, and James realised his potential to 'think both'. Fewer than 2% of the lawyers at GSK have dual qualifications, and this distinction led to James being offered a role in Singapore. This, for him, has been the most dynamic and diverse place to live, and has challenged him as he works in 120 markets and 36 departments. 

Finally, a piece of advice James himself was given: The harder you work, the luckier you will be. 

- Ellie Dobbyne

BT Commercial Awareness Tips

Katie Bradley and Julia Mansi, two trainees from BT's in-house legal team, visited UEA on Wednesday 11th November 2015. They came to discuss the value of commercial awareness to working in-house and to run a workshop enabling students to develop their commercial understanding.

BT has one of the largest in-house legal departments, with over 200 lawyers across the globe. Their training scheme is extremely generous, with a £31,500 starting salary, fully-funded LPC, BT Sport for just £1, support to help you with your studies, and much more. Only 3 applicants a year are given a place, and so it is fundamental that you prove you are more than just academically talented.

When applying for a training contract anywhere, not just at BT, it is fundamental that you demonstrate you are commercially aware. This is because you will be working for a company, and part of your role will be to support the business in its commercial goals, as well as providing legal and regulatory advice. It is therefore crucial that you have a clear vision of those goals and understand all the relevant factors that help or hinder the realisation of those objectives (e.g. political and economic climate, business structure, competitors etc). This vision and understanding is essentially commercial awareness.

Demonstrating your commercial awareness is fairly simple, and Katie and Julia gave us some top tips for your applications, interviews and assessment days:

• Research the company, its values and culture. 
• This can easily be done in a number of ways; looking at their website, attending open days, vacation schemes or internships, asking employees about their experiences. 
• Read the annual reports of the company. 
• This will help you understand more about the finance and structure of the business. 
• Reflect on previous work experience. 
• Be aware that you should never just list what you did, you should explain what you learned and how that development will allow you to be an asset to the company. 
• Reflect on other experiences. 
• You don't just learn skills from working, anything can be used to show that you can think critically. Popular examples include travelling, where you can show you have had to manage finances or organise the most efficient route, or being a committee member, where you can demonstrate that you have organised events based on the needs and wants of your members. 

For more information about the BT graduate scheme, visit: www.btgraduates.com.

- Ellie Dobbyne

What Is Commercial Awareness?

Commercial awareness is a concept with many different definitions. At UEA Commercial Awareness Society, our interpretation is that it is essentially an understanding of your business environment. It is knowing and appreciating a business's needs, sector, clients, competitors and current issues. To be commercially aware, you must keep-to-date on current affairs and think about the effect they have on your business.

Commercial awareness is useful for any profession, however it is vital for anyone with a position in a company or firm. It is something that is guaranteed to come up in an interview or assessment day, and being able to confidently have a discussion makes the difference between getting the job and not.

So, how do you show that you are commercially aware? It's fairly simple, you basically have to read the news and form an opinion about how current events affect your employer or sector. You can also demonstrate that you reflect on your own work experience from a business point of view or that you hold a position of responsibility or explain a situation in which you had to determine the most efficient way of doing something.

UEA Commercial Awareness Society will be using this blog as a platform for members to post their ideas and discuss current affairs. It is an opportunity to develop and show your commercial awareness.