Why are interests rates not dropping?

Plus: European IPOs run out of steam

Ludo Lugnani
Ludo Lugnani

Hello! 2% never sounded so good.

Coming up:

📉 Inflation's good, but not good enough
💸 European IPOs run out of steam
🇨🇭 Switzerland likes Blockchain
👑 London beats Paris

Speed Read ⏱️

  • 🛒 Proceed to checkout: NatWest scooped up Sainsbury's Bank. It's the latest sign that the world’s biggest grocers have failed to break the stranglehold that traditional lenders have on financial services.
  • 🏦 Nearly there: Inflation dropped to 2% but the Bank of England held interest rates at 5.25%. In this explainer we run through why the BoE decided to stick with its current rates so you can impress in applications and interviews.
  • 🥬ESG drama: Last month, we said ESG is a key area to watch. This week, the FCA made it look like we know what we're talking about by launching its first climate investigation into a company.
  • 💾 Nvidia Takes the Lead: Nvidia, now the top dog with a $3.3 trillion valuation, saw shares jump 40% post stellar earnings, thanks to its AI chip, Blackwell. The company just made shares more accessible with a split.

Running out of steam

Emmanuel Macron wants a snap election to get him out of a deep hole

Just when it seemed Europe’s initial public offerings (IPOs) were picking up steam, a series of events has prompted a sharp pullback. High-profile companies like Golden Goose Group and Tendam have paused their plans to go public.

The backdrop? A jittery stock market spooked by French President Macron's surprise call for a snap election.

Check out our report here of how this impacts law firms.

Tokenise it all

Remember the drama when Credit Suisse almost went belly up last year? Switzerland didn’t just sit around twiddling their thumbs. Nope, they got busy crafting their financial comeback story.

Just nine months after Credit Suisse got scooped up by UBS, Zurich, Basel, and Lugano began popping out "tokenized bonds" using a fresh digital Swiss franc. It's like turning money into digital confetti that can zip around securely and super fast.

Blockchain might just be the solution Switzerland needs to redeem its reputation in the finance elite, and law firms are sniffing out opportunities to advise on these cutting edge fintech platforms. Here's all you need to know.

Salmon Cartels and Beer Rejections

🐟 A £382 million class action lawsuit has been launched against several major fish farming companies, accusing them of forming a cartel to artificially inflate the prices of Atlantic salmon in the UK, affecting millions of consumers. Simmons & Simmons is advising on this one.

☎️ A Motorola subsidiary is suing the UK Home Office for unpaid fees totalling £13.5 million, claiming the government incorrectly ceased to adjust payments based on inflation metrics. Slaughter and May and TLT led here.

🍺 Carlsberg tasted rejection as Britvic turned down a £3.1 billion takeover offer from Danish brewer arguing that the bid significantly undervalues the British beverage company’s worth and growth prospects. Linklaters and Baker McKenzie advised on this one.

🏢 Milbank is set to expand its London team and office space significantly, aiming to add 85 lawyers and increase its office area to 85,000 square feet by early 2026 as part of a strategic growth initiative.

Application Deadlines:

  • Eversheds TC: Today(!)
  • RPC TC: 24 June
  • Watson Farley & Williams TC: 24 June

⭐ Want more deals and cases featuring your favourite law firms? Check out our ZipTracker database with over 300+ cases, deals and how to discuss them in applications and interviews. P.S. We have deals/cases on all the above firms to make sure you ace your application 😄

More news

Boeing CEO Dave Calhoun gives evidence to a senate subcomittee at Capitol Hill, Washington DC
  • 🛫 Boeing's Bumpy Ride: Boeing CEO Dave Calhoun faced Senate heat over recent safety woes, including a 737 MAX door panel incident. Acknowledging past errors, he's bowing out as shares plummet 30% this year.
  • 🤖 AI's Job Jolt: An IMF study warns the swift AI revolution will deepen job losses and widen income gaps, urging governments to bolster social safety nets for those impacted.
  • 🚗 Tesla's Legal Tug-of-War: Tesla seeks to revive legal debates over Musk's $46bn pay deal, despite a shareholder nod. The initial ruling had nixed the package, citing its enormity.
  • ✈️ Heathrow's New Horizons: Heathrow reshuffles its ownership, with French firm Ardian leading at 22.6%, followed by stakes from Saudi and Qatari investors.
  • 🌏 Singapore Snags Top Spot: Singapore reclaims the lead in IMD's global competitiveness ranking, nudging Switzerland and Denmark aside, with the U.S. slipping and China rising.

📊 Chart Watch

Back on Top

France lost its title as Europe’s biggest equity market to London! Not too long ago, Paris had taken the lead from the UK, but that’s all changed now.

Basically, President Macron dropped a bombshell by calling for a snap election out of the blue, and it caused a massive shake-up.

The French market took a huge hit, shedding about $258 billion in value just last week. Major banks like Societe Generale, BNP Paribas, and Credit Agricole, which are deep into government bonds, saw their shares plummet by over 10%.

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