Wake Up Call: Elite U.K. Firms Brush Off Brexit to Post Strong Results (2023)

• Elite U.K. law firms Allen & Overy, Clifford Chance, Freshfields, Bruckhaus & Deringer, and Linklaters posted strong financial results, including record profits per partner, for their most recent financial year. Brushing off the impact of Brexit and international political uncertainty, all four firms had global revenues topping 1.5 billion pounds ($1.93 billion). ( Financial Times ) Allen & Overy, whose revenues rose 16 percent and profits per equity partner rose 26 percent in 2016, is now the second largest magic circle firm by revenue, behind Clifford Chance. ( The Lawyer )

• U.K. authorities are investigating Clifford Chance over a controversial litigation financing arrangement in a $1.6 billion suit filed in 2013 by oil exploration company, Excalibur Ventures, against U.S. oil companies Gulf Keystone Petroleum and Texas Keystone. ( Legal Week )

• Philadelphia-based Fox Rothschild acquired 39-lawyer firm Riddell Williams P.S. in Seattle, upping its attorney headcount to around 800 and giving it a foothold in the Pacific Northwest.( Philly.com )

• Skadden Arps Slate Meagher & Flom handled the largest volume of M&A deals among law firms through the first half of 2017, taking on 108 deals worth more than $170 billion, representing 11.1 percent of the market share of global, announced deals. The rest of the top five--Davis Polk & Wardwell, Cleary Gottlieb Steen & Hamilton, Kirkland & Ellis, and Sullivan & Cromwell--each eclipsed $118 billion in deal volume. ( Bloomberg via BLB )

• Plaintiffs attorneys from the 22 law firms who sued Volkswagen over its diesel emissions test-cheating scandal are asking for an additional $125 million in fees on top of the $175 million they already got. ( The Recorder )

• The Federal Reserve announced Mark Van Der Weide, now deputy director in its division of supervision and regulation, will replace Scott Alvarez as the Fed’s general counsel later this summer. ( MarketWatch )

Law Firm Business

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• Hogan Lovells’ recent move to start a consulting business for its financial services clients in the U.K. takes a page out of the book of the Big Four accounting services firms, which have been expanding their legal practices. It’s an interesting idea but it remains to be seen if Hogan Lovells will succeed. ( Goingconcern.com )

• Powered by 33 percent growth in Asia, London-based Clyde & Co. had its 19th straight year of revenue growth for 2016/2017, posting 14 percent overall expansion to pass 500 million pounds ($645 million) for the first time. Its average profits per partner dipped 2 percent, to 650,000 pounds ($838,502), which it attributed to adding 40 partners during the year. ( American Lawyer )

• Litigators and trial lawyers need different skill sets to do their jobs. ( California Lawyer )

Legal Market

• Faced with a potential $5.7 billion verdict, ABC News last week settled a lawsuit brought by a South Dakota meat company objecting to negative coverage of a beef product critics have called pink slime. Media-law experts warned that the agreement could dissuade media from pursuing essentially accurate coverage that companies don’t like. ( Bloomberg via BLB )

• Baker Botts and Davis Polk & Wardwell played leading roles in a $2 billion-plus deal to combine Pennsylvania-based QVC with rival video shopping giant HSN Inc., of St. Petersburg, Florida. ( Legal Intelligencer )

• Fox Business Network has suspended host Charles Payne pending an internal investigation of sexual harassment allegations against him, the company said. ( Bloomberg )

• Companies are showing increasing awareness and concern about the potential costs of shareholder activism even as the rate of growth of activist campaigns has slowed. ( Bloomberg BNA via BLB )

• The legal profession often gets a bad rap, but many lawyers and judges are working to fight injustice, writes a legal blogger who goes on to give a list of recent examples from her “Legal Freedom Fighter Series.” ( HuffPost )

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Regulators

• The Commodity Futures Trading Commission wants to standardize data it gets from banks related their trading in the $483 trillion global swap market. Dan Berkovitz, a former CFTC general counsel now a partner at law firm WilmerHale, says standardization has proven “remarkably elusive” since the reporting requirement was created after the economic crisis. ( Bloomberg )

• Hobby Lobby, the arts-and-crafts chain whose devout Christian owners won a landmark Supreme Court ruling on religious freedom, agreed to pay a $3 million fine over its role in what federal prosecutors said was the smuggling into the U.S. of ancient clay tablets, seals and other Iraqi archaeological objects that might have been looted from the war-torn country. ( Associated Press via Bloomberg )

Trump Administration

• President Donald Trump will soon be able to name his own ethics watchdog. Walter Shaub, the director of the federal ethics agency who challenged Trump over his plans for dealing with potential conflicts of interest, said he is stepping down. ( Bloomberg )

Happening in SCOTUS and Other Courts

• Election Law Blog follows reporting by NPR on July 1 that U.S. Supreme Court Justice Anthony Kennedy told his October 2018 clerkship applicants that he’s considering retirement just before the 2018 Congressional midterm elections. ( Election Law Blog )

Laterals, Moves, Law Firm Work

• Holland & Knight said it has hired luxury fashion lawyer Denning Rodriguez as counsel in its New York office. Rodriguez, in his own boutique firm for the last seven years, represents major clients in the luxury goods and entertainment markets, including creative directors and executives at Luis Vuiton and Vera Wang, among others. He previously worked at Pearce LLP in New York, and Epstein Becker & Green, P.C. and King & Spalding LLP in Atlanta. ( Hklaw )

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• Baker McKenzie hired a former UBS AG top lawyer in Asia as a compliance and investigations partner in its Zurich office. Christoph Kurth was UBS’s general counsel for wealth management in the Asia Pacific and former general counsel for Singapore. ( Asian Lawyer )

• Covington & Burling has hired former federal prosecutor Carolyn Kubota, who has been an L.A.-based partner at O’Melveny & Myers since 2000. ( The Recorder )

Technology

• As investigators try to figure out who was behind the cyberattacks that hit organizations around the world last week, including law firm DLA Piper, some of those organizations are still taking stock of the damage. ( New York Times ) Cyber crime insurers largely avoided costly claims from the recent attacks that hit business around the globe. The next global virus could cost them billions. ( Bloomberg )

• Twitter Inc.'s bid to disclose the number of data requests it gets as part of national security investigations can go forward, after a California federal judge denied the Justice Department’s petition for summary judgement throwing out the social media company’s case. ( The Recorder )

• Opinion: The growing numbers of women speaking out about sexism, harassment and worse at startup investors in the Silicon Valley are brave. But they can’t solve the problem on their own. ( Bloomberg Gadly )

• Venus Williams obtained an emergency protective order in a Florida wrongful death lawsuit against her stemming from fatal June 9 car crash. The order allows time for a hearing on a petition by the victim’s family to download onboard data from vehicles involved in the crash. ( Washington Post )

• Instagram suspended the account of Rob, brother of Kim, Kardashian, after he posted nude photos of his ex-fiancée, Blac Chyna. Chyna’s lawyer is said to be considering legal action in California, where so-called revenge porn is a crime. ( The Independent )

Miscellaneous

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• Singer-songwriter Kesha has sold some 60 million records worldwide but a legal battle with her former producer Dr. Luke put her career on hold. With help from two O’Melveny & Myers lawyers, she’s now been able to put out a single, “Praying,” her first new release in four years. ( The Recorder )

• Education Secretary Betsy DeVos’s decision to put regulations designed to protect student borrowers on hold triggered a lawsuit from attorneys general in 18 states and the District of Columbia who want it implemented. ( Bloomberg )

• Justice has eluded the 298 people killed in shooting down of Malaysia Air Flight 17. ( Bloomberg )

Compiled by Rick Mitchell and edited by Gabe Friedman.

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FAQs

Will Brexit be good for the economy? ›

In this major report on the impact of Brexit using the latest data, the three authors examine a wide range of economic indicators including, GDP, trade, investment, inflation and employment. Their conclusion is that there is no hard evidence that Brexit has had a negative impact on the UK economy.

Does EU law still apply in the UK after Brexit? ›

The time is now right to end the special status of retained EU Law in the UK statute book on 31st December 2023. The Bill will abolish this special status and will enable the Government, via Parliament to amend more easily, repeal and replace retained EU Law.

How much trade has the UK lost since Brexit? ›

The Economic and Social Research Institute (ESRI) in Dublin found that Britain's exit has cut the potential value of goods exports to Europe by 16 percent, while EU exports to the U.K. were even more sharply lower, representing a 20 percent loss in potential sales.

How Brexit affects the UK economy? ›

His "sobering" conclusion is that in the final quarter of 2021, GDP (gross domestic product) was 5.2% smaller, investment 13.7% lower, and goods trade 13.6% lower than what they would have been had the UK remained in the EU.

Who will Brexit affect the most? ›

Figure 1 presents Whitehall estimates of the effects of different Brexit scenarios by region. The North East, West Midlands, Northern Ireland and North West are projected to be hardest hit. There is a strong overlap with the regions where living standards have already been most squeezed by inflation.

What companies will suffer from Brexit? ›

  • Automotive industry. There has been a surge in British car manufacturing over the last 10 years, but it is likely Brexit will put any short-term gains on hold. ...
  • Airline sector. ...
  • Pharmaceutical industry. ...
  • Financial services sector.

Can EU citizens still move to the UK 2022? ›

EU nationals who wish to work, live, or study in the UK in 2022 following Brexit must apply for a visa. However, those with EU pre-settled or settled status can continue to live, work and study in the UK freely.

Why did Britain want to leave the EU? ›

Factors included sovereignty, immigration, the economy and anti-establishment politics, amongst various other influences. The result of the referendum, which was not legally binding, was that 51.8% of the votes were in favour of leaving the European Union.

Can Brits still live in the EU? ›

The automatic right to live and work in the EU ceases after the transition period. British citizens looking to move and work in an EU country will need to apply in accordance with that country's existing immigration rules.

Which country is the biggest exporter to UK? ›

List of the largest trading partners of United Kingdom
RankCountryExports from UK
-Total for non-EU341,932
-European Union (Total)273,978
1United States112,217
2Germany56,818
48 more rows

What is the UK's biggest export 2022? ›

For exports, Mechanical appliances has generally been the largest commodity by value, with occasional peaks for Precious metals. Non-EU exports for March 2022 were £16.1 billion.

Why is the UK economy so weak? ›

The situation in the UK sent global financial markets into a tailspin. Though the present crisis has been driven by a combination of factors, including the economic fallout of Brexit, Prime Minister Liz Truss's recent package of tax cuts has helped push the UK's economy into chaos.

Is UK a shrinking economy? ›

UK economy shrinks by 0.1% in second quarter as recession looms.

Who is benefiting from Brexit? ›

There are a great many benefits to Brexit: control of our democracy, borders and waters; control of our own money, helping us to level up across the country; the freedom to regulate in a more proportionate and agile way that works for our great British businesses; benefits for people that put money back in their ...

What are the negatives of Brexit? ›

Drawbacks of Brexit

Therefore, by leaving, the UK would lose negotiating power and free trade with other European countries. As the UK tries to recreate trade deals with other countries, they may get less favorable results. The uncertainty of Brexit also causes volatility and affects businesses operating within the UK.

Has Brexit caused inflation? ›

Inflation reignited by a rapidly shifting geopolitical context has been fanned by the failings of the Brexit withdrawal agreement, damaging Britain's economic stability for years to come.

How many companies left UK after Brexit? ›

The study, published on Friday, identified over 440 companies that "have moved or are moving part of their business, staff, assets or legal entities from the UK to the EU." New Financial estimated that around 7,400 staff have been shifted out of London since the 2016 Brexit vote.

How has Brexit affected UK 2022? ›

Research released today (19 October 2022) by the ESRI shows reductions in UK to EU goods trade by 16% and trade from the EU to UK by 20% relative to the scenario in which Brexit had not occurred.

How many companies have moved to EU since Brexit? ›

Since the EU referendum, 41% (90 out of 222) of firms monitored by the EY Financial Services Brexit Tracker have confirmed at least one location in Europe to which they have moved or are considering moving or adding staff and/or operations.

Are there more jobs after Brexit? ›

Will employers still be hiring after Brexit? A key fear for jobseekers is that employers will stop hiring because of Brexit. Indeed, the ONS reported that while the number of job vacancies has been generally increasing since 2012, it has been falling since early 2019.

How long can you live outside the UK without losing citizenship? ›

You can leave the UK for: 5 years without losing settled status from the EU Settlement Scheme - 4 years if you're Swiss. 2 years without losing indefinite leave to remain.

How long does it take to get British citizenship after applying 2022? ›

You'll usually get a decision within 6 months - some applications can take longer. It may take longer than the usual 6 months to get a decision because of coronavirus (COVID-19). This will not affect the decision.

How can I move to England without a job? ›

If you are exceptionally talented or wealthy or have a familial connection to the UK, you can move to the UK without a job.
...
Instead, you can apply for one of the following visas:
  1. UK Ancestry Visa. ...
  2. British National Overseas Visa. ...
  3. Investor Visa. ...
  4. Global Talent Visa.

Which country left European Union recently? ›

As of 2022, the United Kingdom is the only former member state to have withdrawn from the European Union.

Why is Norway not in the EU? ›

Norway had considered joining both the EEC and the European Union, but opted to decline following referendums in 1972 and 1994. According to the European Social Survey conducted in 2018, 73.6% of Norwegians would vote 'No' in a Referendum to join the European Union.

When did the UK want to leave EU? ›

On 23 June 2016, the United Kingdom (UK) held a referendum to answer the question: "Should the UK remain a member of the EU, or leave the EU?" By a margin of 51.9 per cent to 48.1 per cent, the UK voted to leave the European Union (EU) — commonly referred to as 'Brexit'.

Where can a UK citizen live without a visa? ›

The Common Travel Area

It's an agreement between the UK, Jersey, Guernsey, the Isle of Man and Ireland that allows British and Irish citizens to live and move freely.

How long can Brits live in Europe? ›

It does not matter how many countries you visit. The 180-day period keeps 'rolling'. To work out if your stay is within the 90 day limit, use the following steps.

How long can British citizen stay in Europe? ›

How Long Can UK Citizens Stay in the EU After Brexit? After Brexit, you can stay in the EU, Iceland, Norway, and Switzerland without a visa for up to 90 days in a 180-day period. For any trip longer than 90 days, you have to apply for the appropriate visa and residence permit.

What does China buy from the UK? ›

United Kingdom Imports from ChinaValueYear
Iron and steel$141.82M2021
Wadding, felt, nonwovens, yarns, twine, cordage$135.91M2021
Residues, wastes of food industry, animal fodder$135.10M2021
Clocks and watches$130.36M2021
93 more rows

What is England's biggest import? ›

In August 2022 the top imports of United Kingdom were Petroleum Gas (£4.41B), Gold (£3.65B), Crude Petroleum (£3.11B), Cars (£2.43B), and Refined Petroleum (£2.23B).

What product is the UK's biggest import? ›

Biggest Importing Industries in the UK in 2022
  • Precious Metals Production in the UK. Imports for 2022: $61.8B. ...
  • Motor Vehicle Manufacturing in the UK. Imports for 2022: $28.6B. ...
  • Aircraft, Engine & Parts Manufacturing in the UK. Imports for 2022: $20.8B. ...
  • Clothing Manufacturing in the UK. ...
  • Petroleum Refining in the UK.

What are the top 3 imports of England? ›

Top 10 Import Goods
HS CodeImport USD$
(71) Precious Stones & Metals$89,132,281,611
(84) Industrial Machinery$84,159,197,374
(87) Motor Vehicles & Parts$74,840,662,325
(85) Electrical Machinery$61,743,008,574
6 more rows

What is the UK's biggest export to Europe? ›

Main UK exports of goods to the EU include: Machinery and appliances (21%), Chemical products (15%), Transport equipment (14%), Mineral products (12%), Base metals (6%), Foodstuffs, beverages and tobacco (5%).

How much power does the UK get from Russia? ›

UK reliance on Russian fossil fuels

In 2021 imports from Russia made up 4% of gas used in the UK, 9% of oil and 27% of coal. In 2021, imports of gas, oil and coal from Russian to the UK were worth a combined £4.5 billion.

Which country exports the most 2022? ›

China is the top country by exports in the world. As of last month, exports in China was 307,823 million US dollars that accounts for 43.14% of the world's exports. The top 5 countries (others are Japan, Republic of Korea, Hong Kong, and Singapore) account for 72.67% of it.

What is London's biggest import? ›

In August 2022 the top imports of London were Refined Petroleum (£486M), Cars (£283M), Delivery Trucks (£73.7M), Wine (£47.3M), and Cleaning Products (£33.6M).

Will the UK economy recover 2022? ›

LONDON, MONDAY 17 October 2022 – High energy prices, elevated inflation, rising interest rates and global economic weakness mean the UK economy is expected to be in recession until the middle of 2023, according to the new EY ITEM Club Autumn Forecast.

What percentage of the UK is white British? ›

Chart
EthnicityNumber%
White British45,134,68680.5
White Irish531,0870.9
White Gypsy/Traveller57,6800.1
White other2,485,9424.4
20 more rows
1 Aug 2018

When was the British economy at its worst? ›

1973 oil crisis, stagflation, the decline of traditional British industries, inefficient production, high inflation caused industrial disputes over pay.

Has Brexit damaged the UK economy? ›

Speaking at the Airlines 2022 conference in London, Cornish said: “There's no doubt that Brexit has damaged the UK economy, 99% of leading economists would tell you that. You just have to look at the rate of growth now, and that's significant.”

Why is UK growth so poor? ›

The UK economy suffers from chronic underinvestment in the public and business sectors. Public investment collapsed from a long-term average of 4.5% of GDP between 1949 and 1979 to around 1.5% after 1979.

What will happen to the economy in 2022 UK? ›

Economic Forecast Summary (June 2022)

GDP is projected to increase by 3.6% in 2022, before stagnating in 2023. Inflation will keep rising and peak at over 10% at the end of 2022 due to continuing labour and supply shortages and high energy prices, before gradually declining to 4.7% by the end of 2023.

Which country benefit the most from the EU? ›

Germany

Has the UK improved after Brexit? ›

The OBR estimates that Brexit will reduce the UK's potential GDP by 4% and the pandemic by a further 2%. According to estimates from the Office of National Statistics (ONS), the UK's GDP grew by 0.9% in November 2021.

How does Brexit affect global economy? ›

Trade with the rest of the world - the "non-EU" countries - is also down both ways since 2019, though by less. UK exports to the rest of the world are down 7%, or £12bn in January-to-October 2021 versus the same in 2019. UK imports in the same time periods have fallen a little too by 3% to £227bn.

Will the UK economy get better? ›

High energy prices, elevated inflation, rising interest rates and global economic weakness mean the UK economy is expected to be in recession until the middle of 2023, according to the new EY ITEM Club Autumn Forecast.

What are the pros of Brexit? ›

After Brexit, the UK is less restricted by some EU regulations. It is argued that a positive result of Brexit has been an ability to trade more freely with non-EU markets – for example, the US and Australia. The UK is working to put in place new trade agreements with many non-EU countries around the world.

Did Brexit benefit the UK? ›

Leaving the EU has meant that the UK has not had to contribute to the significant new liabilities arising from the EU's Covid response including, for the first time, the EU's borrowing of up to €750 billion between 2021–24.

Is Britain's economy declining? ›

GDP fell by 0.6% in September. However, the decline in GDP reflects a slowdown in the economy more broadly. Household incomes are being squeezed by decades high inflation, interest rates are rising and business and consumer confidence is weakening.

Is a recession coming in 2022 UK? ›

The Bank of England has warned that the U.K. is facing its longest recession since records began a century ago. LONDON — The U.K. economy contracted by 0.2% in the third quarter of 2022, signaling what could be the start of a long recession.

Are we in a recession 2022? ›

Though the economy has occasionally sputtered in 2022, it has certainly been resilient — and according to a traditional definition, the U.S. is not currently in a recession. The conventional benchmark has been that two consecutive quarters of a generally slowing economy defines a recession.

What are the disadvantages of Brexit for UK? ›

Drawbacks of Brexit

Therefore, by leaving, the UK would lose negotiating power and free trade with other European countries. As the UK tries to recreate trade deals with other countries, they may get less favorable results. The uncertainty of Brexit also causes volatility and affects businesses operating within the UK.

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