Ministers are closely watching a court case in which Vodafone is alleged to have “unjustly enriched” itself at the expense of franchise operators, and have raised the prospect of a regulatory crackdown on the sector.
The small business minister, Gareth Thomas, has said he will “track very carefully” a £120m legal claim brought against Vodafone last year by a group of 62 of about 150 franchise operators.
They allege that drastic cuts to commission rates on selling Vodafone products in the group’s high street stores caused many of them to run up huge personal debts. They say they fear for their livelihoods or homes, and some have reported suicidal thoughts.
Their court filing claims the company “indiscriminately … operated to enrich Vodafone at the expense of its franchisees”.
Thomas told MPs on Wednesday: “There are without question some very serious allegations being levelled at Vodafone in this case.
“Until now there has not been sustained concern about the quality or effectiveness of the self-regulation of franchises in general. However, I recognise that this particular case has raised concerns across the House and I will track very carefully what happens in this case and the final outcome and conclusions that any court case might come to.”
Thomas was speaking in parliament during an adjournment debate secured by the the former Conservative minister John Hayes. He told MPs: “Franchising can be used as a method to exaggerate the power of the business at the heart of the franchise and to weaken the position of franchisees. My assertion is that is common and is particular in the case of Vodafone.”
Luke Akehurst, the Labour MP for North Durham, said: “There are major corporates that treat their franchisees very badly, that sign them up on one set of terms – one rate card – and then change the goalposts.
“And then when people dissent and complain about that, they find that their franchise is withdrawn and they lose their investment when they have put a great deal into that corporate giant. I think this is a matter that, in the near future, is going to require some ministerial attention.”
Talks to settle the franchisees’ legal claim against Vodafone ended without resolution in May, leaving the case potentially heading for the high court.
Vodafone was approached for comment. It has previously said: “This is a complex commercial dispute between Vodafone UK and some franchise partners and as we have said from the beginning, we refute the claims.”
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The company has also apologised “unreservedly to anyone whose experiences while operating their business has impacted [their health] in this way” , adding: “Where issues have been raised, we have sought to rectify these and we believe we have treated our franchisees fairly.”
Vodafone has just completed a deal to merge its UK operation with rival Three to create Britain’s biggest mobile phone operator.
Vodafone’s chief executive, Margherita Della Valle, said in May that the merger would involve job cuts where the two businesses had a duplication of functions and roles, although overall it would create jobs as it embarked on an €11bn (£9.5bn) upgrade and expansion of its 5G network over the next decade.
The Directorate of Customs Valuation, Lahore, has established new customs export values for eight grades of Baryte, with prices ranging from US$80 to US$295 per metric ton (PMT). The updated values were outlined in Valuation Ruling No. 1 of 2025.
Baryte, also known as barite, is a mineral composed of barium sulfate. It has various industrial uses, including as a weighting agent in drilling mud for oil and gas exploration.
The customs valuation was determined under the powers granted by Section 25A of the Customs Act, 1969. The revision followed an application from Bolan Mining Enterprises (BME), which sought a review of the existing valuation ruling (No. 3/2024).
BME argued that the previous ruling only applied to Baryte with a specific gravity (SG) of 4.2, while other grades, also exportable, required distinct valuation.
In response, the Directorate initiated an evaluation process to determine the correct customs values for all grades of Baryte. This included three meetings with stakeholders to discuss the issue. During these sessions, stakeholders presented proposals, which were examined alongside market data, export trends, and documents submitted by BME.
The ruling reflects a comprehensive review of export data, international market trends, and stakeholder submissions to establish appropriate export values for the various grades of Baryte.
Linklaters acted as bookrunners’ counsel on the successful completion of placing of new shares for Innovent Biologics, Inc. (Innovent Biologics) and placing of existing shares and top-up subscription of new shares for Keymed Biosciences Inc. (Keymed Biosciences) on the Hong Kong Stock Exchange (HKEX), raising approximately HK$4.31bn and HK$864m, respectively.
Innovent Biologics is a leading biopharmaceutical company with pioneering innovations in the fields of oncology, cardiovascular and metabolic diseases, autoimmune diseases and ophthalmology which have since been able to treat some of the most intractable diseases. The net proceeds from the transaction will primarily be used for the global R&D and arrangement of clinical and preclinical programmes, as well as for building the global infrastructure and facilities. This transaction marks one of the largest new share placements in the healthcare sector in Hong Kong SAR over the past four years.
Keymed Biosciences is a comprehensive biopharmaceutical company focussing on the independent research, development, and manufacturing of innovative drugs. The company successfully completed the placement of existing shares and top-up subscription of new shares under the general mandate, aiming to support the company’s financial strength, market competitiveness, and to promote the long-term health and sustainable development of the company.
The Linklaters team was led by corporate partner Donnelly Chan and capital markets partner Lipton Li, with support from counsel Christian Felton and Gary Tsang.
Linklaters has a track record of advising clients in the healthcare sector. The firm’s clients are many of the world’s leading players, ranging from pharmaceutical, biotech, and medical equipment manufacturing organisations, through to healthcare services groups, banks, private equity houses and sovereign wealth funds.
Broad sector coverage: Within the past few years, the list of relevant businesses caught by the German FDI rules was extended from previously 11 to now 31. The German FDI regime now covers several of the most promising emerging and transformative Deep Tech, High Tech, and Green Tech sectors including defense, aerospace, (clean) energy, life sciences, biotechnology, artificial intelligence, robotics, semiconductors, and quantum technology.
Broad personal scope: The German FDI regime typically captures acquisitions by non-EU/EFTA investors. In the defense sector, filing requirements may even apply to non-German acquirers. It is particularly noteworthy that the MoE applies a “look-through” approach, examining the entire chain of ownership up to the ultimate beneficial owner. Consequently, the mere fact that the direct acquirer or the ultimate investor and/or the UBO might be a German or an EU/EFTA based entity does not exclude a filing requirement in any case. Given that the German FDI regulations differ from the common rules on the attribution of voting rights and do not provide for a “dilution” of voting rights, a 10% shareholding of a foreign entity at a higher level of the investor’s acquisition structure may trigger the need for a filing (even if this is just a holding company).
Low thresholds: Compared to most other FDI regimes across the globe, the German FDI screening rules provide for very low voting rights thresholds that trigger a filing requirement. In particular, the German FDI rules are triggered not only when an investor acquires control over a domestic company. Depending on the business of the German target, the acquisition of 20%, or even just 10%, of the voting rights may be subject to prior clearance from the MoE. VC seed and Series A funding may often reach or exceed such thresholds even if the investment volume is not very high.
No enterprise value or turnover thresholds: The German FDI rules do not provide for any de-minimis exemptions with regard to the turnover generated by the target company and/or with respect to the enterprise value or the funding amount. Hence, even low investments in a start-up that does not yet generate any turnover may trigger a filing and clearance requirement.
Stand-still obligation and gun jumping: Transactions that require a mandatory notification are principally subject to a stand-still obligation and a suspensory effect, i.e., the parties are not allowed to complete such a transaction until approval from the MoE. A ban on (i) sharing sensitive information with the acquirer and (ii) exercising voting rights by the acquirer prior to clearance (“gun jumping”) applies. As long as such clearance has not been issued by the MoE, the transaction is temporarily invalid under civil laws.
Multiple clearance requirements/successive funding rounds: Even if an initial investment was cleared by the MoE, subsequent increases in shareholding in later funding rounds (e.g., Series B, C) may trigger new filing obligations if relevant voting rights thresholds are crossed (20%, 25%, 40%, 50%, 75%).
Far reaching ex officio powers of the MoE: All acquisitions of 25% or more of the voting rights by a non-EU/EFTA investor may be called-in by the MoE for a period of up to five years. Parties may therefore carefully consider to file on a voluntary basis in the interest of deal certainty. The advisability of voluntary filing depends on the specific circumstances, including target and investor characteristics and the political climate.
Be aware, but don’t be concerned – FDI filings are no deal-breakers
Most of the transactions are cleared without conditions
Official data published by the MoE show that the overwhelming majority of notified transactions is cleared without any remedies. In 2024, the MoE imposed restrictive measures only in 3% of the transactions it had reviewed. As far as publicly known, only one transaction was blocked in 2024. Whilst these figures have been quite stable in Germany over the past few years, the global FDI landscape paints a mixed picture with an increased number of interventions in some of the key jurisdictions including, in particular, France where 44% of the transactions were subject to remedies, the US (19%) and Italy (13%).
If the MoE stipulates conditions or requests certain commitments from the parties, such remedies are typically tailor-made and address specific concerns. They regularly comprise of, inter alia, (i) limitations on shareholder influence, (ii) requirements with regard to the management composition, and (iii) the obligation to keep running the German business and to continuously supply critical German customers. The allocation of such execution risks and commitments in the transaction documentation is therefore crucial.
Based on our experience, the MoE is usually open to negotiate the content of the remedies with the parties. Contrary to merger control decisions, any such remedies are not made public by the MoE.
Hong Kong, 04 July 2025 – Arcadis has released its highly anticipated International Construction Costs (ICC) 2025 report, which reveals that Hong Kong has achieved a lower ranking compared to 2024, from 9th to 10th. This shift reflects the trend of reduction in construction costs, signalling increased affordability and enhanced competitiveness in the global construction market. Hong Kong’s change in position on the list reflects its ongoing efforts in managing costs while striving to maintain its appeal as a hub for investment and development.
The ICC report, published annually by Arcadis, provides a comprehensive comparison of construction costs across 100 of the world’s largest cities across six continents. The cost comparison covers twenty different building types, including residential, commercial, and public sector developments, and is based on a survey of construction costs, a review of market conditions, and the professional judgement of Arcadis’ global team of experts. The calculations are based in USD and indexed against the price range for each building type relative to Amsterdam. It serves as a valuable benchmark for affordability, market trends, and economic conditions in the construction sector.
The improved ICC 2025 ranking of Hong Kong is positive news for developers, investors, and stakeholders. It highlights Hong Kong’s efforts to reduce construction costs through technological innovation, enhanced procurement strategy, etc. while continuing to uphold its reputation for providing high-quality infrastructure. This progress strengthens the city’s position as a competitive and attractive destination for large-scale developments, infrastructure investments, and urban growth.
“Hong Kong’s enhanced cost competitiveness reflects its commitment to technological innovation and efficiency in construction, and continued efforts are expected to further improve the reduction of construction costs in the coming years.” stated William Fong, Head of Cost and Commercial Management for Hong Kong & Macau. “This advancement not only supports economic growth but also opens new opportunities for sustainable and affordable development,” William added.
Hong Kong remains dedicated to further enhancing its construction sector by investing in cutting-edge technologies, sustainable practices, and streamlined processes. With a positive trend in affordability, the city is well positioned to meet future demands and attract global partnerships for development projects.
For more information, the full report can be downloaded here.
The dollar has fallen more than 10 percent in 2025 against a basket of six other leading currencies (Richard A. Brooks)
While the US stock market has fully recovered from a spring rout, the relentless drop in the dollar is prompting currency experts to warn of greater financial market turmoil ahead.
The American currency is down more than 10 percent so far in 2025, a historic retreat that has overlapped with occasional spikes in long-term US Treasury yields.
The anomalous dynamic suggests investors are rethinking US holdings, once considered safe havens, as they take stock of President Donald Trump’s unpredictable policy shifts.
While the dollar’s status as the global reserve currency appears unshakeable in the near future, many currency experts expect the greenback to continue to weaken in the coming years, given expectations for slower growth after a long run of US out-performance.
“It’s US exceptionalism basically falling by the wayside and the rest of the world playing catch-up,” said Erik Nelson, a macro strategist at Wells Fargo, who predicts the dollar will continue to depreciate.
In April, global markets were shaken by “Sell America” gyrations in the stock, foreign exchange and US treasury markets, and analysts expect similar sentiment in the future.
“I think the world is becoming a little bit less stable politically, which is generally kind of problematic for economic and financial market volatility,” Nelson said.
“We are witnessing the end of a 14-year bull run of the US dollar,” said Joseph Brusuelas, chief economist at RSM US, a consultancy, who expects a “multi-year unwinding of the dollar.”
Harvard Economist Kenneth Rogoff, author of the 2025 book “Our Dollar Your Problem,” said central banks in China and elsewhere were diversifying away from dollars even before 2025, but that Trump accelerated the trend.
“I think we’ll see a period of a lot of financial volatility, largely centered around the chaos in the United States,” Rogoff told AFP, pointing to factors that include uncertainty about US central bank independence and the rise of populism.
“We’ll probably have a more volatile period in financial markets over the next 10 years than we have in the preceding.”
– Onshoring benefit –
Both Nelson and Rogoff pointed out that the dollar at the start of 2025 was unusually lofty after surging in the weeks following Trump’s November 2024 victory.
Economists have since rethought assumptions that the US would continue to outperform rival economies.
According to the ICE US Dollar Index, a basket of seven currencies, the dollar fell 10.7 percent through the end of June, the biggest drop in the first six months of a year since 1973.
On Thursday, the dollar index rose modestly after solid US jobs data dimmed odds for imminent Federal Reserve interest rate cuts.
With a gain of more than 13 percent against the dollar, the euro has been among the biggest winners following Germany’s big fiscal investments in defense, even as the European Central Bank continued to cut interest rates.
Besides a weaker US economic outlook, the shift in the dollar reflects expectations for looser US monetary policy. Trump has taken relentless aim at Jerome Powell, referring to the Federal Reserve Chair as “a stupid person” while calling for interset rates “at least two to three points lower” — a huge shift in monetary policy.
While Treasury Secretary Scott Bessent and other top officials have rejected suggestions they prefer a cheap dollar, a less expensive currency is beneficial to US exporters and consistent with the administration’s stated goal of beefing up manufacturing.
“Lower interest rates and a weaker dollar would enable the US to strengthen its economic self-sufficiency and increase onshoring,” said Jason Schenker of Prestige Economics, who argues that the moves align with a muscular national security posture towards China.
Market watchers have come to expect Trump to modulate his actions in response to big negative market swings.
On April 9, Trump backtracked on many of the most onerous tariffs from his “Liberation Day” announcement a week earlier after a spike in Treasury bond yields hammered stocks. Later that month, he said he has “no intention” of firing Powell after earlier comments set markets ablaze.
But equity markets so far appear unfazed by dollar weakness, with both the S&P 500 and Nasdaq ending Thursday’s session at records.
“At some point it’s going to get investors’ attention,” Cresset Capital Management’s Jack Ablin said of the weak dollar.
“It signals foreign investors are less inclined to own US assets.”
BEIJING, July 4 (Xinhua) — The central parity rate of the Chinese currency renminbi, or the yuan, weakened 12 pips to 7.1535 against the U.S. dollar Friday, according to the China Foreign Exchange Trade System.
In China’s spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.
The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day. ■
Planes are parked at Noi Bai airport in Hanoi. Photo by VnExpress/Giang Huy
The International Civil Aviation Organization (ICAO) has officially confirmed that the Civil Aviation Authority of Vietnam (CAAV) will participate in its Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) during its voluntary phase, starting from Jan. 1 next year.
The statement follows Vietnam’s formal registration with ICAO on June 30.
Initiated by ICAO, CORSIA aims to achieve carbon-neutral growth in international aviation from 2020 onwards. Under this mechanism, participating countries are required to monitor, report, and offset CO2 emissions from international flights through the purchase of carbon credits.
So far, the Ministry of Construction (formerly the Ministry of Transport) and the CAAV have actively implemented the necessary measures to meet CORSIA’s requirements. These include issuing a circular on managing aircraft fuel consumption and CO2 emissions, establishing a monitoring, reporting, and verification (MRV) system for emissions on international flights, and submitting emissions data for the 2019-2024 period to ICAO.
The CAAV has also proactively studied global and EU-specific sustainability policies, and held numerous consultations with relevant ministries and agencies to assess the challenges of joining the voluntary phase of CORSIA and the EU’s new sustainable development regulations.
