[Ines Pinheiro]

That is a very interesting point Jeremiah, why do you think that is? (that very few games based on a movie do really well). I thought it was the other way around by I am not a gamer myself. It’d be great to know!

[Ines Pinheiro]

There is a bit of a trend developing in this space and a lot of consolidation in the gaming world, with Amazon, Meta and Google also wanting to expand their gaming capabilities. So, I think this is a smart move and could bring a new revenue stream for Netflix, and judging for the amount of dealmaking in the industry, I’d say it’d be better for Netflix to get involved now.

After the Microsoft/Activision deal, diversifying Netflix’s business seems more pertinent than ever before for various reasons. Firstly, the streaming industry is suffering right now (following the lifting of lockdown restrictions, inflation, energy prices, etc.). Secondly, Amazon is ready to take market share, and Meta is developing its metaverse, and is also ready to attack! And thirdly, consumers are expecting new ways of entertainment for a friendlier price.

If I can remember correctly, in 2020, mobile gaming accounted for 60% of all gaming. However, playing games on the cloud is something consumers are expecting even more, especially as 5G is rolled out. It would be good to see Netflix go above and beyond and offer console and cloud-based gaming on different devices, maybe linked to our Netflix account?

I think what plays at Netflix’s advantage is that it already has themes for its games, like Stranger Things, The Walking Dead (I’d love to see something about Black Mirror). I propose it acquires Electronic Arts and gets hold of The Sims – I’d love to play The Sims on the cloud!!

[Ines Pinheiro]

Hi Apolloniya,

This is a great topic!

In my opinion, banning cryptocurrencies is not the right solution. As you identified, this could lead to creating an underground crypto market (maybe on the dark web?). It would be difficult to tax crypto-transactions in such a case, and even worse, it would increase cybersecurity risks. However, we have seen authoritarian states like China take this approach in the past. So I wonder whether Russia’s ban proposal is really driven by environmental concerns and their plans to decarbonise the Russian economy or by the sovereignty concerns that decentralised finance poses to the state.

As you mentioned, Russia will need to spend a lot of money and resources on prosecuting miners. I don’t think this is a priority for most countries right now, given that there are other more fundamental concerns affecting the economy (such as supply chain issues and struggles in the employment market, energy shortages, ect.). Considering this, it appears to me that other countries will be adopting a more lenient approach, especially those with strong liberal ideals.

I genuinely do not think that the G7 countries (for example) would act like El Salvador and make cryptocurrencies a legal tender. That would be outrageous considering the lack of regulation and deep understanding around these assets! But we have seen Spain, Italy and the UK trying to regulate crypto adverts in an attempt to control this space and raise awareness. In my opinion, this is a good starting point, but countries have to create an effective legal framework to make a real difference.

I think this is such a complex area that getting to fully understand what is really going on in the crypto world is taking governments a bit of time. This is also one of the reasons I think banning crypto won’t work. This market is growing so fast that I won’t be surprised if the crypto experts find a way to divert their energy source to be untraceable, or even develop a way of consuming less energy not to bring attention.

Also, suppose that governments decide to ban cryptocurrencies as China did. This could pose a real risk for the likes of Bitcoin because demand for cryptocurrencies that aren’t backed by central banks would decrease. But adopting central banks’ cryptocurrency would contradict the decentralised finance movement. I would think that people that really believe in decentralised finance would continue to support the likes of Bitcoin and Ethereum but underground, mainly because the adoption of NFTs by the likes of Meta and Twitter could give this community a platform to hold and continue to mobilise their cryptocurrencies when trading NFTs (which at the moment rely on the Ethereum network). People can always find their way around it, and providing effective regulations would deter criminal behaviours and allow authorities to keep an eye on this market.

On the other hand, if countries don’t hurry up and create an adequate legal framework soon, we could expect to see more people gambling with cryptocurrencies like it is happening in Turkey at the moment. This can further destabilise economies worldwide, especially in the most vulnerable sectors of society.

• This reply was modified 2 years, 3 months ago by Ines Pinheiro.
• This reply was modified 2 years, 3 months ago by Ines Pinheiro.

[Ines Pinheiro]

This is a great approach Apolloniya! This is exactly what I do.

I find it really easy to navigate Watson’s Daily newsletter because it already gives you a breakdown of the relevant sectors. That way, it’s easy to find relevant information.

I also make sure I listen to the podcast because normally Peter provides a bit more context (especially when he invites external speakers – if you haven’t listed the cryptocurrency podcast, what are you waiting for?!) and being able to contrast opinions is always helpful when trying to forecast the next trend in a sector. After all, this is what commercial solicitors tend to do. Being able to demonstrate this skill during an interview shows your interest in the firm’s clients and the firm’s future (as well as your business acumen!).

[Ines Pinheiro]

Hi Hamsi, this is a great question! I agree with you; oil prices and inflation are two topics I follow closely to understand how the markets are operating and the economy is unfolding. Also, anything commodities-related is of interest to me, especially now that materials such as lithium are essential to creating batteries in the transition to a green economy. I would add cryptocurrencies to that list and keep an eye on the most recent trends involving NFTs, banking operations and buy-now-pay-later.

It might sound boring, but I think COVID and Brexit are still quite relevant, especially when they continue to affect the supply chain and footfall on the high street!

I would love to hear what other people think!

[Ines Pinheiro]

Hi Apollonia!

When it comes to that question, I always start by asking: What are the strengths of the company/firm?

In considering this, it’s important to note things such as international presence, whether they adopt a sector-focused approach, what are these sectors, and how are they relevant to the economy? What are the main clients?

Once this is clear, I use Watson’s Daily, weekly and monthly to read the highlights in those industries. After choosing the most relevant stories, I find it helpful to use the archive feature to find out more about the topics I’m interested in. Then I narrow everything down and use Peter’s analysis of my fav stories to guide my analysis. But I also find it helpful to contrast these points and read opposing views to inform my argument!

Finally, I use models such as the SWOT analysis and the stakeholder approach to determine how this analysis affects the firm/company.

Is this similar to your method?

[Ines Pinheiro]

Thanks for that Peter, I just checked The Telegraph and found a £1 for 3 months sale!

[Ines Pinheiro]

Having grown up on a different continent, I feel very identified with this question too. I think developing some sort of historical commercial awareness is key in order to contextualise what’s happening around us. Although sometimes it can be hard to know how far back one should go in terms of historical background. For example, how much should I know about the LIBOR scandal and 2008 crisis? (I am still figuring that out, any tips would be highly appreciated).

In terms of other websites, I use Watson’s Daily as my starting point and then try to reinforce my understanding of key topics by googling the headlines and reading free newspapers such as The Guardian. I also suggest you listen to the Economist podcast, it’s free, and they usually discuss their most relevant articles.

[Ines Pinheiro]

I would think people will be more inclined to spend money on activities and experiences rather than goods, not just because Christmas is about spending quality time with people but because the increase in prices would prompt people to be more conscious of how they spend money. Also, after we’ve been in lockdown for such a long time, getting together with friends and family is a huge thing. Hence some people might be willing to take a loan or request an overdraft, credit card, etc., to be able to enjoy this period (this, of course, will depend on whether the Bank of England increases the interest rate this year or not). If so, people will reduce spending in January and will focus on repaying their debts. But for the next couple of months, I think the hospitality industry will be a winner. Still, they will also feel a lot of pressure as more job vacancies are available and fewer people are willing to fill the positions.

Those interested in purchasing gifts and stuff could wait until Black Friday to get discounted goods that they can easily get online as people seem less willing to queue at stores considering COVID is still a risk. They could also rely on Buy-now-pay-later. However, are goods going to be delivered on time? I doubt it… and BNPL services seem to be widely available online with few in-store options. In such a case, this may be beneficial for department stores, as they can rely on eye-catching sales to attract consumer attention. But again, I don’t think retail spending will be that popular compared to previous years. What I think will increase spending is food. If the situation in the supermarkets doesn’t stabilise soon, people will start pilling up food in preparation for Christmas and New Year’s Eve.

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