Bank of England, Amazon shares, Sainsbury’s, John Lewis Partnership, Lloyds, Deliveroo: your commercial news round-up

As the US presidential election continues, with only a few states left to count their votes, and England enters a month-long national lockdown to curb the spread of covid-19 and prevent further deaths, it’s safe to say that it’s been a turbulent week. During a period like this, staying up to date with the latest news can sometimes feel overwhelming. That’s why every week LawCareers.Net puts together a round-up of some of the week’s most interesting commercial news stories to help you get back up to speed.

• As the UK enters its second national lockdown, the Bank of England voted to purchase another £150 billion of government bonds to increase spending in the economy, following “signs that consumer spending has softened across a range of high-frequency indicators, while investment intentions have remained weak”. The Monetary Policy Committee has predicted a “double-dip” recession for the UK in light of the pandemic’s second wave.

• Amazon CEO Jeff Bezos has sold more than $3 billion worth of shares in his company this week, bringing his total share sales in 2020 to more than $10.2 billion so far. This figure is significantly higher than the $2.8 billion worth of shares he sold in 2019. According to filings with the Securities and Exchange Commission, the transactions were part of a previously arranged 10b5-1 trading plan.

• Further job losses have been announced this week as England enters its second national lockdown.

Sainsbury’s has revealed that 3,500 jobs will be cut, with most of these affecting its Argos chain. Around 420 of the firm’s standalone Argos stores will be closed by March 2024, while 150 Argos outlets will be introduced into Sainsbury’s stores. The firm reported a loss of £137 million, which it put down to closures and “market changes”.

The John Lewis Partnership (JLP) has revealed plans to cut an additional 1,500 jobs as the pandemic continues to thrash sales. The redundancies will affect staff working in the retailer’s head office and will help to save another £50 million, according to the firm.

Meanwhile, as part of a major restructuring, commercial bank Lloyds will cut 730 jobs despite figures to suggest that it has benefitted from a rise in demand for mortgages as a result of the pandemic.

• With plans to take Deliveroo’s app public in London next year, the firm has enlisted JP Morgan and Goldman Sachs to work towards a flotation, which could happen as early as the first quarter of 2021, according to City insiders.

And some good news to finish – Deliveroo will also reinstate an initiative it started during the initial lockdown period by offering free meals to the NHS.

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