Beirut, Bank of England, Goldman Sachs, Booking.com, WH Smith, TikTok: your commercial news round-up

Developing your commercial awareness is a critical skill that you must show and apply to increase your chances of success in the legal profession. Use this week’s commercial news round-up to catch-up on the latest news from the business and legal worlds and put your skills into practise.

• Earlier in the week an explosion at a port in Beirut devasted the Lebanese capital, leaving hundreds of people killed and 5,000 injured. Following the shocking videos that have circulated the Internet, Lebanon’s economy minister has asked for international assistance to support the country with value of damage from the explosion estimated to be around $3-$5 billion, according to Beirut’s governor. As one of the world’s “worst indebted countries”, the International Monetary Fund has predicted that Lebanon’s economy will plummet 12% this year, alongside the collapse of the Lebanese pound and the 56% rise in inflation.

• The impact of coronavirus on the UK’s economy will not be as extreme as previously expected, according to the Bank of England. While the economy is set to face the biggest annual fall in 100 years as it could plummet by 9.5% this year, this predicted downturn is a significantly smaller reduction than the initial estimated slump of 14%. However, recovering from the economic downturn is likely to take longer. In May the Bank estimated that the economy would grow by 15% in 2021 and 3% in 2022; however, a recent forecast has predicted a growth of 9% and 3.5% respectively.

• Shares in Metro Bank plummeted more than 13.5% earlier this week, following a loss of £240.6 million for the first six months of 2020. Meanwhile, investment bank Goldman Sachs has revealed its new diversity targets in a bid to create “an even stronger culture of inclusion” for its employees.  

• The global pandemic is continuing to create job losses across the board, with Booking.com confirming that it will cut a quarter of its 17,000 jobs. Hays Travel has announced redundancy plans that will affect 878 employees, and the closure of 166 of TUI’s UK high street stores will affect 279 employees. Hitting the UK’s hospitality industry hard, the pandemic has lead to hotel giant LGH – which manages 55 properties, including Crowne Plaza and Holiday Inn hotels – revealing redundancy plans that are likely to see 1,500 jobs at risk.

British retailer WH Smith could cut up to 1,500 jobs, as it continues to suffer from low footfall in its airport and train station shops, as well as its high street stores. The company is experiencing a slow recovery following the easing of lockdown rules and the opening of shops. Pizza Express could cut 1,100 jobs as it reveals plans to shut around 67 restaurants in a bid to protect the majority of its staff. The restaurant chain has also put itself up for sale.

• In a bid to speed up and simplify the construction of new homes across England, Prime Minister Boris Johnson has revealed planning reforms to limit local councils’ ability to oppose future developments. As part of the reform package, ministers will support small builders which will involve the reduction of regulations and costs for some developers. Responding to the “once in a generation” reforms revealed by the prime minister, critics have said that they could lead to a surge in softly regulated development.

• TikTok has announced its plans to build a £375 million data centre in Ireland which will store data generated by its European users, including videos and messages – until now, all data generated by TikTok users has been stored in the US. TikTok is also in talks with Microsoft to sell its US, Canada, Australia and New Zealand operations following President Donald Trump’s threat to ban the app in the US.

Be sure to check the News every Thursday for this weekly commercial news round-up. Follow @LawCareersNetUK on Twitter and like us on Facebook for instant business news updates.