Identifying the lasting effects of changes occurring within the business and legal worlds is crucial to demonstrating good commercial acumen. Think about the impact that such changes might have on a particular industry, your target firm’s clients and the firm itself. Choose to analyse stories that interest you as this will make staying up to date with changes much easier and more enjoyable. Read this week’s commercial news round-up for insight into some of the news stories from the past week.
- One-quarter of Deutsche Bank’s 400 London corporate bankers are due to be made redundant, as the lender moves 100 roles out of London to the EU and Asia after financial services were not incorporated into the Brexit trade deal. Other banks with EU clients, including HSBC and Citigroup, have also revealed plans to relocate staff to the EU in Brexit’s aftermath. It has been estimated that banks have moved or plan to move assets worth more than £900 billion to the EU – a figure that equates to 10% of the UK’s banking system, according to CITY AM. Reasons for the relocations at Deutsche Bank include Brexit, plus a chance to reduce costs by moving employees out of costly cities.
- Online shopping via TikTok soared 553% during the pandemic, according to data from Bazaarvoice, with Instagram and Facebook also seeing growth in shopping sales of 189% and 160% respectively. “No matter what social media platform you use, video content is king in 2021. The inclusion of shoppable videos on social media now needs to be a key feature in brand and retailer marketing strategies,” Ed Hill, senior vice president of Bazaarvoice told online news publication Charged.
“TikTok’s recent launch of in-app shopping will not only drive conversion with users but be an encouragement for brands to invest in advertising spend – a win-win for any social media platform.”
- After years of resistance, ride-hailing firm Uber has agreed to recognise a trade union – the GMB union. The deal could be a critical turning point for the gig economy, with the union eligible to represent and negotiate for UK Uber drivers in discussions on pay, pensions, benefits, and health and wellbeing. The deal follows the Supreme Court ruling in March which determined that Uber drivers are ‘workers’.
- Swedish retail company Ikea has launched its own ‘buy now, pay later’ service, with interest-free financing available on transactions of more than £99. Customers can apply to use the ‘Financial Services’ offer to pay for projects on the home, as part of the company’s “ambition to make Ikea even more affordable,” according to David McCabe, Ikea UK’s commercial country manager.
- In a deal worth $8.45 billion, Amazon has revealed that it will buy Hollywood film studio MGM, making it the second-largest acquisition in Amazon’s history and demonstrating its motivation to stay competitive in the video streaming services market, alongside Netflix and Disney. Mike Hopkins, senior vice president of Prime Video and Amazon Studios said: “The real financial value behind this deal is the treasure trove of IP in the deep catalogue that we plan to reimagine and develop together with MGM’s talented team.” Amazon shares saw little movement following the firm’s announcement of the acquisition.
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