Cryptocurrency scams, Toshiba, UK economy, Asos: your commercial news round-up

With England’s lockdown restrictions set to be eased as planned on 12 April next week, and with some of us experiencing typical Spring days followed by snow, it’s safe to say it’s been another whirlwind of a week. Here’s your weekly reminder to set some time aside to develop your commercial awareness so you’re ready to ace future applications and interviews.

• Cryptocurrency investment scams increased 57% to 5,581 in the 12 months to December, according to Action Fraud, and in January there were 720 cryptocurrency fraud reports – double the number of reports in the same month last year. With cyber fraud on the rise, UK courts should expect an increase in prosecutions relating to cryptocurrency scams, according to the director of the Crown Prosecution Service.

• Tech firms, including Google, Facebook, Amazon and Apple will be under scrutiny from a new regulator – the Digital Markets Unit (DMU), which will take a pro-competition approach – to “help curb the dominance of the tech giants”, according to Business Secretary Kwasi Kwarteng. Sitting within the Competition and Markets Authority, the DMU will first consider the codes of conduct to govern the relationships between the tech businesses and their users, but the codes must be implemented into law before the DMU can take action.

• In a deal that could be worth £14.5 billion, British private equity firm CVC Capital Partners has put in a bid to buy Japanese conglomerate Toshiba. While Toshiba’s shares were briefly halted on Tokyo’s stock exchange, following the bid’s announcement, its US-listed shares jumped almost 20%.

• The International Monetary Fund (IMF) has revealed its forecast for UK economic growth and recovery, after the economy slumped 10% last year. The IMF has said that while UK economic growth is unlikely to reach pre-pandemic levels until 2022, it will increase by 5.3% in 2021 and is set to surpass the eurozone’s economic growth this year, which the IMF predicted at 4.4%. The US and Japan are likely to reach pre-pandemic economic levels by the end of the year, while Britain and the eurozone are due to take longer, according to the IMF.

• Around 190,000 jobs have been lost since the first lockdown in March last year, which forced retailers to temporarily shut up shop, and March 31 this year, new data from the Centre for Retail Research has revealed. More than 80,000 jobs were lost as a result of administrations, with the British Retail Consortium’s Chief Executive Helen Dickinson warning that additional administrations are likely if the government does not implement the correct support.

• The failure of Deliveroo’s initial public offering (IPO) has been described as “the worst IPO in London’s history” as shares in the app closed at 287 pence on Wednesday, plunging 26%. Short sellers are among other factors, including Deliveroo’s roadshow, that have been blamed for the plunge. 
   
• Online retail giant Asos has reported a 275% jump in half-year profits, with current lockdown guidance in the UK meaning non-essential shops will remain closed until 12 April. The six months to 28 February saw a 24% revenue increase and the company’s sum totalled just under £2 billion; with most of the world still under tight restrictions due to covid-19, the UK, EU and US businesses witnessed growth of 39%, 18% and 16% respectively. Active customer use increased by 1.5 million, over the six months, to nearly reach 25 million. However, with restrictions set to ease in the UK on Monday, the online-only business should be conscious of the UK’s roadmap out of lockdown and the impact that high-street shops reopening might have. With a shift back to occasion wear expected, Asos Chief Executive Nick Beighton said “flexibility will be vital for us”.  

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