Your commercial news round-up: cannabis, Britain’s economy, FCA, Tesco, Morrisons
updated on 29 July 2021
As we approach the big training contract deadline this weekend, now is the perfect time to sharpen your commercial acumen. Have a flick through some of the biggest news from this week to find out:
- whether cannabis will become part of our future;
- whether the UK economy will bounce back;
- which rules the Financial Conduct Authority (FCA) plans on implementing;
- why Tesco Bank is pulling the plug; and
- what’s happening with Morrisons’ bidding war.
Read a summary of these stories below.
- Cannabis has a promising future in the tobacco industry, according to British American Tobacco (BAT), which took a stake in a Canadian medical cannabis maker earlier this year. BAT recently signed a deal to research a new range of cannabis products, with a focus on cannabidiol (CBD) and is currently testing a CBD vape product in Manchester. BAT Executive Kingsley Wheaton said: “As we think about our portfolio for the future, certainly beyond nicotine products are interesting for us as another wave of future growth.” BAT encourages people to move away from tobacco and make the switch to less harmful products such as vaping and cannabis.
- Despite the economic decline following the pandemic, the UK economy is set to recover faster than any other major economy in Europe, according to Sky News. This optimistic outlook follows predictions from the International Monetary Fund (IMF), which suggested the economy will grow by 7% this year; the strongest year for economic growth following the Second World War. Prime Minister Boris Johnson welcomed the good news in a tweet. He said: “… Our economy is bouncing back faster than expected.” As it stands, the UK’s growth rate surpasses Germany, France and Italy, and matches that of America. The UK government wishes to remain focused on protecting and creating as many jobs as possible through its unemployment support plan – Plans for Jobs.
- According to the CITY AM, the FCA is pushing to implement new rules that will pressure listed companies to disclose their c-suite diversity credentials. Such credentials will involve a publication of a ‘comply or explain’ statement breaking down whether the firm has reached set targets. Those that fail to meet their diversity targets will need to explain to shareholders their reasons why. The UK’s financial watchdog is seeking to encourage a diverse workforce of at least 40% female employees. It also wants at least one of the senior board positions to be held by a woman. The FCA intends to implement the proposals by late 2021.
- Meanwhile, in the retail banking sector, Tesco Bank has pulled the plug to close all its personal and business current accounts. Nearly 213,000 accounts are currently open with the bank but most of the accounts are being used as saving pots. Customers will soon receive a message asking them to withdraw all their money and change any standing orders or direct debits before the end of November. The supermarket giant will continue to offer savings accounts, credit cards, and Clubcard Pay services.
- Singapore’s wealth fund, the GIC, has joined forces with the Fortress-led consortium seeking to buy Morrisons in a £6.3 billion takeover deal. The arrival of GIC has not resulted in an immediate increase in the share offer but it could still force a higher bid or lead to a rival bid emerging. The GIC, which has about $400 million of assets under management, has a 0.2% stake in Morrisons. The bidding war continues.
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.
