In your latest commercial news update, we look at the business news highlights from the past week. The merger of Sainsbury’s and Asda, the closure of Cambridge Analytica and Tesla’s record losses all made the headlines. Also in the news, the iconic guitar maker Gibson is struggling with huge debts and the US economy has slowed in the first quarter.
The big news in business this week was the Sainsbury’s and Asda merger. Both brand names will be retained and there are no plans to close any stores. It would overtake Tesco and become the UK’s largest retailer with 2,800 stores and 330,000 employees. However, concerns have been raised over the impact the move will have on suppliers.
Cambridge Analytica, the company at the centre of the Facebook data scandal, closed this week due to a loss of business. The Information Commissioner’s Office (ICO) said that this will not stop the investigations into the firm.
Tesla has reported a record $709.6m loss in the first quarter. Elon Musk was not happy answering questions about future profitability when speaking to analysts, stating: “These questions are so dry. They’re killing me.” These comments resulted in shares falling 5%.
Gibson, US guitar maker, has filed for bankruptcy protection as it struggles to cope with more than £350m of debt. The Financial Times said that the iconic guitar brand has made key strategic errors while failing to keep up with the changing landscape of the music industry.
The US economy has slowed in the first quarter after Trump’s tax cuts that promised to boost US GDP to over 3%. However, consumers cut back on spending in the first three months.