Weekly Investment Update
19 July 2017 to 25 July 2017

Business News
Retailer Sports Direct has reported an almost 60% fall in annual pretax profits to £114m from £275m last year. The fall was attributed to the weak pound with the cost of imported goods rising.

Revenues at Microsoft were £18bn in its Q4 and its profits rose to £4bn, almost double the last quarter, as the firm sees the benefits from its focus on cloud computing. Elsewhere, eBay has recorded a 94% drop in profits as it made a £306m tax provision in its quarterly profits. However its revenue increased by 4% to £1.8bn.

Google’s parent company, Alphabet, has seen its profits for Q2 fall by almost 40% to £2.7bn, due to the fine it received from the European Commission. Its revenues rose to £19bn for the quarter.

British luxury shoe making firm Jimmy Choo, founded in 1996 by former Vogue journalist Tamara Mellon and the Malaysian shoemaker Jimmy Choo, has been bought by Michael Kors Holdings in a deal which values the business at £896m.

US food giant McCormick & Co, owners of Schwartz herbs and spices, has agreed a £3.2bn deal to buy the food business of Reckitt Benckiser which has brands such as French’s mustard. The deal will help Reckitt Benckiser pay down existing debts.

Econominc News
UK public sector net borrowing rose to £6.9bn in June, up £2bn from last year. The government’s debt costs rose
sharply in June as inflation pushed up interest payments on index-linked bonds.

UK retail sales rose by 0.6% in June aided by the warm weather. From January 2018 companies will be banned
from adding surcharges for paying by debit or credit cards following a European directive.

Greece is to sell government bonds for the first time since 2014. The five year bonds are seen as an important step for a country that has been reliant on bailouts since 2010.

Estimates of North Korea’s GDP growth for 2016 show a 3.9% rise from 2015, the fastest growth for 17 years. North
Korea doesn’t publish data; instead it is compiled by the central bank of South Korea.

The ONS has said as many as 2,500 products have shrunk in size while being sold for the same price since 2012 in what’s been referred to as “shrinkflation”. Products include sweets, fruit juice and toilet rolls amongst others.

Courtesy of Legal & General
This article is not intended to provide advice.
The information provided is for general information purposes only
and should not be relied upon by private investors or any other persons.
If you have any queries or wish to seek advice, please contact us.