Weekly Investment Update
21 June 2017 to 27 June 2017

Business News
IP Group, the science innovation company, has made a hostile takeover approach of rival Touchstone with a £466m offer. Elsewhere, Google has been handed a £2.1bn fine by the European Commission for promoting its own shopping comparison service at the top of search results. Google may as yet appeal the fine.

Takata, the car parts maker, has filed for bankruptcy protection in both the US and Japan as it faces massive liabilities over defective airbags. All of the firm’s assets, except those relating to airbags, have been bought by US firm Key Safety Systems for £1.3bn.

Health food retailer Holland & Barratt has been bought by L1 Retail, owned by Russian billionaire Mikhail Fridman, for £1.8bn from US private equity firm Carlyle. Meanwhile, Tesco is cutting 1,100 call centre jobs in Cardiff, whilst creating 250 new roles at its Dundee site.

In Italy the government has paid £4.6bn to bailout two banks in the Venice region, Banca Popolare di Vicenza and Veneto Banca, after the European Central Bank said they were likely to fail.

Drinks giant Diageo has bought tequila company Casamigos in a £790m deal; the business was formed in 2013 by three friends, one of which being actor George Clooney.

Econominc News
The Bank of England is forcing banks to find an additional £11.4bn over the next 18 months to protect against
defaults on bad loans. Consumer credit (personal loans, credit cards and car finance) has grown 10% in the past year.

Over supply of oil has continued to drag on prices with the cost of benchmark Brent oil falling to $46.02, a nine month low, last week.

The world’s largest stock index provider, MSCI, is to include the shares of companies from China’s mainland in its emerging markets index for the first time. The 222 shares will make up around 0.7% of the index.

This week marks the 50th anniversary of the unveiling of the world’s first ever cash machine at Enfield in London. There are now 70,000 cash machines in the UK. Sweden has the lowest distribution of cash machines in Europe, with 333 machines per one million in habitants.

As the UK enjoyed its hottest June since 1976, a new report on major retailers shows that the sales of hand-held ice creams rose 24% from the same month last year.

Courtesy of Legal & General
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