Weekly Investment Update
30 August 2017 to 5 September 2017

Business News
Micro Focus has completed its £6.8bn takeover of Hewlett Packard Enterprise’s software business to become the largest UK listed technology company. Meanwhile, UK engineering software company Aveva is to merge with French energy business Schneider Electric to create a company with a combined worth of around £3bn.

UTC, the maker of Pratt & Whitney jet engines, has struck a £23bn deal with airline parts maker Rockwell Collins in one of the biggest deals in the aviation industry. Elsewhere, FACC, the Austrian aerospace company, has won a £460m contract to supply stowage compartments to planemaker Airbus.

French telecoms operator Iliad has reported a 22% rise in its half-year profits to £213m up to the end of June, as revenues grew 7% to £2.3bn. Annual pre-tax profits at housebuilder Redrow climbed 26% to £315m whilst revenues rose 20% to £1.7bn.

Toymaker Lego has reported its half-year revenues fell 5% to £1.8bn and profits dipped 3% to £543m. The Danish firm also announced it would be cutting 1,400 jobs, 8% of its workforce, worldwide.

After 51 years the last printed editions of the Yellow Pages will be sent out in Brighton next year, where it was first published in 1966.

Econominc News
Expansion in the UK’s service sector slowed in July according to a new survey. Consumer credit borrowing
(personal loans, credit cards and car purchase deals) slowed in July. The 9.8% growth in borrowing from last year is the lowest growth rate since last April.

The initial estimate of inflation in the Eurozone for August shows an increase of 0.2% from July to 1.5%, as energy
and processed foods pushed up prices. Unemployment in the Eurozone was unchanged at 9.1% in July.

The US GDP growth for Q2 has been revised upwards to 3% from the earlier estimate; on an annualised basis the growth in Q2 was 2.2%. The US unemployment rate rose by 0.1% to 4.4% in August after the US economy added 156,000 new jobs and June and July’s figures were revised.

India’s economic growth slowed to 5.7% in Q2 down from 6.1% in Q1, with manufacturing growth slowing from 10.7% last year to 1.2%. Crypto-currency Bitcoin has surpassed the $5,000 valuation point for the first time this week, before falling 12% not long after.

Courtesy of Legal & General
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