Weekly review

The FTSE 100 ended the week up 141.88 points to 7,210.05.

Equity view

Budget airline easyJet’s passenger numbers and load factor improved in December.

Engineering group Fenner said on Friday that it expects results for the current financial year to be “comfortably above” previous expectations amid stronger order intake and improved customer enquiries.

Interdealer broker TP ICAP, formerly Tullett Prebon, saw increased trading activity in the final quarter of 2016, largely due to the volatility in equity markets in the aftermath of the US presidential election, and expects an increase in revenue for the year.

Tullow Oil announced on Thursday that its chief financial officer Ian Springett was taking an extended leave of absence in order to undergo treatment for a medical condition.

Cape said on Thursday that its full-year results for 2016 are likely to be “materially ahead” of current market expectations, as it announced the award of additional work packages on the Chevron-operated Wheatstone natural gas project.

In a bid to stabilise Fastjet and reach cash flow break even, chief executive Nico Bezuidenhout aims to increase equity by at least $48m with Solenta, an African commercial aviation firm, injecting $19m into the Africa-focused budget airline and through a share placing.

Persimmon's sales rate remained solid in the second half of the year despite previous worries about Brexit, with the housebuilder also assuring profit margins were on the up.

Aggreko has been awarded a contract to be the official temporary electricity generation provider for the Olympic Winter Games PyeongChang 2018.

Carillion announced on Wednesday that one of its joint ventures, Al Futtaim Carillion, had been awarded a £160m contract for phase 1A6 of the One Central development by the Dubai World Trade Centre.

Budget eastern Europe-focused airline Wizz Air reported 23% growth in passenger numbers for December, as it announced new routes to and from Hungary.

Traffic at budget airline Ryanair surged 20% in December from the same month last year to 9m customers.

Defence and security firm Ultra Electronics has won a contract extension from the Royal Navy for the supply of sonobuoys that it said is worth £9. 7m.

Staffline said on Wednesday that results for the full year are likely to be in line with market expectations.

Discounter B&M European Value Retail said it was confident of hitting its full year targets after good sales over Christmas helped sales accelerate in the third quarter.

After sales slipped over the key Christmas period, Next has lowered its guidance for the full year and warned sales and profits will fall further in as the cyclical slowdown in spending on clothing and footwear continues in 2017.

London Stock Exchange has agreed to sell clearing house LCH Group's French-regulated operating subsidiary to Euronext for €510m.

BBA Aviation’s aircraft management and charter business has merged with Gama Aviation’s US aircraft management business.

McCarthy & Stone, the UK’s leading retirement housebuilder, has announced that Rowan Baker will be appointed as the group’s chief financial officer from 6 January 2017.

Morrisons has started off the new year by initiating the supermarket price war, cutting prices on 800 of its items.

Aveva Group, a provider of engineering data and design IT systems, has confirmed the appointment of former deputy chief executive James Kidd as chief executive from 1 January 2017.

Economist news

Supermarkets in the UK raised their prices in December from the previous month, however the hike was lower than the previous year due to competition curbing the impact of a Brexit-caused cost inflation, according to mySupermarket. com .

Activity in the UK services sector unexpectedly improved in December, with growth accelerating for the third month in a row to a 17-month high. The Markit/CIPS services purchasing managers’ index rose to 56.2 from 55.2 in November, beating expectations for a drop to 54.7.

UK new car registrations reached a record 2. 69 million units last year as buyers were attracted by a wide range of new models and low borrowing costs, the SMMT.

Private sector businesses in the UK ended 2016 on confident footing but impending inflation places a cause for concern, according to the British Chambers of Commerce’s (BCC) quarterly economic survey.

Mortgage lending increased less than expected in November but consumer credit reached an 11-year high, Bank of England data on UK money and credit figures revealed on Wednesday.

The UK Markit/CIPS purchasing managers’ index on construction gave a reading of 54.2 for December, beating the consensus of economists' forecasts of 52.5 and up from November's 52.8.

British shop prices dropped 1.4%, the smallest annual decrease since August 2015, following a 1.7% fall in November, according to the British Retail Consortium on Wednesday.

Britain’s EU ambassador Ivan Rogers has prematurely quit months before the formal Brexit talks are to commence in March.

The Markit/CIPS UK purchasing managers’ index rose to 56.1 in December from 53.6 in November, exceeding analysts’ expectations for a reading of 53.3.

International events

US employers added a less-than-expected 156,000 jobs in December while the unemployment rate rose to 4.7% from 4.6%, in line with forecasts, the Labor Department revealed on Friday.

Euro-area economic confidence rose more than expected in December as sentiment improved in the retail trade, industry and among consumers.

The Institute for Supply Management's US service sector purchasing managers' index was unchanged at 57.2 last month, versus forecasts for a dip to 56.6.

Markit’s final US purchasing managers’ index was revised to 53.9 in December from a prior estimate of 53.4, surprising analysts who had expected no change to the reading.

US initial jobless claims were down 28,000 to 235,000 last week from the previous week’s downwardly-revised 263,000, according to data released by the Labor Department.

The ADP’s private payrolls report revealed employers added 153,000 jobs last month, missing expectations for an increase of 170,000. November’s figures were revised down a touch to show the private sector added 215,000 jobs versus the 216,000 previously reported.

Consumer prices in the 19 countries that share the euro were up 1.1% on the year compared to 0.6% growth in November. Analysts had been expecting consumer prices to be up 1%.

Economic activity in the eurozone expanded at its fastest pace since May 2011 in December. Markit’s final composite output index – which measures activity in the manufacturing and services sectors – rose to 54.4 last month from November’s 53.9. This was ahead of the consensus and flash estimate of 53.9.

The Organisation for Economic Cooperation and Development has issued a warning that global property prices could overheat and eventually drop.

US construction spending jumped 0.9% month-on-month and 4.1% year-on-year to reach $1.14trn, according to the Department of Commerce.

The ISM headline manufacturing index rose to 54.7 in December from 53.2 the month before, beating expectations for a reading of 53.5.

Markit’s final manufacturing purchasing managers’ index rose to 54. 3 in December, up a touch from November’s 54. 1 and hitting a 21-month high.

Caixin´s China manufacturing sector purchasing managers´ index rose from 50.9 in November to 51.9 for December, outpacing economists´ forecasts for an improvement to 50.7.

Unemployment claims in Germany dropped by 17,000 in December to reach 2.638m, according to the Federal Labor Agency.

Germany’s consumer price index clocked in at 1.7% in December, well up from 0.8% in November, according to preliminary estimates from the Federal Office for Statistics.