Weekly review

The FTSE 100 finished the week 36.45 points or 0.47% higher at 7,724.22.

Equity view

On Friday, UK defence company Ultra Electronics slumped following a report that the UK defence review has been delayed.

EasyJet reported a 5. 5% year-on-year increase in passengers for December to 5. 88m. The load factor was up to 91. 4% from 89. 9%.

Shipping broker Clarkson said it expected full year results for 2017 to be in line with current expectations.

On Thursday, Debenhams pledged to accelerate its restructuring plans after issuing the first profit warning of 2018 as sales fell and "tactical promotional action" misfired in the department store group's crucial festive period.

Whitbread appointed former ITV and Royal Mail boss Adam Crozier as its new chairman, just as City chatter swirls about a potential break-up of the Premier Inn and Costa Coffee owner.

British Airways owner IAG reported further growth in capacity and passenger traffic for December.

Ocado, the online grocery specialist, marched higher as City chatter grew louder about a potential new overseas contract and renewed talk of a possible takeover bid.

Melrose Industries said US tax cuts signed off by Donald Trump at the end of last year will reduce its group effective tax rate for 2018.

NMC Health, which operates in the United Arab Emirates, bought up the outstanding minority stakes in the Fakih fertility clinic and As Salama Hospital for a total of $218m.

Sales, marketing and support services group DCC said it had agreed a deal to buy two businesses from Germany's Linde for an undisclosed cash sum.

Actuator manufacturer Rotork appointed Kevin Hostetler as chief executive with effect from 12 March.

On Wednesday, Next reported a solid sales performance in the run up to Christmas and while the clothing retailer expects profits to fall in the coming year, it was slightly more optimistic about the outlook.

Royal Bank of Scotland was reported to have agreed to sell off its offshore leasing businesses to Investec and Shawbrook due to new regulatory pressures around 'ring fencing'.

Electrocomponents said it expects changes to US tax law to trigger a one-off credit this year followed by a reduced overall tax rate.

Ryanair reported a 3% jump in traffic for December on Wednesday, a day after it said it has applied for a UK air operator licence.

Low-cost airline Wizz Air reported good growth in passenger numbers in December.

Indivior said it was joining up with Switzerland's Addex Pharma to support the development of treatments for drug addiction that target neurotramsitter systems.

Babcock International signed a five-year agreement worth about £115m to maintain frigates for the Australian navy.

Residential landlord Grainger exchanged contracts and agreed to acquire a private rented sector, build-to-rent development in Sheffield, for around £32m.

On Tuesday, Compass Group confirmed the death of its chief executive, Richard Cousins, and his family in a plane accident over the weekend, and said it has moved forward the date of his succession.

Marks & Spencer sold off its retail business in Hong Kong and Macau to its long-established franchise partner Al-Futtaim.

BP said it expects changes to US tax rates to trigger a charge of about $1. 5bn (£1. 1bn) before benefiting the company in the long run.

British Airways and Iberia owner IAG swooped to buy assets and invest in Niki, a former part of the collapsed Air Berlin group.

BBA Aviation ended a seven-month search for a new chief executive by appointing internal candidate Mark Johnstone to run the company.

Rightmove kicked off the process to buy back up to £23m of its shares in the coming eight weeks.

Economic news

High street sales in December were lower than the previous year, with clothing and footwear suffering the most.

Citi predicts another positive year for stocks around the world on the back of rising corporate earnings.

UK car sales in 2017 endured their first decline in five years, the Society of Motor Manufacturers and Traders revealed, putting the blame on Westminster for creating uncertainty over the future of diesel-powered vehicles in Britain.

Shop prices in the run up to Christmas fell at their steepest rate in eight months, led entirely by price cuts by non-food retailers as food prices continued to rise.

UK services firms reported slightly stronger growth than expected in December but growth in new orders fell to a 16-month low, a purchasing manager' index survey from IHS Markit revealed on Thursday.

Further increases to the national living wage could lead to a number of positions being replaced by robots and computerised systems as an alternative to paying higher wages, an economic research group warned on Thursday.

House price growth in the UK slowed in 2017, according to the latest survey from mortgage lender Nationwide.

Implementation of new rules governing European financial markets went smoothly after the UK and Germany gave the continent's biggest futures exchanges last-minute leeway.

The UK has held talks about joining the Trans-Pacific Partnership to support Britain's international trade after Brexit.

UK construction firms reported a worse month of December than the market had expected and expectations for the year ahead were the worst for four and a half years, the sector's PMI survey indicated.

Growth in the UK manufacturing sector slowed more than expected in December, according to PMI data released on Tuesday.

International events

US job growth fell short of forecasts at the end of 2017, Friday's non-farm payrolls report confirmed, contrary to the findings of a survey of private hiring conditions the day before.

Regional Federal Reserve president James Bullard said the recently enacted tax cuts should not force the monetary authority to tighten policy more quickly.

The US central bank will only need to hike rates twice in 2018 and the risk of persistently soft inflation needs to be closely monitored, fellow regional Fed president Patrick Harker official said.

Activity in the US services sector unexpectedly slowed in December, according to data released on Friday.

America's shortfall in trade with the rest of the world widened in November as the climb in world oil prices increased the country's energy bill.

North Korea has agreed to hold the first official talks in more than two years with its neighbour to the South after Seoul and Washington postponed their annual large-scale military exercises until after the 2018 Winter Olympics.

The Trump administration is planning a massive expansion of offshore drilling by opening up protected areas in the Pacific and Atlantic oceans.

US crude oil inventories dropped sharply sharply last week, albeit alongside big increases in product stockpiles as refineries ramped-up production.

Rate-setters in the US continue to see a need for a "gradual" pace of monetary policy tightening, but are also in agreement that the behaviour of prices and of the shape of the government bond yield curve need monitoring, the minutes of the Federal Reserve's last policy meeting revealed.

Political unrest in Iran helped oil hit its highest price in more than two years on Thursday as OPEC-led output cuts and cold weather in North America boosted demand for the fossil fuel.

Activity in the US services sector slowed less than initially estimated in December, according to figures out on Thursday.

Private sector employment in the US unexpectedly rose in December, according to data released by ADP on Thursday.

China's services sector grew at its fastest pace in more than three years in December, according to a survey released overnight.

Business activity in the eurozone accelerated more than initially estimated in December, with economic growth hitting its highest level since early 2011, according to figures released on Thursday.

Ford saw sales rise 0. 9% across the US in December in comparison to a year ago, a figure principally driven by the 89,385 F-Series pickup trucks sold throughout the month, which was more than twice as the 44,871 total of all other Ford passenger cars sold throughout the month.

Growth in the US economy’s manufacturing sector unexpectedly improved in December, according to data from the US Institute for Supply Management.

France is preparing for a series of privatisations in 2018 to raise funds for the government's spending plans, it was reported on Wednesday.

Germany's unemployment rate plumbed a fresh record low last month, falling to its least since the country's reunification in 1990.

Growth in the US manufacturing sector accelerated in December, according to PMI figures released on Tuesday.

Purchasing managers' surveys for China's factory sector painted a mixed picture for activity in the Asian giant's factory sector last month.

Activity in the eurozone manufacturing sector improved in December, as expected, ending 2017 with record-high growth, according to data released on Tuesday.