Weekly review

The FTSE 100 ended the week up 64.93 points at 7,567.14.

Equity view

Education publisher Pearson said on Friday that total underlying revenues edged up 1% in the first quarter and that it was on track to deliver its expectations for the year.

Paper and packaging group Smurfit Kappa posted a 22% jump in first-quarter earnings on Friday as it said the full-year outcome is expected to be "materially better" than 2017.

British Airways owner International Consolidated Airlines Group (IAG) reported first quarter operating profit of €280m before exceptional items on Friday, an improvement from its restated 2017 figure of €160m.

National Grid said on Friday that Andrew Bonfield will step down as group chief financial officer to take up a role in a US public company, which will also enable him to be closer to his family.

FTSE 250 insurer Esure reported an 18% jump in first-quarter gross written premiums on Thursday thanks to a solid performance form its motor division as its home unit was hit by claims related to bad weather, with the group on track to deliver profitable growth in 2018.

Rolls-Royce said its expectations for 2018 were unchanged after reorganising spending to offset costs for extra inspections of its Trent 1000 engines.

InterContinental Hotels Group has signed an agreement with Fonciere des Regions to rebrand and operate 12 high quality open hotels and one pipeline hotel, expanding its luxury and upscale estate in the UK.

FTSE 250 insurer Lancashire Holdings posted a 48% rise in first-quarter pre-tax profit on Thursday as gross written premiums and its return on equity rose.

Insurer Direct Line reported a 5% drop in gross written premiums for the first quarter on Wednesday and warned that claims associated with the cold weather at the beginning of the year would eat up its full annual weather budget.

FTSE 250 kitchen maker Howden Joinery posted a jump in first-quarter UK revenue on Wednesday as it benefited from an extra week of trading compared to 2017, higher volumes and a weak comparative.

FTSE 250 residential landlord Grainger has sold its 50% interest in the Walworth Investment Property (WIP) joint venture to its partner, Dorrington, for £67m.

Business software provider Sage Group delivered first-half revenue growth of 6.3% in line with its recent profit warning and, assuring that it had rooted out the problems, reiterated confidence in growing revenue 7% this year and 10% in the medium-term.

Aviva on Tuesday said it would start a £600m share buy-back as it plans to spend £2bn of excess capital.

Online takeaway food specialist Just Eat scooted off to a strong start to the year, fuelled by the January acquisition of Hungryhouse as it looks to outrun competition from Deliveroo and UberEats.

Severn Trent said it had sold a site near Nottingham to house builder Persimmon for £21.8m.

Virgin Money posted a jump in its first-quarter mortgage book on Tuesday as it reaffirmed its 2018 guidance.

Mondi on Monday said it was buying Egypt's National Company for Paper Products and Import & Export (NPP) for EGP 510m (€23.7m) on a debt and cash free-basis.

Randgold said industrial disputes at its Tongon gold mine in Côte d'Ivoire would hit 2018 production guidance of 290,000 ounces although it was making efforts to recover lost output.

Anglo-South African financial services group Old Mutual said on Monday that its businesses continue to trade in line with the expectations outlined in its results back in March.

Mike Ashley's Sports Direct disclosed two US strategic investments on Monday. The company said it holds 5.66m shares in brand management company Iconic Brand Group, which represents a stake of 8.9%. It also has just under 8m shares in US athletics retail chain Finish Line, which represents a stake of 19.3%.

Economic news

One of the country's top think tanks has trimmed its medium-term forecasts for UK growth, making the argument for higher government spending in order to buttress the expansion.

Both Labour and the Conservatives failed to maintain control over key councils across England in local elections, as results streamed in on Friday.

UK services sector activity has recovered less heartily than hoped, as the first indications show April failed to recover the ground lost the previous month.

Thousands of voters across the UK were heading to the polls on Thursday for the local elections of 150 authorities across England including all of London’s 32 boroughs, though trials of new identification rules saw some people turned away.

One in five low-paid workers remains stuck in a dead-end job after 10 years, according to research for the TUC.

The main mover behind Britain’s post-crisis reform of banking regulation has warned leverage in the system is at dangerous levels and that capital buffers may not increase in time to deal with the next meltdown.

Growth in the UK's manufacturing sector fell to a 17-month low in April, further reducing the odds of an interest rate hike this month.

Bank of England figures showed consumer borrowing slumped in March, adding to concerns that the economy may be slowing sharply.

Construction activity bounced back only slightly after weakness in the first quarter undermined overall UK economic growth and confidence that the Bank of England will normalise monetary policy.

Just as the millennial generation gets used to life without avocados in the hopes of saving for a house, new data released on Tuesday suggests a cheeky session at the pub might be the way to go for their elders, if they wanted to boost their pension.

International events

Trade representatives in Beijing have hit a wall after the US delegation presented a large list of demands to President Xi Jinping’s representatives.

Eurozone business growth eased in April, according to final data released on Friday.

US labour costs shot higher at the start of 2018 as wage growth outstripped improvements in labour productivity.

A key indicator of the health the US jobs market was little changed last week, but nevertheless undershot economists' forecasts by a wide margin.

Perhaps the most widely-followed gauge of factory sector conditions in China edged higher last month, pointing to stable conditions in Asia's largest economy over the near-term, economists said.

Crude oil stockpiles in the US rocketed last week, on the back of higher net imports and continued growth in domestic output.

Growth in the US economy's manufacturing sector eased more than expected in April, according to data from the US Institute for Supply Management.

US construction spending unexpectedly fell in March, according to data released by the Commerce Department on Tuesday.

Communications titans Sprint and T-Mobile have agreed to unite under a deal valuing the new combined company at $146bn.

A key measure of US inflation has risen to the Federal Reserve’s target for the first time in a year, lifting market expectations for future US interest rate rises.