Weekly review
The FTSE 100 closed the week down 14.99 points to 7,184.49 points.
Equity view
The boards of food retailer Tesco and wholesaler Booker Group announced on Friday that they have reached an agreement on the terms of a recommended share and cash merger to create the UK's leading food business.
BT’s third quarter revenue increased but earnings were down as the telecoms giant deals with an accounting scandal at its Italian business, while it also faces a more challenging outlook in the UK.
Card Factory said on Thursday that it is confident of delivering full-year underlying pre-tax profit slightly ahead of analyst consensus as it reported a rise in sales for the 11 months to the end of December and announced the departure of its chief financial officer.
FTSE 100 software company Sage said trading in the first quarter has been in line with its expectations and it is confident of achieving guidance of at least 6% organic revenue growth for the year, as it announced the possible sale of its US payments business.
Sky's profits fell in the first half of the year as it absorbed a step-up in costs for Premier League broadcasting rights, invested in Germany and Italy, and launched its mobile service in the UK.
Kier Group said on Thursday its full year results are expected to be “second-half weighted" in line with the previous year.
Although trading activity improved at CMC Markets in the third quarter, revenue per client was lower and the spread betting and CFD provider continues to endure anxiety over a regulatory crackdown proposed late last year in the UK and several other key markets.
Rank Group posted its half-year results for the six months to 31 December on Thursday, with like-for-like group revenue up 2% to £378. 6m.
Royal Bank of Scotland has confirmed it will take a further £3. 1bn provisions to pay off a looming penalty in the US for its sale of residential mortgage-backed securities in the run up to the financial crisis.
Euromoney Institutional Investor, an international business information and events group, has gained from the fall in the pound against the dollar during a quiet period in the first quarter.
Half-year sales surged at Diageo, the owner of Guinness, Smirnoff and Pimm’s, as it benefitted from favourable foreign exchange rates and was also bolstered by an improved performance in the US spirits market.
Barclays has begun planning to make Dublin its European headquarters, once Britain leaves the European Union, according to a Reuters report on Thursday afternoon.
Whitbread, the owner of Costa coffee and Premier Inn, reported third quarter revenue rose and that it will meet full year expectations, as it remains on track with its growth plans.
Mining giant BHP Billiton posted its operational review for the half year to 31 December on Wednesday, with record production achieved at Western Australia Iron Ore, and total iron ore production of 118 Mt - a 4% rise year-on-year.
Fresnillo achieved record gold and silver production in 2016, even though the miner experienced some delays in implementing its turnaround plan.
After like-for-like sales continued to slip in the fourth quarter of 2016, The Restaurant Group's new chief executive, Andy McCue, plans a "substantial" revamp of its casual dining chains as part of a group-wide "transformation programme".
As WH Smith embarks on an uncertain 225th year, the stationer expressed confidence about 2017 as sales have grown and it expects profit to be "slightly" ahead of expectations thanks mainly to its outlets in stations and airports.
Hargreaves Lansdown has appointed Philip Johnson as chief financial officer, joining the company on 20 February. Hargreaves also confirmed the appointment of deputy chief executive and CFO Chris Hill as chief executive officer.
Consumer goods firm PZ Cussons, which produces Imperial Leather soap, reported a 38% drop in pre-tax profit for the first half of the year, due to challenging conditions in Nigeria in Australia, while it maintained that it is on track to meet full year expectations.
Dixons Carphone posted its fifth consecutive year of Christmas growth on Tuesday, with revenue ahead 4% on a like-for-like basis for the 10 weeks to 7 January.
EasyJet reported a “solid” first quarter with revenue, costs and passengers numbers in line with expectations, as the budget airline said the effects of weak sterling and fuel prices was worse than it expected.
Petra Diamonds posted its unaudited trading update for the six months to 31 December on Monday, ahead of the publication of its interim results for the period on 20 February.
Computacenter said on Monday that adjusted pre-tax full-year results are anticipated to be in line with its expectations, as it reported a rise in group revenue for the year to the end of December.
Economic news
British manufacturers have reported the strongest inflow of orders in nearly two years, according to the Confederation of British Industry, but are seeing costs rise sharply.
Retail sales volumes in the UK dropped sharply in January, especially for supermarket groups, according to data released by CBI on Thursday.
The UK economy grew more than expected in the fourth quarter of 2016 despite the uncertainty surrounding Brexit, according to a preliminary estimate from the Office for National Statistics on Thursday.
UK banks increased lending levels in December, according to data from BBA published on Thursday, though demand is expected to soften in 2017 as consumers and businesses anticipate higher interest rates.
UK public finances improved modestly in December compared to a year earlier, putting Chancellor Phillip Hammond on track to reach his budget deficit target for the current financial year.
International events
UK Prime Minister Theresa May met with US President Donald Trump in Washington on Friday with hopes of forging a new "special relationship" and paving the way for a trade deal after Brexit.
US consumer confidence in January rose to its highest level since 2004, driven by a more optimistic outlook for the economy and for job growth. The University of Michigan’s consumer sentiment index increased to 98.5 in January from 98.2 the previous month, beating analysts’ estimates for a reading of 98.1.
The US economy slowed noticeably in the fourth quarter 2016, weighed down by a negative contribution from international trade and lower federal government spending. GDP rose at an annual rate of 1.9% in the final quarter of 2016, down from 3.5% in the third quarter and below analysts’ estimates of 2.2%.
US durable goods orders fell 0.4% in December due to a sharp decline in demand for defence aircraft, the Commerce Department revealed, missing estimates for a 2.6% rise and following a 4.8% drop in November.
US jobless claims jumped past forecasts, despite the impact of the Martin Luther King Jr. holiday falling at the start of the latest reference week.
US President Donald Trump's meeting with Mexican President Enrique Peña Nieto did not go ahead after the latter cancelled his trip to Washington following a war of words about the construction of a wall on America's southern border.
Sales of new US single-family homes fell more than expected in December, according to official data released on Thursday.
Service sector activity in the States accelerated by much more than expected at the start of 2017, according to Markit.
US crude oil and product stockpiles increased sharply during the latest reference week, despite a drop in imports, the Energy Information Administration said.
German business confidence unexpectedly deteriorated in January, according to widely-followed survey Ifo.
US President Donald Trump has reversed a key decision made by predecessor Barack Obama by signing an executive order to pave the way for the expansion of the Keystone and Dakota Access oil pipelines.
Markit’s eurozone manufacturing purchasing managers' index rose to 55. 1 from 54. 9 in the previous month, exceeding analysts’ estimates for a reading of 54. 8, the highest it’s been in over five years.
Markit’s US manufacturing purchasing managers’ index improved more than expected in January.