Weekly review

The FTSE 100 ended the week up 242.63 points to 5950.23.

Equity view

Barclays's investment bank chief Tom King announced he would retire next month, the lender confirmed on Friday.

Specialist menswear retailer Moss Bros has appointed Tony Bennett as group finance director and Paula Minowa as chief operating officer

Property developer Segro said its full year net asset value rose 21% to 463p a share, while pre-tax profits increased to £6865m from £654m.

Millennium & Copthorne Hotels posted an 86% drop in fourth quarter pre-tax profit despite a slight gain in revenue.

A thirsty clientele saw volumes increase at Coca-Cola HBC in the year ended 31 December, and earnings were slightly ahead despite foreign exchange having an adverse impact on revenues.

Standard Life bucked volatile global markets to post a 9% rise in pre-tax operating profits to £665m with a £38m reduction in the spread/risk margin and diluted operating EPS of 261p.

Supermarket group Morrisons could be a £64bn takeover target for Tesco or a private equity consortium led by Permira, according to newspaper reports.

Asda boss Andy Clarke claimed the supermarket was "not in crisis" despite sales worsening in the fourth quarter and market share shrinking.

Anglo American’s credit rating was cut to junk for the third time this week on Thursday. Anglo American posted on Tuesday a pre-tax loss of $55bn after $38bn of write-downs since the half year, as it unveiled its promised "radical" overhaul of the business to counter crumbling commodity prices

British Gas owner Centrica reported a 15% drop in pre-tax profit for 2015 as revenue declined, but earnings were still ahead of expectations.

Shares in Tullow Oil sank after the oil and gas exploration company said it had identified a potential issue with the turret bearing on the vessel serving its Jubilee field offshore Ghana.

BAE Systems has posted full year results that are in line with City expectations and issued guidance that underlying earnings per share will rise between 5-10% in 2016 as it enters what it says is an improved business environment.

Vodafone was looking at a £29bn fundraise on Thursday, through the issue of mandatory convertible bonds.

Rexam was looking at a year of positive sales growth on Thursday, but fluctuations in currency and lower prices saw earnings head south in the 12 months to 31 December.

Glencore was shoring up access to its future cash requirements on Wednesday, announcing it had signed a new revolving credit facility of a similar scope to its current one.

Paper maker Mondi said it expected full year underlying operating profits to be higher than the €767m (£5937m) achieved in 2014.

Mixed global conditions made 2015 a rocky ride for Spectris, with the company's full year results to 31 December - released on Tuesday - showing increased sales, but depressed earnings.

Ramping up the pressure in the cut-throat grocery sector, Aldi said it would hire 5,000 staff as it opens over 80 stores this year, amid analyst allegations that the discounter has been "rattled" by competitors.

Acacia Mining remained confident in a low gold price environment at the end of 2015, with the company reporting muted full year numbers on Monday, but an ongoing cost cutting plan to ensure sustainability.

Economic news

UK retail sales surged past expectations in January as consumers stocked up on furniture and electrical goods, data from the Office for National Statistics revealed on Friday.Sales jumped 5.2% in January compared to the same month a year ago, beating analysts’ estimates for a 3.4% increase.

UK government finances improved at the start of the year, buoyed by the typical January rise in tax receipts, albeit by slightly less than economists had pencilled in. Public sector net borrowing for the financial year-to date, excluding public sector banks, fell by £10.6bn to £66.5bn in the current financial year-to-date, according to the Office for National Statistics.

Prime Minister David Cameron ran into some unexpected opposition from his European peers during the negotiations that took place overnight in Brussels to keep the UK within a reformed European Union.

Bank of England deputy governor for financial stability Jon Cunliffe said market expectations of some for an interest rate hike in 2019 is not his central view.

Levels of UK mortgage lending declined 9% in January compared to the previous month, yet it was the best start to the year since 2008.

The number of people in Britain who see the Bank of England raising interest rates over the next 12 months has fallen dramatically, a survey revealed on Wednesday.

The cost of living in the UK decreased sharply at the start of the year, weighed down by declines in the prices for clothing and footwear and those for furniture and household equipment. The consumer price index retreated by 0.8% month-on-month in January and increased by 0.3% year-on-year, according to the Office for National Statistics.

International events

US inflation rose more than expected in January as the fall in energy prices eased, the Bureau of Labor Statistics revealed on Friday. The consumer price index increased 1.4% year-on-year last month, beating analysts’ estimates for 1.3% growth and marking a considerable pick-up from December’s 0.7% gain.

The head of China’s securities regulator, Xiao Gang, is reportedly stepping down to be succeeded by the chairman of Agricultural Bank of China, Liu Shiyu.

US industrial production rose more than expected in January, according to data released by the Federal Reserve. Industrial output increased a seasonally-adjusted 0.9% last month compared with a downwardly-revised 0.7% drop in December and beating economists’ expectations for a 0.4% gain.

European Central Bank policymakers weighed pre-emptive monetary stimulus to address prolonged low inflation and weak global economic growth, an account of the 21 January policy meeting revealed on Thursday.

China banks granted more new loans than expected in January, boosted by increased injections from the central bank ahead of the Lunar New Year. Banks extended a record 2.51trn yuan of new loans in January, beating analysts’ estimates of 1.9trn yuan. The previous month banks granted 597.8bn yuan of new loans.

Activity in the US housing sector cooled more than expected at the start of the year.

US housing starts declined by 3.8% month-on-month in January to reach an annualised pace of 1.01m, according to the Department of Commerce.

Data from the Energy Information Administration on Thursday showed US crude inventories rose by 2.1m barrels last week to a peak of 504.1m barrels. It marked the third week of record highs in the past month and added to concerns about the global oversupply.

Iranian oil minister Bijan Zanganeh on Thursday welcomed the Saudi-Russian initiative aimed at capping oil production at their respective January output levels but did not commit to limiting his own country's production level.