Weekly review

The FTSE 100 ended the week up 10.18 points to 6,156.32.

Equity view

Asda continued to struggle, the supermarket chain's US parent Walmart admitted as it released first quarter results, with the UK division seeing declines in traffic and food volumes.

Investors were seemingly pleased with the provisional findings of the Competition and Markets Authority into the merger between bookmakers Ladbrokes and Gala Coral, with a smaller number of outlets needed to be sold than anticipated.

Investment company Riverstone Energy said its first quarter net asset value fell to $1. 33bn from $1. 34bn at the end of 2015, but said the current oil price slump was creating a "fertile" environment for investment.

Menswear retailer Moss Bros reported a 3. 3% rise in total sales in the 15 weeks to 14 May on Friday, as investors gathered for the annual general meeting, with like-for-like sales up 5%.

Precision instruments maker Spectris reported a drop in like-for-like sales in a trading update for 1 January to 30 April, but reported sales grew thanks to acquisitions.

Aerospace component maker Meggitt said it has won a $35m contract for surface and aerial targets from Canadian Department of National Defence.

Shares in Mothercare were up more than 4% as it flagged significant progress towards returning its UK operation to profitability.

Investment management firm Brewin Dolphin reported a 2. 5% uptick in total funds in its first half on Thursday, to £32. 8bn, though the costs of business restructuring seriously ate into its profits.

Distribution group Electrocomponents said full-year pre-tax profits fell 63. 7% to £34. 9m due to an exceptional restructuring charge of £41. 9m, although it added that underlying sales growth in the first six months of the new year had risen 3.5%.

A slump in advertising revenues and weak energy and commodities markets saw first half pre-tax profits at media group Euromoney plunge to £23.4m from £93m.

Dairy Crest reported a 23% rise in profit for the year ended 31 March and expressed confidence it could growth its market share.

Financial services firm Hargreaves Lansdown (HL) said assets under administration rose 9% to £60. 3bn in the four months to April 30, despite a quarter of investors saying uncertainty over Britain's EU membership was “reducing their propensity to invest”.

International infrastructure group Balfour Beatty was setting up for its annual general meeting on Thursday morning, where it was set to assure investors its transformation programme was progressing well.

After delivering a total return of 22% and lifted net asset value 17% per share in the year to 31 March, private equity giant 3i Group cheered investors further with a healthy payout and an improved dividend policy.

Full year pre-tax profits at food wholesaler Booker Group rose 9% to £150.8m on the back of a 5% increase in revenues to £4.9bn.

Shares in Thomas Cook tanked on Thursday after the tour operated posted a narrower loss for the first half of the year but said summer bookings were down 5% and underlying earnings for the year are expected to be at the lower end of market views.

Royal Mail posted better-than-expected full year pre-tax profits of £538m, despite a 3% fall in addressed letter volumes, as cost controls took effect.

Smith & Nephew has agreed to sell its gynaecology business for $350m to New York-based Medtronic, of which $300m will be returned to shareholder via a share buyback.

Megabrewer SABMiller reported a 10% drop in revenue for the year in its preliminary results on Wednesday to $19. 8bn, though the company did claim 7% organic revenue growth at constant currencies in the year to 31 March.

London Stock Exchange provided an update on its merger with Deutsche Börse, informing that shareholder documents will be published in June and shareholder meetings required in connection with the merger will take place in July.

Coca-Cola HBC proposes declaring a gross dividend of €0. 4 a share, subject to approval at the AGM on 21 June, and also a raft of director changes. It expects the dividend to be paid 26 July, having gone ex-divided on 30 June.

A strong performance in the fourth quarter helped Vodafone return to annual organic growth for the first time in eight years, with the final dividend also hiked 2% to celebrate completing its Project Spring investment programme.

Land Securities posted what it described as “strong” preliminary results on Tuesday, with asset values, revenue and earnings all increasing in the 12 months to 31 March.

Full year underlying profits at British Land rose to £363m from £313m driven by successful leasing activity and lower financing costs, while net asset value jumped to 919p from 829p.

Group revenue took a 6% hit at ICAP in the year to 31 March, it reported on Monday, to £1. 2bn as the dealer broker described markets at challenging.

Economic news

UK industrial orders improved marginally in May with the order balance down 8%, from a drop of 11% in April and against the market's expectation for a fall of 13%, a Confederation of British Industry (CBI) survey showed today.

UK retail sales rose more than expected in April, driven by sales of food and household goods, official data showed on Thursday.

The campaign to keep the United Kingdom within the European Union has taken an 18 percentage-point lead over the drive for it to leave, helping lever sterling higher against the euro and US dollar, according to Ipsos Mori’s Political Monitor poll.

The UK added more jobs to the economy than forecast in the three months to March while wage growth unexpectedly accelerated, official data showed on Wednesday.

UK house price growth accelerated to 9. 0% in March compared to the previous year, according to the ONS, mostly due to the surge in demand for second homes ahead of an increase in buy-to-let stamp duty.

British house purchase lending spiked 60% higher in March on a monthly and annual basis as investors rushed to beat the buy-to-let stamp duty increase in April, according to the Council of Mortgage Lenders.

UK inflation slowed more than expected in April to 0.3% year-on-year from 0.5% in March, moving further away from the Bank of England's 2% target, official data showed on Tuesday.

The UK’s headline unemployment rate will hold steady at 5. 1% in March, with wage growth picking up to 3. 75% by year end, says Pantheon Macroeconomics.

Asking prices for homes in England and Wales have reached a record average of £308,151 in May, according to Rightmove on Monday.

Global economic risks and uncertainty ahead of the 23 June referendum on membership of the European Union were beginning to weigh on investment plans in the UK, leading the Confederation of British Industry to downgrade its forecasts for growth in 2016 and 2017.

International events

The EgyptAir flight that disappeared over the eastern Mediterranean in the early hours of Thursday morning made two sharp turns before losing altitude and radar controllers lost contact with the aircraft.

The US economy needs to reach a higher rate of so-called potential growth before raising interest rates, the central bank's vice-president Stanley Fischer said in a statement.

Greek finances were in far better health over the first four months of 2016 than markets had expected. The Mediterranean country ran a €2.4bn so-called primary surplus, excluding interest payments on its debt, compared to analysts’ estimates of €566m.

The number of Americans filing for unemployment benefits fell a little less than expected last week, according to the Labor Department.

A hike in short-term interest rates could well be on the table when rate-setters in Washington DC meet in mid-June, the minutes of their most recent deliberations showed.

US oil inventories rose in the latest week, even as product stockpiles registered large drops, official data showed.

The cost of living in the US increased slightly more quickly than expected in April in comparison to the month before but dipped versus the same period one year ago, as expected. The consumer price index advanced at a 0.4% month-on-month pace in April, following a rise of 0.1% in March, according to the Bureau of Labor Statistics.