Weekly review

The FTSE closed the week down 6.09 points to 6,724.

Equity view

FTSE 100 consumer goods group Reckitt Benckiser posted a drop in first-half pre-tax profit but a rise in revenue, as it reaffirmed its full-year net revenue target at the lower end of its guidance range.

British Airways owner International Consolidated Airlines Group presented its results for the six months to 30 June on Friday, with second quarter operating profit reaching €555m before exceptional items, up from €530m last year.

Half year pre-tax profits at Barclays fell 21% to £2. 06bn, reflecting the costs of offloading its non-core business.

Subscription broadcaster Sky posted results for the year to 30 June on Thursday morning, reporting a 7% increase in revenue to £11. 965bn, with adjusted operating profit up 12% to £1. 558bn.

Weir Group announced on Thursday that chief executive Keith Cochane is stepping down as the engineering giant reported a drop in first half pre-tax profit.

Weapons maker BAE Systems posted a first-half net profit of £418m against £398m a year ago as revenues rose to £8. 7bn from £8. 4bn.

Underlying pre-tax profits at Rolls-Royce fell 76% to £104m in the first half as underlying revenues came in at a better-than-expected £6. 14bn, a decline of 5%.

BT got off to an encouraging start to its financial year, with profits beating market expectations helped by a healthy contribution from the continuing integration of mobile arm EE since January's acquisition.

Asset management company Schroders posted its half-year results to 30 June on Thursday, with profit before tax dropping to £282. 3m from £290. 3m.

Lloyds Banking Group generated a bigger pre-tax profit in the first half of the year that was expected and has begun the process of cutting 3,000 jobs, closing 200 branches and selling almost third of other properties to cut costs.

Drug giant AstraZeneca posted its first half results on Thursday, with total revenue down by 3% at constant exchange rates to $11. 718bn as expected, reflecting a 2% decline in product sales to $11. 034bn.

Royal Dutch Shell’s second quarter profits dropped 72% due to lower oil prices and narrower refining margins, though the dividend was held steady despite a stonking 94% fall in earnings.

ITV's revenue growth slowed in the latter part of the first half of the year and, as the broadcaster cautioned that television advertising is likely to be down in the third quarter, it hiked the interim dividend 26% to 2. 4p to keep investor's glued.

Chipmaker ARM Holdings posted its second-quarter numbers on Wednesday, with group revenues in USD growing 9% year-on-year to $387. 6m and 17% in GBP to £267. 6m in the three months to 30 June.

Housebuilder Taylor Wimpey said the UK decision to leave the European Union in the month since the referendum vote had not impacted on trading as it reported a 12% percent rise in first-half pre-tax profits to £267m.

Imperial Leather maker PZ Cussons reported a drop in pre-tax profit for the year to the end of May but sounded a more optimistic note on its future prospects.

Engineer GKN reported a drop in first-half pre-tax profit and said it expects to book a charge in the second half of the year as it looks to cut costs, although revenue was boosted by acquisitions.

BP underlying profits almost halved in the second quarter but the oil giant reduced the level of statutory losses for the first six months of the year and said it was drawing a line under the liabilities for the Deepwater Horizon oil disaster at $61. 6bn.

Hammerson posted its half-year report for the six months to 30 June on Monday, with net rental income improving 5. 1% to £167. 7m during the period, or 2. 1% on a like-for-like basis.

Low-cost carrier Ryanair flew higher on Monday after it posted a rise in first-quarter profit as traffic grew and maintained its full-year profit guidance, although the company warned of “significant risks” post Brexit.

Economic news

Mortgage approvals fell in the run-up to the EU referendum in June, below expectations, according to the Bank of England on Friday, but lending to consumers increased.

Confidence among UK manufacturers has slumped across the board since Britain voted to leave the European Union, according to sector lobby group EEF.

Consumer confidence in the UK fell to its lowest level in 26 years in July, more than analysts' expectations, due to uncertainties surrounding Brexit as Britons became gloomy about the economy, Gfk said.

House price growth was steady in July but it’s too early tell if there is any impact from Brexit, according to Nationwide on Thursday.

Construction workloads and employment in the sector continued to grow slowly as Brexit uncertainty delayed investment in recent months, according to the industry body for chartered surveyors.

UK retailers saw sales volumes drop at the fastest rate in over four years in early July and expect the decline to continue at a similar pace in the coming month, according to a survey of the sector by CBI carried out after the Brexit vote.

UK economic growth accelerated slightly more than expected in the second quarter, though the official data showed a significant loss of momentum even before the Brexit decision began to take effect and so may not be enough to stop the Bank of England from cutting interest rates next week.

UK manufacturing output declined at a faster pace post the Brexit vote last month, the CBI Industrial Trends survey indicated on Monday, which also sent business optimism plunging at its fastest rate in seven years.

International events

Consumer sentiment in the US deteriorated a touch more than expected in July amid concerns about the UK’s vote to leave the European Union.

The US economy grew much less than expected in the second quarter, according to preliminary data released by the Commerce Department on Friday.

Japan remained in deflation in June as the central bank boosted stimulus measures on Friday. The Bank of Japan kept interest rates unchanged at -0. 1% on Friday but said it will increase purchases of exchange-traded funds.

Inflation in the eurozone came in higher than expected for July, according to a flash estimate by Eurostat. The eurozone unemployment rate was unchanged in June.

Economic growth in the eurozone slowed in the second quarter, as expected.

US durable goods orders fell more than expected in June, according to data from the Commerce Department.

The Federal Reserve kept interest rates unchanged, as expected, but a hawkish policy statement signalled the central bank may raise rates in coming months.

German business confidence for July came in stronger than expected, according to a widely-followed survey by IFO.