Weekly review

The FTSE 100 lost 110.03 points during the week to end at 6,730.72.

Equity view

Property developer Berkeley Group reported a better-than-expected increase in first half earnings and revenue on Friday, boosted by continued strength in the London market.

Glencore’s plan to reduce its debt as commodity prices retreat is near completion as it finalised the sales of its agriculture and Australian rail businesses, while it plans to return $1bn to shareholders.

Grainger’s full-year profits rose as it secured £389m of investment and sold non-core businesses as part of its growth strategy.

Daily Mail & General Trust reported a drop in pre-tax profit and operating profit for the year to the end of September, amid challenging market conditions for print advertising revenues, but the results were ahead of expectations.

FTSE 250 service company Serco reiterated its outlook for next year as it said it should move into the ‘growth’ phase of its transformation plan in 2018 and announced a £600m contract with Barts Health NHS Trust for the provision of soft facilities management services.

Rio Tinto confirmed on Thursday that it is co-operating with inquiries from the relevant authorities relating to the impairment included in the company's 2012 accounts in respect of Rio Tinto Coal Mozambique.

Aerospace and defence group Rolls-Royce plans to cut around 800 jobs worldwide to make savings in its marine business.

Residential property developer Telford Homes reported a drop in interim pre-tax profit but said it remains confident of meeting current market expectations for reported profit in the year to the end of March 2017.

First half profits at Greene King bubbled higher thanks to tasty organic growth and the first seven weeks from the acquired Spirit pubs business, but the brewer served up a side order of caution about rising consumer and cost pressures.

Zoopla reported a rise in full-year profit and revenue and announced the acquisition of estate agency website design and hosting business Technicweb.

Wealth management company Brewin Dolphin reported a drop in pre-tax profit for the year to the end of September, but the results were better than expected.

Online financial trader IG Group is trading in line with expectations after a “strong” second quarter.

Royal Bank of Scotland has been forced to submit plans to improve its capital position after failing the Bank of England's annual stress tests, while rivals Barclays and Standard Chartered stumbled over some hurdles but not badly enough to require raising new funds.

Plastic products maker RPC Group achieved record half year revenue and profit on the back of its so-called ‘Vision 2020’ strategy.

Accounting software company Sage Group’s annual revenues and earnings were slightly higher than forecast as it implemented the first phase of its growth strategy.

Countryside Properties reported a rise in full-year pre-tax profit and revenue as it said 2016 was “another positive year” for the housebuilding sector.

FTSE 250 real estate investment trust Shaftesbury reported a drop in profit for the year to the end of September but a rise in revenue, as it expressed confidence in its outlook.

In a brusque pre-close statement, Merlin Entertainment said it expected to report "good profit growth" for the full year in line with expectations, revealing a strong Halloween for its resorts but hinting at more soft trading at some other segments.

Food producer Cranswick unveiled a succulent set of first-half numbers, with profits plumped up by acquisitions in its poultry and pork businesses, but a pinch of salt to be taken ahead of the important festive period.

Topps Tiles reported a 17% rise in pre-tax profit for the 52 weeks ended 1 October as revenue grew to record levels and the company sounded a positive note on its outlook.

Whitbread has set out a target to make £150m of cost savings over the next five years in order to counter headwinds such as the National Living Wage, business rates and currency inflation.

Economic news

UK consumer confidence dipped again in November and economists warned this could soon seen consumers tightening their belts and removing a key driver of the economy. The European Commission’s index of consumer confidence dipped to a three-month low of -6.9 in November from -3.3 in October and -1.7 in September, having rebounded from lows of -7.5 in August and -9.2 in July after the Brexit vote.

The UK construction sector expanded further in November with business activity and new orders increasing at the strongest pace in eight months. The Markit/CIPS purchasing managers’ index rose to 52.8 in November from 52.6 in October, beating forecasts for a reading of 52.2.

Brexit secretary David Davis has suggested that Britain may pay for access to the European single market once it leaves the EU.

Growth in the UK manufacturing sector unexpectedly eased November as the weak pound continued to drive up price pressures at manufacturers. The Markit/CIPS manufacturing purchasing managers’ index fell to 53.4 in November from 54.2 the month before.

UK house price growth slowed in November as demand continued to outstrip supply, Nationwide revealed on Thursday. Prices increased an annualised 4.4% last month following a 4.6% rise in October. Economists had expected a 4.7% gain.

Bank of England Governor Mark Carney has said Britain is “Europe’s investment banker” but warned that greater clarity over Brexit is needed for businesses.

Consumer confidence in the UK fell further in November amid worries about the impact of the Brexit vote, according to the latest survey from market research firm GfK.

UK mortgage approvals and total levels of consumer credit rose more than expected in October, according to Bank of England data published on Tuesday.

UK services businesses have become less optimistic in the last month as sluggish consumer spending and rising wages place a strain on the sector and its profits, according to a survey by CBI on Monday.

International events

Spending in the construction sector in the United States rose at its strongest pace in seven months in October, boosted by activity in the residential sector, the Commerce Department reveals.

Growth in the US economy’s manufacturing sector improved more than expected in November, according to the US Institute for Supply Management. The ISM’s headline manufacturing index rose to 53.2 from 51.9 the month before.

Manufacturing activity grew more than initially estimated in November, according to Markit’s PMI data released on Thursday. Markit’s final US manufacturing purchasing managers’ index rose to 54.1 last month from 53.4 in October and the flash reading of 53.9.

US initial weekly unemployment claims grew by 17,000 to reach 268,000 over the seven days ending on 26 November, according to the Department of Labor.

Activity at Chinese factories continued to show resilience in November but amid some potential signs of an impending slowdown. Caixin's Chinese manufacturing sector purchasing managers' index slipped from a 27-month high of 51.2 in October to 50.9 for November, edging past forecasts for a reading of 50.8.

IHS Markit’s final eurozone manufacturing purchasing managers’ index came in at 53. 7 in November, in line with the flash estimate and up from 53.5 in October.

A meeting of the Organisation of Petroleum Exporting Countries in Vienna has led to an agreement to cut oil production levels to 32. 5m barrels per day, reducing output by 1.2m barrels per day.

Donald Trump has confirmed that he will not be pursuing his business interests while he serves as President of the United States, after previously dismissing concerns that his business life would interfere with his time in office.

Private sector employment in the US rose a lot more than expected in November, according to data released by ADP on Wednesday. Employers added 216,000 jobs, which was a much bigger increase than the 165,000 expected by economists. Meanwhile, the October figure was revised down to show that 119,000 jobs had been added rather than the 147,000 previously estimated.

US consumer spending rose less than expected in October even as personal incomes edged higher than anticipated, the Commerce Department revealed on Wednesday. Personal spending climbed 0.3% in October following an upwardly revised 0.7% increase a month earlier, missing forecasts for a 0.5% gain. Incomes expanded 0.6% last month after an upwardly revised 0.4% rise in September, beating estimates for unchanged growth.

Consumer prices in the euro area were up 0.6% in November from a year ago, compared to 0.5% in October, in line with economists’ forecasts, according to Eurosat.

Consumer spirits jumped back to their pre-recession levels in the States ahead of the presidential elections, according to the Conference Board, one of the most widely-followed sentiment gauges.

The US economy grew more than initially estimated in the third quarter, according to data released by the Commerce Department. Gross domestic product grew at an annual rate of 3.2%, up from an earlier estimate of 2.9% and beating consensus expectations for 3% growth. This compared to 1.4% in the second quarter and marked the strongest reading in two years.

The European Commission’s headline economic sentiment index edged up to 106.5 in November from a revised 106. 4 in October, missing economists’ expectations for a reading of 107. 0.