Weekly review

The FTSE 100 closed the week 55.81 points higher at 7,068.17.

Equity view

The US Department of Justice has filed a lawsuit against Barclays and two of its former executives on civil charges of fraud in the sale of mortgage-backed securities in the run-up to the financial crisis.

Barclays said on Friday that it rejects the claims made in the complaint and considers that they are “are disconnected from the facts”.

Legal & General has poached Ernst & Young senior partner Jeff Davies to be its new chief financial officer.

Oil giant Royal Dutch Shell on Thursday completed the sale of its 51% stake in its refining business in Malaysia for $66. 3m.

Royal Bank of Scotland and Barclays were among the banks fined CHF99m (£78m) by the Swiss competition regulator for interest rate rigging in four separate cartels.

AIM-listed residential property developer Telford Homes has exchanged contracts for the sale of its third build-to-rent development, The Forge, to M&G Real Estate for £48. 6m.

Coca-Cola has reached an agreement with Anheuser Busch-InBev to buy the Belgian Brewer’s 54. 5% equity stake in Coca-Cola Beverages Africa for $3. 15bn.

Meggitt and QinetiQ confirmed on Wednesday morning that QinetiQ has acquired Meggitt Defence Systems and Meggitt Holdings Canada, together Meggitt Target Systems, from Meggitt for £57. 5m on a cash-free, debt-free basis.

FTSE 250-listed John Laing Infrastructure Fund has agreed to buy a 6% stake in a UK high-speed rail project, its first investment in rail rolling stock, from John Laing Investments for £42. 4m.

Dairy Crest has agreed a research partnership with DuPont to try and expand the market for its galacto-oligosaccharide (GOS) byproduct, which has so far been used as a prebiotic in infant formula.

Matthew Lester will step down as chief finance officer of Royal Mail following the company’s annual general meeting in July next year.

Euronext, a pan-European stock exchange, has entered into negotiations with the London Stock Exchange and clearing house LCH Group, to buy the latter's French-regulated operating subsidiary, LCH SA.

Pharmaceutical giant GlaxoSmithKline said it achieved positive results from a phase three HIV study, which assessed the efficiency of a two-drug regimen.

Lloyd's Bank said it was buying credit card business MBNA from Bank of America for £1. 9bn.

Drax powered ahead on Monday after the European Commission approved the UK’s support of its plans to convert a unit of its power station from coal to biomass.

Economic news

The UK economy grew more than initially estimated in the third quarter, according to figures released by the Office for National Statistics on Friday.

Growth for the three months following the Brexit vote was revised up to 0.6% from a previous estimate of 0.5%.

Other figures from the ONS showed the current account deficit widened in the third quarter to £25.5bn from £22.1bn in the second. The deficit in goods trade widened to a record £38.7bn, but trade in services hit a record surplus of £25.1bn.

Consumer confidence in the UK improved a touch in December, but the public are much less confident when it comes to their expectations for next year.

UK public finances improved last month and are on track to at least meet the Chancellor's revised targets, although total public borrowing reached its highest level of the year.

UK retail sales grew more than expected in the year to December, with volumes rising at their fastest pace since September last year, according to the latest survey from the Confederation of British Industry.

UK house prices should continue to climb in 2017 despite a slowing of the economy, building society Nationwide has predicted, helped by housebuilders and government policy keeping a squeeze on the housing supply pipeline.

Two out of five UK companies will recruit more staff in 2017 in spite of concerns about Brexit, according to a survey from the CBI published on Monday.

International events

The US economy grew more than initially estimated in the third quarter, marking its strongest quarterly pace of growth in two years, according to data released by the Commerce Department on Thursday.

The number of Americans filing for unemployment benefits rose more than expected last week, according to data released by the Labor Department.

Sales of existing US homes unexpectedly rose in November, according to data from the National Association of Realtors.

International Monetary Fund chief Christine Lagarde has been backed by the organisation despite being found guilty of negligence in a French court on Monday.

The current account surplus in the eurozone widened in October, according to figures released by the European Central Bank on Tuesday.

Growth in the US services sector unexpectedly eased in December, to a three-month low, according to figures released on Monday.